Samed Düzçay: Accessing Institutional Yield Strategies at Tori Finance
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Everyone. Thanks for joining us today. Today, we have Sam from Tory, myself, Jan, and John from Ventures. Tory is a yield protocol that brings institutional grade delta neutral strategies on chain, starting with dollar hedge carry trades in emerging markets. Important to note that Delphi Ventures is a lead investor in in Tory, so I just wanted to get that part out there immediately. And to kick things off, let's I'd love to learn about Sam. Tell us a bit more about yourself and and walk us through the journey of that brought you in to build Tory Finance, kind of what gaps did you see in the ma
Sure. Happy to. I'm Sam, founder of Tory. My path here has been a winding one, so let me give you the short version. I was actually mining Bitcoin as a kid when it was, like, still under $10. And now I wasn't smart or patient enough to hold any of it. So, yeah, like, I wasn't one of the crazy stories that you've heard on online, like, when people people like found thousands of Bitcoins and a USB stick somewhere, and then they were crazy rich in overnight basically. So, I wasn't any of that. But like, yeah, I'll be making peace with it for the rest of my life. But that was my real first like th
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US. Eventually, built my own company. It was a software software as a service, and I sold it to BTC Turk, the biggest crypto exchange in Turkey. That whole journey like going through COVID, multiple wars, market crashes, and still managing to exit successfully on the other side was like a pretty unique experience and taught me a lot, honestly. It was really only after like twenty twenty that I got serious of about crypto. Since then, DeFi has seen a huge part of my day to day. It's like huge part of my day to day. I've invested in and been a part of like many protocols as an angel, as an early
Thank you. Thanks for the overview, Sam. So when I mentioned Tori to my friends, my circle, the number one question I hear is basically where does the yield come from? Is the famous question now for anyone bridging, you know, TrendsFi to DeFi. So so I wanna ask that to you, but maybe first, for those unfamiliar, maybe if you could explain us what what carry trade even is in the first place, that'd be helpful. And then and then, yeah, please explain us where where does the yield come from?
Very good question actually. I started the very basics, because this is what this is where a lot of people get lost. So the core strategy is global carry trade. Right? And what is a carry trade? Like in its simplest form, you basically borrow a currency where the rates are low. For example, the dollar, US dollar. You land or invest in the currency where the rates are higher. Usually, like emerging market currencies, think of Turkish lira, think of Egyptian pounds, think of others. Right? The difference between those rates is your yield. Assume there is a currency that gets you 40% a year, in t
Yeah. I mean, the the follow-up would be here is is basically, you you mentioned these carry trades are are being are being hedged to to to dollar. So you're not taking FX risk here. The natural question is like sophisticated, listeners would question is, if you're hedging back to USD, why does the spread exist? Because in theory, the reason why you have higher rate is that you're taking the risk of this higher risk currency, right? So why does the hedge doesn't eat out the spread basically?
In a yeah. That's basic financial theory. Let's let's let's call it covered interest parity like CIP. In a perfectly efficient market, yes, it should and it does. S
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