BNC BLUE-CHIP DEFI ETPPRODUCT BROCHURE

as of 24 February 2021

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BNC Blue-Chip DeFi ETP is a physical representation of the BNC Blue-Chip DeFi Index, issued on Balancer Protocol.

The ETP mimics the constitution and weights of the index.

The ETP is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that are made up of the index, and/or speculate on arbitrage between the price parity of the index-powered perpetual swaps and the spot market for ETP.

● Non-custodial

● No lock-ups

● No front/back loads

● Free redemption anytime

● 24/7 NAV

● NO FEES FOR V1

BNC BLUE-CHIP DEFI ETP

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BNC BLUE-CHIP DEFI ETP CONSTITUENTS

The exact constituents and weights can be viewed on our web-site.

BNC Blue-Chip DeFi ETP (Exchange Traded Portfolio) is a physical representation of the BNC Blue-Chip DeFi Index, issued on Balancer Protocol. The ETP mimics the constitution and weights of the index. It is rebalanced in alignment with the index, providing traders an opportunity to get non-synthetic exposure to the assets that are made up of the index, and/or speculate on arbitrage between the price parity of the index-powered perpetual swaps and the spot market for ETP.

BNC Blue-Chip DeFi Index tracks the real-time market performance of the largest DeFi assets. Launched in September 2020, this institutional-grade index product is the first in the world to track DeFi assets across multiple pricing sources, at sub second frequency. The index has a maximum basket size of 8 assets and is rebalanced quarterly based on a free float market capitalization weighting with a cap of 25%.

Thesis. Decentralised Finance (DeFi) is an open-source and transparent financial service ecosystem that represents a broad category of applications built on decentralised networks. DeFi leverages decentralised networks to transform legacy banking services and financial products into trustless and transparent protocols that can run without intermediaries. Some of these products and services include decentralised marketplaces & exchanges, asset issuance, insurance, checking accounts, investment services, borrowing and lending, asset management and prediction markets.BNC Blue-Chip DeFi ETP is exactly like the index, but physically holds onto the underlying assets in a non-custodial way, powered by Balancer.

SUMMARY

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Ticker BBDX-ETP

Inception Date TBC

Index Base BNC Blue-Chip DeFi Index

Constituent Amount 8

Weighting Method Free-Float Market Capitalisation with a 25% Cap

Rebalancing Period Quarterly

Platform Balancer Protocol v1

Blockchain Ethereum

Strategy Passive

Index Methodology Link

The Brave New Coin Oversight Governance Committee is responsible for the oversight and

transparency of the Index governance structure as well as all aspects relating to the provision of

benchmarks administered by Brave New Coin Ltd.

Investor Exchange-Traded Portfolio

Adds asset(s)

The Index Committee reviews index constituents

and weights quarterly.

TCap executes rebalancing based on

directives from the index the committee, aligning the ETP assets & weights

to those of the Index. TCap cannot access the

underlying assets.

Withdraw anytime back to a preferred asset

Index Operator

VALUE FLOW

Product Manager

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Investor can mitigate technical risk by obtaining

a smart contract cover from Nexus Mutual or

Unslashed Finance

Smart Contract Cover

Smart Contract Cover

Powered by Balancer, an Ethereum-based liquidity pool and asset management platform.

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Exchange-Traded Portfolios are a weighted and indexed representation of DeFi tokens.

Underlying. Each ETP is a passive portfolio that holds a weighted basket of physical tokens.

Constituents are selected, bundled and weighted according to the IOSCO-compliant methodology, designed by BraveNewCoin.

Primary Issuance. ETPs are issued on Balancer Protocol.

Secondary Trading. When listed ETPs shares can be traded on AMMs, DEXs, and CEXs.

Perpetual Swaps that track the exact same indices are also available on selected DEXs and CEXs.

