QFinance is a decentralized protocol enabling users to create and join Ethereum-based investment pools in a trustless, decentralized manner. Each pool consists of Ethereum tokens/assets chosen by the pool creator and members. What is QFinance (QFI) | What is QFinance token | What is QFI token
QFinance is a decentralized protocol enabling users to create and join Ethereum-based investment pools in a trustless, decentralized manner. Each pool consists of underlying assets (generally but not necessarily ERC20 tokens on Ethereum) determined at pool creation.
As noted above, a QFinance pool is created with a breakdown of assets that represent the portfolio. When new ETH is deposited to the pool, the pool will acquire the tokens as determined by their breakdown and hold them on the user's behalf. At any time, a user may call the withdraw function on the contract to retrieve some or all of their principal.
Pools can be public or private. Private pools are quite simple - only the user who creates the pool may deposit and withdraw from it. The construction and function of these pools is straightforward.
For public pools, there is added complexity to ensure users are fairly compensated for the amount of ETH deposited and the growth (or loss) of value over time. That is, users' profits and losses are calculated based on when they deposited and when they withdrew the funds accordingly, as it should.
As part of the calculation of public pool ownership, an ERC20 token is returned to the user that represents their ownership stake in the overall pool. The pool will grow as new participants join, and existing participants will have a smaller share of a larger pool, equalling out the value. Deposit tokens can be staked to earn QFI, a reward and governance token used by QFinance. Additionally, network participants are free to set up their own staking systems and rewards to provide users an incentive to join their pool.
There are similar asset/investment pool protocols available. QFinance has a few unique features.
First, many of the similar investment pool protocols require a "manager" or follow an index. These are great solutions for some cases, but QFinance has a different vision. In the future, public pools will be managed entirely by the depositors. The creator may set an initial vision for the fund (i.e. "DeFi Blue Chips"). But investors in the pool will have the ability to vote on rebalancing decisions (when/how) through their stake of QPDTs. A traditional ETF is managed by a fund manager; QPools are managed by the users directly.
Second, QFinance seeks to be a protocol owned and managed by the community. Through staking of deposit tokens, new QFI tokens are granted to the users of the protocol. Additional staking pools reward QFI holders, and QFI-ETH Uniswap liquidity providers with new QFI. This way, the project rewards its ecosystem with new QFI tokens. The QFI tokens are then used to vote on protocol decisions, such as staking pool reward allocation, and new feature prioritization.
Lastly, QFinance is a simple solution. If you just want to invest in a pool and earn some QFI, it is super easy and always will be.
There is absolutely no central party with any control whatsover over the QFinance protocol. This website is a simple front end to interact with the QFinance Factory Contract, which is open source. That means anyone can review the code, verify its lack of control mechanisms, create a new front-end interface (or use development or CLI tools), or even fork the code into a completely new system. No one can stop QFinance without stopping Ethereum first.
Private pools are controlled by the user who creates them, and can only be interacted with by the owner. Public pools, on the other hand, can be interacted with by anyone in a trustless way. That is, even if the creator of the asset pool is a known scammer, the only financial risk a user takes is related to the value of the underlying asset. The creator of a pool has no means to steal or siphon funds from other users no matter how nefarious they are.
QFinance uses Uniswap, by far the most popular decentralized exchange protocol, as the mechanism for exchanges. Uniswap also acts as the oracle to gain price insights from a trustless source.
QFinance is entirely, 100% decentralized.
QFinance Hub is a front-end to the QFinance system. In more technical terms, it is an application that provides a simple front-end interface to interact with the QFinance Factory Contract (to create new pools) and to interact with QFinance Pool Contracts (to deposit, withdraw, and explore pools). This website is developed entirely via client-side programming, meaning all activities occur on the user's local machine. In any case, the system uses web3 wallets such as Metamask to create and sign transactions, and is therefore protected against theft of private keys and other sensitive data.
This website, like all aspects of QFinance, are open source and have their code available on GitHub for exploration, auditing, and reference. Additionally, anyone on the network can build their own front-end to interact with the QFinance Factory Contract. Anyone could theoretically take the QFinance contract code and fork it to create a completely separate system if they so wish. Such is the nature of decentralized protocols.
QFinance provides the ability to create asset pools on Ethereum. When creating a pool the user has the ability to select different Ethereum-based assets and determine a percentage of the portfolio to allocate to each.
Each pool is represented by a smart contract on the Ethereum network. When a user funds a smart contract with ETH, the contract will buy in the proportions determined by the user when creating the smart contract.
Pools can be private or public. Private pools can only be funded and managed by the user who creates it. Public pools are created by a single user, but anyone can deposit ETH to the contract and take part in the investment pool. At any point, with both private and public pools, a user can withdraw some or all of their investment. Investments are made in ETH and are retrieved in ETH. The contract will buy and sell when a user deposits and withdraws, respectively.
Pools created via QFinance are completely decentralized. The underlying contracts are available on the Ethereum network, meaning this website is simply an interface to the decentralized network. Check the developer documentation for more information.
