Strategy Design and Approval Process

2. Strategy design and approval

2.1 Strategy Proposal

Rumi Finance's research team constantly explores and identifies new opportunities within the DeFi ecosystem. When a promising strategy is identified, the team develops a comprehensive proposal that outlines the mechanics, potential risks, and rewards of the strategy. The proposal includes a detailed explanation of the strategy's underlying logic, the DeFi protocols and assets it interacts with, and any specific risk mitigations that need to be put in place.

2.2 Quantitative Analysis

After the proposal stage, the strategy undergoes a thorough quantitative analysis. Using historical data and advanced mathematical models, the research and development team assesses the strategy's risk-adjusted performance to ensure that it meets Rumi Finance’'s standards. The analysis includes evaluating the strategy's potential return, volatility, and correlation with other strategies within the platform.

2.3 Peer Review

The proposed strategy is then subject to a rigorous peer review process. Experts within Rumi Finance's team scrutinize the proposal and identify any potential weaknesses, improvements, or modifications that should be considered. This collaborative process helps to refine the strategy, ensuring that it is as robust and effective as possible before being submitted for governance approval.

2.4 Governance Approval

Once the strategy has undergone the necessary research, analysis, and peer review, it is presented to Rumi Finance's governance system for approval. This step ensures that the strategy aligns with the platform's overall objectives and risk appetite. Only after receiving the approval of the governance system can the strategy be deployed on the platform.

2.5 Deployment

Following governance approval, the strategy is implemented and made available to users on the Rumi Finance platform. The deployment process involves integrating the strategy with the platform's existing infrastructure, including its risk engine and financial operations. This ensures that the strategy is fully integrated with Rumi Finance's risk management framework from the moment it is launched.