ETPs

Brave New Coin’s MethodologyAligned with IOSCO Principles for Financial Benchmarks

Constituent Qualification & Weight Assignment

HFT Calculation;Asset Pricing

PRODUCT TREE: INDEX + ETP

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ETPprimary issuance on

Balancer Protocol

Spot Trading & Money Market

on DEXs & CEXs

Index (not traded)data feed display on

www.BNC.com

Perpetual Swapson DEXs & CEXs

Reconstitution & Rebalancing

Governance & Corporate Actions

Primary Issuance takes place on Balancer. A deposit is made to a portfolio of assets via either multiple or single assets deposit. Upon deposit, a tokenised unit of the portfolio is credited to your wallet, representing your pro-rata ownership claim on the underlying.

ETP MANAGEMENT

Review of Constituents Weights is done monthly by the BNC Index committee.

Constant-Proportion Portfolio Insurance (CPPI). Upon review, the committee discretionarily decides on which tokens to sell assets as they fall, and which to buy as they rise. Reason being is that in the longer-run, the market diverts widely from the entry point, i.e. depreciate or appreciate greatly.

Dynamic Rebalancing for this ETP is turned off, so not to run the Constant-Mix Strategy as in typical Balancer portfolios. The index-tracked market is not considered as a mean-reverting market.

HOW ETPs WORK 1/3

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Powered by Balancer

Extra Yield

Each ETP generates additional yield via swapping fees and liquidity mining rewards/subsidies (e.g. $BAL token).

24/7 Reporting

Balancer allows for real-time tracking of the ETP’s performance - including full visibility over the current weighting and size of each assets, total trading volume done by the ETP, executed transactions, current holders and their stake, liquidity etc.

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BNC Blue-Chip DeFi ETP

BNC Maker Vault ETPHOW ETPs WORK 2/3

Powered by Balancer

Deposits and Withdrawals

Deposit and withdrawals from the ETP can be made either via multi-assets or a single-asset.

In case of a single-asset deposit, Balancer will exchange your asset on pro-rata basis to match the underlying basket.

Tokenised Shares of the ETP

Each ETP is wrapped into an ERC-20 token, which represent your pro-rata share of exposure to the underlying (think: direct ownership of your share in a portfolio). This token is issued to the investor and can be used on secondary markets (trading, borrow & lending, etc).

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Remove Deposit from BNC Blue-Chip DeFi ETP

Add Deposit to BNC Blue-Chip DeFi ETP

HOW ETPs WORK 3/3

Powered by Balancer

PAY WITH CRYPTO

PAY WITH FIAT

DEPOSIT TO A GIVEN

ADDRESS

OUR OTC DESK

CONDUCTS FIAT to

CRYPTO CONVERSION

DEPOSIT

REQUEST WITHDRAW

TCAPCUSTODY

PAY WITH CRYPTO

Connect Wallet

DEPOSIT WITHDRAW

SELFCUSTODY

● Flexible custody.Choose between self-custody and delegating keys management to Techemy Capital.

● Instant crypto transactions.Deposit and withdraw by connecting your wallet (whitelisted during KYC).

● Assisted fiat transactions.Deposit and withdraw with fiat via Techemy Capital’s OTC desk.

● Flexible redemption.Withdraw your funds anytime - no maturity.

PAYMENTS PROCESSING

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Inception TBA

Denomination / Benchmark USD

High Water Mark Yes

Custody Self-custodial (traditional custody available upon request)

Investor Profile Wholesale & accredited investors

Minimum Investment US $10,000 (recommended*)

Maturity Open-ended

Investment Management Index-based, passive

Subscription Subscribe instantly at anytime

Redemption Withdraw instantly at anytime, no lock-ups

Fees ● Management fee - nil on v1 ● Performance fee - nil on v1● Entrance/exit - nil on v1● Fees for v2 TBA (v1 to v2 migration will be optional)● Back/front load - nil● Network (gas) fees - self-service / paid directly by the investor*.

