Introducing MoatFund v2.0
The MoatFund v2.O is rapidly approaching!
As we get closer to June 10th, the date of the MoatFund v2.O launch, we are rapidly finalizing the smart contract protocol changes and a slight change in investment strategy.
Our team members have been busy at work preparing the different elements. This includes: restructuring smart contract, securing the protocol, new investment opportunities, parallel projects and so much more. Let’s dive in.
Smart Contract Updgradation.
Our existing protocol consists of 3 smart contracts:
- Fund — manages all the deposits and redeemption as well as stores all the assets of MoatFund.
- Board — is mainly used for board members voting.
- Token — ERC20 tokens which keep the database of MTU holders.
We had added 2 new smart contracts in the upgraded protocol.
- Asset — this is where we will keep all the MoatFund assets (instead of Fund contract). This adds an extra layer of security for storing assets.
- DEX— this contract will interact with the smart contracts of Decentralised Exchange (like Kyber Network, 0xprotocol etc) without withdrawing Ether to individual admin address.
Start interacting with smart contracts on Ropsten Testnet.
Integration of Decentralised Exchange.
We had plans to integrate almost all of the DEX trading platform. Our inital launch will include Kyber Network. It’s one of the best DEX with high liquidity. Instead of matching buyer and seller, they had introduced a concept of Reserve Managers who buys and sells tokens.
Previously, we had to withdraw funds to admin ether address. After the integration of Kyber Network. We can invest in cryptos, contract to contract. Our MoatFund DEX contract will call the Kyber Network contract with ether or tokens to buy/sell. Whole process will be executed contract to contract without any interruption of admin address.
However, we will still follow the traditional route for investing in cryptos which are not available on Kyber Network. The whole process will become decentralised after integration of all possible DEX platform.
Rewards for Voting.
Board Members play a very important role in Implementing Decentralized Autonomous Structure. They will vote for each and every investment proposals which leads to outflow of funds from MoatFund ecosystem.
After voting, ethereum will be sent to voter’s address which will be slightly higher than the gas cost incurred to vote for proposal. This will encourage members to actively participate in voting rounds. The rewards will increase as per the performance of MoatFund.
Do check this function on our Ropsten Testnet Contracts.
Separating contracts.
Previously, fund contract manages all the deposits and redemptions as well as stores all the assets. From version 2 protocol, assets will be stored on separate contract. This will be really helpful to minimize the cost of our future smart contract upgradations.
Token Migration.
We had made some changes to MTU token contract so all the existing MTU holders have to migrate their MTUv1 into MTUv2 tokens. It’s a one step process. We will soon publish the guidelines on how to migrate tokens.
Deducting Ether instead of MTU.
Previously, team use to deduct 5% MTU from the invested amount. Due to issues in financing administration cost, upgraded contract will credit 5% of ether (instead of MTU). Investors are not charged anything further.
Investment Startegy.
At MoatFund, we had indepthly analyzed hundreds of crypto currencies. Read their whitepaper. Used their market ready product (if any). Interacted with their team. Did peer analysis. Compared project growth vs market value. As explained in one of our previous article, 99% of use cases of blockchain technology do not require their own tokens.
We will restrict our fund allocation operations to a determined circle of competence as explained below.
Invest in protocol based utility tokens.
Mostly, we try to minimize investments in utility tokens without any protocols i.e. tokens which are linked to any centralised team, services or softwares. This includes BNB, BAT, SALT etc.
We will heavily invest in protocol based tokens which can sustain even without having any central reliance.
For example: For integrating Kyber Newtork DEX in MoatFund, we don’t need permission from their team. Their smart contract is publicly deployed on blockchain, we can simply call their contract from our contract without any middleman interruption. One other hand, if we want to integrate SALT loan issuance system in our protocol, we need permission from SALT team as most of the issuance are stored and managed in centralised manner.
This doesn’t mean tokens without protocols are not investment. They can also cultivate more returns but are comparatively more riskier than protocol based tokens.
Invest in security tokens.
2017 was the year of Utility tokens. We will see a speedy boost of security token in 2018. Tokenising assets will be real and a materialistic trend in crypto market we will see in the future.
Pomp, hell-bent on tokenizing the world.
Just think about getting an ownership token of Binance instead of utility token BNB for availing discount on trades. It’s by far the fastest profitable unicorn in history (just 5 months).
Security tokens could be the next big thing in cryptoassets. A simple Google search of “tokenized equity ” will swamp you with more than enough results.
Going forward, at MoatFund, we will always prefer security tokens over utility tokens.
Invest in tokens pegged to real assets.
Assets that will be tokenized in near future.
- Real estate (personal & investment).
- Debt funds.
- Venture funds.
- High value collectibles.
- Public infrastructure projects.
- Precious metal (gold, silver etc).
Digix Global, a Singapore based venture started tokenizing gold on Ethereum. They leverage the Distributed Ledger for its immutability, transparency and auditability by applying it to precious physical assets.
DAI creation.
DAI is a stable coin pegged to USD and unlike tether, its not centralised. It’s the first ever decentralised USD pegged token on ethereum blockchain. You can buy DAI on many Decentralised Exchange.
We can include DAI in our token as an hedge towards price drop. However, 99.99% of the people interacting with DAI Stable Coin will buy it from exchanges. At MoatFund, we will indulge in DAI creation process.
The tech behind DAI is very interesting. It’s like loaning yourself money by interacting with their smart contract. No middlemen who grants you the loans. Pretty amazing.
We will soon publish a seperate article explaining more about DAI creation and its benefits.
