DePlutus helps investors achieve higher return on investment by providing on-chain, permissionless, and open social investment management services. The agreement will be launched on the Ethereum mainnet in mid-April and will start creation liquidity mining in late April.
Written by: Vincent
For the traditional financial market, “asset management” is an industry that integrates into the blood of the market. Public fund companies, trust companies, asset management companies, and related banks, securities, insurance and other institutions are all professional players and participants in the asset management industry. . In the process of DeFi reshaping the financial system in the cryptocurrency world, asset management is obviously also an important part.
However, compared with the mature traditional financial market, the fast-paced and high-yield nature of the DeFi market today makes investors’ pursuit of capital utilization and liquidity to the extreme, like traditional fund asset management projects in the investment process. The inability to circulate freely makes this type of product less attractive to DeFi investors. DePlutus is keenly aware of this market pain point, and through the tokenized design of the fund products on the chain, it has become a DeFi asset management track. The forerunners launched an impact.
What is the DePlutus protocol?
DePlutus is a DeFi asset management protocol that can provide non-custodial and decentralized asset management services for cryptocurrency assets. The agreement aims to provide a chain-based, permissionless, open social investment management service, and through this asset agreement management tool, help investors realize a higher comprehensive return on investment for encrypted assets.
The DePlutus protocol was officially launched on the Ethereum network in mid-April 2021, and will be deployed in multiple public chains such as Binance Smart Chain BSC and Huobi Ecological Chain Heco. At the same time, creation liquidity mining will be started in late April.
What are the functions of the DePlutus protocol?
The DePlutus protocol creates an asset pool through smart contracts on the chain, which can help investors improve the utilization and liquidity of capital. Investors can create, issue, manage and invest in fund products on the chain through the DePlutus agreement. This agreement mainly serves two types of clients-fund managers and ordinary investors.
Fund managers and professional traders can independently create, issue and manage fund products on the chain through the DePlutus protocol. The fund manager creates a fund pool corresponding to the fund by calling the smart contract on DePlutus. This fund pool allows other investors to participate in investment. Fund managers can make decisions and investments in their funds, using active strategies, algorithmic strategies, and investing in other fund products on DePlutus. The fund manager can set the rules of the fund, such as investment strategy, cycle, maximum drawdown and other corresponding conditions and indicators.
Ordinary investors can use a variety of cryptocurrencies to participate in fund investment through smart contracts. After purchasing the fund, they will receive the fund’s unique “exclusive fund Token”. The fund exclusive Token represents the investor’s ownership share in the fund, and its price is proportional to the current value of the fund.
Token classification under the DePlutus protocol
The tokens in the DePlutus agreement are divided into “fund exclusive token DF Token” and “protocol governance token PLUT”.
DePlutus is currently the only mature asset management protocol that has been launched in the DeFi asset management field and supports the fund’s exclusive token function. After participating in the on-chain fund, investors will get the exclusive token DF Token corresponding to the fund. DF Token can be used for fund redemption, or transfer, transaction, or pledge in other mainstream DeFi applications such as DePlutus and Aave. At the same time, DF Token holders can directly trade through the DF/USDT trading pair on Uniswap, or they can obtain the protocol token PLUT reward by mining by providing liquidity.
PLUT is the governance token of the DePlutus agreement, with a maximum issuance of 1 billion pieces, which will be gradually released within 24 months after the creation of the world. 70% of PLUT will be allocated to users in the form of liquid mining.
Security mechanism of DePlutus protocol
As a decentralized asset management protocol, DePlutus has a complete security mechanism and risk control system to ensure the safety of user funds and on-chain funds. The DePlutus protocol has passed the security audit of authoritative third-party organizations such as SlowMist in April 2021.
All user investments in the DePlutus agreement are deposited in the on-chain fund pool. Fund managers only have the authority to trade on decentralized exchanges by calling smart contracts, and have no authority to withdraw fund assets. Each fund has set corresponding permissions for fund managers, and stipulates a whitelist of DeFi projects and tokens through smart contracts.
Fund managers can only allocate funds to Token or DeFi platforms in the whitelist, such as mainstream currencies such as WBTC and WETH, or DeFi platforms such as Uniswap, Synthetix, and 1Inch, effectively avoiding participation in high-risk assets and poorly liquid encrypted assets. The whitelist mechanism can effectively prevent the subjective evil behavior of fund managers.
In addition, the DePlutus agreement also requires fund managers to invest in fund products under the name in accordance with the self-financing ratio, to achieve interest binding with ordinary investors, and to encourage fund managers to strive to improve performance.
summary
As a new member of the DeFi asset management track, the DePlutus agreement condenses the experience and wisdom of senior Wall Street investors. At the beginning of the plan, they decided to tokenize the fund products on the chain. Through this innovative design, the problem of inability to trade during the lock-up period of the fund was solved, which brought additional liquidity to investors and greatly improved the efficiency of funds. At the same time, the fund’s exclusive token, DF Token, can also be pledged to generate interest on the lending platform. The DePlutus protocol is actively contacting mainstream lending platforms such as Aave to expand the scope of application of DF Token, realizing the deep embedding and integration of on-chain funds and the entire DeFi ecosystem. Interactive.
With a series of innovations and preemptive advantages, the DePlutus agreement is expected to capture the millions of long-tail users who are about to flood the DeFi asset management market.
For more detailed information, please refer to “DePlutus Agreement White Paper Chinese Version “.
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