Portfolio & Performance tracking

DeFi products historically lack meaningful insight into their sources of return, historical performance, and risk metrics. With Friktion’s Portfolio Manager, you can track them all on one page.

What is a Portfolio?

A portfolio is an aggregation of individual positions held by a capital allocator. By analyzing and optimizing the value and performance of a portfolio of Volts, anyone can access diverse, risk-adjusted returns — regardless of whether you’re an Institution, Treasury, whale, or active trader.
Friktion’s Portfolio page seeks to provide the knowledge and tools needed for anyone to perform across market cycles.

Key metrics: Return & Value

These are two useful performance charts that every investor should track when deploying capital into any strategy:

(i) Return

Measures the net dollar returns (profit-or-loss/PnL) generated from all Volts. Asset prices are updated live. Often this is referred to as Alpha, measuring the outperformance of a strategy versus the broader market.
Return on investment (ROI) is calculated as the net return based on the spot price at each epoch. You can use these formulas to calculate the $ ROI:
$ ROI = SUM( Epoch_PnL * Spot_Price_at_Epoch_End)
  • Top chart shows Net Returns generated.
  • Bottom chart shows weekly PnL generated, broken down by each asset and Volt.
The return on investment for Volts #01, and #02 can be viewed as the dollar value of the premium locked in at the start of every epoch (as a percentage of portfolio value). The return on investment is denominated in the initial deposit token, and has its value added to the portfolio at the end of every epoch.

(ii) Portfolio Value

Tracks historical portfolio value in dollars (USDC), marked to current prices, inclusive of the initial deposit and the return on investment. Often this is referred to as Beta, which measures the exposure (risk) to the overall market a portfolio has.
Portfolio Value = SUM(Token_Held * Token_Spot_Price)
Since some Volts (Volt#01: Generate Income) are designed to produce yield on non-USDC assets, any change in that underlying assets price will be reflected here. For example, if you deposited 100 SOL in Volt#01 in January 2022, you would have 115 SOL now. However, since the price of SOL (in USDC) has fallen since then the Value chart will reflect this.

(iii) Position Tracker

Position Tracker shows a table of all Volt positions of an account. This offers deeper insight into each asset a user actively holds. Clicking on an individual row will open up the Deposit/Withdrawal modal for an asset.
Position Tracker:
Some important fields:
  • Deposit: Amount of asset deposited by user
  • Value: USDC value of the Deposit
  • Net Return: Net profit-or-loss in Deposit asset and USDC value (marked-to-market)
  • Volt Tokens: Represent the number of fTokens held by a user.
  • Win Rate: Number of positive return Epochs / Number of total Epochs
  • Voltage: Risk level associated with a Volt
  • Status: Actively earning, Pending Deposit (deposit will be deployed when next Epoch begins), Pending Withdrawal + amount (withdrawal will be available when current Epoch concludes), Claim Withdraw (able to claim a withdrawal)