Processes
Shift runs on institutional-grade processes, just like traditional investment firms. Every strategy, decision, and trade follows structured procedures designed to ensure consistency, transparency, and security. These processes are a core part of Shift’s risk assessment and management framework and help turn high-risk DeFi activity into a disciplined, manageable investment operation.
Institutional standards, applied to DeFi
As a licensed asset manager, Shift follows decision-making practices used by global investment banks. That means no strategy is approved without going through a formal approval process, led by a collective body called the Strategy Council (SC).
Just like a traditional fund, Shift has written procedures for:
Strategy research and due diligence
Portfolio construction
Trade execution
Risk monitoring
Emergency exit planning
Every action is logged. Every decision has clear accountability. No single person can push a strategy through — it must pass multiple layers of review.
How a strategy gets approved and managed
Every new DeFi strategy follows a strict multi-stage process before and after launch:
Economic analysis
The team evaluates the strategy’s yield source, tokenomics, and risk-adjusted return. They also run what-if scenarios to see how it performs in different market conditions.
Technical code review (IT audit)
Internal engineers review the strategy’s smart contracts line-by-line and cross-reference any third-party audit reports. This step adds a layer of scrutiny on top of external audits.
Risk modeling and trigger setup
Based on the risks found, Shift sets up automated triggers to monitor relevant on-chain metrics. If something looks off — a depeg, a liquidity drop, a governance change — the system reacts. A “major exit plan” is also prepared, so the team knows exactly how to unwind the position in a worst-case scenario.
Automated execution
If approved, the strategy is deployed using automated smart contracts and secure trade bots, not manual transactions. This reduces human error and speeds up execution when time is critical.
Ongoing monitoring and audits
Once live, the strategy is continuously tracked using Shift’s monitoring infrastructure. If anything drifts from its expected behavior (such as performance dropping or allocation limits being breached) it’s flagged and reviewed immediately.
This end-to-end process ensures no strategy goes live without deep vetting, and once live, it stays under 24/7 surveillance.
The Strategy Council (SC)
The Strategy Council is the governing body that makes final investment decisions at Shift. It includes senior leadership – such as the Head of DeFi, Head of Risk, and possibly external advisors — and operates under a formal voting system.
Its responsibilities include:
Approving or rejecting new investment strategies
Adjusting risk thresholds and allocation rules
Reviewing emergency actions or significant performance deviations
Overseeing updates to the risk assessment and management framework
Decisions require a quorum and a majority vote, ensuring that no individual can push through a risky strategy without peer review. In urgent situations, the SC can delegate decisions to a smaller group for fast action, but those decisions are always reviewed after the fact.
This structure builds in checks and balances and gives investors confidence that all risk decisions are made through a rigorous, multi-perspective lens.
Zero conflict of interest
Shift enforces a strict zero-conflict-of-interest policy across all investment decisions. That means:
Team members cannot front-run or personally benefit from strategies being deployed.
No one is allowed to hold large personal stakes in tokens that Shift is investing in.
Shift does not accept incentives or “kickbacks” from protocols in exchange for liquidity or support.
The goal is simple: all decisions are made in the best interest of Shift’s clients and funds – not individual employees or third parties.
This institutional-grade process design ensures every strategy is vetted, monitored, and aligned with Shift’s risk philosophy. It brings the discipline of traditional finance to the fast-moving world of DeFi, giving investors a safer and more professional way to access on-chain yield.
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