Bringing Financial Assets Onchain
  • Introduction
    • Welcome to Allo
  • AlloX
  • Overview
  • Getting Started
    • Sign Up
    • Add Funds
    • Start Trading
  • Trading
    • Perpetual Assets
    • Order Book
    • Trading Pairs
    • Order Types
    • Take profit and stop loss orders (TP/SL)
    • Entry Price and PnL
    • Fees
  • FAQ
  • Staking
    • Overview
    • Architecture
    • Staking Phase 1
      • Mint alloBTC from BTC
      • Redeem BTC from alloBTC
    • Staking Phase 2
  • Tokenize
    • Overview
    • Architecture
  • Lending
    • Overview
    • Architecture
      • Lending Phase-1
  • On-chain Funds
    • Overview
    • Architecture
      • On-chain Fund Phase-1
      • On-chain Fund Phase-2
      • On-chain Fund Phase-3
  • Trading
    • Overview
    • Architecture
  • User Guides
    • Network Information
    • Assets
    • Stake BTC
    • Mint alloBTC
  • FAQ
    • General Information
    • Rewards & Points
    • Additional Information
    • BTC Staking
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  1. On-chain Funds
  2. Architecture

On-chain Fund Phase-1

1. Fund Creation (Including MultiSig Account Creation)

In addition to specifying fund parameters, fund creation involves setting up a MultiSig (Multi-Signature) Account to enhance the security and governance of the fund. A MultiSig account requires multiple authorized parties (signers) to approve any transaction, ensuring that no single individual can move funds unilaterally.

Steps Involved:

Step 1: Connect Wallet

  • The Fund Manager connects their wallet using a supported wallet provider (e.g., MetaMask for BNB Chain or Phantom for Solana) through the Connect module.

Step 2: Specify Fund Details

  • The Fund Manager provides the following details:

    • Accepted Currencies: The types of cryptocurrencies that the fund will accept (e.g., USDC, USDT, ETH).

    • Target Amount: The goal or target amount for the fund.

    • Fund Duration: The time frame during which investments will be accepted.

    • Required Signers: The number of signers required for the MultiSig account (e.g., 3 out of 5 signers must approve transactions).

Step 3: Create MultiSig Account

  • Once the fund details are confirmed, a MultiSig account is created on the blockchain using a smart contract.

  • The Fund Manager specifies:

    • Authorized Signers: Addresses of the individuals or entities who will act as signers.

    • Approval Threshold: The minimum number of signers required to approve any transaction (e.g., 2 out of 3 or 3 out of 5).

The MultiSig account ensures that any transaction involving the fund (e.g., withdrawals or tokenization) requires multiple approvals, enhancing the security of the pooled assets.

Step 4: Fund Initialization

  • The MultiSig account is deployed on-chain, and the fund is officially open for investment.

  • Investors can now contribute funds, and all assets are held securely in the MultiSig account.

Benefits of MultiSig Account Creation

  1. Enhanced Security: MultiSig accounts reduce the risk of unauthorized fund movements, as multiple signers must approve any transaction.

  2. Decentralized Governance: Decisions regarding the fund (e.g., withdrawals, tokenization) are made collectively by authorized signers.

  3. Transparency: Every transaction is recorded on the blockchain, ensuring a clear audit trail.

  4. Flexibility: The approval threshold can be adjusted by the Fund Manager during setup, allowing flexibility in governance.

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Last updated 3 months ago