Nashpoint

Inside Nashpoint’s RWAFI Fund

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NashPoint
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Nashpoint

Traditional yield-bearing products in crypto often require users to choose between high-yield, high-volatility DeFi protocols or more consistent but harder to access TradFi alternatives.

Nashpoint’s RWAFI Fund bridges both worlds.

Built on Arbitrum One, the RWAFI Fund is a smart contract-based fund that allocates USDC across decentralized finance and tokenized real-world asset (RWA) strategies. The goal: to make high-quality yield more accessible, automated, and risk-adjusted.

Let’s break down how it works.

Here’s what’s happening under the hood:

Deposits and shares

When you deposit USDC into Nashpoint’s RWAFI Fund, you receive a share token in return. This token represents your ownership in the fund. As the fund earns yield, the value of your share tokens increases – it’s that simple.

There’s no lockup – you can withdraw your funds at any time. Simply request your funds returned, and your original investment + any earned interest will be available within 24 hours.

How you earn yield from strategy allocations

The RWAFI Fund follows a set investment strategy, allocating your money across multiple investments—including onchain stablecoin protocols and tokenized RWAs. Investor capital is loaned to borrowers on these protocols, generating interest that accrues back to you as yield.

Currently the strategy consists of:

  • AAVE (Harvest AAVE USDC)
  • Centrifuge (Janus Henderson Anemoy Treasury Fund)
  • Compound Finance (Harvest Compound USDC)
  • Gearbox Protocol (USDC V3 Pool)
  • Fluid Lending (fUSDC)
  • Revert V3 Staker (Uni V3 AMM USDC)

And there’s many more coming soon as we continue to build out integrations. This gives you access to real-world and DeFi yield, without managing each position manually.

Capital deployment & reserve management

The fund maintains a target reserve ratio – meaning a fixed percentage of total assets is held in liquid form, and gradually deployed into strategies based on target allocations and available liquidity. Targeting this reserve ratio protects returns by maintaining limited liquid assets to meet short term demand requests.

Rebalancing: Every 24 hours, Nashpoint’s offchain automation system (“Keeper”) checks the reserve.

  • If reserves exceed the target, the Keeper allocates excess funds to underweight strategies.
  • It compares current allocations to target weights and deploys capital accordingly.
  • If users have requested their funds to be returned, it will pull capital from the reserve or underlying assets to process those requests.

This happens automatically, so you don’t need to take action. Your investment is optimized in the background.

Each component's target weight is predetermined by the NashPoint team, based on risk analysis and performance goals.

You don’t have to do anything. The Keeper manages the portfolio in the background, ensuring that you get the most from your investment, and you can access your capital when you need to.

Liquidity Fee

Nashpoint RWAFI Fund operates a dynamic liquidity fee mechanism. This fee is designed to protect long term holders from short term speculators.

While the reserve ratio is above target, no fee will be applied to users looking to withdraw. When reserve is below target, a small liquidity fee will progressively be applied to withdrawals to account for transaction costs such as slippage. This fee is shared pro-rata with all existing fund depositors and does not accrue to the protocol.

Conversely, the liquidity fee will be applied as a bonus to depositors while the reserve is below target. This mechanism exists to incentivize depositors to maintain healthy levels of liquidity.

Setting strategy targets

The Nashpoint team sets target allocations based on ongoing risk assessments and performance monitoring.

Each strategy component has its own risk profile, return potential, and liquidity characteristics. By combining multiple components, the fund seeks to generate a balanced, risk-adjusted return.

These allocations can change over time as markets shift. The NashPoint team will signal upcoming changes in advance, and transactions to update the strategy will be viewable onchain.

Try It Now, Earn Rewards

Nashpoint’s RWAFI Fund is live on Arbitrum One. Depositors in the fund will earn points toward a future token airdrop.