There is no central party who manages QFinance - the system is comprised of a series of smart contracts deployed on Ethereum. The original developers have no control over the system, nor do any of the participants in QFinance or Ethereum generally.
To join an asset pool, you can use the browse feature or search for the contract address of a pool. On the pools page you can see a list of previously created pools and their breakdown of assets. This will help you decide which pools are worth contributing to.
The initial user determines the breakdown of assets within the pool. If they select "Public" when creating the pool, any user on the Ethereum network will be able to contribute to and take part in the pool. User deposits do not have any impact on other users' deposits - each user is granted a percentage of the pool when they contribute ETH, based on the amount of ETH deposited and the value of the pool, in ETH, at the time of deposit. This way, each user can join an investment pool of their choosing without relying on any other users.
At this time, pools cannot be rebalanced. Upon creation, pool breakdowns are set for their entire lifecycle. This feature is to be added in the next version of QFinance.
When a user deposits ETH, they will receive ERC20 tokens equal to their share of the overall pool. For example, if a user deposits 1 ETH in a pool that is currently worth 1 ETH, they will receive new tokens equal to 50% of the total supply of tokens. If the total supply of tokens was 100 prior to the user's 1 ETH deposit, and the value of the pool was 1 ETH before the deposit, the user will be minted 100 new tokens.
Currently, QFinance pools only accept ETH as a deposit. In the future, Ethereum-based stablecoins such as USDT and USDC may be supported.
When depositing, the contract will buy an amount of the underlying tokens (as determined by the pool creator on pool creation) according to the proportions set. At the same time, the pool will return an ERC20 token to the user that represents their share in the pool. This ERC20 token is worthless to any other user as it simply reflects ownership in the pool. The tokens are minted on deposit and burned on withdrawal.
For private pools it is quite simple. The pool will simply amass the underlying tokens until the user decides to withdraw.
For public pools it is slightly more complex. The breakdown, like private pools, is set at creation and cannot be rebalanced. This is a feature to be added in the future. In a public pool, any Ethereum user can deposit and take an ownership share in the pool. The user, upon deposit, will receive "shares", which are just ERC20 tokens, that represent their ownership stake of the overall pool. If the pool is worth 1 ETH prior to a user's 1 ETH deposit, they will be minted an amount of deposit tokens equal to the current supply of deposit tokens. That is, if a user were to add an equivalent amount of value to the pool that already exists, they will then own 50% of the overall pool. The initial depositor's ownership stake will go down from 100% to 50%, but the pool is now worth double so the value remains the same.
Consider the analog, a traditional ETF. The ETF holds a basket of securities, and as people deposit funds to the ETF, the ETF acquires more shares in the underlying securities. Likewise for QFinance pools, except instead of traditional securities, the pool will acquire Ethereum-based assets as defined by the contract.
Deposit tokens can be used to stake on the QFinance Hub site to earn the QFI token as a reward for participating in the system. It may be possible that individual pool owners create their own staking functionality outside of the QFinance system. This is the nature of a decentralized protocol. Over time, it is expected that an ecosystem of asset pools and staking rewards will be created entirely independent of QFI and used to reward in various cryptocurrencies or other reward programs. This is, however, entirely dependent on the participants of the network to do this for themselves.
Withdrawing ETH is very simple. At any time, for either a public or private asset pool, ETH can be withdrawn partially or entirely (determined by a percentage value). If a user would like to remove 25% of their principal, for example, they can do so simply through the QFinance Hub site or any other front-end that exists (or even through development and/or command line interfaces).
To withdraw ETH from a public pool, the behind-the-scenes process is fairly simple. The user determines the percentage of their total value to remove. The contract will then calculate a) the user's overall share of the pool, b) the amount of each token to sell and return the ETH to the user, and c) the amount of deposit tokens to burn. This is a seamless process - the user simply needs to call the withdrawEth function and pass a percentage value as a parameter. In this manner, one user's deposits and withdrawals do not impact any other users' deposits and withdrawals which allows the system to operate in a shared but trustless environment.
Private pool withdrawls are much simpler as there is only one participant. The pool will simply sell its underlying assets according to the percentage value that the user requests.
When depositing ETH into public QFinance Pools, you will receive QFinance Pool Deposit Tokens (QPDTs) in return, in an amount relative to your ownership stake in the pool. A user's ownership stake is calculated by taking the user's QPDTs for a particular pool and dividing it by the total supply.
These tokens can be "staked" - locked in on the QFinance Hub website and used to earn new QFI tokens, a rewards and governance token issued by the protocol.
It is quite possible, indeed likely, that other parties, websites, and businesses may set up their own pools and provide their own staking and rewards mechanisms. It is recommended that you review the trustfulness of each service independently. The QFinance Staking Contract is publicly available as open source code on GitHub for anyone's review and auditing.
This token is a governance token. It helps the QFinance protocol reflect the wishes and the design decisions that the community believes are correct. These tokens will enable voting on protocol-level decisions so that the will of the community is always evident.
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