Multipools

A Multipool is a smart contract that lets users create tokenized portfolios backed by multiple assets. These portfolios follow customizable strategies (e.g., target asset allocations) and use oracle prices to maintain balance.

Each Multipool is ERC-20 compatible, meaning users hold "shares" representing their stake in the underlying assets.

Key Features

• Minting/Burning: Users deposit or withdraw assets to mint/burn shares.

• Swaps: Trade assets within the Multipool at oracle-based prices (no price impact).

• Rebalancing: Assets are automatically adjusted to match the target strategy.

Multipool diargam

Pricing & Oracles

Multipools use external oracles (e.g., Chainlink, UniswapV3) to compare asset values. To ensure consistency, all prices must share the same quote currency (e.g., ETH). The system supports modular oracle integration, meaning new sources (like Pyth or Redstone) can be added without altering core contracts.

User Roles

• Liquidity Providers earn fees, share appreciation, and underlying asset yields.

• Strategy Managers design the portfolio’s asset allocation and oracle setup.

• Executors (traders/arbitrageurs) use Multipools for low-slippage swaps and earn cashbacks by rebalancing the pool.

Fees & Incentives

Fees are charged in the blockchain’s native token:

1. Base Fee: Applied to all operations.

2. Deviation Fee: Triggered if a swap disrupts the target asset balance.

Fees fund three streams: strategy managers, the Arcanum protocol, and cashbacks (rewards for correcting imbalances).

Cashback System

When a swap increases imbalance, a portion of the deviation fee is reserved as a cashback. Executors who later reduce this imbalance claim the cashback, incentivizing MEV bots and traders to maintain equilibrium.

Asset Requirements

Assets must be ERC-20 compliant and have liquid Uniswap V3 pools. Dynamic assets (e.g., AAVE positions) require adapters to standardize balances and pricing.