TCap’s Structured DeFi: Term Sheet

BNC BLUE-CHIP DEFI ETP: FACT SHEET

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*Note: Gas fees are an independent variable of the Ethereum network, determined by the network usage at the time of the transaction. Gas fees are reflective of the complexity of smart contracts that the transaction is interacting with. However, network fees DO NOT depend of the size of the transaction in the sense that $1-dollar transfer typically costs as

much as $1 million-dollar transfer. Therefore, it might make smaller-size transfers economically inexpedient to execute.

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TRACK RECORDP.O.C. DEFI PORTFOLIO 1.0

The investment strategy is based on years of in-house proprietary trading experience from the very onset of the crypto markets.

During 2020, we ran our first private Proof-of-Concept DeFI Fund, which subsequently was closed ~410% ROI.

DEFI PROTOCOLS USED

CompoundLending/Borrowing

Platform

AAVELending/Borrowing

Platform

UniswapAutomated Market

Maker

Curve FinanceAutomated Market

Maker

yEarn FinanceAutomated Yield

Aggregator

StakedAutomated Yield

Aggregator

TokenSetAutomated

Asset Manager

Nexus MutualDiscretionary

Cover

dYdXLending/Borrowing

Platform

mStableAutomated Market

Maker

ZapperPortfolio Manager &

Execution

BalancerAutomated Market

Maker

Mooniswap

MooniswapAutomated Market

Maker

1inch ExchangeDEX

Aggregator

Metric ExchangeLimit Orders

DEX Aggregator

xDAI ChainStablecoin Payments

AkropolisDecentralised

Banking

xDAI Chain

BUILD DAODecentralised

Venture Builder

UMAProtocol for Building

Synthetic Assets

FUND DESIGN HEDGE

68%of principle is insured

Nexus Mutual, a mutual discretionary, provides

insurance-like cover against technical failure of smart contracts for

funds deployed in DeFi.

ASSET HOLDINGS

POC DEFI PORTFOLIO 1.0: OVERVIEW

85%

YIELD GENERATION

in Stablecoins

in Volatile Assets

12 MonthsMaturity.

Closed-Ended

10%Target RoR

GP/LPStructure

31 Jan2020

Inception

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Digital Assets

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DeFi Protocols

15%

via money markets (lending yield)

2%

via market making (share of fees)

via hybrid strategies

via staking

DAI USDT

USDC TUSD

uUSD

22%YIELD

10%9%

Build Finance

BAL MTA

KNCAAVEETH

JRTUMA

STAKE OMGLRC

YFI REN

CRV MLN BUILD

METRICDARKSNX

L2 APY

NET ASSET VALUATION

CAPITALGAIN

YIELD GAIN

WINDFALLGAIN

BENCHMARKING

+411.3%10-Month Gain

NAV

POC DEFI PORTFOLIO 1.0: PERFORMANCE

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395.4%Appreciation of Volatile Assets

23.5%EAR Actualised on

Yield-Bearing Assets

7.3%Hedging, FX, &

IncentivesTraditional Markets Crypto Markets

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POC DEFI PORTFOLIO 1.0: NAV GROWTH OVER TIME

BTC Portfolio Performance

TRADING TRACK RECORD

ETH Portfolio Performance

During 2020, we also ran our first investable and non-custodial trading portfolios on TokenSets decentralised platform. Below are performance snapshots:

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TECHEMY CAPITALVISION, CAPABILITIES, & RESOURCES

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$5,000,000,000,000

Stablecoins

Decentralised Exchanges (DEXs) & Aggregators

Lending & Borrowing

Automated Market Makers (AMMs)

Derivatives & NFTs

Layer 2 & Cross-Chain, Real World Assets

Data Source: DeFi Pulse Analysis: BraveNewCoin & Techemy Capital

$5 TRILLION CASE FOR DEFI

1 Jan 2022

Decentralised Finance (DeFi), aka Open Finance, is an ecosystem of blockchain-powered applications that are recreating common trading instruments from traditional finance. Run by programmable algorithmic code, DeFi removes middlemen, connecting principals directly. DeFi reduces friction and capital inefficiency, hence offering the possibility of higher yields. DeFi money markets offer instruments that can provide lower risk profiles and greater liquidity.

