Key âtv design features
âtv Tokenization Platform Deployment & Upgrades:
The first deployment of the âtv contracts will be handled directly by aarnâ using a single wallet. Once this initial deployment is completed, ownership of the contracts will be transferred to the aarnâ DAO SAFE wallet. As the protocol becomes more decentralized, the responsibility for deploying new versions of the contracts will shift to the aarnâ DAO. It's important to note that ownership of âtvOracle, âtvStorage, and TimeDelay will be transferred to multisig Wallet #2 (â_platform_safe) and the others (âtvFactory, âtvBase, âtvManager, and âtvPassiveRebalanceStrategies) will be transferred to multisig Wallet #1 (â_dao_safe). For security reasons, the current contracts are designed to be non-upgradeable. All new features and updates will be introduced through a structured versioning and migration framework, ensuring the protocol's robustness and security. Any modifications approved by the aarnâ DAO will be implemented with precision, maintaining decentralization principles while upholding the integrity of the system.
Deposits [Stablecoins]:
Users can deposit stablecoins like USDC, USDT, or DAI into these vaults and receive âtv tokens in return, calculated according to the Net Asset Value (NAV).
Cumulative Swaps:
As per the design all the deposits into âtv vaults are not immediately converted to underlying tokens. Instead, all deposited stablecoins are periodically swapped in a single transaction to save on gas costs, which are paid by the user.
Rebalancing:
Rebalancing in the âtv tokenization platform optimizes returns or aligns with the vault's objectives, either actively or passively. During vault creation, aarnâ DAO selects rebalancing options via âtvBase and âtvFactory, including active, passive, or no rebalancing. Passive Rebalancing is managed algorithmically based on pre-programmed logic, rebalancing at fixed intervals to maintain design proportions. This method does not allow for the removal or substitution of tokens. Current strategies include: Continuously using the default design underlying token proportion, regardless of TVL changes. And updating token proportions during cumulative swaps based on current units and TVL. Active rebalancing, on the other hand, involves manual adjustments by the alpha creator or manager, approved by the DAO. This includes scenarios like withdrawing underperforming tokens, replacing them, or redistributing their value among existing tokens. New rebalancing strategies can be introduced in future versions of the âtvManager, allowing the DAO to update rebalancing methodologies as needed. Algo Product Rebalancing allows adding, removing, or replacing multiple tokens at once, with equal distribution among all tokens. For instance, if there are five tokens, each will have a 20% proportion. Algo Rebalance 2 allows removing one token from the underlying list and keeps the removed token in a stable token(whitelisted iToken) that should be considered in the next cumulative swap. Emergency Rebalance addresses non-performing tokens by withdrawing them from their 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:
Depending on the âtv vaults Investors can either have the option for Direct withdrawal or queue their âtv vault tokens to withdraw anytime after at least one cumulative swap since the last deposit based on the vaults. Upon depositing stablecoins, they receive locked âtv tokens, which can be queued to be withdrawn after a swap. Time-locked âtv tokens for additional yield must be unlocked first. Redemption occurs at the vault's prevailing NAV, with tokens swapped into the chosen stablecoin, and the redeemed âtv tokens burnt.
Fee distribution:
The fee structure varies according to the vaults, for agentic vaults, a 0.2% transaction fee is applied to the agentic transaction volume. For structured trading vaults there is a 1% transaction fee deducted from the user's deposit and the performance fee, set by 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 aarnâ DAO. 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, accessible only to the specific investor.
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