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. 4. How to use WebAPP to create and invest in TokenXFund decentralized funds
  3. 4.1 Aladin fund creator user

4.1.1 Use Case UCF1

Let's start with the use case of a user who wants to create an investment fund in decentralized assets.

A user of the MerlinProtocol platform will have the prerogative to create his own personalized basket of tokens, entirely controlled by him and in which he can decide the composition of the basket.

The composition of the fund or basket can be fixed or dynamic, depending on the will of the creator.

A fixed composition of the fund foresees the initial choice of services and products of the crypto world to be included in its portfolio of offerings to other users, chosen from the many existing ERC20 tokens.

A dynamic composition of the fund allows the creator to decide on an objective parameter for evaluating the market performance of crypto products and services, whose verification is guaranteed over time by a system of decentralized oracles connected to the MerlinProtocol platform.

For example, the user creator of the fund will be able to decide whether to keep in his investment fund in the creation phase only the 20 best ERC20 coins chosen for daily capitalization, volumes moved on the market, percentage of rise or fall in value and many other parameters.

From the moment the fund is created a network of decentralized oracles will provide reliable information on market trends, after which the fund will delegate the buying and selling operations to a decentralized exchange in order to rebalance the fund according to the criteria set by the creator.

He will use the platform's graphical interface via prior connection to an ethereum wallet he owns. He will be able to set the criteria by which his fund will evaluate purchases and sales of DeFi products and services. The chosen criteria will be transmitted by the webapp to the offchain oracles that will collect data from the market, which will then be transmitted through appropriate connectors to the Smart Contracts of the fund. At the same time a Smart Contract "SCF" will be initialized and will constitute the actual fund.

The platform will initialize the initial parameters of SCF:

  • a wallet address of the creator of the fund, who will receive part of the fund's fees for being its creator;

  • the pointers to the connectors of the oracles identified in the initial phase, which will act as intermediaries between the oracles providing data on market trends and the Smart Contract itself;

  • the initial conversion rate that relates ETH invested in the fund and fund tokens received in exchange

  • the minimum share of ETH participation in the fund

  • other support variables relevant to the functioning of the system, such as the connection to the Treasury Smart Contract "SCT" to which part of the fees will be forwarded.

It should be noted that the users, when creating a fund, are guided in the process by restrictive parameters for the selection criteria of the assets that can be part of the fund, so as to carry out a risk assessment of the fund already at this stage.

This feature is necessary for technical reasons, as there are limitations on the number and configuration of oracles that can be produced and which can be expanded as the MerlinDAO chooses.

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Last updated 2 years ago