Flow of Funds
The flowchart below outlines the process of deploying of assets, generating, and distributing yield.
Last updated
The flowchart below outlines the process of deploying of assets, generating, and distributing yield.
Last updated
User A:
The process begins with User A, who decides to participate in the yield generation program into a yield generation contract. User A initiates the process by committing their assets into a yield generation contract.
Yield Generation Contract:
The assets from User A are deposited into a yield generation contract. This contract is a smart contract that manages the yield generation process, ensuring that the assets are securely held and deployed according to predefined terms.
Custodians:
The deployed assets are then transferred to custodians. Currently, we are working with CEFFU and Copperco. Custodians are responsible for securely holding holding the deployed assets and ensuring their mirroring on centralised exchanges.
Centralised Exchanges:
After custodians, the assets are mirrored on centralised exchanges, specifically Binance and OKX. These exchanges provide the necessary infrastructure for executing the arbitrage trade. The centralised exchanges play a crucial role in enabling liquidity and access to different markets.
Yield Generation Arbitrage:
On the centralised exchanges, the assets are utilized for yield generation arbitrage. This involves executing arbitrage strategies to take advantage of price discrepancies across different financial instruments. Refer to the Execution section for further explanation.
Yield Deposited to User Account:
Profits generated from the arbitrage activities are calculated, and the generated yield is deposited into User A’s account. This happens every 7 days, ensuring that users receive regular returns on their deployed assets.
This flow ensures that the user’s assets are securely managed and efficiently utilised to generate maximum returns through arbitrage strategies on centralised exchanges. Each step is designed to maintain the integrity, security, and profitability of the staking and yield generation process.
