Tradegen lets users invest in pools managed by other users. When users invest in these pools, they receive tokens proportional to their stake. These tokens can be deposited into liquidity mining pools to collect yield while staying invested in the pools. When users want to withdraw from a pool, they can burn their tokens for the pool and pay a performance fee to the pool manager if they have a profit. Like with tokenized strategies, users receive the TGEN equivalent of their cUSD investment when withdrawing so the pool manager isn’t forced to liquidate positions.
Pools are represented by smart contracts that pool managers can interact with using the platform’s trading terminal. These contracts send transactions to Ubeswap to trade on behalf of the pool, eliminating the possibility of pool managers withdrawing other users’ investments into their own account.
Users can create and manage pools for free, up to a maximum of 3 pools. Users have an incentive to manage funds on Tradegen, since they can collect a performance fee on their pools. When users withdraw from the pool for a profit, they'll pay the performance fee to the pool's manager. If the pool fails to make a profit during the time a user is invested, the user won't be charged a performance fee.