Technical Architecture
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The dHEDGE app consolidates the inner workings of smart contracts and the real world into an easy to understand web application and dashboard for anyone to easily understand. These are the mechanics underneath the dHEDGE interface on how the dHEDGE protocol is leveraging blockchain technology to write immutable transactions.
The blockchain in which transactions and token holdings are recorded depends on the vault type (Polygon or Optimism). When an investor deposits into a vault, they receive newly minted ERC-20 vault tokens into their wallets that work just like any other cryptocurrencies and have their own ticker symbols.
The below illustration is an example of a Polygon trust minimized vault and all of its inner workings regarding different wallet entities interacting with a vault and where to view all of the recorded vault transactions.
Managers designate their vault token ticker symbol at the time of creating a vault. The dHEDGE app enables depositors to easily add their vault tokens to their wallets so that they appear in their wallet like any other token.
When an depositor wants to withdraw from a vault, their shares will subsequently be burned or destroyed upon withdrawing and the total shares outstanding of the vault will decrease. Vault tokens are transferable or redeemable after the 24 hour lock up.
Holders of a vaults tokens are visible within the dHEDGE app as wallet addresses, and are also recorded on the blockchain at the vaults contract address at all times. When a trade is placed within a vault, transactions occur only in the vaults contract address, not the manager’s, trader’s, or vault token holders’ wallets. Vault token shares represent an individuals claim of underlying vault assets.
In summary, the dHEDGE app allows investors to easily track a vault's:
- Deposits
- Withdrawals
- Trading Activity
- Performance Statistics
- Vault Token Balances
- Profits and Losses
Last modified 1mo ago