V1 Protocol Overview
V1 is OpenGuild Finance's first product.
V1 is highly trust based, using smart contracts to distribute capital to guilds and dividends back to investors, and legal contracts to enforce the terms of the agreement for guilds. Investors will be able to mint warrant tokens by depositing capital into the aggregate pool which will be used by whitelisted guilds to invest in crypto gaming assets and guilds will be able to return dividends back to investors through the protocol.

Overview of How V1 Works

  1. 1.
    Once the aggregate pool is open to receive capital, whitelisted investors will have a set period of time to deposit into the pool.
  2. 2.
    For every 1 USDT deposited, investors will mint 1 warrant token which represents a share of ownership in the pool, the underlying assets backing the pool and a claim on future dividends.
  3. 3.
    Every deposit into the the pool will automatically be distributed to the individual pools based on an allocation predetermined by the aggregate pool manager.
  4. 4.
    Once the deposit period is over, the pool cannot receive more capital and guilds can start withdrawing funds from their individual pools to their guilds’ wallets which they have set up to manage assets on behalf of the investors.
  5. 5.
    Guilds will take a 2% management fee from the capital they receive.
  6. 6.
    The guilds will use the remaining funds for the purpose of building a portfolio of crypto gaming assets to generate income. Guilds can reinvest any income to grow the portfolio.
  7. 7.
    Guilds will return capital back to investors in the form of dividends. Guilds will be responsible for converting any currencies earned to USDT before distributing as a dividend.
    a. Guilds will send 85% of any dividend payout back to their individual pool.
    b. The individual pool will automatically distribute the dividend to investors based on the number of warrant tokens they hold. Dividends will accrue and investors can claim their share of the dividends at any time.
  8. 8.
    The remaining 15% of the dividend payout is reserved for the guilds.
    a. Initially, guilds will send their 15% share of dividend payouts to an escrow wallet controlled by the pool manager.
    b. Once the total amount of dividends a guild has returned back to their individual pool has exceeded 100% of the capital that they received from their individual pool, the escrow will unlock and the dividends they have accrued will be sent to them.
    c. After the escrow has unlocked, guilds can keep 15% of future dividend distributions for themselves without needing to send it to the escrow wallet.
  9. 9.
    Investors can sell their warrant tokens in private transactions.
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