Merlin Protocol
  • Merlin Protocol
    • Intro
    • 0. Abstract - Features Implemented at the Choice of the DAO
    • 1. Decentralization and DeFi
      • 1.1 Features implementable at the choice of MerlinDAO
      • 1.2 Computer system
      • 1.3 Onchain Vs Offchain
      • 1.4 Risk Management
    • 2. The Merlin token, the MerlinDAO and future scenarios
      • 2.1 Merlin token (MRN)
      • 2.2 Merlin DAO
      • 2.3 Scenario of possible monetization of the MerlinProtocol
        • 2.3.1 Liquidity in the Liquidity Pool, Token Buyback and Burning
        • 2.3.2 The types of commissions that end up in the Liquidity Pools
      • 2.4 Staking
      • 2.5 Tokenomics
    • 3. Funds
      • 3.1 Top Cap
      • 3.2 Middle Cap
      • 3.3 Thematic Baskets
      • 3.4 Basket managed directly by MerlinDAO
      • 3.5 Index managed by AI
    • 4. How to use WebAPP to create and invest in TokenXFund decentralized funds
      • 4.1 Aladin fund creator user
        • 4.1.1 Use Case UCF1
      • 4.2 User investor of a fund
        • 4.2.1 Use Case UIF1
        • 4.2.2 Example: UIF1 use case
        • 4.2.3 UIF2 use case
        • 4.2.4 Example: UIF2 use case
    • 5. The creation and management of managed funds
      • 5.1 Active management
      • 5.2 Performance and benchmark
      • 5.3 Performance fees
      • 5.4 Ranking of Managed Funds
    • 6. Tokens to invest in
      • 6.1 The selection criteria for big and mid cap tokens
      • 6.2 Selection criteria for small and micro caps and ranking of tokens to put in portfolios
      • 6.3 Portfolio Composition Limits
    • 7. Oracles
      • 7.1 Decentralized Oracles
      • 7.2 Oracle design pattern
      • 7.3 ChainLink oracles —> (ChainLink Docs)
      • 7.4 Decentralized Data Model
      • 7.5 Data Security
      • 7.6 Uniswap v3 Pricing Oracles —> (Uniswap V3 whitepaper)
      • 7.7 Random Number Generator Oracles
    • 8. Swapping for fund rebalancing
      • 8.1 What is a Swap and why to Swap
      • 8.2 How to Swap
      • 8.3 When to Swap
      • 8.4 Javascript SDK for Uniswap v3
      • 8.5 DEX Expansion
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  1. Merlin Protocol
  2. 2. The Merlin token, the MerlinDAO and future scenarios
  3. 2.3 Scenario of possible monetization of the MerlinProtocol

2.3.1 Liquidity in the Liquidity Pool, Token Buyback and Burning

As explained above, one decision that the DAO could make after the MerlinProtocol has been officially launched is to use the fees generated by the protocol to add liquidity to the Liquidity Pool and simultaneously buy MRN tokens that will then be used to fuel staking.

This feature, if voted, will consist of a dedicated Smart Contract that will receive percentage fees from the operations of investor users who invest or divest from funds created with the MerlinProtocol system.

Deposited into the Liquidity Pools, these fees will create demand for the MRN token.

These MRN tokens are not infinite in number like the tokens of the various investment funds, which will be able to increase and decrease depending on the income and expenditures from the fund, but will have a finite number of 100 million in order to incentivize the initial acquisition of token stakeholders.

MRN tokens, which will be purely governance in nature, will not all be sold right away but will be added gradually to the Liquidity Pool according to pre-established metrics to achieve 3 main outcomes:

controlled inflation that allows for organic growth in token price and project, to defend against potential whale attacks that could buy large amounts of MRN at day 1 and then manipulate the price later, to give a constant revenue stream to the development of MerlinProtocol balanced according to the development of the project in the long term and the consequent influx of capital.

The fees that will be poured into the pool will be in ETH (or MATIC, or USDC, or DAI) and will serve, as mentioned, to feed the demand for MRN tokens by distributing the tokens bought through the buyback operation among the staking pools.

MRN tokens can be freely sold and bought by crypto users on secondary markets.

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Last updated 2 years ago