June 12, 2025 - Pareto, a private credit marketplace for institutional lenders and borrowers, is excited to welcome Adaptive Frontier, a crypto-native market maker that specializes in High Frequency Trading strategies, as the newest institutional partner to launch a Credit Vault on the platform.

Adaptive Frontier brings over seven years of experience in high-frequency, algorithmic trading across centralized and decentralized venues. Before launching as a proprietary capital firm, the team managed a $100M+ hedge fund that executed similar delta-neutral strategies. Today, they operate a fully systematic trading stack focused on ultra-low latency execution, real-time risk monitoring, and cross-exchange arbitrage - designed to deliver consistent performance.

With the launch of their Credit Vault, Adaptive Frontier will access on-chain capital to scale these strategies further - offering institutional lenders access to a stable, credit-based yield opportunity backed by a battle-tested trading infrastructure.

Credit Vaults are Pareto’s lending facilities that directly connect institutional borrowers and lenders in a more transparent and cost-efficient way. For borrowers, they offer faster, more flexible access to capital without the need for overcollateralization or lengthy approval processes. For lenders, Credit Vaults provide access to high-quality, professionally underwritten credit opportunities and stable, institutional-grade yield.

Adaptive Frontier Credit Vault is structured as an evergreen, fixed-rate lending facility on Ethereum. The vault will channel USDC into delta-neutral trading strategies, which are designed to perform reliably across all market conditions.

Interest is distributed to lenders on a weekly basis, with redemptions available at the same cadence. Borrower access is gated by a zero-knowledge KYC process provided by Keyring, ensuring regulatory alignment while preserving user privacy.

The vault targets a net annualized yield of at least 12%, combining fixed borrower payments with any applicable network-level rewards. In addition, depositors can earn Pareto Efficiency Points, part of the multi-season Efficiency Campaign.

This Credit Vault offers a rare opportunity for institutional lenders to gain exposure to high-frequency trading strategies - typically reserved for proprietary desks - through an uncollateralized, yet risk-managed, on-chain structure.

“At Adaptive Frontier, we’ve always focused on building robust yield strategies that deliver consistent returns. Partnering with Pareto allows us to scale these strategies using on-chain credit infrastructure, without compromising on transparency, risk management, or execution speed. We’re excited to bring our approach to a broader lending audience through our Credit Vault.”

- Han Chang, Co-founder of Adaptive Frontier

Adaptive Frontier’s core approach revolves around high-frequency, algorithmic trading strategies that capitalize on statistical arbitrage opportunities across different exchanges. These strategies are powered by sophisticated algorithms that execute trades in microseconds, identifying and utilizing price differences between trading venues.

Adaptive Frontier’s infrastructure is engineered for ultra-low latency, meaning trades are executed almost instantly, allowing them to consistently capture low-risk profits. This fully automated, data-driven system is designed to generate steady, market-neutral returns without directional exposure to volatile assets.

“Pareto’s Credit Vaults are redefining institutional credit infrastructure – enabling curated counterparties to originate and manage modular, onchain credit facilities with end-to-end transparency, operational efficiency, and distribution control. We’re pleased to see experienced companies like Adaptive Frontier beginning to utilize this architecture – and we’re excited about what’s ahead.”

- Matteo Pandolfi, Co-founder of Pareto

The addition of Adaptive Frontier marks another important step in expanding the range of institutional borrowers on Pareto’s credit infrastructure. It also reflects a growing shift in how sophisticated trading firms access capital: moving from opaque, manually managed loan arrangements to programmable, transparent on-chain credit facilities.

Explore the Adaptive Frontier Credit Vault and deposit your funds to start earning yield!
https://app.pareto.credit/vault#0xae7913c672c7F1f76C2a1a0Ac4de97d082681234

Adaptive Frontier is a crypto native market maker specializing in high frequency, ultra-low latency, algorithmic cross exchange statistical arbitrage; the team has 7+ years of experience in crypto market making including running a $100M+ Cayman regulated hedge fund executing very similar strategies prior to starting Adaptive Frontier as a proprietary capital firm.
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Pareto is a private credit marketplace that connects institutional lenders and borrowers, providing scalable, yield-generating opportunities and bridging institutional capital on-chain.

Tailored for asset managers, digital asset funds, and other professional investors, Pareto offers seamless access to regulatory-compliant alternative credit products. Its infrastructure emphasizes transparency, automation, and flexibility. Credit Vaults are the core primitive: they eliminate utilization-based inefficiencies, reduce operational overhead, and improve capital efficiency for both lenders and borrowers.

As the financial landscape evolves, Pareto aims to set a new standard for institutional credit with fully automated, data-driven lending solutions.
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