Richard Funds

Richard Funds -  A Crypto Dividend Yield ETF

Who we are?

We are graduate students from National Taipei University of Technology and National Tsing Hua University, with our main area of research being cyber security. We have a strong interest in blockchain, which is why we decided to participate in this hackathon.

Goal

The existing DeFi aggregators, while automatically harvesting and compounding, do not automatically switch to pools with higher APYs.

If users do not regularly monitor the APYs of pools, they might miss out on significant profits due to declining returns.

Our goal is to assist users in switching to protocols with higher annual yields, saving them the effort of real-time monitoring.

How it works?

For users:

1. Users invest USDC into our platform, and we mint "Rich tokens" for the users.

2. Our platform compares the APYs of various protocols and selects a few with the highest rates for investment.

3. Any user holding Rich tokens can claim USDC on the platform every week.

4. To prevent short-term trading, the platform has a lock-up period of 180 days, after which earnings will stop. Users can exchange their Rich tokens for USDC after this period.

For our platform:

1. Every four hours, the earnings from various protocols are converted back to USDC, and users can withdraw them weekly by presenting their Rich tokens.

2. The platform constantly monitors the APYs of various protocols. If a pool with higher earnings is identified, we will calculate the conversion cost, including slippage, gas fees, etc. If the cost can be recouped within one day through the difference in returns, indicating that the conversion is profitable, we will execute it.

Pros

1. Users only need to invest in our platform to enjoy high returns without having to take any active steps on their own.

2. Holding Rich tokens enables users to receive USDC as a return, which creates the potential for Rich tokens to have a premium in the secondary market.

Cons

1. Given the complexity of interacting with various protocols and the issues with token approvals, it's difficult to fully automate the process at this stage. Currently, it can only be operated through centralized management.

2. More mechanisms are needed to ensure the security of the manager's wallet and to reduce the possibility of a rug pull by the platform.

Development

We use Circle's Smart Contract Platform to create our Rich tokens.

And released on the Polygon Mumbai Testnet.

https://mumbai.polygonscan.com/address/0xba396e6a20eaab9aa3b4ea9273776135342ccfe0

Due to the complexity of the protocol, coupled with our unfamiliarity with smart contract development, we were unable to present a complete product this time.

Suggestions for the Circle Smart Contract Platform

The contract could incorporate additional features that allow users to make adjustments, such as the ERC20 maximum supply, etc. Also, it would be beneficial to add tutorials on integrating with other smart contracts, not just DApps front-ends.