How is it Different from Traditional Finance? DeFi is a self-running, self-adjusting peer-to-peer market based on data-driven automation and open access. DeFi eliminates a need for an intermediary, hence eliminating traditional bottlenecks such as central and commercial banks, brokers, clearing houses, etc.

Software replaces intermediary to ensure

transactions validity and assets storage. At all time you are in control of your

funds, not the bank.

NON-CUSTODIAL Anyone with Internet can

access the systems. Anyone can audit and verify the code and the

asset ledger.

PERMISSIONLESS

Plug & play architecture. DeFi apps are created and

combined at a very low cost.

PROGRAMMABLEBlockchains are

transparent and auditable. Anyone can check

transaction history and see where the funds are.

TRANSPARENT

WHAT IS “DEFI”?

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How Big is the Opportunity?What is the Economic Benefit?

There’s no central party controlling how and who can use DeFi apps, hence no rent-reeking. With no barriers to trade, the market is truly free and evolves rapidly.

All fees and yield are distributed between DeFi market participants: buyers & sellers, borrowers & lenders, market makers & liquidators, etc. Each party is incentivised to be a good actor via revenue sharing and penalised for bad behavior (e.g. liquidation fees, slashing).

No fractional reserve, no money printing. DeFi is measured by the value and the quality of the collateral that is deposited in the ecosystem. Collateral is currently represented by digital assets such as ETH, BTC, USDC, etc, but the mid-term goal is to use real-world assets, expressed in a digital format (i.e. tokenised).

DEFI IS A NATURAL EVOLUTION OF FINANCIAL SYSTEMS

DeFi is growing fast with the total value of the ecosystem currently sitting at around $25Bil as of Jan 2021 .

It is expected to reach $200Bil by YE’21, and $1Tril by 2022.

WHY “DEFI”?

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A BESPOKE DIGITAL ASSET INVESTMENT FIRM

Exquisite financial & technology solutions for professional investors: funds management, OTC, yield-optimisation, investment intelligence.

Deep industry knowledge, experience, and proven capability since 2013.

Techemy Capital Limited is a boutique investment management company focused on management of digital assets. We seek to provide clear, well researched and leading edge investment opportunities to fund managers and institutional investors.

Techemy Capital Limited is an authorised Financial Services Provider to wholesale investors under New Zealand law.

COMPANY

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Bespoke Services

● Compliant on- and off-ramps;● Wallet and private keys management;● Custody and treasury management;● Assistance with purchasing smart contract cover.

DeFi Products

✔ Investable portfolios with both active and passive management;

✔ Structured DeFi products;✔ Bespoke yield-bearing financial

instruments.

OTC Trading

✔ Over-the-Counter trading for accredited investors;

✔ Multiple fiat currencies;✔ Liquidity pool collaboration.

Prop Trading & Arbitrage

✔ T.A. / Fundamental / Algo trading;✔ Models applied across all crypto

markets;✔ Trading strategies & analysis.

We leverage a number of DeFi protocols to offer an array of financial instruments to meet the needs of professional money managers and sophisticated investors.

PRODUCTS & SERVICES

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Fran StrajnarExecutive Director

A multi-disciplined entrepreneur and blockchain evangelist, Fran co-founded Techemy and Brave New Coin and has been deeply involved in the cryptocurrency and blockchain communities from their earliest days. Describing his mission in life as “terraforming the crypto asset landscape” he is a sought-after industry thought leader and subject matter expert.

Matthew PagetGroup COO

A barrister and solicitor since 1992, Matt’s experience spans banking, finance, and corporate law. He has held senior positions at Norton Rose London, HSBC London, Deutsche Bank Sydney as well as various private equity and fund management organisations. He has specific expertise in derivatives and structured products, mergers and acquisitions, private equity and venture funding.

Michael Carr-SmithAdviser

Michael has over 25 years of experience in investment banking, capital markets and international equities, most of that while working in New York City with the likes of JPM, Barclays, and Deutsche. Michael provides consulting and advisory around investment and risk management for Techemy Capital.

