Workflows
Fathom Vaults are designed to streamline and enhance the experience for both users (investors), vault and strategy managers. Here's an overview of the typical workflows for each type of participant:
User (Investor) Workflow
Account Setup: Users begin by connecting their wallet to the Fathom interface. This setup involves ensuring that they hold FXD, the native stablecoin of the Fathom ecosystem, which is used for transactions within the vaults.
Vault Selection: Users navigate through the available vaults, each tailored to different risk preferences and investment strategies. The vaults are transparently described regarding their strategies, historical performance, and risk levels.
Deposit: Once a suitable vault is selected, users can deposit their FXD into the vault. This transaction involves transferring FXD from their personal wallets into the vault’s contract, where the FXD is then utilized according to the vault’s specific strategy.
Yield Generation: After the deposit, the vault automatically employs the user's FXD in various DeFi, RWA, or TradeFinance strategies based on the predefined rules of the vault. These strategies are designed to optimize returns while considering risk management.
Earnings and Reports: Users can track the performance of their investments through the dashboard that provides real-time data on earnings and the overall health of the vault. Periodic reports and alerts can also be configured for active monitoring.
Withdrawal: At any point, users can choose to withdraw their principal along with any returns generated, subject to the terms of the vault such as lock-up periods and withdrawal fees. The withdrawal process is straightforward, crediting the FXD back into the user’s wallet.
Vault and Strategy Manager Workflow
Strategy Deployment: Vault manager can be develops and deployers of the strategies within the Fathom ecosystem. These strategies might involve a mix of yield farming, lending protocols, or investment in real-world assets.
Vault Configuration: Once a strategy is ready, it is integrated into a vault. Managers configure the vault settings, including fees, risk management rules, and performance targets.
Capital Management: The primary role of the vault manager is to manage the capital pooled in the vault effectively. This involves deciding how much capital to allocate to different investments and managing the liquidity to meet withdrawal demands.
Performance Monitoring and Adjustment: Managers continuously monitor the performance of the vault and make necessary adjustments to the strategy to maximize returns and minimize risks. This might include rebalancing the portfolio, harvesting yields, and pivoting strategies based on market conditions.
Reporting and Communication: It is crucial for managers to maintain transparency with the investors. This involves regular updates on vault performance, upcoming changes or proposals, and any significant market movements that may affect the vault.
Fee Collection and Reinvestment: Managers collect performance-based fees as compensation for managing the vault. These fees are a percentage of the profits generated and are automatically deducted from the returns. Managers may also reinvest a portion of their earnings back into the vault to align their interests with those of the investors.
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