Protocol Design
DELTAFi is composed of two main components:
dETP (Decentralized Exchange Traded Products): These are products through which users interact directly on the decentralized exchange by trading. dETPs represent shares of a Vault, and each dETP is tied to a Vault that operates the underlying assets.
Vault: This acts as an infrastructure that manages assets to generate revenue. Only addresses that are whitelisted can deposit (issue) or withdraw (redeem) assets from the Vault. In the current structure, this typically refers to smart contracts.
The traditional ETP structure consists of:
Issuer: Responsible for the issuance of ETP shares and managing the processes of deposit and withdrawal.
Authorized Participant (AP): Provides liquidity in the open market and has the authority to create or redeem shares of the ETP.
Users/Traders: Engage in ETP trading on the secondary market, buying and selling shares as they see fit.
DELTAFi's dETP Structure
All of the dETP structures are built on blockchain, replacing centralized authorities with smart contracts.
Vault: Functions similarly to an issuer, managing the underlying assets through Strategy and facilitating creation and redemption of dETPs; also provides liquidity on DEX
Controller: Separate smart contract used to control Vault without invading assets in the Vault
Users/Traders: Engage in dETP trading on secondary market (DEXs)
We're introducing a new range of native crypto investment products. This approach maintains familiarity while incorporating modifications tailored to DeFi protocols, thus paving the way for innovative crypto investment opportunities. DELTAFi's adaptation of traditional ETP structures into the DeFi ecosystem offers the advantages such as enhanced liquidity, reduced counterparty risk, democratized access to investment strategies, and more.
Contrast to traditional ETPs managed by centralized institutions, dETPs ensure that the control and management of funds are distributed across a decentralized network which can be tracked in real-time for COMPLETE transparency. With dETPs, a broader audience can participate in investment strategies that were previously reserved for a small group of people with substantial capital, thus lowering entry barriers. This innovative dETP structure allows for easy incorporation of various asset classes, including but not limited to cryptocurrencies, derivatives, and synthetic assets, enabling creation of a diverse investment ecosystem.
Through dETPs, users can enojy features such as:
Automated Asset Management: The Vault is designed to automatically adjust its strategies based on pre-set rules or through governance, ensuring efficiency and responsiveness to market changes.
Enhanced Security: The whitelisting process within Vaults facilitates additional protection against unauthorized access, promoting a more secure investment infrastructure.
Tokenization of Assets: dETPs enable the representation of a diversified portfolio into a single tradeable token, streamlining investment processes and tracking.
DELTAFi is poised to bridge the gap between conventional TradFi products and the burgeoning DeFi space, thus driving the next wave of trustless financial innovation with permissionless framework inherent to crypto.
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