Investing in pools lets you mimic top traders without having to make trades yourself. Pools interact with other DeFi projects on Celo, giving you passive exposure to those projects. Pool managers handle the complexities of trying to time the market and interacting with DeFi protocols, letting investors passively earn a potentially higher return than they'd get by managing investments themselves.
Creating a pool lets you charge a performance fee to investors. You can hold assets and interact with protocols like how you normally would, but with the possibility of earning more if users invest in your pool.
Tradegen doesn't charge any fees for creating and managing pools. However, you'll have to pay gas fees to Celo blockchain.
Pools charge a performance fee set by the pool's manager. The performance fee is capped at 30% but is usually around 2-10%. Users only pay the performance fee if they have a profit. Capped pools have a 3% transaction fee for withdrawing from the pool or buying tokens on the marketplace. 1% goes to the protocol's treasury and 2% goes to the NFT pool's manager.
There's no minimum investment to access the platform or invest in pools.
Pools are similar to actively managed hedge funds. When you invest in a pool, you'll receive fungible tokens that represent your portion of the pool. You can withdraw anytime and receive your portion of the pool's value at the time. Pool managers send encoded function data to the pool, which executes transactions on whitelisted protocols on behalf of the pool (preventing pool managers from hacking the pool).
If you have pool tokens, you can burn them to receive your portion of the pool's assets at the time. You'll be charged a performance fee if you have a profit when you withdraw.
Pools have fungible tokens and don't have a limit on how much users can invest. Capped pools have a fixed supply of non-fungible tokens, with different levels of scarcity. These tokens can be sold on the platform's marketplace or deposited into farms. Pool managers charge a performance fee when users withdraw for a profit. Capped pool managers charge a transaction fee when users withdraw or buy tokens on the marketplace.
To withdraw from a capped pool, you can either burn your tokens at the pool's price or sell tokens on the marketplace. Burning tokens at pool price will give you the same ROI as the pool from the time you invested. Selling tokens on the marketplace can give you a potentially higher return if the pool's supply cap is reached.
Pools can trade any token on the Tradegen token list, which is a subset of the Ubeswap token list.
Pools can interact with Ubeswap, Moola, and Mobius.
Anyone can create or manage a pool for free.
If you buy capped pool tokens, you can stake them in farms to earn yield while staying invested in the pool. Tokens have different weights in the farms, based on the token's class.
All capped pools are eligible for farming. Their weight in the farming system adjusts automatically after each pool transaction, depending on the pool's unrealized profits and change in token price over 2-week periods.