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CoinAlpha Fund Protocol - Wiki

Welcome! This is a living document that explains the motivation, methodology and future roadmap of our protocol. We welcome comments, questions or submissions - please create a Github issue and we will respond promptly.

Summary

A blockchain protocol for tokenized hedge funds.

This open-source protocol enables asset managers to create a blockchain-based vehicle that manages capital contributed by external investors. The protocol utilizes the blockchain to perform functions such as segregated asset custody, net asset value calculation, fee accounting, and management of investor in-flows and out-flows.

Motivation

The goal of this project is to utilize distributed ledger technology to reduce the need for middlemen involved in fund administration such as custodians, accountants, auditors for traditional asset management. The resulting efficiency gains can then be passed to investors as lower fees and faster processing. In addition, the project uses the Ethereum blockchain and standardized token infrastructure to promote transparency and liquidity for investors. See Motivation for more details.

How It Works

The manager creates a fund by deploying an instance of the Fund smart contract to the blockchain. The Fund contract stores all data, provides investors with methods that they invoke to perform various actions, and provides the manager with methods to administer the fund. Generally, complex logic associated with the investor and manager methods are delegated to other modules, so that these modules may be updated in the event a bug fix or security patch is necessary. See Architecture for more details.

Installation and Testing

To install and test the protocol, see the protocol repository.

Demo

[TBD]