FNDZ 101: The complete guide to managing a vault on FNDZ
FNDZ makes use of decentralized finance (DeFi) infrastructure to deliver a highly secure, fully automated, and simple-to-use copy trading experience. The FNDZ ecosystem is made up of the FNDZ token, which has a variety of utility features, and the FNDZ platform, which allows users to deposit digital assets into vaults managed by experts.
With the public beta fast approaching, now is an excellent time to recap the features available to vault owners. This guide will take a detailed look at how vaults work and how they can be used to execute transactions on behalf of depositors.
What is a FNDZ vault?
The first step in copying the trades of a cryptocurrency expert is choosing a vault. A vault is a collection of smart contracts which contains the digital assets under management by the vault creator, who is typically a verified professional. The vault operator executes trades on the assets in their vault, sharing the earnings with contributing individuals.
Let’s take a look at vault creation, a simple process designed to take no more than five minutes to complete.
Connecting your wallet
The first step in vault creation is connecting your wallet. To do so, go to the upper right-hand corner and click the ‘Connect Wallet’ button. This will load an interface containing three sections:
- A tickbox which you need to click to agree to the terms and conditions;
- An option to choose the Ethereum or Binance Smart Chain networks;
- A choice between various wallets supported by the platform.
Select the appropriate network and wallet and agree to the terms and conditions to connect your wallet.
Creating a new vault
Once your wallet is connected, you’ll be given the option of creating a new vault or browsing the details of the vaults you have already created. To create a new vault, click ‘Create Vault.’ This will launch the vault creation tool.
Select a vault name and a denomination asset (for Binance Smart Chain, the relevant denomination asset is “BUSD,” whereas for Ethereum, it can either be “USDT” or “USDC”), then click “Next” to begin the configuration process.
Configuring your vault
Setting management and performance fees
Vault operators may charge a management fee and/or a performance fee. Use the sliders to choose any number between 0% and 3% for the management fee and 0% to 30% for the performance fee. While the management fee is paid upon entry to the vault, the performance fee is charged on a recurring basis (dubbed the “crystallization period”). The performance fee is only applicable where a vault has generated positive performance for the depositor. To select the crystallization period, use the drop-down menu. It can be charged on a weekly, monthly, or quarterly basis. After making your selections, click “Next.”
Whitelisting addresses for deposits
You can whitelist addresses that are permitted to make deposits into your vault, meaning that entry is possible on an invitation-only basis. If you add addresses to the whitelist, only those addresses will be able to access your vault. To do so, click the “Limit Who Can Deposit” option. Then copy in the addresses you wish to add to the whitelist.
On the same screen you also have the option of setting minimum and maximum deposit amount settings. You can do so by toggling the “Limit Deposit Amount” button and entering the values you want to set for minimum and maximum amounts.
Setting a Withdrawal Window
On the “Redemptions” page, you can specify a withdrawal window. This setting limits the amount of time during which depositors can withdraw funds from your vault. To set a withdrawal window, toggle the “Provide a Guaranteed Withdrawal Window” button and enter the desired start time and duration.
You can also put a time-lock on withdrawals. This is a period of time following the initial contribution during which a depositor is unable to withdraw their funds from your vault. Setting such a time-lock can guard against many sorts of arbitrage, but it is critical that you carefully consider the length of the timelock required before implementing it, as it cannot be modified after your vault has been created. It is set to one day by default.
Now you are ready to review the settings of your vault! This is the all-important last step before completing the setup process.
Reviewing Vault Settings
The “Review” page provides a summary of your chosen settings. It’s critical that you go through all of your settings because many of them can’t be modified after the vault is created! When you’re satisfied with the settings, check the box to indicate that you agree to the terms and conditions, and then click the “Create” button.
Managing multiple vaults
There is no limit to the number of vaults you can set up and manage simultaneously. Should you wish to do so, it is also possible to share the workload by adding managers other than yourself to a vault you have created.
After creating a vault, click the ‘My Vault Detail’ button to manage it and view its performance. Clicking this button will take you straight to the “My Vaults” vault management page.
Vault management page
A series of important statistics and figures are featured on the vault management page. At the top, four boxes display, from left to right, the total amount deposited; the total number of depositors; the average monthly return; and the total earnings.
Vault management grid
The middle section of the vault management page contains a list of all the vaults under your management. There is no limit to the number of vaults you can manage or create.
You can check your vault’s configuration and important settings on the vault view page, which you can access by placing your cursor over one of the vaults and clicking the ‘View Details’ button.
The vault view page displays the various settings you have chosen for your vault, including the timelock period, smart contract addresses, and denomination unit.
Next to the ‘Vault overview’ tab is the ‘Trade’ tab. Clicking this tab will bring you to the vault manager’s trading interface. On the interface you will find buttons for buying and selling, as well as graphs of price movements.
If you want to open a new order, you can do so by clicking the button with an asset abbreviation (by default ‘ETH’). This will bring up a list of available assets in a drop-down menu. Not all assets are available; only those that have been thoroughly vetted are eligible for trading. We have pre-selected Ethereum chain and Binance Smart Chain assets.
The “Sell” button will take you to the selling interface. To buy or sell, simply enter the desired amount and click the “Buy” or “Sell” buttons. All orders are executed via ParaSwap, a leading decentralized exchange (DEX) aggregator for price execution.
FNDZ is natively integrated with ParaSwap to make the trading experience as frictionless as possible. ParaSwap simplifies the exchange of Ethereum and Binance Smart Chain tokens by reducing the complexity that is required to fulfill orders at market rates.
ParaSwap takes care of the otherwise time-intensive process of choosing ideal swaps by displaying the most favorable gas costs and other swap variables, allowing you to focus on your management strategy.
There are several other advantages to trading with ParaSwap:
- Large swap liquidity
ParaSwap is the most cost-effective way to execute large transactions (above 15 ETH), because it allows orders to be spread across multiple DEXs, lowering the price impact of each trade.
2. Optimize capital deployment
ParaSwap offers ‘MultiPath’ functionality which instantly measures the viability of splitting transactions between different DEXs or routing through another token.
3. Take profits and save
MultiPath also makes it simple to save on transaction costs and price impacts. Its protocol automatically analyzes the relative costs of combining trades or splitting them across several DEXs and/or tokens.
4. Pay friends
The trading interface also allows users to send payments in cryptocurrencies which they do not hold in a single transaction using its Swap & Transfer function.
Ever wonder how you are performing compared to your peers? The FNDZ leaderboards display a ranking of vault managers’ relative performance. A good score on the leaderboard signals success and serves as organic advertisement for your vault, attracting additional followers.
To be ranked on a leaderboard, FNDZ tokens are required. Leaderboards are based on, and display to the public, key indicators such as percent return since creation; 24-hour-, weekly-, and monthly profits; and total value of assets under management.
In the near future, vault owners will enter weekly competitions with a chance to stake their claim on a prize pool and international glory!
Ready to try it out? Join the conversation in our vibrant community in the FNDZ Telegram channel to engage in brainstorming, share ideas, and to meet passionate supporters of DeFi!