Product Keynote: RockawayX

RockawayX, a major Solana investor and liquidity provider since 2018, has unveiled plans to launch three risk-curated vaults on Solana, targeting what they believe is the next major opportunity in crypto: professional risk curation services.

Summary

The risk-curation business has experienced explosive growth, expanding 20x in Total Value Locked (TVL) over the past two years and peaking at $10 billion. However, Solana currently commands only 12% of this market—a gap that RockawayX aims to close with their new suite of products. The firm, which has already invested in over 16 Solana-related projects and provided more than $300 million in liquidity to Solana applications, is leveraging its deep expertise to become a professional curator in the ecosystem.

RockawayX's three-pronged approach includes a real-world asset vault on Kamino, an Exponent-dedicated vault for optimized strategies, and bringing Midas to Solana for fund-like exposure to diversified portfolios. The firm argues that current curator models are insufficient, relying on manual execution, semi-optimized risk management, and low-frequency strategies. They envision a "Curators 2.0" model built on algorithmic strategies, automated risk management, and automated detection of investment opportunities.

What sets RockawayX apart is their track record: despite the catastrophic lending failures of 2022—including Celsius, BlockFi, and Alameda—they maintained zero defaults. They've also helped rebuild Pareto.credit, a private credit marketplace now exceeding $100 million in TVL, and operate a bare metal validator with more than $1 billion staked.

Key Points:

Real-World Assets Take Center Stage

RockawayX's first vault, launching on Kamino, focuses specifically on real-world assets (RWAs). The appeal of RWAs lies in their ability to generate sustainable yield that isn't correlated with typical crypto yields like funding rates. However, navigating RWAs requires sophisticated risk management—understanding drawdowns, proper diversification, and setting appropriate loan-to-value (LTV) ratios.

The complexity extends beyond smart contracts. RockawayX emphasizes that success in RWA curation requires reviewing legal contracts and ensuring legal recourse is available—essentially requiring legal departments to navigate properly. The firm is partnering with major RWA projects on Solana, including Figure and Solstice, to build this vault.

The Exponent Dedicated Vault

The second product offering is an Exponent-dedicated vault designed to give users one-click exposure to optimized strategies within the Exponent ecosystem. This vault will feature clearly defined parameters to protect end users while RockawayX actively monitors underlying assets.

This approach simplifies what can otherwise be an overwhelming landscape for individual investors. Rather than manually navigating complex DeFi strategies, users can rely on RockawayX's professional curation and risk management expertise to optimize their exposure.

Bringing Midas to Solana

Perhaps the most ambitious announcement is bringing Midas to the Solana ecosystem. This product will offer fund-like exposure to a diversified portfolio of yield-generating strategies. Unlike traditional crypto investments with lock-up periods, Midas will provide daily liquidity and publish monthly reports for transparency.

This institutional-grade approach signals RockawayX's belief that Solana is ready for more sophisticated financial products that mirror traditional finance structures while leveraging blockchain efficiency.

The Evolution to Curators 2.0

RockawayX presented a clear vision for how the curation market needs to evolve. Current curators, they argue, focus primarily on low-frequency strategies like liquidity provisioning, rely on manual execution, and operate with incomplete risk management systems. The recent market events have demonstrated that semi-optimized approaches aren't sufficient.

The "Curators 2.0" model RockawayX is championing involves algorithmic strategies that can respond quickly to market conditions, automated risk management systems that don't require human intervention to protect assets, and automated detection of investment opportunities to maximize returns.

Facts + Figures

• The risk-curation business grew 20x in TVL over the last two years
• Risk-curation TVL peaked at $10 billion, currently sitting at approximately $6 billion
• Solana holds only 12% market share in the risk-curation business
• RockawayX has invested in more than 16 Solana-related projects
• The firm has provided over $300 million in liquidity to Solana applications
• RockawayX operates a bare metal validator with more than $1 billion staked
• The firm has maintained zero defaults despite the 2022 lending crisis
• Pareto.credit, which RockawayX helped rebuild, now has over $100 million in TVL
• RockawayX has been invested in Solana since 2018
• Three new vaults are launching: Kamino RWA vault, Exponent dedicated vault, and Midas on Solana

Top Quotes

• "We believe that the next big thing for Solana, in general, for crypto, is a risk-curation business."

• "2022 was pretty difficult year for lenders. We had so many defaults—Celsius, BlockFi, Alameda. And we have avoided all of those."

• "You don't only care about the smart contract risk. You really need to review legal contracts. You need to make sure that you have legal recourse."

• "We can put our own balance sheet at work so we can help with liquidations, which should give more comfort, actually, to LPs in our curated vault."

• "The curators 2.0 is more about algorithmic strategies, more about automated risk management, and also automated detection of investment opportunities."

• "Real-world assets offer a sustainable yield, which is not correlated to crypto yields."

• "We have seen lately that there is a capacity constraint for investment on chain at scale."

Questions Answered

What is risk curation in DeFi?

Risk curation refers to the professional management of investment strategies and risk parameters in decentralized finance. Curators like RockawayX evaluate assets, set appropriate loan-to-value ratios, manage diversification, and monitor positions to protect investors. This involves both technical due diligence on smart contracts and, in the case of real-world assets, legal review of underlying contracts. The goal is to optimize risk-reward for end users who may not have the expertise or resources to navigate complex DeFi strategies themselves.

Why are real-world assets appealing for DeFi vaults?

Real-world assets offer sustainable yield that doesn't correlate with typical crypto yields like funding rates, providing genuine diversification for investors. RWAs offer a large set of collateral options, though this diversity can be overwhelming for individual users to navigate. When properly structured with appropriate diversification and LTV ratios, RWAs can provide attractive risk-adjusted returns. However, they require sophisticated management due to potential drawdowns and the need for legal recourse, making professional curation especially valuable.

How did RockawayX avoid the 2022 lending crisis?

While many major crypto lenders like Celsius, BlockFi, and Alameda collapsed in 2022, RockawayX maintained zero defaults across their lending and liquidity provision operations. This track record demonstrates their risk management capabilities and due diligence processes. Their experience navigating the worst year for crypto lenders positions them as a credible partner for risk curation services.

What makes Curators 2.0 different from current approaches?

Current curator models typically focus on low-frequency strategies like liquidity provisioning, rely on manual execution, and use semi-optimized risk management. Curators 2.0, as envisioned by RockawayX, emphasizes algorithmic strategies that can respond rapidly to market conditions, fully automated risk management systems, and automated detection of new investment opportunities. This evolution addresses the shortcomings exposed by recent market events and aims to provide more robust protection for investors.

Why should Solana users care about this announcement?

With Solana holding only 12% market share in the $6 billion risk-curation space, there's significant room for growth. RockawayX's entry brings institutional-grade expertise to the ecosystem, backed by proven track record and substantial resources. Their commitment to put their own balance sheet to work for liquidations provides additional security for vault participants. These new products could unlock sophisticated investment strategies for everyday Solana users that were previously available only to institutional players.