Nifty NFT Designs for Friends of Formation FI
Highlights
- We have created seven NFT (Non-Fungible Token) designs that will become available for people that invest into our Parity, Alpha, Beta and Gamma funds.
- The Parity NFT is minted when a deposit is made into the Parity fund. The investor will hold the NFT for the life of the investment. The Alpha, Beta and Gamma deposit and withdrawal confirmation NFTs serve as receipts when someone makes a deposit or withdrawal request from the corresponding funds. The deposit NFTs will be available only from the time of deposit till the time that the deposited amount is converted to Alpha, Beta or Gamma tokens. The withdrawal NFTs will be available only from the time of withdrawal request till the time that the withdrawn Alpha, Beta or Gamma tokens are converted to USDT / BUSD or USDC respectively.
- The images given in this article are smaller and simpler illustrations. Our social media postings on Twitter will have the more exotic animated versions of these designs.
Investors can deposit USDT, BUSD and USDC on Ethereum, Binance and Polygon respectively to participate in one of our fund pools: Parity, Alpha, Beta and Gamma. We have created seven NFT (Non-Fungible Token) designs that will become available for people that invest into our Parity, Alpha, Beta and Gamma funds. A discussion of when these NFTs will be minted or burned and what information they will contain is given here. The images given below are smaller and simpler illustrations (Figure (1) Parity NFT with Investor Risk and Return Preferences; Figure (2) Alpha, Beta, Gamma Deposit Confirmation NFTs; Figure (3) Alpha, Beta, Gamma Withdrawal Confirmation NFTs). Our social media postings on Twitter have the more exotic animated versions of these designs.
We look at the Parity NFT first, next we consider the three deposit NFTs for Alpha, Beta and Gamma and, lastly, we consider the withdrawal NFTs for Alpha, Beta and Gamma.
1. Once someone has successfully deposited money into Parity, and the transaction is confirmed on the blockchain, an NFT will be minted. The investor will hold the NFT for the life of the investment.
– Our articles (Risk Parity Article from Eiffel Series; Another Article on Risk Parity) have a discussion of how Parity is constructed using Alpha, Beta and Gamma. The user experience has been designed such that investors can tailor their wealth allocations to their preferred risk appetites. Users can select either their preferred level of risk or return. Investors can also directly decide how much of their wealth they want to allocate to the three funds: Alpha, Beta and Gamma. Once either of the three routes are selected, (Risk or Return or Weights of Alpha, Beta and Gamma), the other parameters are automatically calculated and saved into the NFT.
– Figure (1) shows the Parity NFT with investor risk and expected return preferences. The following information is shown on the Parity NFT:
• Amount invested into Parity.
• Expected Return preference of the investor.
• Risk corresponding to obtain the expected return.
• Weights of the investment amount allocated to Alpha, Beta and Gamma.
• Preference of the investor in terms of selecting the Risk, Return or Weights.
• Wallet Address used to make the deposit.
• Network on which the deposit is made.
• NFT ID.
– Investors can change their preferences anytime by using our GUI and this will trigger an update of the parameters stored on their NFT. A corresponding adjustment will be made in our smart contracts to allocate their wealth to Alpha, Beta and Gamma based on the updated preferences.
– The challenge was to ensure that the user interactions are intuitive, and yet their preferences are precisely captured in the investment decisions. This has been accomplished by letting someone who does not wish to be bothered with all the settings, or a novice investor, have the simple option of choosing the default parameters, depositing his funds and forgetting about everything else. If this is the option chosen, the portfolio will select a low level of risk and calculate the other parameters accordingly. Advanced users can choose their risk level or their expected return, or the weights they want to assign to each of the sub funds. The other parameters will be automatically calculated.
2. Once someone has successfully deposited money into Alpha, Beta or Gamma, and the transaction is confirmed on the blockchain, they will receive an NFT as proof of their deposit.
