MAYZ - Whitepaper V2
  • INTRODUCTION
    • What is MAYZ?
    • Why MAYZ?
    • How Does MAYZ Work?
      • Types of Members
      • Fund Creation Process
      • Escrow Service
    • Protocol Path
      • MVP
      • Release 1: Full Cardano
      • Release 2: Cross-Chain Goal
    • Token Types
      • MAYZ Utility & Governance Token
      • Fund Token
    • Tokenomics
      • Total Distribution
      • Vesting Schedule
  • MAYZ PROTOCOL
    • Technical Document
      • General Aspects
        • Mutual Funds
        • Liquidity Pools
      • Purpose of MAYZ Protocol
      • MAYZ Holders Community
      • Protocol Contract
        • Definition
        • Functioning
      • Fund Contract
        • Definition
        • Functioning
      • ADA/LP Swap Contract
        • Definition
        • Operation
      • Escrow Agreement
        • Definition
        • Operation
      • Investment Unit, LP and uLP Token
        • Definition
        • Decimals and fractions
        • Recommendations
        • ADA in the Investment Unit
        • Investment Unit, LP Token and uLP Token Value
      • Deposits in the Fund
      • Withdrawals from the Fund
      • Fund Re-Indexing
      • Commissions
        • Payment of Commissions
        • Charging Commissions
        • Recovering Fees
      • UTxOs of Deposits in the Fund
      • Oracle Contract
  • Cardano Fund
    • What is Cardano Fund?
      • Cardano Fund
      • Passive Investment Strategy
    • Why Cardano Fund?
      • Cardano Fund Vision
    • How Does the Cardano Fund Work?
      • Spects
      • Where to Start
  • MAYZ
    • Development Roadmap
    • Meet the Team
    • Funding Strategy
    • ISPO
    • Knowledge Base
      • Why Cardano?
      • What is a smart contract?
      • What is an Index?
      • What Is a Blockchain Oracle?
      • What is a Cross-Chain Bridge?
  • Links
    • Website
    • Twitter
    • Discord
    • Medium
  • BRAND KIT
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  1. MAYZ PROTOCOL
  2. Technical Document

Fund Re-Indexing

Re-Indexing consists of changing the quantity of the tokens that make up the Investment Unit of a Fund. It may involve removing a token completely, incorporating a new one, or modifying the amount of another one, thus modifying the proportions or weights each token has in the Investment Unit and the Fund Value. See Investment Unit.

If the Fund were empty, with no deposits, i.e., the value of the Fund was zero, and there were no minted uLP, changing the Investment Unit would only be an update of the parameters of the Fund Datum.

But if the Fund were already managing the deposits of many Investors, i.e., there would already be many Investment Units deposited and uLPs minted and delivered to the Investors. The re-indexing process should also affect the actual holdings of the underlying assets of the Fund in such a way that the change would not impact the value of the Investment Unit, nor the value of the uLP, nor the value of the Fund. We cannot afford to defund the Fund during this process.

Changing the proportion of some Tokens will involve changing the ratio of others such that the ADA value of what is withdrawn is equal to the ADA value of what is paid in so that the total managed value of the Fund in ADA remains unchanged.

If you wanted to withdraw tokens whose value was 1,000,000 ADA, you would have to enter that same transaction ADA or Tokens with a value of 1,000,000 ADA.

A Re-Indexing transaction of significant value may be partitioned into smaller Re-Indexing transactions of lesser value. In such a way that each one affects all Investment Units but affects them in a small proportion. Instead of withdrawing tokens with a value of 1,000,000 ADA at one time, I can withdraw and enter ADA or tokens with a value of 1,000 ADA at a time repeatedly until the total of 1,000,000 ADA is covered.

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Last updated 2 years ago