The toughest dev and his plate on Robinhood Chain, none of them. As the DTF token falls below 10M, let's talk about the plate caused by the former ohm core dev @ downto_finance: Dev is @ cyotee, and it can be verified on GitHub that he is indeed one of the core developers of the former ohm. DTF is not simply an ohm fork, its core positioning is a decentralized on chain ETF. Core operating logic: 1/SE Vault: Transform existing defi strategies into pluggable parts and standardize them Each DETF based on DTF emission is essentially composed of several SE vaults; Vault is actually a ready-made strategy pool similar to Yearn. SE, also known as standardized operations, allows the strategy vault to come with a standard redemption interface, allowing hooks to communicate with any SE vault using the same logic to achieve dynamic inventory adjustments; 2/Uni V4 Hook: The invisible hands that execute operations according to rules The market cap acts as the fund manager for each DETF, and users operate this DETF through mint/burn/swap/plus/minus LP; Once the above changes occur in the pool, Hook will carry out operations such as splitting money, withdrawing money, and changing the pool balance according to the rules; 3/Reward mint/burn users: There is a price difference between DETF net worth and market price, indicating arbitrage space If the opening price is higher than the net value, rational arbitrageurs will first mint and then take the opening price to sell, resulting in a thicker POL agreement; If the opening price is lower than the net asset value, rational arbitrageurs will buy at the opening price first and then burn, and the redemption process will be completed and rebalanced; 4/Bond mechanism: Encouraging lock up to increase LP depth Users pay assets to buy bonds and lock the assets for a certain period of time. The DTF protocol will proportionally cast DETF shares to form LP, during which the buyer can obtain an exposure to DETF; A portion of all new mint DETFs will be distributed to all bondholders, and the longer they are locked, the more they will receive. The lifecycle of DETF based on DTF protocol transmission: Example: A DETF named STEADY Initial setting (parameters cannot be changed): Two SE Vaults: Vault A: Stablecoins are lent to Morpho; Vault B: Stablecoins+ETH for Uni LP Target weight: 50%/50% Usage fee: 1% (creator 60%, agreement 40%) Note: In the early days, the depth relied on the first bond startup. At this time, there was no STEADY on the disk, so there was no market price, only the net value that each vault could report. Stage 1: Bond startup Alice bought a 30 day bond with 100000 stablecoins and received a Bond NFT. The contract does three things simultaneously: 1. Accept 100000 stablecoins. 2. According to the quoted price at that time, cast a new STEADY, with a quantity approximately equal to 'how many net worth shares can this money be exchanged for'. Assuming the initial net value is $1, cast 100000 STEADY coins first (with additional fees deducted, omitted here). 3. Make "stablecoins+newly minted STEADY" into the LP of this basket (then split the stablecoins into A/B at a 50/50 ratio: about 50000 into Morpho, and about 50000 into ETH as the LP). At this moment, there was a depth in the pool for the first time: On one side is a basket of assets (A+B) On one side is STEADY Alice locks for 30 days, enjoys the exposure to the "allocated shares" in LP, and begins to distribute all newly minted STEADY bondholders' shares thereafter The agreement cannot treat this 100000 as settled POL: Alice still has a claim on the reserve. But once the drive is turned on, the people behind can mint/burn/swap. If no one is bonding and only idling on the external drive, this DETF will not be activated. Stage 2: Someone minds (expands the table, POL thickens) One week later, the net worth remained around $1. Someone fried STEADY in the pool to $1.06 (premium). Bob calculated: Mint cost ≈ 1.00+1% fee ≈ 1.01, and the market can sell 1.06. Therefore, he used 20200 stablecoins to mint about 20000 STEADY coins and sold them in the pool. Hook action: 1. Ask Vault A and B for quotes. 2. Split the new stablecoin into A and B based on 50/50 and whether the current position is biased. 3. Cast STEADY for Bob. 4. A 1% fee will be charged: the creator will receive a portion, and the agreement will be converted into an asset MAKE and included in the relevant LP of the agreement. 5. Cut another portion of the newly minted bond to all bondholders (Alice and future bonds/if rebased). Result: The basket increased by about 20000 assets, and the position was pushed towards net value by Bob's selling. This is' using arbitrage to add reserves to the agreement '. Stage 3: ETH rises, someone burns (shrinking balance+rebalancing) ETH has surged, Vault B's market value has risen to 65% of the basket, while A is only 35%. The net worth became $1.20, but someone in the pool panicked and smashed STEADY to $1.10 (discounted). Carol bought about 10000 pieces at the opening for 11000 yuan and then burned them. Hook： Redemption of approximately 12000 yuan worth of assets owed to her. 2. If the weight is already skewed, draw more from Vault B (ETH leg) and move less on Morpho. If necessary, exchange a portion of ETH in the pool for stablecoins before paying her. 3. Destroy these 10000 STEADY. 4. Draw a usage fee again. Carol earns a discount; The protocol reserve has decreased, but the structure has been pulled back close to 50/50. This is why Burn is' useful for the protocol ': it's not about adding another amount of money, but about free rebalancing and charging when users leave. Stage 4: Someone only swaps (without changing the basket size) Dave is too lazy to mint, so he directly exchanges ETH for STEADY in the pool. The shares have just changed hands, and the total reserves remain unchanged Hook may still fine tune its two legs according to the quotation (AMM's own rebalancing) Usually there is no 1% usage fee from DETF (the cost is in mint/burn) So the official wants to 'force' large deviations to go mint/burn: only by applying for redemption can POL be changed and factory fees be stabilized. Stage 5: Alice expires and closes (POL is truly settled) 30 days have passed, and Alice has turned off the NFT. Hook pulled out her LP. 2. Return the reserve to her according to her share (which may already be "half of the treasury share+half of ETH LP", not the 100000 net stablecoins she used to have); There are fees and unpredictability. 3. STEADY stay and save back to the pool, according to the agreement. At this point, strict POL emerged: the agreement held a portion of STEADY market making and no longer had the obligation to repay Alice's principal. If she never closes (or rebases the position), the principal remains in the pool, and she continues to mint new shares, this is called a 'perpetual bond'. Pledge DTF and convert it into POL essentially means holding perpetual bonds. The above. Write at the end: In order to pay tribute to the Moji spirit of the founder and core dev @ cyotee of DTF, this article will be divided into an upper, middle, and lower part. This is the first part. The second and third parts exist in a non strict sense, with the constraint that the DTF does not fall below 5M. If it falls below 5M, this part will be the end of the entire drama.