Inside Grove's Onchain Allocation Framework

Tokenized institutional credit provides onchain markets access to traditional finance yield mechanisms. However, onchain deployment requires allocation infrastructure operating through established, institutional-grade vehicles.

Grove coordinates this deployment. As an onchain capital allocator within the Sky ecosystem, Grove proposes and executes deployments onto tokenized credit instruments through vetted institutional partners and public blockchain networks.

Capital Allocation

Grove selects strategies and allocates capital through a partner network that meets Sky's governance standards.

The value chain:

• Asset Managers originate and manage credit strategies, underwrite portfolios, and oversee performance.
• Issuers & Tokenization Platforms structure legal vehicles and issue onchain representations.
• Custodians safeguard assets and provide institutional-grade controls.
• Capital Allocators (Grove) coordinate across partners and allocate capital into approved credit strategies.
• Protocols & Markets integrate approved assets into DeFi systems.

Grove coordinates across this value chain, bridging traditional finance and decentralized ecosystems.

Partner Ecosystem

Grove deploys capital through vetted institutional partners across four categories:

Asset Managers

Asset managers originate loans, structure portfolios, and manage investment strategies.

Grove's allocations include strategies managed by Janus Henderson, Apollo, and BlackRock. These managers bring decades of underwriting experience into an onchain setting, demonstrating the scale and rigor Sky governance requires for public deployment.

Issuance & Tokenization Platforms

These institutions structure legal vehicles and create onchain representations of credit products. Grove evaluates platforms and proposes allocations through Sky's governance process. Capital deploys only through platforms capable of supporting institutional-scale structures, public reporting, and durability.

Grove's tokenization partners include Centrifuge, which issues tokenized vehicles tied to Janus Henderson-sponsored strategies, and Securitize, which provides tokenization infrastructure for products like BlackRock's BUIDL fund.

Settlement & Integration Networks

Blockchain networks form the settlement layer where approved strategies deploy and integrate into DeFi infrastructure.

Grove's allocations span Ethereum, Avalanche, and Plume. Exposure can rout through Aave and Morpho lending markets and Uniswap liquidity pools. This integration transforms tokenized credit from passive holdings into active financial infrastructure that supports borrowing markets, liquidity formation, and protocol treasury strategies.

Sky Governance Framework

Grove operates under Sky's governance framework.

Before capital deploys, Grove submits proposals to Sky's forum. Proposals are discussed and voted on through the Atlas Edit weekly cycle. Grove addresses voter questions and remarks during this process. Proposals must meet Sky's mandates and risk parameters. Only approved strategies move to onchain deployment.

This process provides transparency and accountability for institutional capital deployment.

Tokenization alone does not create durable onchain credit systems. Scale requires governance frameworks institutions recognize, established structures, and credible counterparties. Grove's model provides this path.

Important Information

This content is for informational purposes only. Grove's allocations are subject to Sky governance approval and available only to eligible investors. Investing in credit strategies involves risk, including possible loss of principal. Performance is not guaranteed.