How does the Metera Protocol V.1 works?
This section of the V.1 of the protocol resumes the design of the Metera Protocol function.
The V.1 Smart Contract version was developed alongside TxPipe Shops.
Key V.1 points:
Portfolio Creation and Management:
Portfolio Manager (PM) creates a new portfolio with chosen tokens and their weights.
PM sets the amount of MTK tokens to be minted upon portfolio creation.
PM specifies portfolio settings and strategy.
Initially, the site admin acts as the PM, but the smart contract allows any user to create a portfolio.
PM can update portfolio settings, including target weights for tokens.
Interactions with the Portfolio:
Users can deposit or withdraw tokens by placing orders.
Orders are processed sequentially by the portfolio admin.
PM orders have priority over user orders and are processed immediately upon creation.
Users specify Lovelace price of tokens in their orders.
A fee is charged to users for deposits, paid in MTK when orders are processed.
Fees are stored in the portfolio for later collection by the PM.
Order Processing:
Deposits result in tokens being deposited into the portfolio and MTK being minted.
Withdrawals involve burning MTK and paying out tokens from the portfolio.
Orders include slippage tolerance to account for potential deviations in payout estimations.
Users can cancel orders before processing and receive back their deposited tokens.
Portfolio Rebalancing:
Fluctuations in token prices or changes in target weights may lead to portfolio imbalances.
User deposits and withdrawals are calculated to approximate target weights.
PM can place update orders to adjust target weights and rebalance the portfolio.
Fee Collection:
PM can initiate a collect order to claim accumulated fees in the portfolio.
Once processed, fees are paid out to the PM's address.
*** Please keep in mind this document is a work in progress, things may change as the project evolves ***
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