Alvara Announcements

GBKST. This week's WENSday will be postponed while the work continues. The team is focused on the remaining work needed around the platform, and we’ll share a proper update later this week once there’s a clearer picture to give. Thank you for your patience.

Maintenance update 🛠 We’re in the final verification phase before bringing the app back online. The maintenance period has taken longer than expected because we’re completing a broader reliability and security upgrade alongside the reopening. The core work is progressing well, and we’re now validating the final release path. Gauge weight voting is targeted to reopen later this week, alongside the app reopening. We’ll confirm the exact vote window opening and closing times once the reopening window is locked. If timing shifts, we’ll publish the adjusted voting schedule clearly in advance. No action is required from the community right now. Your positions remain unchanged and all withdrawals are still possible directly via etherscan. Thank you for bearing with us. We’re focused on reopening with a stronger and more reliable app.

The most important point is that this work concerns the app and its supporting infrastructure. The protocol itself remains live onchain across Ethereum and Base. The dashboard is an interface for viewing and interacting with your position. It is not where your position exists. What you own is recorded onchain, independently of whether the app is available at that moment. As we discussed last WENSday, a BSKT is a token held in your own wallet. The platform does not take custody of it, and an app interruption does not alter the basket or the assets inside it. The app will return once the infrastructure work is complete, and we will keep everyone updated as progress continues. More soon. See you next WENSday.

Infrastructure work Some of you will have noticed that the app has been unavailable over the past couple of days while infrastructure work is being completed. It may take a little longer before everything is fully operational again, and we appreciate your patience while the work continues. We would rather give the dev team the time needed to complete it properly and bring the full service back in the right shape than rush the process.

GBSKT. Let's begin. This is a big picture week. There is one major addition we are actively working toward that could expand what a BSKT is capable of holding, along with a direct update on the app and the infrastructure work happening behind it. Tokenized stocks are coming to baskets We are working with a partner to bring tokenized stocks onto the platform, allowing ERC-7621 baskets to hold equities alongside crypto assets. That opens the door to a much wider class of strategies. A single BSKT could combine crypto exposure with companies from global equity markets, all inside one tokenized portfolio. Instead of holding those positions separately across different platforms, they could sit together inside one basket with defined weights, transparent holdings and onchain management. A basket could be built around technology, income, AI, commodities, crypto or a mix of several markets. The important part is that the strategy would no longer need to stop at the edge of crypto. Tokenized stocks bring company shares onchain, making them accessible through wallets and blockchain based products around the clock. Bringing them into BSKTs means they can become part of the same portfolio structure as any other supported asset, with the basket managed and rebalanced as one complete strategy. This is exactly the direction ERC-7621 was built for. The standard was never meant to be limited to a narrow list of crypto assets. It was designed to give any supported onchain asset a place inside a standardized portfolio product. As more traditional assets move onchain, baskets should be ready to hold them. That is what we are working toward now, and we intend to be ahead of it.

This week’s WENSday begins in 30 minutes 🧺 Covering the latest progress across Alvara and what the team is focused on next.

Different ways to read the same market. Here are this week’s top BSKTs, each built around a different idea and allocation. Build yours → app.alvara.xyz

We built Alvara on a single unyielding rule: your money is your money, period. Absolute holder control The industry lost well over a billion dollars to hacks, rogue teams and failed protocols this year. Almost all of those losses stem from the exact same flaw. Users handed over their assets to a centralized multi sig or an upgradeable contract. We reject that model entirely. 1. Total self custody at the base layer Every BSKT is an ERC-7621 sitting directly in your own wallet. It acts as a pure bearer asset. You are not holding a promise or an IOU from our protocol. If you hold the private keys you hold the underlying assets. 2. The guarantee of permissionless redemption You can unwrap the basket and claim the underlying assets directly onchain at any time. This execution happens purely at the smart contract level. You do not need to wait for a dev team to sign a transaction and you do not need to request permission from anyone. Even if our frontend goes offline tomorrow your capital is perfectly safe because you can always call the contract directly. 3. Permanent exit hatch A lot of protocols have emergency pause functions that lock users inside when things go wrong. We engineered the exact opposite. Even if the entire protocol is paused that exit function remains hardcoded open. Nobody can freeze your funds or stop you from unwinding your position. That includes us. We have zero access to your capital. 4. Absolute structural discipline Security is not an afterthought. Nothing goes live without an external audit signing off on a completely frozen build. This is exactly why VaultBSKT as well as some other upgrades are still in dev despite being practically finished. We refuse to expose users to an environment that has not been aggressively torn apart by security researchers. More updates soon. See you next WENSday.

