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Implementation and Evaluation of the Decentralized Fund Protocol: Creating a decentralized asset management system
KTH, School of Electrical Engineering and Computer Science (EECS).
2024 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Implementation och utvärdering av Decentralized Fund Protocol : utformning av ett decentraliserat tillgångsförvaltningssystem (Swedish)
Abstract [en]

The Decentralized Fund Protocol is a novel decentralized finance protocol that enables the creation of completely decentralized funds. This paper proposes practical implementation solutions to the Fund Recalibration System, in particular the recalibration and depositing of assets into the fund to alter and shift the underlying asset backing of the fund. These proposed solutions are partially implemented and transaction fees, also known as gas costs are evaluated with Hardhat and ethers.js. Additionally security test are performed with the Smartbugs solidity test suite to ensure that the prototype has no obvious security issues. The thesis finds that the favourable implementation of the Fund Recalibration System is a solution that allows the fund move assets into the fund with the same cost independent of the number of participants in the system. This is achieved by utilizing an asset pool which participants manually pool assets into, paying for their own participation. The fund can consequently move all assets in the pool all at once into the fund and can thus perform the same computations independent of how many participants that contributed to the pool.

Abstract [sv]

Protokollet Decentralized Fund Protocol är ett nytt decentraliserat finansprotokoll som gör det möjligt att skapa helt decentraliserade fonder. Detta arbete föreslår praktiska implementeringslösningar för fondrekalibrationssystemet (Fund Recalibration System), i synnerhet rekalibreringen och insättning av tillgångar i fonden för att förändra och skifta fondens underliggande tillgångar. Dessa föreslagna lösningar är delvis implementerade, och i samband med detta utvärderas transaktionsavgifter, även kända som gaskostnader, med Hardhat och ethers.js. Dessutom utförs säkerhetstest med Smartbugs solidity test suite för att säkerställa att prototypen inte har några uppenbara säkerhetsproblem. Raporten finner att den mest gynnsamma implementeringen av fondförvaltningssystemet är en lösning som tillåter fonden att slå samman tillgångar i fonden med samma kostnad oberoende av antalet deltagare i systemet. Detta uppnås genom att använda en tillgångspool som deltagarna manuellt samlar tillgångar till och betalar för sitt eget deltagande. Fonden kan följaktligen flytta alla tillgångar i poolen på en gång till fonden och kan därmed utföra samma beräkningar oberoende av hur många deltagare som bidragit till poolen.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology , 2024. , p. 55
Series
TRITA-EECS-EX ; 2024:58
Keywords [en]
Decentralized finance, Fund, Crypto, Crypto currency, Recalibration, Finance
Keywords [sv]
Decentraliserad finans, Fond, Krypto, Krypto valutor, Rekalibrering, Finans
National Category
Computer Sciences
Identifiers
URN: urn:nbn:se:kth:diva-345830OAI: oai:DiVA.org:kth-345830DiVA, id: diva2:1853109
External cooperation
Decentralized.fund
Subject / course
Computer Science
Educational program
Master of Science - Computer Science
Supervisors
Examiners
Available from: 2024-05-16 Created: 2024-04-21 Last updated: 2024-05-16Bibliographically approved

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CiteExportLink to record
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