🧲Magnets

The Next Generation of Decentralized Managed Investments

What are Magnets?

Magnets are the next generation of pools, designed to significantly enhance the benefits for investors, asset managers and stakers. Whilst there are a number of architectural changes that will improve the performance and capability of magnet on top of the existing pools, some of them include:

New Magnet Management Systems

Many traders are able to excel at what they do through a detailed and calculated approach to their trading strategy. With the new Magnet management system traders will have increased control of the assets in their magnet, allowing them a great deal of flexibility with which to generate alpha for their investors.

Secure Magnets and High Voltage Magnets

Investors will be able to choose between 2 types of Magnets, Secure Magnets and High Voltage Magnets. Secure Magnets will offer a safe haven for investors as magnet managers will be restricted to trading within a pre-defined universe of tokens, whilst more than stable coins will be available there will be a detailed approval process for tokens to be added to this list. This gives investors piece of mind and confidence that their investments are as safe and secure as can be. High voltage magnets on the other hand are high risk high reward, magnet managers will be able to invest into any ERC20 token, here investors will need to do their homework on the magnet manager they are investing with as there are certainly more risks. But with great risk comes greater potential rewards as magnet managers will have the flexibility to catch the upside on the newest and hottest tokens available on the market.

New Fee Structure

Traders that work hard to make money for others need to be rewarded too. With the new fee structure this will be ensure that. Fees will be charged as management and performance fees. Management fees are the fee paid to managers in regular intervals for managing the fund, whereas performance fees are fees paid to managers for generating excess returns for their investors. This will model the same management and performance fee structure of the traditional managed investments industry.

Gas Refund System

Active trading can result in a fair bit of gas on the Ethereum network. Whilst this is unavoidable, it is an expense of the investment as a collective, not just the magnet manager. With the gas refund system managers will be able to have the gas they have paid refunded by the magnet. Investors will be shown the performance of a magnet net of fees and gas, so they can factor this in when deciding who they wish to invest with.

Stealth Magnets

Some traders may want to only manage assets for a private collective. Be it close friends and family, a private alpha group, or VIP investors. Whilst everything on the blockchain is visible, the anonymity is in the lack of identifiers. By allowing magnets to be interacted with via the DApp and having controls in place such as whitelisting on the buy side (not the sell side) password gated analytics and the ability to make your magnet invisible on the dapp. Traders can set up these hidden Stealth magnets and manage assets whilst keeping their business their own business.