Key âtv Design Features

 

âtv Tokenization Platform Deployment & Upgrades

Initial Deployment and Ownership Transfer

The first time the âtv contracts are set up, aarnâ will handle it using a single wallet. Once everything is ready, ownership of these contracts will be transferred to the aarnâ DAO SAFE wallet. As the platform becomes more decentralized, the aarnâ DAO will take over the job of deploying new versions of the contracts.

Contract Ownership Details

• âtvOracle, âtvStorage, and TimeDelay: These contracts will be managed by Multisig Wallet #2 (â_platform_safe).
• âtvFactory, âtvBase, âtvManager, and âtvPassiveRebalanceStrategies: These contracts will be managed by Multisig Wallet #1 (â_dao_safe).

Security and Upgrades

For security reasons, the current contracts are designed to be non-upgradeable. Any new features or updates will be introduced through a structured versioning and migration framework. This ensures the platform remains robust and secure. Any changes approved by the aarnâ DAO will be implemented carefully, maintaining decentralization principles while keeping the system reliable.

Deposits [Stablecoins]

Users can deposit stablecoins like USDC, USDT, or DAI into the âtv vaults. In return, they receive âtv tokens. The number of âtv tokens you get is calculated based on the Net Asset Value (NAV) after a 1% deposit fee is deducted.

Cumulative Swaps

When you deposit stablecoins into âtv vaults, they are not immediately converted into underlying tokens. Instead, all deposited stablecoins are periodically swapped in a single transaction to save on gas costs, which you pay. This swap is done by a designated account called the cumulative swap controller wallet, which is set by the DAO owner of the vault.

Rebalancing

Rebalancing helps optimize returns or align with the vault's goals, either by active or passive methods.

Rebalancing Options

• Active Rebalancing: Involves manual adjustments by the alpha creator or manager, approved by the DAO. This includes actions like removing underperforming tokens, replacing them, or redistributing their value among existing tokens.
• Passive Rebalancing: Managed automatically based on pre-programmed logic, rebalancing at fixed intervals to maintain the original token proportions. This method does not allow for the removal or substitution of tokens.
• No Rebalancing: The vault does not perform any rebalancing.

Current Strategies

• Continuously Using Default Design: Keeps the default token proportions, regardless of changes in total value locked (TVL).
• Updating Token Proportions: Adjusts token proportions during cumulative swaps based on current units and TVL.
• Algo Product Rebalancing: Allows adding, removing, or replacing multiple tokens at once, with equal distribution among all tokens. For example, if there are five tokens, each will have a 20% proportion.
• Algo Rebalance 2: Removes one token from the list and keeps it in a stable token (whitelisted iToken) to be considered in the next cumulative swap.
• Emergency Rebalance: Addresses non-performing tokens by withdrawing them from staking protocols and updating the vault's underlying tokens. The removed token's balance is transferred to the vault contract and can be withdrawn using the emergencyWithdraw() function, which requires specifying a recipient wallet address.

Withdraw and Redemption

Withdrawal Process

Investors can queue their âtv vault tokens to withdraw them anytime after at least one cumulative swap since the last deposit. When you deposit stablecoins, you receive locked âtv tokens, which can be queued for withdrawal after a swap. Time-locked âtv tokens for additional yield must be unlocked first.

Redemption Process

Redemption happens at the current Net Asset Value (NAV) of the vault. Tokens are swapped on Uniswap V3 into the chosen stablecoin, transferred to your wallet, and the redeemed âtv tokens are burnt. You have three withdrawal options:

1. Specify a Stablecoin (oToken): Choose which stablecoin you want to receive.
2. Check Withdrawal Amounts: Verify withdrawal amounts against contract proportions.
3. Unstake Assets and Swap: Unstake assets and swap them into the oToken.

Withdrawal tokens can be paused/unpaused or removed/added to the input token list.

Fee Distribution

Transaction Fee

A 1% transaction fee is deducted from the stablecoins you deposit and credited to the aarnâ DAO multisig wallet, as defined in the âtvBase contract.

Performance Fee

The performance fee, set by the aarnâ DAO at vault creation, ranges from 0% to 10% based on profits during redemption. Typically, a 10% fee is split with 6% going to the alpha creator and 4% to the aarnâ DAO.

Profit Sharing

Profit sharing for queued redemptions is collected by âtvOracle and distributed via unstakingProfitDistribution() by the cumulative swap controller. Funds are secured by the âtv base contract and are accessible only to the specific investor.

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