📜CellETF Litepaper
Decentralized Crypto Asset Fund
Core
Our Mission：
To create a new asset management paradigm.
Our Vision：
To become the world's most influential decentralized crypto asset management protocol, enable everyone’s asset management with crypto asset portfolio.
Introduction
CellETF is a decentralized crypto asset management protocol that supported by consensus cellnetwork. It will build a decentralized fund protocol based on smart contracts that integrates fund issuance, subscription, investment, and redemption business processes, providing transparent and Trust-free method for crypto asset management. CellETF is committed to allowing global users to freely choose professional investment strategies in CellETF, and easily complete the allocation of crypto assets through different fund products.
CellETF Protocol technically solve the typical problems in traditional fund, making it possible for asset management execute on blockchain in a decentralized way.
1.Trust Mechanism
The entire operational cycle (including creation, fundraising, asset allocation, liquidation and exit, etc.) of a specific fund is conducted by smart contract. Fund managers can only manage assets within the scope of authorization. In traditional funds, they have to settle the trust issue through complicated contract agreements and custodians, in contrast, the open source and temper-proof feature of smart contract provides a basic trust environment for CellETF fund.
2.Transparency
All fund-related transactions are conducted by smart contract, and all the related data, including asset allocation, net value accounting, strategy changes and other processes of the fund are written in blockchain for users to easily trace, which ensures that the information between investors and fund managers is transparent and symmetrical.
3.Efficiency
The Traditional fund management process generally involves due diligence, fund scheme and architecture design, fund filing and creation, fund account opening, etc., accompanied by contract signing and multi-party agreement, which take at least 1-3 weeks to finish all the process. While in CellETF, all tractions are on the basis of blockchain mechanism, making the fund traction be quickly deployed and operated on chain.
Technology Concepts
1.Asset Custody
The assets of each fund are safely kept by a specific Vault contract.
2.Underlying Asset
Theoretically, all crypto assets can be selected as the underlying assets in CellETF, and all crypto projects can be chosen as the investment tools for CellETF. The CellETF funds will be firstly deployed in Ethereum network because Ethereum provides an extremely abundant token and defi tool choice for our fund.
3.Strategy Pool
For different types of underlying assets and investment tools, we will compile the corresponding strategies into standardized smart contracts. Multiple investment strategies constitute a fund trading authority. Any strategy changes happen to a fund will be earlier publicized to the community.
4.Fund Token
Smart contract distributes the corresponding fund token to the user who buys fund in CellETF, this fund token represents user's ownership to a series of tokens. To redeem one’s funds back, users need to provide the fund token he has mint before.
5.Fund Authorization
Asset in Vault contract can’t be withdrawn without authorization, it can only be charged by fund managers on a limited investment strategy.
6.Openness and compatible architecture
CellETF will have high compatibility and scalability. First, CellETF can be deployed on different public chains that support EVM, which allows CellETF to become an asset management institution in different blockchain worlds; secondly, DeFi projects in the same network can become the underlying investment tool of CellETF funds. The CellETF fund will establish a diversified strategy pool; finally, on the other hand, under the premise of strict authority control, the Vault contract of the CellETF fund can also support the connection with various decentralized fund platforms, which will be the fund of CellETF The business provides solid channel resources.
Smart Contract Framework
1.Fund Management Contract
As the core component in CellETF contract framework, fund management contract includes business logic related to fund business, and plays an overall coordination role among different functional contracts
2.Asset Custody Contract
Asset Custody Contract guarantees the safety of the underlying assets, those assets only be traded within the permitted scope of authority, and no one can withdraw optionally.
3.Purchase Rules Contract
In responsible for fund purchase
4.Redemption Rules Contract
In responsible for funds redemption
5.Authority Control Contract
In responsible for controlling the authority of fund managers, who should manage the assets in vested range
6.Trading Contract
In responsible for calling the investment strategy, and executing the trading instructions initiated by fund managers
7.Accounting Contract
In responsible for fund accounting, and calculate the net value when users purchase or sell.
