How it works

Basic Structure

The DeFund Protocol currently allows for one-to-multi open-ended fund management operations through contracts. Uniswap conversions and liquidity pools are supported by DeFi Protocols, with more DeFi Protocols to be supported in the future. 工作原理

The fund agreement is initiated by GP. The fund is divided into public funds and private funds. Anyone can invest in public funds, while private funds can only be invested at the whitelist address specified by GP, and the initial deposit amount of LP needs to be greater than or equal to the initial deposit requirement determined by the contract.

For example, in the figure above, GP and LP invest 1 ETH and 9 ETH respectively, and the initial asset of the fund is 10 ETH. Then, GP starts to operate the fund, operate the fund according to the set 20% carry and 1% annual management fee, and carry out daily fund operations according to the selected protocol and token to obtain income.

The annual income GP can get is divided into two parts: one is the management fee, the other is the Carry.

The management fee part-MF(year)：

MF(year)=FTV(now)∗MFR(Management fee)\tag{Management fee} MF(year) = FTV(now)* MFR

Carry part：

Carry=∑(LPTU(1..n)FTU∗FTV)(Carry)\tag{Carry} Carry = \sum (\frac{LPTU(1..n)}{FTU}*FTV)

In addition, if a redemption fee is set, there may also be a redemption fee-YRF(year redemption fee)：

YRF=∑MF(1..n)(Redemption fee)\tag{Redemption fee} YRF = \sum MF(1..n)

Thus, the annual income of GP-EARN：

EARN=MF(year)+Carry+YRF(Income)\tag{Income} EARN = MF(year) + Carry + YRF
  • MF(year)： Year management fee
  • FTV： Fund total value
  • MFR：Management fee rate
  • LPTU：LP total units
  • FTU：Fund total units
  • FTV：Fund total value
  • YRF：Year redemption fee

LP

  • View fund operation in real time
  • Carry out the fund deposition, redemption and other operations at any time
  • Set a stop loss on your investment that will be automatically redeemed in full when the stop is triggered

GP

  • Create funds, set investment requirements , management fees and carry, limit supported protocols and tokens, and specify LP’s addresses.
  • Conduct investment operations (conversions, liquid pools) on Uniswap in accordance with the operating scope set by the Fund.
What is DeFund ProtocolRoadmap