are purchased by sending Ether to the smart contract address from a whitelisted address. The smart contract makes use of a , which means that purchased or redeemed are valued at the next price update. Much like CRYPTO20, CRYPTO10 Hedged price updates occur hourly.
Once Ether has been sent to the smart contract from a whitelisted address; at the next price update the Ether amount sent and the C10 to create are valued and are sent automatically to the address that sent Ether to the contract. Note that an exchange address should NOT be whitelisted or used for investment as C10 sent to it will be lost.
Investors holding C10 are able to redeem their C10 for their underlying value in Ether, in much the same way that is currently available for the CRYPTO20 fund. The request to redeem can only be done by a whitelisted address, with the entire process handled by an intuitive DApp hosted within the investor portal that interacts directly with , a popular .
The same withdrawal process can be followed by using (with a hardware for example) to interact directly with the C10 smart contract. Calling the requestWithdrawal method will initiate a redemption in the same way as using the DApp.
The process for requesting a withdrawal is simple; a user with C10 at their whitelisted address uses the DApp to sign and broadcast a transaction that specifies the number of that user wishes to redeem for Ether. The specified number of C10 is removed from the user’s address until the next price update occurs. Once the next price update is made, the equivalent value of Ether is automatically sent to the requesting address.
An example of the one-step investment DApp is shown on the left.
Motivation for using a smart contract
The C10 smart contract functions as the registrar of fund participants, as well as handling all clearing and settling of user interactions. Making use of a smart contract in this manner does not reduce the trust placed in fund managers, as the entire operation of the fund is not decentralised. It does, however, provide three large benefits; namely availability, transparency and reduced operational overhead.
The smart contract is operational 24/7, with redemptions occurring every hour. Furthermore, redemptions are guaranteed by the publicly viewable Ether balance on the smart contract. Over 10,000 Ether has been processed through similar functionality present in the .
Every single C10 interaction is publicly viewable and verifiable. Anything fund managers or users do to increase or decrease supply via the creation/redemption mechanism or burning is transparently recorded on the . It is not possible to be uncertain about current state of C10 ownership or the transfer history of . Both fund managers and holders are transparently accountable for their actions.
Thirdly, the above benefits come at little to no cost to fund managers and users. By making use of a smart contract to perform common fund administration tasks, the operational overhead of running a fund is greatly reduced. No staff are needed to process creations, withdrawals or transfers. This results in cost savings that are passed on to the fund.
Published at Tue, 23 Apr 2019 16:44:08 +0000