Rob BrewisAdviser

An experienced commodities trader in both physical and derivative products over a 25 year career, including Enron, Shell, Vitol, and Managing Director of JP Morgan (Asia) and Sempra. Rob is managing Techemy Capital's trading team, ensuring the development and growth of the trading business.

Josh OlszewiczTrader / Portfolio Manager

An early crypto adopter, Josh is a recognised expert in technical analysis. Josh evaluates trading algorithms and executes Techemy Capital’s trading strategies, buying and selling digital assets, margin and option trading, and hedging the proprietary treasury. Josh also conducts regular fundamental and technical analysis for price forecasts and market sentiment.

Jason WoodHead of Compliance & Audit

Jason oversees the compliance function, ensuring that Techemy Capital adheres to regulatory requirements associated with Anti-Money Laundering and Countering Financing of Terrorism. Jason is responsible for ensuring that we have processes in place to adequately perform customer due diligence as required.

Michelle TehGroup CFO

A qualified Chartered Accountant, Michelle works alongside the CEO office and the Board to provide support in the areas of financial control, cashflow, taxation, audit, and corporate governance. Previously, Michelle worked as Group Head of Finance at Velocity Made Good, and Finance Manager at Rocket Lab, and KPMG.

TEAM

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Donn KrassiyenkoHead of DeFi Products

An analyst with a 12-year track record in technology markets incl. cloud and cybersecurity, Focusing on opportunities presented by digital assets, Donn develops and executes strategies to support investment activity and engineering of DeFi-based financial instruments. Donn holds an MBA and other qualifications majoring in finance and international business.

Paul SalisburyTechnical Lead

With a background in Enterprise software projects in FinTech, Paul intersects blockchain expertise with his understanding of the business, commercial, and regulatory needs of projects. Resulting from his work with Blockchain technologies over the past 7 years, he co-founded BlockchainLabs, is on the advisory board of several startups, and is Chief Blockchain Officer for Techemy Group.

PARTNERS

Decentralised Lending & Borrowing Platform

Decentralised Mutual Discretionary Cover for

Smart ContractsOn-chain Data Analytics

Platform

Decentralised Exchange Aggregator

Decentralised Liquidity Pool & Asset Management

Platform

Decentralised Leveraged Exchange / Gluon Plasma

Sidechain

Smart Contact Audit & Development

Digital Asset Exchange

Decentralised Fund Management Infrastructure

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Decentralised Staking and Liquidity Wrapper

Market Data, Research & Indices Provider

Decentralised Insurance-like Cover for Smart Contracts

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This presentation contains information, ideas and analysis which are proprietary to Techemy Capital Limited (“Techemy” or the “Company”). By agreeing to receive this information you also agree to respect the confidential nature of this entire presentation. Specifically you agree not to reproduce in any manner any part of the information contained herein without our prior written consent. This presentation has been prepared by and issued by Techemy to assist in informing interested parties about potential participation in DeFi products. It should not be considered as an offer or invitation to subscribe for or purchase any securities or financial products in any entity or fund or as an inducement to make an offer or invitation with respect to securities or financial products. This presentation is intended for distribution to wholesale or accredited investors only.

This presentation may contain forward looking statements. Whilst Techemy has no reason to believe that any such statements are either false, misleading or incorrect, it cannot and does not warrant or guarantee that through either the passage of time or actions beyond the control of Techemy they will not become so. You should not act and you must refrain from acting in reliance on any of this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview does not purport to be all inclusive or to contain all information, which its recipients may require in order to make an informed assessment of Defi or crypto assets.

Neither the Company nor its advisers has verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company make no representation and give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this presentation.

DISCLAIMER

FRAN STRAJNARCEO, Techemy Group

fran@techemy.co

DONN KRASSIYENKOHead of DeFi Productsdonn@techemy.capital

TECHEMY CAPITALwww.techemy.capital

PO Box 90497, Victoria St West, Auckland Central, 1010, New Zealand

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