Nyan Custom Fund and Indexes
How to use the Nyan Fund Management system to create your own Funds and Indexes.
Self Managed Funds
Any Ether holder can now create their own liquidity pools and get direct access to Ether with the expectation of responsible management of the liquidity. Unlike Nyan Fund managers, Self Managers are able to pull 20% of their raised liquidity out of the fund and to a personal address. This means that providing liquidity to a Self Managed pool requires a good degree of trust in the pool’s manager.
Creating a pool can be done in the ‘Create a Pool’ section of the nyan.finance site. All that’s required for a pool creation is a name for the pool and a small pool creation fee that goes to the Nyan ecosystem as a reward. When users place liquidity in your pool, a fee of 1% is applied to their deposit. 10% of this fee is sent to a dev pool and the remainder is sent to the Nyan ecosystem as rewards. The same fee applies on pool withdrawals.
When an individual places liquidity in a Self Managed pool, they receive an equal amount of pool liquidity tokens. These liquidity tokens track the individual’s ownership of the pool as well as the percentages of the profits they’ll be able to claim from the pool. These liquidity tokens are ERC-20 based and should be freely tradable as assets on their own.
On the topic of ‘withdrawals’, pool supporters will need to remember that the pool creator will get access to 20% of the pool’s liquidity. Meaning that the pool creator can always deploy up to 20% of all the liquidity available in the pool. If a supporter were to attempt a withdrawal while a portion of liquidity has been deployed by the pool manager, the supporter would only receive their appropriate percentage of the liquidity currently in the pool.
When a pool manager returns the liquidity they deployed + a profit, they automatically receive 20% of the profits they return. 10% of profits are sent to the Nyan ecosystem as rewards. The remaining amount is sent back to a profits pool for pool supporters to claim.
Pool liquidity token holders can also vote to remove restrictions on the pool manager in order to give them access to all pool liquidity. This is a high-risk decision and is generally not recommended for any pool.
The Nyan fund management site will only display raw stats about each pool regardless of pool integrity. The responsibility of communicating and discussing further details about the pool rests upon the pool manager and the pool supporters.
OnChain Indexes
Due to the high level of risk and possible legal ramifications, most users may not want to participate in the Self Managed pools. These users will most likely find more stability in using the onChain index creator. Anyone can create their own index and begin to earn fees on other entering and exiting.
The onChain index creator allows a user to create an index by selecting various tokens they want to be in the index, as well as the percentage of each token. The contract will then deploy a contract that directly manages the new index.
With the Index created, other individuals can now deposit liquidity into the index in one click, meaning they quickly enter all the tokens specified by the fund at the appropriate percentages. When an individual enters the index, a 2% fee is taken from their deposit. Half of that fee is sent to the Nyan ecosystem(Rewards and Dev fee) and the other half is sent to the Index creator. The same fees apply when a user exits the index.
These indexes now allow influencers and market participants to create different types of token baskets with various goals in mind. Some will have a focus on fast returns while others will go with safer more stable tokens. Additionally, a user’s percentage of the index is represented in the form of a pool token that can easily be transferred like any other ERC-20 token.
These two features will be available on all chains supported by the Nyan contracts, beginning with Binance Smart Contract, layer two options like Matic, and others.
