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. 4.2 User investor of a fund

4.2.1 Use Case UIF1

A user in the crypto world who is intent on investing in DeFi finance products and services will be able to deposit a certain number of Ethereum (or MATIC) to a Smart Contract, e.g. SCF of use case U1, and will receive as a countervalue a certain number of ERC20 (or BEP20) tokens representing the share invested in the fund.

The first user to deposit ETH into the SCF will hold 100% of the shares of that fund. SCF will carry out the minting (i.e. creation of new tokens) of the coins with which it recognizes the user's share of the fund.

When another "investor" joins the fund, the share of the first will be diluted proportionally to the ETH share invested by the second in relation to the current value of the fund. SCF will carry out a new minting of the respective coin to be recognized to the second "investor" user.

The entry and exit of "investors" from the fund cannot be carried out freely, but will be allowed only in predetermined time intervals, determined by the moment in which the SCF Smart Contract will have carried out the daily operations of calculation of today's market value of the fund value and constituted by the sum of the ETH values of the n ERC20 tokens present in the contract at that moment. Market quotes are provided by n decentralized oracles to ensure resilience to undue manipulation.

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Last updated 2 years ago