– In order for Alpha, Beta & Gamma funds to be effective we need to ensure that people cannot enter the funds as they wish. Hence it can take a few hours, depending on market conditions and other factors listed below, before we accept a deposit. The operation will be in pending status till then. The GUI will show a pending status corresponding to the NFT and indicate the amount deposited.
– The deposits from all users in the protocol will be periodically invested into the fund at different times. This is done for various reasons that depend on:
• Minimizing Slippage and Market Impact
• Network Congestion and Gas Fees
• Rule Out Predictability of Orders and Front Running
• Market Conditions, Asset liquidity and Volatility
– The Alpha, Beta and Gamma deposit confirmation NFTs serve as a receipt indicating that funds from the investor have been received.
– Once the deposited amount from an investor is invested into any of the three funds (Alpha, Beta or Gamma), the NFT will be burned and the corresponding tokens will be sent to the investor. The NFT will be available only from the time of deposit till the time that the deposit is converted to Alpha, Beta or Gamma tokens. It is possible that when there is a large influx of funds, from several investors, partial deposit amounts are taken from each investor. The deposit NFT will be retained and the amount will decrease according to the number of tokens issued till the full deposited amount is converted to tokens.
– Once your deposit enters the fund you will receive Alpha and/or Beta and/or Gamma Fund Tokens. The number will be determined by the size of your deposit and the price of Alpha/Beta/Gamma at the time of investment. Your allocation will be shown within the DApp (distributed application). The Alpha, Beta & Gamma Fund price will change constantly just like any crypto asset. The valuation of Alpha, Beta & Gamma funds is determined by the total investment into various assets divided by the number of Alpha, Beta & Gamma Fund tokens. If someone makes a large deposit, our algorithms and processes will let the amount enter the fund in smaller quantities. This is done to protect all investors.
– Figure (2) shows the Alpha deposit confirmation NFT, the Beta deposit confirmation NFT and the Gamma deposit confirmation NFT respectively. The following information is shown on the deposit confirmation NFTs:
• Amount deposited in USDT / BUSD / USDC.
• Wallet Address used to make the deposit.
• Network on which the deposit is made.
• NFT ID.
3. Once someone has successfully made a withdraw request from Alpha, Beta or Gamma, and the transaction is confirmed on the blockchain, they will receive an NFT as proof of their withdrawal request.
– In order for Alpha, Beta & Gamma funds to be effective we need to ensure that people cannot exit the funds as they wish. Hence it can take a few hours, depending on market conditions and other factors listed in Point (1), before we accept a withdraw. The operation will be in pending status till then. The GUI will show a pending status corresponding to the NFT and indicate the number of tokens withdrawn.
– Similar to the deposit case, investors will receive an NFT as proof of their withdrawal request. The NFT will be showing pending status and indicate the number of Alpha, Beta & Gamma Fund tokens being withdrawn. The Alpha, Beta & Gamma token balance of any investor should reflect the balance after subtracting the amount withdrawn. If there are no more Alpha, Beta & Gamma Fund tokens left, the message will indicate that accordingly.
– Similar to the deposit case, all withdraw requests will be fulfilled at different time periods. The withdraw requests from all users in the protocol will be periodically allowed to leave the fund at different times. If someone withdraws a large amount, our algorithms and processes will let that amount leave the fund gradually. This is done to protect all investors.
– The USDT / BUSD / USDC amount the investor will receive in exchange for the Alpha, Beta & Gamma Fund tokens being withdrawn will depend on the Alpha, Beta & Gamma Fund price at the time when the USDT / BUSD / USDC amount is taken out of the fund.
– After a withdraw request is made the user can cancel the withdraw request. The Alpha, Beta & Gamma Fund token amounts should go back to the amount that were there before the withdraw request was made.
– Figure (3) shows the Alpha withdrawal confirmation NFT, the Beta withdrawal confirmation NFT and the Gamma withdrawal confirmation NFT respectively. The following information is shown on the withdrawal confirmation NFTs:
- Number of Alpha, Beta or Gamma tokens being withdrawn.
- Wallet Address used to make the withdrawn request.
- Network on which the withdraw request was made.
- NFT ID.
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