As if the macroeconomic headwinds and regulatory uncertainties surrounding the crypto market weren’t putting enough strain on the ecosystem, it has escaped no one that the fall of the FTX house of cards has pushed the CeFi infrastructure to the brink of a complete breakdown.
Just as more and more large institutions announced their arrival into the world of digital assets, the industry has seen its Lehman moment – some would even argue its Enron moment.
Last week’s events serve as a harsh reminder that crypto has a long way to go in achieving its decentralised ideals. While it is clear yet again that CeFi doesn’t work without regulation, the case for DeFi is stronger than ever. The transparency and immutability it offers are key to rebuilding trust in the system.
However, as our Chief Product Officer told an audience of digital asset investors a few weeks ago:
“CeFi smells like TradFi, but DeFi doesn’t even smell like finance!”
We expect more and more CeFi trading to consolidate on regulated venues, an increase in over-the-counter activity with sophisticated counterparties managing their own collateral, and above all, an acceleration in the adoption of DeFi.
Our clients need the toolkit that enables them to navigate this complex and evolving landscape of centralised and decentralised venues.
Haruko remains fully committed to its mission of bringing your entire risk into one unified view.
Over the past month we have added several new features to further this good cause.
Weigh up your options
With an increased interest in trading options, we have continued to develop our volatility surface analytics and pricing toolkit.
Custom volatility surfaces and OTC options
Our brand-new feature allows you to mark custom volatility surfaces and price over-the-counter (OTC) options on any asset and expiry cut.
Multi-Leg Options Pricer, Haruko
Volatility surfaces can be auto-calibrated to market, using the SVI model or marked manually using the SABR model.
Auto-calibrate volatility smiles using the SVI model
Mark your own volatility surfaces using the SABR model
Add market events
To manage your risk precisely and exploit relative value trading opportunities, market events and their influence on asset pairs can also be marked directly.
Add market events and see their influence on the volatility curve
Create spot and implied volatility move scenarios
Spot and implied volatility move scenarios are available both for existing portfolios as well as multi-leg structures priced.
View spot and implied volatility move scenarios
Defy your DeFi challenges
Managing your DeFi portfolio successfully requires many different tools. Haruko remains committed to enabling you to navigate this space successfully. Last month we added some powerful new features:
- Automated DeFi transaction decoding — reduce your time spent on manually decoding any protocol transactions.
- Synthetic DeFi pool construction — create and manage any synthetic DeFi pools currently not covered by Haruko.
Let Haruko automatically decode your DeFi transactions
Create and manage synthetic DeFi pools
OTC and book-to-book
We now have a fully fleshed out concept of books that can face other (internal) books and (external) counterparties for OTC trades entered directly into Haruko.
You can now:
- Book spot, futures and options trades on any asset.
- Configure a set of external counterparties.
- Book internal trades with automatic back-to-back trades.
- Book synthetic DeFi positions alongside CeFi hedges.
View books of internal and external OTC trades
Add loans to your portfolio
Do you have a loan that you would like to bring into view? You can now do this by using the loan booking functionality.
You can adjust interest rates, repayment schedules, payment currency, collateral and much more to get it as detailed as you need it.
Interest accruals happen automatically and both the principal and interest feed seamlessly into risk and PnL.
Add any loans you have to your overall risk view
In other news
Enhanced coverage
We’ve added several new exchanges and protocols over the past month to reflect the ever-expanding crypto ecosystem:
DeFi integrations
- AAVE V3
- Aura Finance
- Convex FRAX
- Entropy
- Euler Finance
- Perpetual Protocol
Haruko x Enable Fund Services
We have teamed up with Enable Fund Services, a leading hedge fund platform backed by the Trovio Group, to provide existing and new clients in the APAC region with an ‘all-in-one’ operational solution to deploy capital in the crypto ecosystem.
This exciting partnership allows portfolio managers to have access to Haruko’s best-in-class platform as well as everything from initial setup analysis and structuring, optimised counterparty selection and onboarding through the ongoing institutional grade support a fund may require.
Reach out to us to find out more.
Improve your performance
Find out how Haruko can simplify your portfolio and risk management by booking in a call today.
