Warrant Tokens

Warrant tokens are ERC-20 tokens which give investors a claim on the portfolio of assets that were financed using their capital. Investors mint warrant tokens when they deposit capital into the aggregate pool. Any dividends that guilds return to the individual pools are automatically distributed to investors based on the amount of warrant tokens they hold. The value of warrant tokens should in theory track the value of the portfolio of assets.

Pro-Rata Share

Dividends are returned to investors pro-rated by the percentage of warrant tokens they own. The below is an example of what that means:

Investor A invested 70,000 USDT into an aggregate pool, and Investor B invested 30,000 USDT. Investor A mints 70,000 warrant tokens and Investor B mints 30,000 warrant tokens.

In the first payout cycle, the guilds in the aggregate pool collectively return 10,000 USDT.

At this point, Investor A can claim 7,000 USDT and Investor B can claim 3,000 USDT.

Say Investor C comes in and buys 40,000 warrant tokens from Investor A.

In the next payout cycle, the guilds also return 10,000 USDT.

At this point, Investor A can claim 3,000 USDT, Investor B can claim 3,000 USDT, and Investor C can claim 4,000 USDT.

Warrant Token Secondary Market

The warrant tokens are transferable and investors can sell them to another investor who wants to buy them. This gives investors liquidity to exit their stake in the aggregate pool if they choose to do so. The price that investors can sell warrant tokens for will ultimately depend on the supply and demand of warrant tokens and what the market values the underlying assets at.

🚨 Note: any unclaimed dividends will be deposited into your wallet on successful transfer of the warrant tokens. The token recipients will not be able to claim until the next guild contributes.🚨

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