What is Alvara Protocol?

Alvara Protocol is a decentralized platform that brings fund management on-chain. It allows anyone to create tokenized investment portfolios (BSKTs), manage them transparently on-chain, and earn fees, all without intermediaries, custodians, or high capital requirements.

The Problem

Traditional fund management is exclusive. Starting a hedge fund or investment vehicle requires regulatory licenses, legal infrastructure, custodial arrangements, and significant capital. Even in DeFi, building and managing an on-chain portfolio for others requires deep technical knowledge and custom smart contracts.

Investors, meanwhile, face limited transparency. They trust managers with capital but have little real-time insight into what's happening with their money.

The Alvara Solution

Alvara removes these barriers through four interconnected components:

BSKT Lab

A factory for creating tokenized investment portfolios. Any wallet can deploy a basket of ERC-20 tokens with custom weightings. No coding required. The minimum deployment cost is 0.1 ETH, and the creator automatically becomes the fund manager with full rebalancing control.

Fund Manager System

Managers earn fees on assets under management and can rebalance their BSKT's allocation at any time. A public leaderboard ranks managers by performance, so the best managers rise to the top. Management rights are represented as NFTs, meaning they can be transferred or sold.

Staking & veALVA

Users lock ALVA tokens to receive veALVA, the protocol's governance and voting token. Longer locks earn more veALVA. This vote-escrowed model aligns long-term incentives: the people with the most say in governance are those most committed to the protocol's future.

DAO Governance

veALVA holders participate in gauge weight voting each epoch, directing ALVA rewards toward specific BSKTs. This creates a feedback loop: managers compete for votes, voters earn rewards, and high-performing BSKTs attract more capital.

How It All Connects

  1. Managers create BSKTs in the BSKT Lab and compete on the leaderboard

  2. Investors deposit into BSKTs they believe in, receiving LP tokens

  3. Stakers lock ALVA for veALVA, gaining voting power

  4. Voters direct gauge weight rewards to BSKTs each epoch

  5. Rewards flow to stakers and to LP holders of BSKTs that receive gauge-weight emissions

Last updated