8.Investment Strategy Module
In responsible for compiling the relevant crypto assets investment elements into standardized smart contract modules to form a strategy pool for fund calls. When a new fund is created, it can be used as an investment scope by linking the existing investment strategy modules.
9.Oracle Contract
In responsible for price quoting for fund valuation and net value accounting.
Support Facilities
In addition to the core decentralized fund agreement, CellETF also integrates a series of supporting decentralized applications to enhance the user experience:
Fund Token yield farming Contract
As an incentive to reward community members who invest fund in CellETF and hold the fund token.
CETF Liquidity mining Contract
As an incentive to reward community members who provide CETF in liquidity mining contract
CETF Staking contract
As an incentive to reward community members who provide CETF in staking contract
CellETF Governance Contract
For the purpose of DAO’s on-chain governance.
Features& Superiority
1.High Scalability
The modular and low-coupling contract structure enables CellETF fund protocol with highly scalability. Every investment strategy module is a "Strategy Pool". If a new project is accepted by the DAO, it can be swiftly included to CellETF’s strategy pool by customizing investment strategy contract for this project.
2.High Compatibility
With the world's tokenization, many real-world assets will be tokenized on chain in the near future. With the increase of on-chain assets, the investment scope of CellETF funds will also expand, thus, CellETF funds will be able to meet the asset allocation needs for more users with different preferences, and the underlying data architecture of CellETF can well adapt to regulatory requirements.
3.Portability
As a brand new decentralized asset fund protocol, CellETF will also be deployed on different chains before the cross-chain technology is fully mature to provide decentralized assets management services for users on different blockchains.
4.CETF Related Business Development
As the governance token in CellETF, The value of CETF will be supported by a buyback-and burn token model which rely on the fees captured by CellETF funds.
Application Scenario
Based on the diversified strategy pool, CellETF fund will meet the needs of crypto asset allocation in various scenarios:
User A has a preliminary understanding of crypto assets and hopes to add a part of the configuration of cryptoassets to the personal asset allocation, but there is no extra time to study each crypto asset. At this time, she can directly apply for a certain crypto asset through the relevant recommendation of CellETF The fund has completed the allocation of cryptoassets.
User B is a more professional crypto asset investor. CellETF will provide multiple types of investment strategies, and provide B with fund products with attributes such as leveraged trading and risk hedging.
User C wants to participate in yield farming of a certain project, but the cumbersome operation process and high fuel consumption make it difficult to directly operate. The project and yield farming contract have passed the investment access of CellETF and established. With the corresponding strategic contract, C can find fund products that are mainly invested in yield farming through CellETF, and can participate in yield farming with the fund pool without worry by investing the fund.
Project D will use X% of its project profits to buyback project tokens. The team can choose to create a special fund in CellETF. This fund serves as a targeted asset management plan with only one investment strategy. The process of purchasing project tokens in the hands of the market or objects is completely open and transparent.
Main Risks and Mitigation Measures
1.Malicious attacks on fund contract infrastructure
The CellETF team has always paid attention to contract security issues, The R & D team mainly comes from the Consensus Cell Network, which has rich experience in smart contract development and other decentralized applications (including swap, staking, liquid mining contracts, etc. have passed security audits and long-running verification). As for CellETF fund protocol, it will adopt a number of security measures including internal security audits, external security audits, and vulnerability rewards to eliminate potential hacker attack risks through standardized verification of the code.
In addition to the above risk control measures, CellETF will cooperate with decentralized insurance agreements such as Nexus Mutual to ensure the safety of the entire agreement and the asset safety of fund holders.
2.Moral Hazard of Fund Managers
First of all, the fund assets are kept by the corresponding Vault contract, and no one has the right to withdraw at will. The fund manager only has the authority to operate the fund assets within the allowed investment range. This setting forms the basis for fund managers constraint.
Secondly, the investment range (underlying assets and corresponding investment tools) of each fund issued by CellETF is visible to all users. This setting avoids investment risks caused by users ignorant of the strategy.
