The watermelon protocol is the first of its kind autonomous systems, designed specifically for the purposes of crypto asset management. Both its frontend as well as its backend are hosted and executed on decentralised platforms. The frontend operates on top of IPFS (InterPlanetary File System), while the backend leverages off a set of Ethereum smart contracts.
watermelon Asset Management
watermelon replaces a large proportion of the middlemen with smart contracts, thus enabling you to perform the same tasks at a fraction of the cost, and with higher transparency, security, and minimised requirement for trust.
What is Melon?
Melon is a fully decentralized asset management protocol which allows anyone to set up, manage and/or invest in an investment fund of digital assets in a secure, robust and permissionless manner. In three words: decentralized investment infrastructure.
Melon encodes the rules of how to set up and operate a fund into the smart contracts.
Melon brings and combines two new concepts:
(i) Technology operated fund
- Fund accounting (NAV calculation, performance and fees calculation)
- Subscriptions and redemptions: The accounting and activity around creating new shares in a fund when an investor invests or removes those shares on redemption as well as any necessary KYC/AML on investors.
- Paying out (pre-defined) management and performance fees to manager
- Trading on integrated exchanges
(ii) Technology regulated fund
- The fund manager defines a rulesets and parameters which he commits to comply with during his investment mandate.
- The rules are enforced by the smart contracts (by design) i.e. the fund manager can never breach the ruleset of the fund
- The pre-trade risk policies defined by the manager in the smart contract(s) are checked before each trade to determine trade validity.
The Melon protocol is (amongst other things) responsible for:
- Asset Custody
- Performance Calculation
- Price feed
- Investor/Shareholder Accounting
- Fee Accounting
- Risk Management
- Exchange Interaction