Group Investment App

How would you use valuepools' features to build a group investment app that implements a DCA strategy?

To build an app like that, you would need the following features:

  • An ability to collect users' investments

  • An ability to decide together on what to invest in

  • An ability to disburse the investment funds

  • An ability to distribute profits from the investments

How would it work ?

First of all the DCA investment strategy consists in investing periodically on specific assets with no regards to whether they are down or up.

The way to do it as a group is through a valuepool where users regularly lock funds either periodically or not. Let's suppose the valuepool decides to buy 1000 Ethers every month.

Every month, sellers will propose the valuepool, deals to buy 1000 Ethers in exchange for an amount X of one of the valuepool's tokens. To do so, they will create proposals where they lock the 1000 Ethers as a bribe and input the token they would like to withdraw from the valuepool as well as the amount X of it they want to withdraw in exchange for the 1000 Ethers. They can also add any extra information in the body of the proposal.

The valuepool votes and if it agrees to their proposals, they will be able to withdraw the requested amount X of the specified token and members of the valuepool will be able to unlock the 1000 Ethers and have them sent to the valuepool.

Otherwise, the sellers will be able to unlock the bribe and have the 1000 Ethers sent back to them.

Suppose seller 1 wants to sell the valuepool some Ethers, if the valuepool's token is USD tFIATs, he will create a proposal suggesting a price of 2 million USD tFIATs for 1000 Ethers.

This will go through a voting process (which duration depends on the valuepool) and if the members agree to the purchase, seller 1 will be able to withdraw the funds from the valuepool and unlock the bribe which will automatically send the 1000 Ethers to the valuepool.

Unlocking a bribe either sends the bribe to the seller or to the valuepool. Anyone can unlock any bribe given the voting window on the bribe's proposal has closed.

This process can also be extended to not just tokens on the blockchain but also to stocks on the stock market. In this case, the seller will withdraw funds from the valuepool and purchase the stock on behalf of the valuepool. The seller would have to be trustworthy and/or have a bounty balance big enough to guarantee trustworthiness.

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