Wintermute, one of the largest algorithmic trading firms in digital assets, is launching a decentralized finance vault curation business as institutional firms seek more sophisticated tools for managing risk and yield in the crypto lending markets.
The business, called Armitage, will allow professional managers to operate non-custodial vaults across DeFi protocols including Morpho, the company said Tuesday. An initial MVP release is expected later this month, followed by a wider launch later this year.
Armitage will let curators dynamically shift capital allocations, manage collateral exposure and rebalance positions in response to market conditions. Curators will earn fees based on performance generated for depositors.
According to Wintermute CEO Evgeny Gaevoy, the evolution of DeFi lending now requires more sophisticated infrastructure and active risk oversight.
“With real-time visibility into liquidity conditions and market stress, Wintermute is bringing insight and expertise that no other curator has. As a counterparty to major exchanges and institutions since 2017, we have operated at the intersection of CeFi and DeFi. That experience informs everything Armitage does,” Gaevoy commented.
“The platform brings institutional trading intelligence into onchain vault curation, allowing capital to be deployed more efficiently and maximizing returns for depositors, while preserving the permissionless nature of DeFi,” he added.
Wintermute said Armitage is differentiated by its ability to execute liquidations internally using the firm’s proprietary trading infrastructure, rather than depending on third-party liquidators. The company said the model broadens the range of collateral assets available within curated vault strategies.
The firm stated that Armitage benefits from access to market data and liquidity conditions generated through more than $10 billion in daily trading activity across 100-plus venues and over 50 blockchain networks.
Vaults will remain permissionless and fully non-custodial, allowing depositors to move funds onchain without KYC requirements. Armitage is expected to operate across multiple blockchain ecosystems, according to the company.
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