Underlying Asset Backing Pool

The value behind MAYZ Index Tokens

Every Cardano Index Token minted will be backed by several fungible Cardano tokens according to the Index Ratio set by its Fund Manager. The underlying assets backing pool will initially be generated through fundraising efforts and subsequently topped up whenever MAYZ Index Tokens are minted.

The 1 Cardano Index Token value in ADA can always be calculated as the total ADA value of the backing pool divided by the total number of Cardano Index Tokens in circulation.

Until the development of Smart Liquidity, the underlying assets will be purchased and sold by the financial experts at MAYZ. Underlying assets will be held according to the Index Ratio in a secure multi-sig Cardano wallet. The initial fund will be collateralized to ensure there will always be enough liquidity in the pool, even if all Index Tokens would be burned simultaneously. Minting and burning smart contracts will ensure investors always have access to their funds on-chain.

Minting Index Tokens

1. Funds are sent to the minting Smart Contract on Cardano.

2. Minting smart contracts query Oracles to calculate the current and updated value of the backing pool.

3. New Cardano Index Tokens are minted and returned to the investor via bridge if necessary.

4. A small percentage of investment funds will be taken at this point and sent to a MAYZ treasury fund to cover infrastructure, pay salaries and ensure continued future development.

5. Investment funds are deposited in the backing pool.

Adding to the Asset Backing Pool during Minting

Burning Index Tokens

1. Cardano Index Tokens are sent to the Burning Smart Contract on Cardano.

2. Burning Smart Contract queries Oracles to calculate the current and updated value of the backing pool.

3. Cardano Index Tokens are burned.

4. The correct amount of ADA liquidity is released from the backing pool and sent back to the investor via bridge if necessary.

Withdrawing from the Asset Backing Pool during Burning