Newsletter — February 11th, 2022

Dear Napoleonians,

We are very pleased to share with you news of an exciting event from last December.

The crypto market is suffering from inflation fears but the massive adoption from major corporations is still ongoing giving plenty of positive perspective in terms of business development.

In this context, our algos were well positioned and minimised the drawdowns before surging again in a positive trend.

Market & strategies analysis

The last months of 2021 and the start of 2022 were not very buoyant for the crypto market, which corrected sharply. The rise in commodities and the explosion of inflation are putting pressure on central banks to stop their accommodative policies and start a new cycle of monetary tightening, which should generate a necessary phase of adjustment and could weigh on risk in general and cryptos — which are a high beta asset — in particular. In a second step, the narrative of hedging assets against inflation should take over, and we should be able to time this moment by monitoring the steepening of the 2y — 10y slope.
On the other hand, 2022 should be the year of the crypto services integration into the activity of many large global groups, thus greatly accelerating adoption. In summary, 2022 could be a difficult year, but Napoleon sees the weaknesses to come as great opportunities to be seized.
Our strategies suffered at the end of 2021 due to the very uneven nature of the downtrend before performing better in 2022 on the bearish acceleration and on the subsequent upswing, which were more pronounced. We believe that we are coming to the end of a particularly bumpy reversal pattern, and we should experience more directional movements in the coming months that our algos should manage to catch.

Sales report

Here is the DAF’s picture as of February 12h 2022:

• DAF#1: 2.26M€ (-0.83M€ vs 30/11/2021)
• DAF#2: pending
• DAF#3: 0.89MUSDT (-0.35MUSDT)
• DAF#4: 0.19MUSDT (-0.61MUSDT)
• DAF#5: 0.74MUSDT (-0.67MUSDT)
• DAF#6: 1.17MUSDT (-0.17MUSDT)
• DAF#7: 27M$ (-5M$)
• Super DAF (pool): 0.02MUSDT (flat)

We are currently redesigning our algos range, opening the door to more index-like strategies with thematic and new composition factors.

NPX Licensing Fees paid in January 2022

License Fees are detailed in the table below:

% of tokens staked have amounted to 39,77%.

DeFi platform

The smart contract of the platform is currently audited by PeckShield and will be beta tested soon. We will liaise with our Ambassadors to get their feedback.

This is currently beta tested by our prospects and well perceived. Going forward, and since this makes it possible to create real decentralized pools/vaults, we will push the promotion on these specific wrappers, in order to offer decentralized solutions via the DeFi platform.

Please find below some snapshots of the platform:

Your feedback will be much appreciated!

NPX evolution

Following the acquisition by CoinShares and the focus on the DeFi platform development, realising our initial vision, we are currently working on restructuring the tokenomics to be more in line with the DeFi environment good practices. This is also subject to the token qualification legally speaking and compliance restrictions. We will give you more information on that point as soon as possible. This could include some governance rights as well through a decentralized vote.

Conclusion

We are very grateful for the patience and support of our Community. As you can see, we are pushing hard to deliver our vision via the launch of pure decentralized autonomous funds and will share as soon as possible our latest developments. In the meantime, we are recruiting a team of developers (Solidity and Java) for replacement but mainly to grow and accelerate quickly, so do not hesitate to share your CVs with Thibault and/or Sacha if you want to work with us ;-)

In terms of communication, we will publish this newsletter every two months, in order to be fully focused on business development and to share more news (obviously, we will notify you of any major improvements if needed in a newsflash).

As usual, feel free to contact us, we thank you for your support in our common project.

Best regards,

Arnaud, Jean-Charles and the team.