Returns have been low in the first half of the quarter, but some unique safe opportunities popped up in the slowly recovering market and gave yield a boost towards the last month. Fund has taken on a short term delta in preparation for Q4's growth and some futures strategies.
Yield farming has had a productive crop for the first half of the quarter, but falling prices have suppressed appetite for farmed produce. Market is expected to trend sideways, with a bullish outlook towards the end of the year.
The fund has switched away from other strategies to focus primarily on yield farming. Changes in the yield farming landscape may limit future returns, but safe protocols are still expected to yield good returns for the risk taken.
DeFi protocols and their governance token distribution remains the highlight of the fourth quarter of 2020. Market upside is harvested through option positions, and some losses were taken due to unexpectedly low borrowing rates.
The rise of DeFi protocols and their governance distribution is the highlight of the third quarter of 2020, and more market upside and corresponding volatility is projected.
Looking back on the second quarter of 2020, the fund has recovered from the COVID-19 downturn, and novel opportunites lead to a repositioning in the fund.
At the end of the first quarter of 2020, a quick overview is given of the current state of the absolute returns fund, as well as other changes in the fund.