Dynamic Liquidity Flow

When an investor deposits funds into the Exxa Fund, the capital is allocated proportionally to the tracked underlying assets based on the fund’s respective weighting method.

This ensures that the fund accurately represents the performance of the broader crypto market.

Process Flow

1. Investor Deposits Funds When an investor deposits stablecoin, the fund converts this amount into the Fund’s underlying tracked crypto assets based on their respective weightings.

2. Weight-Based Distribution If the tracked assets have the following weightage:

   • Asset 1: 40%

   • Asset 2: 25%

   • Asset 3: 10%

   • Asset 4: 7%

   • Asset 5: 5%

   • Asset 6: 13%

   A $10,000 investment into Exxa Fund would be split proportionally:

   • $4,000 → Asset 1

   • $2,500 → Asset 2

   • $1,000 → Asset 3

   • $700 → Asset 4

   • $500 → Asset 5

   • $1,300 → Asset 6

3. Asset Purchases An automated fund smart contract purchases these assets from a DEX, or in some cases CEX, and holds them in the fund’s smart contract.

4. NAV Calculation & Issuance of Tokenized Receipt:

   1. After purchasing the assets, the total value of the fund is updated.

   2. The investor receives a tokenized receipt, also known as Investment Representation Token (IRT) that acts as a claim on the underlying value of their investment with Exxa Funds. These assets could be used to track their portfolio's performance through the Exxa Protocol.

   3. Investors could hold these IRTs in a wallet that allows them to see the real-time value and gain access to data about their investment, without converting them into a tradable security.

   4. When they wish to sell, these IRTs can be exchanged on the Exxa Protocol that tracks the Asset's value against the underlying assets. The platform could facilitate this process through an automatic redemption system, where IRT holders can convert their assets back into their preferred stablecoin at the prevailing market rate.