StellarFund is a MVP project for token investment management on the Stellar blockchain
https://www.canva.com/design/DAGUqY9IKBc/A5xx0AsaoNDVq3X8wV-Smg/view
https://www.youtube.com/watch?v=NEMTYqQgGDE
This project contains a Soroban smart contract for creating, participating in, and managing an on-chain token asset management fund.
StellarFund enables financial inclusion by allowing anyone to benefit from managed funds (like those currently provided by Vanguard in Web2). This means that users in developing countries (without KYC systems) will be able to protect themselves against inflation and grow their money. The Soroban smart contract logic protects the investments, and guarantees that managers only receive an agreed commission and are not able to steal funds.
The objective of asset management firms is to provide returns on cash deposited by investors. The investors benefit from the returns, which aim to beat keeping your money in a deposit account, and the asset managers benefit from a performance-based commission for providing this service.
In TradFi this operates on a model of trust; investors trust that the asset managers do not run away with their cash, that the cash is only traded in certain assets, and that defined risk limits are not breached.
StellarFund is a protocol that allows groups of traders (called "asset managers" in TradFi) to setup their organisations on-chain via a DAO (decentralised autonomous organization). This provides the following advantages:
- Security: tokens are locked in smart contracts, and transfer logic is pre-defined.
- Openness: anyone can be an asset manager or investor.
- Accountability: all trade transactions are recorded and visible on-chain.
- Voting rights: members can cast votes for actions such as removing a trader.
Additionally, the StellarFund project aims to bring the best practices from TradFi asset management to DeFi, including:
- Diversified teams with capital allocations [MVP done]
- Risk limits [Todo]
- Token restrictions [Todo]
- Lock-in and notice periods [Todo]
This smart contract has been deployed on Testnet: https://stellar.expert/explorer/testnet/contract/CDL7DFF6VFAINSH42ALGSXJ3KG4FQ4TL3UGCESUR5JA5COB3UMIJEFIC