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
Enhanced Security: MultiSig accounts reduce the risk of unauthorized fund movements, as multiple signers must approve any transaction.
Decentralized Governance: Decisions regarding the fund (e.g., withdrawals, tokenization) are made collectively by authorized signers.
Transparency: Every transaction is recorded on the blockchain, ensuring a clear audit trail.
Flexibility: The approval threshold can be adjusted by the Fund Manager during setup, allowing flexibility in governance.
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