Strategy in Action

Levered sACRED on Polygon

In collaboration with Securitize, Morpho, and Polygon, we launched a levered real-world asset (RWA) strategy, using sACRED on Polygon PoS, the tokenized version of an Apollo-managed multi-asset credit fund.

This collaboration bridges TradFi and DeFi by driving the utility of RWAs onchain, offering enhanced yields currently unavailable in TradFi formats. This sophisticated solution enables permissioned sACRED holders to access enhanced yields using our yield optimization engine and permissionless DeFi infrastructure powered by Morpho and Polygon while maintaining appropriate risk parameters.

The first iteration of the strategy is run on Compound Blue (powered by Morpho) on Polygon PoS.

Levered FalconX CV token on Ethereum

In partnership with FalconX, Pareto, M11, and Morpho, we launched a levered RWA strategy using FalconX CV tokens on Ethereum.

The strategy uses FalconX CV tokens as collateral to borrow USDC and purchase more CV tokens within calibrated risk parameters set by Gauntlet’s optimization engine. This collaboration further bridges TradFi and DeFi, showcasing how onchain RWAs can operate as composable building blocks for institutional portfolios to achieve greater capital efficiency.

The result is a programmable, model-driven strategy to scale exposure and amplify risk-adjusted returns.

How the strategy works

1. FalconX CV tokens are supplied to a Gauntlet curated vault.

2. The vault deposits CV tokens as collateral on Morpho and borrows USDC against them.

3. The borrowed USDC is used to buy additional CV tokens, which are again deposited as collateral on Morpho.

4. The loop remains active within the risk levels established by Gauntlet’s optimization engine, which monitors supply & borrow APYs, sets appropriate LLTVs, optimizes the leverage factors, and continually assesses market health.