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V1

How it works

With this initial version of smart-contracts, there are various phases in a DynaSet lifetime, each of which is described below.

Contribution

Users have a specific period to contribute to the DynaSet. During that period, the users will be able to deposit within a list of tokens inside the forge smart contract through our dApp. This contribution will then be swapped to match the DynaSet weight and to mint DynaSet LP tokens. The value of the users' contributions will be considered at the forging time. SingularityDAO do not take accountability for the volatility of the deposited tokens during the contribution period.

DynaSet tokens minting (aka forging)

LP token price depends on the performance of the Dynaset. if the DynaSet is performing well, the total value locked in the Dynaset as compared to the DynaSet total supply will go up hence the DynaSet price will go up.
P=TVL/SP =TVL / S
LPr=C/PLP r = C / P
With
P = DynaSet LP Token Price
TVL = Total Value Locked in the DynaSet
S = Total Supply of DynaSet LP tokens
LPr = Dynaset LP Received for Contribution
C = Contribution Equivalent in USD

Withdrawal of DynaSet tokens

Users keep custodial of their funds by owning a share of the DynaSet in the form of DynaSet LP tokens that can be withdrawn (taken from the forge smart contract to the user wallet) at the end of the contribution period from the dApp. This transaction will be charged with a gas fee as it happens on-chain. Withdrawals will not be available during the Beta.
Trading Window
After the forging, DynaSet LP tokens are allocated on the forges to the wallets which participated in the DynaSet. The contributed tokens are moved to the DynaSet contract and the trading window starts. From here the DAM can rebalance the DynaSet assets through the selected Decentralised Exchange Aggreggator (1inch) based on the signals it receives.
The DAM will monitor market & social media conditions, and if certain criteria are met, or AI signals are received, dynamically adjust between strategies and take appropriate actions. A complex layer of smart contracts will then analyse multiple DEX and Liquidity Pools, taking into account things like gas fees, slippage, and market depth. If all the criteria are met, a trade (or multiple smaller trades) will be executed.

Redeem

The function of redeeming consists of burning the DynaSet LP tokens to receive one of the underlying assets holded by the DynaSet. If users decide to redeem, they will pay the corresponding swap fees that the DynaSet contract will do to get to the desired token. Users can redeem at any time. If the users redeem outside of the redeem period, they will be charged with a capital cut.
There are two ways of redeeming the DynaSet LP tokens:
  • If the user didn't withdraw its DynaSet LP tokens from the forge, he can redeem them from the 'Redeem from forge' function.
  • If the user withdrew its DynaSet LP tokens from the forge, he can redeem them from the 'Redeem from wallet' function.

Fees structure

On every DynaSet there will be some periodic fees taken:
  • Management fees that will be taken to ensure the execution setup of the DynaSet.
  • Performance fees that will be taken on the alpha generated if the DynaSet performs above the hurdle rate, and distributed between the DAM and DAO participants. To become a DAO participant, users must have their SDAO tokens staked within the platform.
These fees will be taken periodically, based on the trading window of the DynaSet.