Baskets

Baskets are a core feature of the AUM Protocol, providing a structured and diversified investment approach that caters to various risk appetites and financial goals. Each basket is a curated collection of tokenized real-world assets designed to optimize returns and manage risks through strategic asset allocation and yield generation.

Basket Strategies

Customized Investment Strategies

Each basket within the AUM Protocol is guided by a unique investment strategy tailored to specific market conditions and investment objectives. Strategies can range from conservative, focusing on stable and low-risk assets, to aggressive, targeting high-growth and higher-risk opportunities. These strategies are managed by experienced portfolio managers or governed by algorithmic protocols, ensuring that each basket adheres to its predefined objectives.

Participation in First Offerings

Baskets can actively participate in first offerings (FOs), leveraging the yield they generate to invest in newly tokenized assets. This approach allows baskets to continuously evolve and capitalize on emerging market opportunities, enhancing the potential for growth and diversification. By participating in FOs, baskets can access assets at favorable terms, further contributing to their overall performance.

Token Representation and Investor Benefits

Each basket is represented by its unique token, which investors can purchase to gain exposure to its underlying assets and strategy. These tokens, referred to as Basket Tokens, provide investors with several benefits:

1. Diversification: By holding a Basket Token, investors gain exposure to a diversified portfolio of assets, reducing individual asset risk and enhancing overall investment stability.

2. Yield Generation: Basket Tokens accrue yield generated from the underlying assets' performance, offering investors a steady income stream.

3. Growth Potential: Through strategic participation in FOs and dynamic asset management, Basket Tokens offer the potential for capital appreciation, aligning with investors' growth objectives.

Passive and Cooperative Investment

Holders of individual asset tokens can also stake their assets into these baskets, providing a more passive and cooperative investment approach. Staking allows asset holders to contribute to a basket's asset pool, sharing collective benefits without needing active management. This cooperative model enhances liquidity and asset utilization within the ecosystem.

Staking Mechanism

Asset holders who stake their tokens into a basket receive a proportional share of the Basket Token in return. This mechanism aligns the interests of individual asset holders with those of the basket, fostering a collaborative investment environment. The staked assets are then managed according to the basket's strategy, with the generated yields and potential capital gains distributed among the Basket Token holders.