Canton Network integration We are in early talks about bringing the ERC 7621 basket standard to the Canton Network. If you are not familiar with Canton, it is a privacy-enabled enterprise blockchain protocol designed specifically for linking applications across participants and organizations. It is not just another retail network. Canton acts as a "network of networks" that allows institutions to run privacy preserving decentralized ledger technology (DLT) applications while still enabling atomic, cross app workflows through shared synchronization infrastructure. Bringing our ERC 7621 basket standard to Canton would allow managed portfolios to run directly inside institutional infrastructure. Traditional asset managers require privacy and regulatory alignment before putting serious allocations into tokenized structures. Exploring this direction lets us meet institutional capital right where it settles instead of waiting for those funds to bridge onto ETH or related networks. Scoping is early with nothing locked in yet, but this is a strategic push we are actively exploring.

WENSday 🛠 This week we are pulling back the curtain on two massive protocol upgrades currently in dev and breaking down exactly why our core architecture keeps you in absolute control of your capital. VaultBSKT: Portfolios that actually earn Right now every basket holds spot tokens. They track a portfolio but the assets inside sit completely idle. VaultBSKT changes the entire composition of what a basket can be. Instead of holding plain tokens the constituents are yield bearing vault positions built on the ERC 4626 standard. Every single slice of your basket is a dedicated position actively earning yield on its own. The execution is complex but the result is a powerhouse. We are packaging a diversified spread of onchain yield strategies into a single tradable asset. One deposit gets you managed exposure across multiple yield sources that are compounding simultaneously at the vault level. All of this is wrapped into one single ERC 7621 token. Because everything speaks the exact same standard interface the basket can value and move these positions uniformly. A manager can curate the vaults and adjust the weights instantly as market conditions and risk profiles change. We strictly enforce a safety boundary where only verified vaults from a maintained registry can ever be included. Status: VaultBSKT is in active dev. We are running it through our strict audit first protocol. Deep internal security and red team reviews are happening right now. An external audit will lock it down before it ever touches real capital. We prefer to show you the architecture early rather than rush a launch.

GBSKT, dropping this week's WENS update in a moment 👀

3. Token quarantine A basket can keep functioning only while its tokens remain actionable. If one token is delisted, drained of liquidity or compromised midlife, it can jam every basket operation around it. Token quarantine is the escape hatch for that situation. It allows a manager to pull the problem token out of normal basket operations so the remaining basket can continue functioning. The difficult part was making quarantine powerful enough to solve the problem without turning it into a backdoor for managers. Two properties are central to the design: First, when a token is pulled, the remaining weights are recomputed onchain through deterministic redistribution. The manager decides which token needs to be removed, but does not choose the new composition of the basket. The contract applies the redistribution rules itself and adjusts the remaining weights proportionally. This keeps quarantine focused on its actual purpose. It cannot be used as a disguised rebalance where a manager removes one token and then manually redirects its weight into preferred assets. It also cannot be used as a value extraction lever by choosing a new composition that benefits one side of the basket at the expense of another. The only decision available to the manager is which token has become non actionable. Everything that happens to the remaining weights follows directly from the existing basket composition and the redistribution rules inside the contract. Second, the quarantined token is not written off. Removing it from normal basket operations does not erase its value or hand control of it to the manager. The token is separated from the active basket and its value remains attributable to the holders who owned shares when quarantine occurred. That value becomes independently claimable by those holders. The entitlement can be verified onchain and claimed without relying on our frontend to calculate or distribute it correctly. The frontend can make the process easier to use, but it is not part of the trust model. A holder can verify what they are entitled to and claim it directly through the contracts. The accounting remains available even if the interface is unavailable or replaced. The entire quarantine operation is atomic. The token is removed from active basket operations, the remaining weights are redistributed and holder claims are established as part of the same operation. There is no intermediate state where the basket has removed the token but has not yet updated its weights, or where the token has been separated without preserving the holder claims attached to it. Either the full quarantine succeeds or none of it takes effect. Quarantine also works while a basket is paused. That is essential because the feature exists for situations where normal activity may already need to be frozen. Pausing the basket stops normal activity. Quarantine remains available so the broken token can still be isolated and the rest of the basket can be placed back into a workable state. The feature is built and currently in testing. The tests cover the redistribution rules, holder claims, paused basket behaviour, atomic execution and the cases where quarantine must fail rather than leave the basket or its accounting in an invalid state. Better execution, better economics, better safety and a large amount of careful accounting most holders should never need to think about. Delta is live on Base now. Bringing it to Ethereum is the larger job and that work is in progress. The work continues. Thank you, and see you next WENSday.

2. V2 fees V2 moves from a flat management fee to manager set management and performance fees, all within governance set caps. The difficult part is making the performance fee fair to every holder independently. Holders enter the same basket at different times and at different prices, so one shared entry price would charge some people for gains they never experienced. Each deposit therefore receives its own accounting lot, with its own entry price and high water mark. Performance fees apply only to gains above the high water mark of that specific lot. A holder who enters after a run up is not billed for gains that happened before their deposit. If a basket falls after a performance fee has already been charged, recovering to the previous high water mark does not trigger another fee. A new performance fee applies only once the lot moves above that level. The ordering is more subtle. Management fee dilution accrues over time but is applied discretely. Once settled, it changes the per share value. Any operation that touches per share value must therefore settle the outstanding management fee before computing the performance fee. Calculating performance first would use a share price that is about to change. Once the management fee dilution is applied, the performance figure would be too high and the holder would be overcharged. V2 settles the outstanding management fee first, updates the per share value and then computes performance against each lot’s high water mark. Fees crystallize on withdrawal, transfer and wind down. Each operation is handled separately so the same gain cannot be counted in two places. A withdrawal settles the relevant part of the holder’s position. A transfer moves the shares while preserving the accounting required for their entry price and high water mark. A wind down settles the remaining positions as the basket closes. This gives managers control over both management and performance fees while keeping the accounting specific to each deposit. Every lot is charged only for the gains it actually experienced, management fee dilution is settled before performance is measured and the same gain cannot be charged twice.

