We computethe edge.
Yao Dong is a Singapore-based proprietary trading firm deploying our own capital across arbitrage opportunities. Every position is a function of precision mathematics, rigorous quantitative research, and systematic execution.
Active Model
Sharpe = (Rₚ − Rƒ) / σₚ
Fundamental Identity
Returnnet = Σi [Pbid,i − Pask,i] · Vi − Cgas,i − Cslippage,i
Capital grows where precision meets opportunity.
Yao Dong operates on a singular thesis: markets are not perfectly efficient, and the delta between theoretical fair value and observable price is a quantifiable, capturable quantity. Our mandate is to systematically identify and extract this delta — across chains, across venues, across time.
We deploy exclusively our own capital. There are no external mandates, no redemption pressures, no benchmark constraints. Our objective function is singular: maximise risk-adjusted capital growth. Every strategy is a mathematical hypothesis. Every trade is a test.
Objective Function
maxw E[Rp] − λ · Var(Rp)
subject to:
Σ wi = 1, wi ≥ 0
E[Rp] ≥ Rtarget
Strategy Space
| Strategy | Type | Horizon |
|---|---|---|
| Cross-DEX Arb | Statistical | ~ms |
| Cross-Chain Arb | Structural | ~sec |
| Funding Rate Arb | Carry | ~hrs |
| Liquidity Provision | Market Making | Cont. |
"The market is a stochastic process. Our edge is the reduction of entropy through information asymmetry and execution speed."
— Yao Dong Trading Thesis
Mathematics & Technology
Our competitive advantage is the intersection of rigorous quantitative research and purpose-built trading technology. Neither alone is sufficient.
Mathematics
Quantitative Modelling
We construct statistical models grounded in probability theory, stochastic calculus, and time-series analysis. Each strategy is derived from a falsifiable mathematical hypothesis.
Derivative Pricing & Greeks
Deep understanding of options theory, delta-hedging, and volatility surface modelling allows us to price and hedge complex positions with mathematical rigour.
Optimisation & Portfolio Theory
Portfolio construction follows Markowitz mean-variance optimisation, extended with CVaR constraints and Kelly Criterion position sizing for capital efficiency.
Statistical Arbitrage
We exploit cointegration relationships and mean-reversion dynamics across correlated instruments. Entry and exit signals are derived from z-score thresholds on spread distributions.
Technology
Low-Latency Execution Engine
Custom-built execution infrastructure minimises slippage and maximises fill rates across 20+ protocols. Latency is treated as a first-order variable in our P&L function.
Cross-Chain Infrastructure
Native integrations across EVM and non-EVM chains enable simultaneous monitoring and execution across the full DeFi liquidity landscape.
On-Chain Data Analytics
Real-time mempool monitoring, liquidity depth analysis, and on-chain flow data feed directly into our signal generation pipeline.
Protocol Engineering
Our engineers have contributed to open-source DeFi infrastructure including Uniswap and Gemini's Python API libraries, giving us deep protocol-level insight.
Execution Model
P&L = Σi αi · Vi − TCi − Slippagei
Institutional conviction.
Yao Dong is backed by GB Capital (GBCI Ventures), a venture capital firm with a track record of identifying and scaling high-conviction opportunities in fintech and digital assets.
This institutional backing validates our quantitative approach and provides the capital foundation to scale our arbitrage strategies across an expanding universe of protocols and chains. The relationship is one of aligned incentives: our investors grow only when our capital grows.
GB Capital · GBCI Ventures
gbci.ventures ↗A venture capital firm focused on fintech, digital assets, and emerging market opportunities. GB Capital brings not only capital but strategic network and operational expertise to portfolio companies.
Investment Alignment
Vportfolio(t) = C0 · ∏i (1 + ri) → max
Initiate a connection.
We are not a fund and do not accept external capital. However, we welcome conversations with protocol teams, infrastructure providers, and strategic partners whose work intersects with our trading operations.
Jurisdiction
Singapore · Yao Dong Pte Ltd
Response Function
P(reply | message) → 1 as relevance(message) → max