#GM!
1/ In the follow-up section of the @FactorDAO visual guide, we examine the inner workings of the Factor's ERC-4626 vault mechanism and uncover its role as a liquidity middleware and supporting structure for #DeFi protocols.
#Arbitrum#RealYield$FCTR
3/ Please note that this thread merely aims to share our understanding of the topic, and should not be taken as financial advice. We are also part of
@FactorDAO team and as objectively as this thread was created there might be some bias involved.
4/ @FactorDAO 's vault can be described as a factory, and each piece of machinery represents the assets or strategies that harmoniously produce perpetual output (profit) for the owners (vault creators and investors).
5/ Vaults in Factor are mainly divided into two types: - Passive: portfolio rebalances mechanism
- Active Vaults: direct asset trading inside the vault
All of the vaults are non-custodial, so the vault creators cannot steal the assets inside the vault.
6/Assets in the passive-vault must have high liquidity to ensure the rebalancing can be done without any liquidity issues. This is the in-depth detail on the passive vault mechanism.
7/ In the Active vault, the asset must meet the liquidity requirements to be traded. Here is the in-depth detail on the active vault mechanism.
8/ Factor Vault or The Factory is not just a simple vault where people can manage their assets and participate. The aim is to create a vault that is fully composable with the Factor Ecosystem and other #DeFi protocols.
9/ The composable nature of vaults will open up a new realm beyond asset management. Vaults serve as the hub for liquidity between the protocol and the users, enabling trustless, permissionless, and composable liquidity middleware.
10/ @FactorDAO mission to become a liquidity hub requires patience, intensive development, research, and reiteration. That is why @FactorDAO divided its vault creation into four phases
- Genesis
- Partners
- Creation
- Cross-chain
15/ @FactorDAO native tokens $FCTR will launch on 20th February '23 on @CamelotDEX in @arbitrum with price discovery mechanism, no whitelist or presale. See this video to get more details on how the mechanism works and post-launch information.