🏖️ Pools

DN404 tokens are inherently designed to carry a high value. On one hand, investing in a Vault requires at least one whole token, necessitating a decent amount of capital.

For "scalper" investors who may not wish to commit such a level of capital, we have designed Pools that allow individuals to pool their capital for collective investment.

Wait- Why pools are needed, despite DN404's are fungible by its nature?

Of course, one can swap sub-integer amount of DN404 from AMMs to invest in it. Pools are rather focused in "scalpers" who want to invest through vaults with less capital.

Structure of a Pool

Anyone can create a pool to raise funds to afford a DN404 token. Funds are raised in WETH. Following informations are required to create a new pool:

• Target Token: specify DN404 tokens.

• Total Cap in ETH: specify the total raise amount in ETH

• Strategy: specify the strategy after purchasing a DN404 token.

  1. Vault: Let our vault automatically farm the rarer trait, sell it, and distribute the earnings to the pool participants.

  2. Manual: Let pool participants control it by their own. We may offer a simple Governor module to control the DN404 token in the pool by voting with their shares.

• Min Cap Per Participants (Optional): specify the minimum required amount for anyone to join a pool to control the no. of participants, if needed

Depositing to a Pool

Anyone can deposit their WETH to join a pool. As they deposit a fund, they get pool share token pro-rata to the amount they deposit.

Pool share token is a ERC20 token that being created for each pool. It can be seen as a LP token for each pairs in AMM, or fractionalized share for DN404 tokens owned by a pool.

Purchasing a Token by a Pool

After raising a target amount, the target DN404 token is being automatically bought from Uniswap V3 for a pool. The bought token is being locked up in our pool contract.

Pool Governance

The pool participants can create a proposal to control the use of funds/tokens in a pool. The pool share token is being used as the voting token. A proposal can be one of followings:

• Transfer Funds To an Address

• Transfer DN404 Tokens To an Address

• Liquidate a Pool

Liquidation

A pool can be liquidated if (1) the vault has finished it’s own job or (2) upon receiving votes from its participants.

The funds are distributed back to participants on a pro-rata basis according to their shares. However, if a pool holds an NFT, the tokens will be sold on Uniswap V3, and the proceeds will then be distributed.