$BENCHMARK
Last updated
Last updated
$BENCHMARK is the ERC20 token on Arbitrum. 1 $BENCHMARK represents 1 unit of the Benchmark Demo Fund. $BENCHMARK is $1 since inception. As the fund generates yield, the value of $BENCHMARK increases, or vice versa.
The fund manager charges a 2% fee per annum on the AUM managed by the Benchmark Demo Fund. The fee is charged each time the $BENCHMARK price is updated by the portfolio manager.
$BENCHMARK Address: . The total number of valid $BENCHMARK reflecting the units of the portfolio will all the $BENCHMARK in circulation other than those held by the portfolio address (including 1) and 2) those made available as ).
For instance, as of 30 Oct 2024, out of the total 100M $BENCHMARK, 99.8M is held by the Demo Fund itself and is not in circulation. And the remaining 200,000 $BENCHMARK, 100,000 is in Uniswap and is purely held by the fund as well (you can see this from the deBank page of the Demo Fund). As such, the actual units available is 100,000 at the moment.
Whilst anyone can provide #BENCHMARK liquidity in Uniswap (or elsewhere) as well, we do not advise so, as our price is manually and arbitrarily updated, users providing liquidity might incur a loss.
A portion of the portfolio will be invested into Aave for liquidity purpose - waUSDCn.
The manager will make market for $BENCHMARK, i.e. periodically update the price of $BENCHMARK in the Uniswap pool to reflect the value of the portfolio. The manager will also routinely top up the waUSDCn amount in the pool from the portfolio, if waUSDCn is less than 10% of the portfolio; or withdraw USDC into the portfolio, if the amount of waUSDCn exceeds 10% of the portfolio.
The manager will manually update the price of $BENCHMARK on a weekly basis. To avoid front-running, the manager will set the sell price of $BENCHMARK to be the latest unit value of the portfolio; whilst the buy price will be the last week's unit value of the portfolio. For instance, if the 2nd week's unit value of the portfolio is $1.003 and the 3rd week's unit value is $1.005, then by the end of the 3rd week, the manager will update the liquidity in the Uniswap pool, so that users can buy $BENCHMARK at $1.005 but sell only at $1.003.
Although unlikely, technically it's possible that the Demo Fund incurs a loss in one week and causes the unit price to be lower than the previous week. In such event, the selling price of $BENCHMARK in Uniswap will be updated to reflect the latest value of the fund and the buying price will be set to be $0.003 lower than that.
This takes the form of Static Aave Arbitrum USDCn (, an interest-bearing version of Aave USDC lending token). StataArbUSDCn is basically a wrapped version of USDC lending deposit in Aave Arbitrum, and it accrues in value instead of rebasing (such as aaveUSDCn). We choose stateArbUSDCn as Uniswap V3 cannot take rebasing tokens as part of the LP . To simplify the name, we will call Static Aave Arbitrum USDCn () "waUSDCn" below (wrapped aave USDC).
We make a and waUSDCn. With this, any user can trade waUSDCn for $BENCHMARK or sell $BENCHMARK for waUSDCn. Or, via routers like Llamaswap, you can trade USDC directly with $BENCHMARK.
As there's a trading fee of 0.25% for using Uniswap's UI, it's advisable to make the trades with $BENCHMARK in to avoid the 0.25% fee (but the Uniswap pool fee of 0.01% still apply).
