Users can create/manage their own pools for free, which other users can invest in. Investors pay a performance fee to the pool manager if they withdraw for a profit, creating an incentive for pool managers to perform well. The pool’s funds are controlled by smart contracts, which pool managers can interact with using the platform’s UI. These contracts ensure that pool funds can only be used on whitelisted protocols
Pools connect to whitelisted protocols on Celo, allowing pool managers to interact with these protocols on behalf of a pool. Pool managers can swap assets, add/remove liquidity, farm LP tokens, and lend/borrow assets.
Users can invest in pools, in exchange for tokens representing their stake in the pool. These tokens can be deposited into farms to collect TGEN yield in addition to capital gains from the pool. When users want to withdraw their investment, they can burn their tokens and pay a performance fee to the pool manager.
Pools interact with other DeFi projects on Celo, giving users passive exposure to multiple assets and protocols. This helps lower entry barriers to DeFi because users don’t have to worry about the complexities of finding the right trading strategies; users can simply deposit into pools and pool managers would handle the complexities. Since transactions sent to pool contracts are checked against whitelisted contracts/transactions, pool managers won’t be able to siphon funds from pools.
Tradegen lets users stake TGEN-CELO LP tokens and pool tokens in exchange for TGEN rewards. Staking plays a key role in reducing selling pressure on TGEN. Since pool managers can earn TGEN by having a top-performing pool, having a more stable reward token incentivizes pool managers to trade well because they’ll earn more rewards by doing so.
Staking pool tokens allows users to earn additional yield while staying invested in the pool. Only the top-performing pools each month can participate in farming, so pool managers are encouraged to compete for top spots on the leaderboard.
The liquidity incentives will persist until the Tradegen Reserve launches, after which the incentives for TGEN-CELO LP tokens will be replaced with bonds for TGR (Tradegen Reserve token). Liquidity incentives will then be locked until Tradegen launches on other chains. Users can then stake the TGR tokens to earn a share of bond profits.
Tradegen offers a special type of pool – “NFT pool” – that has a limited supply of pool tokens, each represented as an NFT with different levels of scarcity. NFT pool tokens can be deposited into farms or sold on the platform’s marketplace.
When an NFT pool’s max supply is reached, users wanting to invest in the pool would have to buy tokens from the marketplace above mint price. This allows users to speculate on pools based on factors such as past performance, yield, token scarcity, and pool manager’s reputation.
In the future, users will be able to buy/sell trading bots as NFTs on the platform’s marketplace. Owning the trading bot NFT (separate from fungible trading bot tokens) allows the holder to collect transaction fees from the bot. This creates utility for bot NFTs and lets users speculate on a bot’s future earning potential.
Users can submit strategies developed on the strategy builder for community voting. Approved strategies are published on the platform and an on-chain trading bot for the strategy is created. Whenever users invest in a trading bot, the developer receives a transaction fee as a royalty. Other users won’t be able to see the entry/exit criteria of the strategy, so developers won’t have to worry about exposing their strategy.
Users can also build custom indicators/comparators to sell on the platform’s marketplace. These indicators/comparators are represented as smart contracts, which are used by trading bots to form entry/exit rules for simulating trades. Users can purchase these indicators/comparators to build trading bots.
Each strategy needs to be approved by the community before it can be published on the platform. To vote for a strategy, users have to validate the strategy’s backtest results, check for contradicting parameters, and make sure the strategy is sufficiently unique. Users are compensated with TGEN rewards when they vote for a strategy.
Since the trading bot contracts can’t be called automatically, a keeper network is needed to update the state of each trading bot once per timeframe (depending on the strategy). Users can mine TGEN by running a node that updates a trading bot’s entry/exit rule state with the latest oracle price every few minutes. TGEN is distributed to a reward pool every 5 minutes, which miners can claim based on their share of the pool.