Modes: Pooled vs Individual
The same trades are made regardless of Pooled or Individual mode status.
Individual mode: Segregated funds
Our smart contract system is different from anything the world has seen before. Each user has their funds fully segregated from all other users and from the team themselves. When a user joins a strategy, they deploy a smart contract for their exclusive use. Each smart contract has a hardcoded OWNER established on deployment. The OWNER of your smart contract(s) is you. Only the OWNER can deposit or withdraw from a given smart contract. All funds in a given smart contract can only be withdrawn to that smart contract's OWNER. Think of the smart contract like an extension of your wallet. The only difference being that you allow us, Trendespresso, to trade funds in your smart contract on your behalf.
Pooled mode: Combined funds
When you join a strategy in Pooled mode, your USDC is pooled together with other members. Considering the relative cost of gas on the Avalanche blockchain, this is the best and most reliable mechanism to allow those with smaller balances to still partake in our exceptional trading service. The minimum and maximum balances required for both Pooled mode and Individual mode are based on maths derivative of the gas costs on the Avalanche blockchain. Other EVM blockchains may allow us to reduce the minimum Individual mode threshold or may increase the Pooled mode threshold depending entirely on the cost of gas to execute trades.
Gas costs
Pooled mode members have their funds pooled resulting in the lowest possible gas cost per trade per member. The only real downside from a "user experience" perspective is the inability to withdraw USDC immediately. USDC can only be withdrawn at the final conclusion and full exit of each trade. Pooled mode members can setup pending deposits and pending withdrawals at any time during a trade. When there is no active trade, Pooled mode members can deposit and withdraw with immediate effect.
Conversely, each user in Individual mode has their funds segregated and thus our gas costs are substantially higher than if we had pooled everyone together. This comes with two massive benefits: 1) Our security and financial accuracy is far superior, and 2) Individual mode users can withdraw and deposit any amount of their balance at any time with immediate effect.
Is there any difference in fees?
Yes for the monthly subscription fee and the expense of joining a strategy. The Profit Share percentage is identical for both Individual and Pooled modes.
When using Individual mode the fee is Ŧ200 per month (20 USDC) and when using Pooled mode the fee is Ŧ100 per month (10 USDC).
When joining a strategy in Individual mode, any user of our service will encounter an excessively high cost of ≈ 1.5 AVAX to deploy their own smart contract wallet connected to a strategy. Once a user joins a given strategy however, they needn't ever pay that cost again; not even years into the future. The smart contract wallet deployed for a given strategy is permanent and remains forever at the disposal of its OWNER. The AVAX required to join a strategy will float based on the gas costs needed to execute trades and to deploy the smart contract itself. We hope that over time the AVAX cost to join each strategy will come down.
Can I reduce the trading fees?
Absolutely! Depositing large sums of ŦE tokens into Trendespresso will reduce your profit sharing percentage. For every Ŧ10,000 on deposit you will receive a 1% reduction in the profit sharing (starting at Ŧ10,000 with a maximum 95% reduction for minimum profit share of 1%).
Whilst the current subscription fee is a static Ŧ200 per month, we expect this number to change in the future. Once ŦE token becomes listed and tradeable on a secondary market, we will need to reassess the monthly subscription fee. Consideration will need to be given to price volatility, our total AUM, our frequency of trades, and strategy profitability. Until we've grown sufficiently, we will be sticking to the static rate.
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