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What is CONSILIENCE 10|10?
What is CONSILIENCE 10|10?
Insaaph Capital | Oracle avatar
Written by Insaaph Capital | Oracle
Updated over a year ago

CONSILIENCE 10|10 is a stand-alone product on Insaaph Capital’s Investments Platform. It is a tokenised transparent, rules-based, diversified cryptoassets portfolio that leverages a Hybrid Closed-End Fund (HCEF) structure. CONSILIENCE 10|10 is designed to mimic an Index Fund. It holds 20 assets i.e. the Top 10 Crypto assets and the Top 10 DeFi assets, enabling investors to gain exposure to crypto markets in a simple (less complicated) manner and thereby facilitates participation in the foreseeable growth of crypto markets and cryptoassets

CONSILIENCE 10|10 enables investors to gain passive exposure to the crypto asset class, specifically by enabling investors to track the mean performance of the crypto market, and protect against the risk associated with overexposure to a single cryptoasset. Passive exposure means that other than rebalancing at intervals (either weekly or monthly) in accordance with pre-determined guidelines, there will be no active trading. This enables CONSILIENCE 10|10's investors to consistently track the mean performance of the crypto market.

It is no secret cryptoasset prices are extremely volatile, especially on news about regulatory crackdowns, environmental concerns and heightened tax scrutiny. This volatility and the sheer number of cryptoassets available means that investors need to weigh up a plethora of complicated data to inform their investment decisions re: asset selection. The weighing of this data is material and requires great and time effort; the CONSILIENCE management team and the NSIL 10|10 committee includes experienced finance professionals who have depth of knowledge and experience, at a global level. They are mandated to use their skills to minimise risk and maximise returns, to the benefit of NSIL 10|10 Token holders.

FYI: CONSILIENCE 10|10 went live on 1 March 2022 at an initial NSIL Token Price of US$ 1.00

Technology:

CONSILIENCE 10|10 is built on the latest in Web 3.0 technology. Our key technologies allow for blockchain agnosticism, risk-mitigated automation as well security, reliability and transparency. We also leverage secure cloud computing technology, allowing for an innovative, user-focused and efficient investment platform.

a. A blockchain agnostic approach:

The underlying platform technologies on which CONSILIENCE 10|10 is built are blockchain agnostic. This enables Insaaph Capital to migrate from its existing blockchain to another suitable blockchain, should circumstances arise requiring such an intervention (for example, the unforeseen demise of a currently supported blockchain). The decision to migrate from one blockchain to another will be governed by Insaaph Capital and the CONSILIENCE 10|10] management team.

b. Automation:

The Insaaph Capital investment platform leverages automation through smart contracts and API integration with multiple exchanges and market information systems. The platform’s backend runs as a collection of containerised services using a proven, scalable, and redundant architecture running on Amazon Web Services (AWS).


The platform’s design employs an underlying ‘minimal attack surface’ risk-mitigating automation strategy - ensuring that only truly required system interfaces, services, or information are called upon as needed (such as certain API specific services).

c. Security, Reliability and Transparency:

In addition to public-key cryptography, multiple factor authentication, private key isolation and tiered permissions, we make use of isolated independent systems to cross-verify and sign all transactions. All smart contracts used by the system will be independently audited via specialist service providers. The majority of CONSILIENCE 10|10 holdings will be stored offline in cold storage. For transparency purposes; the full list of exchanges, the underlying blockchain(s) used, as well as smart contract standards will be available on our website when trading begins. Additional exchanges will be added as required and post vetting, and APIs with the minimum sufficient functionality are made available. As is the nature of blockchain, our token transactions will always be available in the public domain.

Risk and Returns:

Risk is defined as the volatility of the product returns. Increased risk is accompanied by a greater potential drawdown of a fund's assets. In terms of the risk/return profile below, CONSILIENCE 10|10 has a high risk rating with the intention of achieving superior returns relative to the asset class. The risk/reward profile is specifically relative to the Top 10 Crypto assets and top 10 DeFi assets and is by no means comparable or related to traditional assets or funds.

Figure 1: CONSILIENCE 10|10 Risk and Return Profile

CONSILIENCE 10|10 intends to make investments that are concentrated in cryptocurrencies and cryptoassets. Insaaph Capital and the CONSILIENCE 10|10 management team does not currently intend to engage in hedging transactions, engaging in short selling, or investing in non-publicly traded securities. As such, the product may experience lower investment returns than if it had engaged in these activities. In the event that Insaaph Capital and the CONSILIENCE 10|10 management team determines to engage in these activities the product may face additional risks, not limited to liquidity risk and counter-party risk, which could adversely affect the performance. The CONSILIENCE 10|10 management team does, however, intend to utilise assets in the form of staking and other such methods to generate additional return over and above capital appreciation.

Investment Strategy:

While there is no average period of time in which the CONSILIENCE 10|10 management team expects to hold any of its positions, the investment strategy is focused on the long-term performance of the cryptoassets in which the team invests. Token holders should expect that the team may hold its positions in cryptoassets for a period of years, and for differing time periods than one may potentially expect from other long-only funds.


Insaaph Capital's DNA: Consilience, in science and history, is the principle that evidence from independent, unrelated sources can "converge" on strong conclusions. In keeping with this principle at Insaaph Capital we leverage the skills and insights from a group of highly skilled professionals, and sophisticated data to design (in effect converge on) best in class products, which we make available to you via our platform.

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