Q4 2025
Executive Summary
TVL: $42.5m, +18% QoQ Δ
Quarterly protocol fees: $327k, +32% QoQ Δ
Blended net APY: 9.7% across live strategies
Runway coverage: Protocol revenue + treasury yield covers ~130% of current OpEx (run rate).
What mattered this quarter
Narrow market breadth and compressed perp basis favored carry, incentives, and market-neutral sleeves over outright beta.
The Adaptive Allocation Engine (AAE) leaned on six downtrend-ready indicators (VSD, FRDM, LSI, IRS, SYSM, DTRS) to tilt away from directional risk and route to deeper venues during stress.
cbETH Fusion Vault compounded LST carry with gas-aware cadence; StableYield Allocator anchored low-volatility returns; BTC yield benefitted from disciplined funding/basis capture.
Platform Snapshot
TVL
$42.5m
+18%
Net inflows + strategy appreciation
Protocol fees
$327k
+32%
Higher volumes in cbETH / StableYield / BTC sleeves
Avg net APY
9.7%
+0.3 pp
Blended across live strategies
Tier mix
Base 34%, Bronze 29%, Silver 23%, Gold 14%
—
Share of active
Treasury (liquid)
$6.4m
+4%
Low-risk yield ~5.3% (run-rate)
Replace with analytics exports before publishing final.
Strategy Highlights
cbETH Fusion Vault (CFV)
Objective: Enhanced ETH staking carry with gas-aware compounding
Q4 net: +8.1% (annualized 15.4%), max DD: -2.9%
Drivers: LST yield + incentive rotation; execution batched in low-gas windows
Docs: /investment-products/cedefi-strategies/defi-strategies#cbeth-fusion-vault-cfv
StableYield Allocator (SYA)
Objective: Diversified, low-volatility stablecoin yield across CeFi/DeFi
Q4 net: +2.4% (annualized 4.9%)
Drivers: Venue switching on utilization/fee/rebate score; peg-risk monitoring
Docs: /investment-products/cedefi-strategies/defi-strategies#stableyield-allocator
BTC Yield Aggregator
Objective: Compound BTC yield via conservative lending & funding capture
Q4 net: +5.6% (annualized 11.2%), max DD: -2.1%
Drivers: Negative-funding pockets; disciplined delta-neutral execution
Docs: /investment-products/cedefi-strategies/defi-strategies#btc-yield-aggregator
Methodology & Calculations (from our internal paper)
Pricing identities
Perp quote as spot basis:
.Inverse perp PnL (unit notional, contract size
):
Long/short spot + short inverse perp (per-notional):
with 
hours (funding period).
Delta-hedge consequence
For small moves, 
.
⇒ Long/short portfolio’s dominant risk driver is basis volatility, not spot volatility (delta-neutral).
Market Context & Signals
Observed tape (Q4): Breadth narrow, beta inconsistent; perp basis compressed; funding mixed-to-negative in pockets; gas mostly teens/20s gwei — a regime that structurally favors carry, incentives, and market-neutral sleeves.
AAE signals emphasized
VSD throttled pure BTC/ETH exposure on spikes
FRDM harvested periods when shorts pay funding
LSI routed flow to deeper venues (Aave/Curve/Maker) to reduce gap risk
IRS captured APR spikes (Pendle screened well on volatility)
SYSM concentrated deposits in safer, high-utilization stable pools
DTRS slowed re-risking until momentum stabilized
Financials
Fee mix: Performance 60%, Management 25%, Partner spreads/rebates 15%
Treasury & runway
Liquid assets: $6.4m
OpEx (run-rate): $1.2m/yr
Protocol revenue (annualized): $1.22m
Treasury yield (low-risk): ~5.3% (≈ $339k/yr)
Projected annual income: ≈ $1.56m vs $1.2m OpEx → ~130% coverage
Replace with current accounting exports and Finance sign-off.
Roadmap
2026-01: Restaking & ETH rollup yield sleeves (phased allowlist)
2026-02: Additional CeDeFi partners for tighter spreads & better fill quality
2026-03: Portfolio Builder v2 (sleeve sizing, scenario testing, tax-lot-aware withdrawals)
Risks & Disclosures
Smart-contract & venue risk: Continuous monitoring; caps and circuit breakers in place
De-peg/liquidity risk: LSI and SYSM reduce exposure to thin books/unstable pools
Market risk: Carry & neutral sleeves can still experience drawdowns
This page is educational and not investment advice. Capital at risk.
How to Act
Open Dashboard: https://algoostrategies.org
Run Portfolio Builder: https://algoostrategies.org/portfolio-builder
Support: [email protected]
Changelog
2025-12-01: Initial Q4 wiki report published (draft numbers)
2026-01-15 (scheduled): Post-close true-up with audited analytics export
2026-03-31 (scheduled): Add PB v2 notes and sleeve links
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