A few things we have been building deserve more room than a one line update can give them. This week, we are taking a closer look at three of them, starting with one of the biggest changes already running on Base 👇 1. Delta rebalancing, now live on Base The original rebalancing process worked by taking the basket apart and rebuilding it. Every constituent was sold into ETH, then ETH was used to buy the assets needed for the new target allocation. It worked, but it was expensive by design. Every rebalance required two separate rounds of swaps, first out of the existing assets and then back into the new ones. That meant paying swap fees twice, taking slippage on both sides and using more gas than the actual portfolio change should have required. There was also a period during each rebalance where the basket temporarily held ETH rather than the assets it was meant to track. Even when that window was brief, the basket could still move away from its intended exposure while the transactions were being completed. Delta rebalancing replaces that process with a much more direct calculation. Instead of liquidating the entire basket, the system compares the current weight of each asset with its new target weight. It then calculates the exact difference between the two positions and trades only what needs to change. An asset that is already close to its target may require only a small adjustment. An asset that is already at the correct weight does not need to be touched at all. Assets that need to be reduced can be routed directly into assets that need to be increased, without sending the full basket through ETH first. This cuts down the number of swaps, reduces the amount of capital moving through liquidity pools and limits the slippage created by the rebalance itself. It also lowers gas costs, particularly for baskets containing several assets, where the old process became increasingly inefficient as the number of constituents grew. Most importantly, the basket keeps its market exposure throughout the process. It is adjusting an existing portfolio rather than briefly replacing that portfolio with ETH and rebuilding it from scratch. The contracts also recognize several types of rebalance. The standard mode handles normal changes to basket weights. Liquidation mode is used when assets need to be fully removed, while emergency mode supports cases where the usual execution path may no longer be safe or practical. These modes are defined explicitly so the contract can apply the correct rules and safety checks for each situation. A routine adjustment and an emergency exit are different operations, and the contract now treats them that way instead of trying to force both through the same logic. Delta rebalancing has been audited by SolidProof and is already being used by live baskets on Base. Each swap, weight change and final basket composition is executed and settled onchain, so the full result can be verified directly rather than relying on an offchain portfolio calculation. The result is a rebalancing process that does less unnecessary trading, keeps baskets closer to their intended exposure and makes larger or more complex baskets considerably more practical to manage.

Basketoors, we’re about to begin this week’s WENSday 🧺 This time, we’re stepping away from the usual weekly rundown for a deeper dive.

Every basket is an answer to the same question: What deserves a place in the portfolio right now? 🤔 Here are this week’s answers. Build yours → app.alvara.xyz

BD & Partnerships 🤝 Another Wensday, and no huge changes to report on our end this week. The pipeline continues to tick along across all our active fronts. Our strategic equity round remains the primary focus and is still consuming most of the BD team’s bandwidth. Conversations there are ongoing and progressing at their own pace. KOL, integration, and partnership talks all remain active in the background. Nothing new to announce just yet, but the right groundwork continues to be laid. Heads down and building. See you all next wensday!

Product & Development 🛠 Another WENSday. Quieter one this week by design. Delta Rebalancing went live on Base a fortnight ago, so a lot of this week was consolidation: watching it run on live baskets, tidying up, and lining up what comes next. The main open item is Solana. The program is frozen on a reproducible build and packaged for SolidProof, and that is now sitting with the auditors. Nothing for us to ship there until findings come back, which is exactly the state you want an audit in. One feature we are lining up to bring through is token quarantine. It lets a basket manager flag a single token so it is excluded from every basket function: contribute, redeem, and rebalance. The use case is a token that has gone bad or illiquid mid-life. Rather than the whole basket getting stuck on one problem asset, the manager can ring-fence it and keep the rest of the basket working normally. The implementation and tests are already built, so this is about bringing it through review and shipping it. Next on the rank: sequencing delta onto ETH so those baskets move off the two-phase rebalance, and taking the variable management fee and performance fee work into external review now that it is review-ready. Not much to shout about this week, but the pipeline is healthy and the big one is already in production. See you next WENSday.

Our weekly WENSday is about to start 🧺 Time to unpack what moved forward this week and what’s next across Alvara.

Different markets create different ideas. Here's what they looked like this week 👀 Build yours → app.alvara.xyz 🧺