What is QFinance?

QFinance is a decentralized protocol enabling users to create and join Ethereum-based investment pools in a trustless, decentralized manner. Each pool consists of underlying assets (generally but not necessarily ERC20 tokens on Ethereum) determined at pool creation.

How does it work?

As noted above, a QFinance pool is created with a breakdown of assets that represent the portfolio. When new ETH is deposited to the pool, the pool will acquire the tokens as determined by their breakdown and hold them on the user's behalf. At any time, a user may call the withdraw function on the contract to retrieve some or all of their principal.

Public or Private

Pools can be public or private. Private pools are quite simple - only the user who creates the pool may deposit and withdraw from it. The construction and function of these pools is straightforward.

For public pools, there is added complexity to ensure users are fairly compensated for the amount of ETH deposited and the growth (or loss) of value over time. That is, users' profits and losses are calculated based on when they deposited and when they withdrew the funds accordingly, as it should.

Deposit Tokens

As part of the calculation of public pool ownership, an ERC20 token is returned to the user that represents their ownership stake in the overall pool. The pool will grow as new participants join, and existing participants will have a smaller share of a larger pool, equalling out the value. Deposit tokens can be staked to earn QFI, a reward and governance token used by QFinance. Additionally, network participants are free to set up their own staking systems and rewards to provide users an incentive to join their pool.

Differentiators

There are similar asset/investment pool protocols available. QFinance has a few unique features.

First, many of the similar investment pool protocols require a "manager" or follow an index. These are great solutions for some cases, but QFinance has a different vision. In the future, public pools will be managed entirely by the depositors. The creator may set an initial vision for the fund (i.e. "DeFi Blue Chips"). But investors in the pool will have the ability to vote on rebalancing decisions (when/how) through their stake of QPDTs. A traditional ETF is managed by a fund manager; QPools are managed by the users directly.

Second, QFinance seeks to be a protocol owned and managed by the community. Through staking of deposit tokens, new QFI tokens are granted to the users of the protocol. Additional staking pools reward QFI holders, and QFI-ETH Uniswap liquidity providers with new QFI. This way, the project rewards its ecosystem with new QFI tokens. The QFI tokens are then used to vote on protocol decisions, such as staking pool reward allocation, and new feature prioritization.

Lastly, QFinance is a simple solution. If you just want to invest in a pool and earn some QFI, it is super easy and always will be.

Is QFinance Centralized?

There is absolutely no central party with any control whatsover over the QFinance protocol. This website is a simple front end to interact with the QFinance Factory Contract, which is open source. That means anyone can review the code, verify its lack of control mechanisms, create a new front-end interface (or use development or CLI tools), or even fork the code into a completely new system. No one can stop QFinance without stopping Ethereum first.

Private pools are controlled by the user who creates them, and can only be interacted with by the owner. Public pools, on the other hand, can be interacted with by anyone in a trustless way. That is, even if the creator of the asset pool is a known scammer, the only financial risk a user takes is related to the value of the underlying asset. The creator of a pool has no means to steal or siphon funds from other users no matter how nefarious they are.

QFinance uses Uniswap, by far the most popular decentralized exchange protocol, as the mechanism for exchanges. Uniswap also acts as the oracle to gain price insights from a trustless source.

QFinance is entirely, 100% decentralized.

QFinance Use Cases

  1. Get exposure to multiple Ethereum-based assets in one simple, manageable interface and transaction.
  2. Join a well performing or otherwise attractive asset pool created by another user.
  3. Create a public asset pool and invite users to join your investment. Prove your crypto investing prowess and even create staking programs for users to earn other coins as a reward for participating.
  4. Compete with others in your private pools on the public leaderboard.