Introducing Anarcho Capital “The DeFi 4.0 Wealth Management Platform”

Published on: 07.04.2022

INTRODUCING ANARCHO CAPITAL

DeFi 4.0 is here.

With the Launch of $ANCAP: Anarcho Capital, the Defi space will never be the same. $ANCAP is a DeFi protocol like no other.

Anarcho Capital will launch on the Avalanche (AVAX) blockchain on Tuesday 5th April at 8pm UCT. Their presale sold out in a matter of days, but 200k tokens will be available at launch with an initial token price of $0.40 and liquidity of $160k. Use $AVAX to buy and be aware that there is currently a buy/sell tax of 12%.

This article will explain in depth why $ANCAP is so revolutionary and will change the DeFi and DAO spaces beyond recognition.

Since $ANCAP is mainly defined by the problems it solves in existing DeFi (Decentralized Finance), FaaS (Farming as a Service) and DAO (Decentralized Autonomous Organization) models, let’s start by listing some of the problems with existing projects:

Teams often hold funds on hot wallets and can run with the money at any time.
A traditional alternative to the hot-wallet system is the multisig wallet. However, in projects where funds are protected by time-locked multisig systems, the nature of multisig makes fast decision-making impossible. In a market as volatile as crypto, this is a huge handicap.
Funds are often invested at the discretion of a small team. In many so-called DAOs (Decentralised Autonomous Organisations), investors actually have little say in how their money is actually invested. Instead, key decisions are made by this small core team and if they make poor investment decisions the consequences can be horrendous, resulting at times in massive losses for stakeholders. Often investors have extremely limited voting power as they are only asked to vote on aspects of marginal importance, giving the perception of governance but not true governance.
Major upgrades often require migrations, relaunches, redeployments, etc.

Now let’s look at why $ANCAP is different.

$ANCAP does not hold any funds in hot wallets and all investments are handled by smart contract, so no fund manager can do a runner with your hard-earned cash! = Safu beyond current comprehension.
$ANCAP has the safety of multisig but the speed of hot wallets. This essentially means that funds are kept safe but can be allocated at a moment’s notice – crucial in a market as dynamic as crypto where there are often huge price swings in a matter of hours if not minutes.
$ANCAP provides true DAO community governance, in the sense that all investors have a direct say on how funds are invested through it’s unique architecture. Instead of only getting the right to vote on things of little consequence, investors have the power to shape every core decision, including the most important – where your money gets invested. This will be explained in more detail below.
$ANCAP is fully upgradeable – any major roadmap changes can be made without need for migration or relaunch.

Understanding how Fund Management Works in $ANCAP

The unique way $ANCAP handles fund management is at the heart of what makes the protocol so innovative and exciting so is worth going into in some detail.

Essentially, $ANCAP allows anyone to apply to be a fund manager. Fund managers get a share of treasury under their management (treasury is generated by 8% of the 12% transaction tax on buys/sells of $ANCAP) and at any given time there can be any number of fund managers, all with differing trading strategies, different assets under their management and differing pay scales. This model is known as DFaaS (Delegated Farming as a Service). These managers make an investment / farming etc proposal which is voted on by the community – in other words, the community decides who to delegate responsibility to. Fund Managers’ investments are under smart contract management but unlike multisig, allow managers to make super-fast buy/sell decisions because the governed funds are deployed by the smart contract.

The DAO governs aspects such as a) which managers to appoint b) how much funding to allocate to any given manager c) how much % of profits in any given fund will be paid to each manager d) whether to fire a manager who is underperforming. In most cases, proposals need 40% of votes in order to be passed. All this community oversight means that fund managers are highly incentivized to perform well, while underperforming managers can be fired.

Give yourself a minute to let this sink in. In all existing protocols which are underperforming you have basically two choices – put up and shut up, or sell off and move on to make a new investment.

As a security measure, $ANCAP employs a 3-tier system to maximize the balance between convenience and security that controls what contracts farmers are allowed to buy. It either allows all farmers to buy any contract, only specific trustworthy farmers to buy any contract, or insists on a whitelist for every single contract before farmers are allowed to buy, to make sure treasury funds aren’t used to buy rugs. Hence the protocol can finely tune its risk level to the market conditions & appetite for investment.

As usual with DAOs, the more tokens you hold, the more voting power you have. But $ANCAP is not just a governance token. It is also a profit sharing token.

How Profit-Sharing Works

The protocol works in cycles – 28 days for farming and 2 days for profit distribution to holders. Investors’ share of dividends from the earnings of fund managers is paid out proportionally to the size of their share of supply, and investors can choose how they will be paid – in AVAX, or in any other token of their choice! So, let’s say the protocol generates $100K in profits over those 28 days, and you hold 1% of the $ANCAP supply, you will be eligible for a dividend of $1K – pretty sweet! There is no need to lock your tokens but you do need to make sure you register your balance during the farming cycle. If you sell or buy tokens after registering but before the 2 days when profits are paid out, you should register again. All unclaimed dividends are forfeited by the user and reused for fund investments in the following month.

What the Future Holds

At the time of writing, the protocol has many ambitious plans, of which just a few are:

Cross-chain
Marketing fund (2% of the total 12% tax is reserved for marketing!)
NFT drops
Upgrades and enhancements (remember that the protocol is seemlessly upgradeable).
Attracting highly talented fund managers
Creating an ‘Alpha Chamber’ where community members can share knowledge, pitch and critique investment ideas.

Tokenomics

Total, fixed and max supply: 1 million tokens (no inflation)
Max wallet and transaction limit: 30k tokens
Buy / Sell Tax: 12%, divided as follows:
DFaaS, Treasury and dividends tax: 8%
Marketing tax: 2%
Dev tax: 2%
Initial liquidity: $80k in AVAX + 200k tokens
Initial market cap: $400k
Initial liquidity offering: 600k tokens, broken down into 3 tranches. (Note that the presale is finished and all tokens were sold at prices between $0.34 and $0.40.)
Initial PRSM airdrop: 200k tokens are exclusively reserved for PRSM holders and will be proportionally airdropped closer to launch.

For more information on various aspects of the protocol see the docs listed below. The tokenomics are also listed below. Make sure to join the TG / Discord: remember that at $ANCAP, your voice truly matters.