Samed Düzçay: Accessing Institutional Yield Strategies at Tori Finance

Key Takeaways

• Core strategy: borrow low-cost USD and deposit into higher-yield local currencies, hedging back to USD; net yield comes from interest-rate differentials (e.g., lira 40% vs USD ~4%).
• Hedge to protect principal: hedging removes FX risk and fixes short-term yield, but increases costs; unhedged positions risk overnight 10–30% currency drops and large leverage losses.
• Use regulated institutional desks for execution: Tori sets mandates and pays 20–30 bps for specialist execution, requiring local accounts, custody, KYC, and multi-party counterparty lines for stability.
• Tokenization enables composability: two-token model (redeemable dollar receipt + stake token) permits looping to amplify yield, while NAV-based pricing prevents DeFi price-manipulation cascades.
• Real-time provable reserves: Accountable runs a TEE server and zero-knowledge proofs to publish on-chain aggregates and hedging ratios, letting anyone verify reserves equal liabilities without exposing position details.
• Robust stress plans: protocol funds a reserve for small drawdowns, follows documented playbooks for DPEGs, limits redemptions, and keeps liquidity lines and a 2–3% instant redemption buffer.
• Assume breach and limit blast radius: least-privilege roles, timelocks, monitoring, multi-sig infrastructure, public audits, and contract-level 1:1 collateral enforcement prevent unbacked minting and operational exploits.

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