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

3. Funds

Previous2.5 TokenomicsNext3.1 Top Cap

Last updated 2 years ago

The funds where users will be able to invest are of two types:

  1. BASKET: with active management, where a manager will be able to move them according to a series of criteria and parameters chosen by MerlinDAO, acting according to his skills to succeed in bringing returns. Obviously, the funds will remain blocked within MerlinProtocol and the manager, in addition to the investment choices, will not be able to dispose of them in any way.

  2. INDEXES: with passive management, where the investment fund will replicate in its composition the market trend, potentially rebalancing the portfolio. This will allow the users' portfolios to have the same market composition of ERC20 tokens (or compatible) weighing them in proportion to their capitalization or in equivalent funds.

For example, when buying MerlinTopCap the investment will be in the top 20 ERC20 tokens in proportion to their market size, a ratio that will be rebalanced each week to perfectly reflect market movements.

Index funds can be further divided into two categories:

  • fixed proportion funds in which the different tokens in portfolios are weighted according to initial proportions that will remain constant in the fund through rebalancing (e.g. having 10% LINK in your fund, the LINK share will remain constant at 10% over time)

  • funds with dynamic rebalancing in which the tokens in the portfolios will have percentages proportional to their mcap, percentages which will be modified and updated automatically by the fund thanks to the decentralized oracle system. This will allow you to follow with your own portfolio the market evolutions with a daily cadence in order to always have an up-to-date portfolio with the most quoted tokens.

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