Lvna Capital

Allocating and managing capital in the digital asset space is a complex endeavor and investors still face significant hurdles to participate effectively in these markets.

Blockchain technology is increasingly sophisticated and rapidly evolving. Capital allocators require a deep understanding of the underlying technologies to properly analyze and make investment decisions. Furthermore, executing transactions using these protocols is still not an intuitive process. User interfaces are not friendly enough for the average individual and lack traditional safeguards thereby exposing investors to costly mistakes. And, without proper security and custodial precautions, inevitable security attacks may generate significant losses.

In addition to that, there are currently limited alternatives in the market globally for institutional and professional individual investors to allocate capital efficiently in these assets and a large number of value creation opportunities in the blockchain industry fall outside of the publicly-accessible and open cryptocurrency space.

This is where Lvna comes in - we provide efficient and comprehensive solutions for sophisticated investors interested in diversifying their portfolios through allocations in the digital asset space.Like those of today's internet (e.g., TCP/IP, SMTP), open-sourced and decentralized protocols are poised to hold and be used to transfer around the world massive amounts of value. Therefore, they need to be scalable, robust and secure. Revolutionary technological developments take years to perfect and most protocols on top of which cryptonetworks exist are, in our view, still in a developing phase, with much R&D, implementation and testing required before they are ready for mass adoption.

Nevertheless, we are optimistic that the ecosystem's ambitious and lofty goals will be achieved in the long-term. In the meantime, Lvna's team focuses its financial and human capital on improving and growing the leading protocols in the space. Once the necessary infrastructure is in place.Lvna are practical investors. While Lvna strongly believes in the potential of decentralized registry technology, Lvna prioritizes its fiduciary duty to maximize long-term value while managing market and security risks. Thus, Lvna uses a unique position to maximize risk-adjusted profits.To this end, Lvna has developed a balanced long-term implementation program. Lvna creates and dynamically adjusts a portfolio based on two main strategies and two types of positions:

• Investments in publicly traded digital assets with significant liquidity on leading exchanges around the world. The key positions are those that Lvna intends to hold for at least 5-10 years. The properties of Bitcoin are that it is immutable, programmable, permission-free, censorship-resistant, non-sovereign, global and scarce money. Today, Lvna firmly believes, for example, that these features, combined with significant liquidity and third-party infrastructure, will continue to drive the ecosystem forward. Other assets that Lvna considers key are ETH and DCR.
• To a lesser extent, Lvna takes opportunistic positions in assets that, according to Lvna, will generate significant value in the short and medium term as a result of a special catalyst using strong and sharp market movements.
• Early stage investments through SAFT or private equity transactions in projects that intend to release digital assets at some point in the future. Lvna capital finds, filters and takes the main positions in the earliest rounds of capital raising in projects led by highly qualified teams creating technologies with huge growth potential. Since its foundation, Lvna Capital has gained access to some of the most well-known projects in this area, including Algorithond and Blockstack, at attractive prices. In return, Lvna uses all resources to provide active financial, business, public and technological support to the teams.

As investments mature and new opportunities emerge, we shift capital between these two strategies.

Lvna is especially proud of its technically competent team. While the due diligence process also covers business, finance, economics, and game theory (among many others), the focus is on technology. Lvna spends as much time as it takes to understand the projects for which Lvna allocates capital in order to maximize the likelihood of choosing exclusively modern high-performance technologies. Active day-to-day work on various projects provides additional information about the inner workings of various protocols and their relative effectiveness, as well as about the capabilities of the technical team and the progress of development.

Since Lvna Capital recognizes the complexity of creating and releasing protocols that can change the world, Lvna Capital actively collaborates with the main developers for analysis and, as soon as Lvna Capital invests, contributes to the following, but not limited to, areas:

• Review and directly contribute to in-development source code and associated infrastructure through audits, issues, and pull requests.
• Run testnet and/or mainnet nodes and provide telemetry and feedback, as appropriate.
• Run long-term validating nodes with enough resources, redundancy, and stake to improve security, increase decentralization, and generate semi-passive returns for our partners.
• Report issues promptly and test fixes when asked.
• Suggest refinements and updates to technical documentation.
• Benchmark the software on different hardware configurations.
• Test client update rollouts and new features.
• Develop procedures for secure deployment, monitoring, and operation for third-parties.
• Exercise the client APIs pre- and post-release.

Regardless of whether there are networks in which Lvna Capital has been investing for many years, whether they are in the process of bootstrapping or will be launched in the future, Lvna is always actively involved. A reminder that network security is partly a function of decentralization, which is why Lvna has invested in advanced infrastructure to run full verification nodes and, in certain cases, to participate in consensus. This allows Lvna to generate semi-passive income for Lvna Capital partners and at the same time provides the necessary raw data for in-depth analysis of network activity.In addition, Lvna understands that as early investors and/or regular users, Lvna Capital is obliged to actively participate in making important management decisions, regardless of whether they are made online or offline. Lvna sends votes when necessary, participates in forums and general discussions, and also helps in business development and economic decision-making to ensure the long-term sustainability of the network.Finally, as one of the leading participants in the underserved region of Latin America, Lvna Capital frequently engages with regulators and traditional businesses to improve their understanding of the technology and its benefits, as well as advise them on their blockchain strategy. Lvna is also constantly striving to increase the visibility of the project by speaking at conferences, attracting local partners, acting as ambassadors and holding sessions and meetings.

Investors participating in digital asset markets face risks that are not present when investing in traditional markets. Lvna Capital actively identifies, analyzes and manages these risks as early as possible in order to minimize their impact and protect the partners' capital. In particular, Lvna pays special attention to security and storage, for which there are strict protocols and procedures specifically designed to reduce inherent industry risks. Lvna Capital also cooperates with professional third-party service providers who provide custody and insurance solutions to protect our assets.Thus, Lvna considers itself desirable long-term investors and managers of institutional capital, since Lvna Capital constantly strives to increase both the monetary and non-monetary value of the projects in which Lvna invests and receives extraordinary returns adjusted for risk. Lvna works as a flexible, cohesive team dedicated exclusively to the efficient allocation of partners' capital and portfolio management.