What’s Investin?

Anas
Investin
Published in
4 min readAug 31, 2020

Investin is a decentralized fund management protocol that allows any trader to start their fund without having to worry about custody of assets for their investors. The vaults that hold the assets for the investors and traders are designed in such a way that no one except the investor themselves would be able to withdraw those assets at any given time.

The architecture of protocol allows investing in any trader/strategy very easy, all that is to be done from investor’s side is to get the right address of their favorite trader/strategy they want to Investin and send the tokens to that address, in return the investor will receive an ERC 721 token that will act as confirmation receipt for the specific vault they have invested in. This token, when sent back to the specific vault, will end the investment term for the investor and return back their tokens with the calculated profit/loss made by the trader.

What’s in it for trader/fund manager/algo trader?

The protocol will allow anyone to start their own fund’s and accept investment to their delegated vaults and trade using the assets on centralized or decentralized exchanges. The protocol is non-custodial all assets are stored in contracts on-chain and no one except the investor will be allowed to access their respective invested funds. The address that deployed the strategy using the protocol will be the only address allowed to trade using assets sent to their vault.

There are multiple trading platforms from which traders can choose from we will be opening the options in phases. In the first phase due to current network congestion and high gas fee on ethereum blockchain, we are allowing trading on Binance and we are in talks with Deversifi which is a layer 2 based decentralized exchange with deep liquidity and less fee compared to Uniswap. Talking about the trading experience, being a trader myself I know it's necessary to have funds available on exchanges that have multiple assets to trade and have good liquidity. Keeping in that mind our aim is to allow trader’s the option to trade on multiple exchanges and focus mainly to make the full experience decentralized. In the second phase will allow trader’s the option to start their fund using Uniswap and Deversifi. Currently, we are testing with Uniswap on ropsten network and working hard to make the experience smooth and cost-effective.

The performance fee and management fee are to be set at the time of deploying the delegated vaults by traders. The management fee will be sent to the trader’s address when an investor deposits. The expected returns the trader will be making should be given to contract as well, this return percentage will be used to evaluate the performance when any investor withdraws and if the expected return percentage is met the trader will receive their performance fee if not then they won’t make any money for that transaction.

What’s in it for investors?

The UI of the platform will allow anyone to check out the strategies available to invest in and their relative performances. The protocol is designed to make investing experience frictionless and trustworthy for everyone. The assets are stored in a non-custodial way on contracts and the contracts have been designed carefully with no functions that can allow anyone except the investors themselves to withdraw their invested assets. To invest in any of the available strategies/vaults all that is to be done is to deposit using the interface and at any time the investor can send back the ERC 721 token they hold in their wallets to the vault address and just like that the contract will know the term of investment for the particular address is ended and will send back the assets to that address.

The protocol makes investing safe and easier, it removes the anxieties of every potential investor of losing assets. The contracts are builtin with max drawdown function that tracks each vault on an hourly basis to see if any trader performs below an expected loss which can be derived from the collective mean of investors drawdown expectancy. This helps the protocol to keep rogue/degen traders away from deploying their vaults only to lose money to markets.

The only worry investors have to keep in mind is to pick the right vault in which they are investing rest they can sit back and let the money work for them, there will be no extra fee that is charged except the one time management fee at the time of deposit and performance fee at the time withdrawal that will be deducted by the contract. The performance fee will be deducted only if the traders meet their expected return percentage on the asset if not met during withdrawal there will be no deduction made to the capital.

Conclusion: We at Investin believe everyone should have a level field to show their performance in markets, hence using the protocol anyone would be able to start their fund or invest in any fund without worrying about risks related to assets handling. Thereby making markets more accessible.

💬 Join Us!

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