Phuture facilitates off-platform yield optimisation enabling productivity of idle assets and improved index performance.
Phuture’s reserve model keeps enough assets within the platform to support redemptions and rebalances, whilst the remainder are put to work on yield optimisers. The reserve parameter is configurable through governance and dictates the percentage of each asset held on Phuture.
Recapitalisation ensures the platform is targeting the optimal reserve ratio. As assets increase due to index minting, keepers move the excess assets off-platform to earn a yield. Conversely, as indices are redeemed and reserves reduced, keepers pull assets from off-platform locations to increase the reserves on Phuture. This process assures the solvency of the system and restores the optimal reserve ratio.