> For the complete documentation index, see [llms.txt](https://defunds-finance.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://defunds-finance.gitbook.io/whitepaper/introduction.md).

# Introduction

## Abstract

DeFunds Finance is a decentralized investment and credit infrastructure that bridges traditional hedge fund practices with on‑chain asset management and undercollateralized real‑world lending. Built on Solana, it provides two integrated layers:

1. DeFi Strategy Vaults: 100% on-chain, auditable smart contract vaults operated by managers, fee logic (including performance/high-water mark fees), and real-time analytics.
2. RWA Credit Pools: Tokenized, undercollateralized lending pools that channel on-chain capital to real-world use cases (e.g., cash flow, construction). With a reputation system, investors will choose to invest in people and receive yields from it.

 

Defunds enables:

* Retail and professional investors to allocate across diversified yield sources (on-chain strategies + real-economy).
* Traditional Web2 fund managers to migrate to Web3 using familiar fee structures and governance transparency.
* Shift from copy trading to unified model :  every pool participant enters and exits the same trades—wins and losses are shared proportionally.

·         Facilitates capital formation where on-chain liquidity meets off-chain real-world opportunities.

 

Audit will be made between Q4 2025 and Q1 2026