Third, as a fund manager, CellETF has sufficient motivation to carry out active asset management operations. The CellETF fund issuance and management system is designed to solve the important problem of the Ethereum ecology and the management of crypto assets in the broader decentralized system. Fund management fees and over-sharing are the core value sources of the CellETF system. We believe that it will enable project parties to drive their asset management business with their own interests. The founding team of CellETF has established a prudent investment decision management framework and will gather the most professional investment Research power provides users with the best asset allocation solutions.
CETF (CellETF Token)
1.What is CETF?
CETF is a governance token that allows token holders to govern CellETF. The total amount of CETF issuance is 1 billion (NO inflation)
2.CETF Rights
CETF token enable the community to govern the protocol. As a representative of the rights and interests of the CellETF community, CETF is the cornerstone for the CellETF community to jointly govern projects in a decentralized manner.
3.CETF Distribution
Incubation mechanism (25%) : Token incentive for incubation mechanism, linear release over 25 months;
Team (25%) : Token incentive for team members, distributed linearly over 25 months;
Community Treasury(25%) :
4.CETF Destruction Plan
Unlike traditional firms, The price CellETF captures is for the entire community, the holders of the CETF. In order to ensure the value of CETF, all the value captured by CellETF fund will be put into the community Treasury for the CETF destruction.
CellETF Governance
The holders of CETF play an important role in the governance of the CellETF. CellETF will adopt a decentralized governance mechanism, and all CETF holders will collaboratively determine the project's operation route and smart contract adjustment strategy. The CellETF has made technical considerations for the scalability of contracts and the coordination of contracts and governance mechanisms while ensuring security.
The management of the CellETF will be implemented through the effective proposals of CETF holders and the voting of proposals. The effective proposals will modify the internal management variables of the CellETF or adjust the contract framework of the CellETF. The holders of CETF can vote against Proposals are selected for approval, and the proposal with the most passed votes will become a valid proposal. In general, the governance of CellETF mainly includes three stages:
1.Community consensus stage
The community will conduct informal proposal discussion based on the forum. Proposals that reach a preliminary community consensus will enter the Snapshot space of CellETF for off-chain voting without GAS. At this stage, at least 10% of the CETF in circulation are required to vote in order to proceed to the next stage.
2.On-chain proposal stage
The selected proposals in the previous stage will be edited/audited to form executable contract codes and submitted to the governance page for on-chain voting. After a 7-day voting period, the final approved proposal will enter the TIME LOCK contract and queue for execution. The on-chain proposal will be initiated by CellETF team. The final vote requires the participation of at least 20% of the CETF in circulation, and the proposal can be implemented only after receiving at least 50% of the votes.
3.Contract execution stage
The finally approved proposal will wait for execution through the TIME LOCK contract. During the period, the content and impact of the proposal will be publicized to all users, and the execution will take effect after a 48-hour time lock period has passed.
CellETF's governance will include but not limited to the following:
Create a new fund;
Designated fund manager;
Adjust the fund rate (redemption fee, fund management fee, excess income sharing ratio);
Manage the investment strategy contract pool;
Develop mining incentive strategies for CellETF business promotion;
Road Map
Protocol deployment
Network/Contracts | CETF token | Fund Protocol | Fund token Staking | LP token Staking |
Ethereum | 🏗️（Planning） | 🏗️（Planning） | 🏗️（Planning） | 🏗️（Planning） |
Ethereum（L2） | 🏗️（Planning） | 🏗️（Planning） | 🏗️（Planning） | 🏗️（Planning） |
Huobi Eco Chain | ✔️ | ✔️ | ✔️ | ✔️ |
Binance Smart Chain | 🏗️（Planning） | 🏗️（Planning） | 🏗️（Planning）） | 🏗️（Planning） |
The CellETF Fund Protocol has been released in Beta on the Huobi Eco Chain in April 2021 with three months of operational verification.
Work on deploying the CellETF Fund Protocol to Ethereum Layer2 and other EVM-based public chains is underway.
The CETF token will be deployed on Ethereum, managed through Vault and Timelock contracts, and the CETF will be mapped across a cross-chain bridge to different public
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