F.A.Q.

What is MultiToken?

MultiToken is an ordinary ERC20 token. Its main function is storing and rebalancing tokens. You can distribute your deposit to a multitude of tokens in any proportion and put them into a MultiToken smart contract. A smart contract will remember these proportions and then, no matter how the quotes are bouncing, each token will occupy the percentage of the deposit that you have indicated before.

Where do I have my tokens kept when I send them to MultiToken? Is it safe?

All tokens are stored in the MultiToken smart contract on the Ethereum network. Access to MultiToken is possible only with the help of a private key which is available only to the owner. Do not transfer the private key to anyone and do not lose it — then your assets will be completely safe. You can always convert MultiToken to original tokens.

What is rebalancing and why I need it?

With the proper management of risks investors distribute their deposits on a variety of assets in certain proportions depending on the risk level of the asset. Over time, asset prices change and the original ratio is disrupted. Thus, it is advantageous to rebalance the portfolio which means to sell the increased tokens and buy cheaper ones. As a result of these actions, the ratio of the deposit proportions in the portfolio should come to its original state. In MultiToken rebalancing occurs automatically.

How does the automatic rebalancing work?

When the price of any token changes the indicated cost ratio in the smart contract is violated which creates a certain interest for arbitrage. A smart contract gives the opportunity for the arbitrageur to exchange cheaper tokens for more expensive ones, thereby restoring the original proportions.

Due to the high competition among arbitrageurs, asset rebalancing occurs immediately as soon as the interest of the arbitrageur exceeds the Ethereum transaction fee. It is the mutual benefit for the Holders and Arbitrageurs that guarantees the reliability of MultiToken!

What is FundToken?

FundToken is exactly the same as MultiToken except for two additional options. Unlike MultiToken, you can change the FundToken settings after its creation, thus adapting your investment strategy to the market volatility. By purchasing your FundToken other users will completely copy your actions.

Another specific feature of FundToken — the opportunity to set up a commission for its customers.

How do I get commission for exchanging tokens?

You can provide additional liquidity to the exchanger and receive a commission when someone changes tokens through your MultiToken. To do this, include the MTKN tokens in the MultiToken. The more MTKN tokens in your MultiToken, the more likely the exchange will pass through your MultiToken.

How expensive the MultiToken rebalancing is and who pays commission for transactions?

The expenditure part of the rebalancing is the remuneration of the arbitrageur. With one operation the arbitrageur receives hundredths of a percent of the transaction amount while paying the Ethereum transaction fee. This amount is significantly less than the benefit of rebalancing. In addition, the cost of rebalancing is reduced with the increase in the capitalization of MultiToken. It does not have to be just your deposit, every holder of this MultiToken increases its capitalization.

Now we are conducting a large number of tests and will soon lay out the test results with exact details.