Checks Whitepaper
  • Cover
    • Checks Whitepaper
  • Overview
    • Introduction
  • Abstract
  • The Problem & Solution
  • MVP Features
    • Introduction to MVP
  • Standard Payment
  • Vesting Schedule
  • Platform Yield
  • Examples
  • Check Minting
  • Portfolio Management
  • NFT CHECKS
    • Design Overview
  • Check Types
  • Platform Structure
    • Tier System
  • Multi-Chain Support
  • Post-MVP Features
    • Introduction to Post-MVP
  • Escrow
  • Auto-Investment
  • Checks DAO
  • Checks Launchpad
  • P2P Lending
  • Paymart Integration
  • Token Economics
    • Check Token Utility
  • Check Token Tokenomics
  • Technical Documentation
    • Smart Contract Design & Security
  • Technical Deep Dive
  • Revenue Model
  • Appendix
    • Conclusion
  • References
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On this page
  • How It Works
  • Key Features
  • Example Scenario
  • Economic Model
  • Benefits

Auto-Investment

The Checks Platform will provide a robust Auto-Investment feature, empowering users to dynamically deploy their locked assets into a range of DeFi protocols to generate yield. This feature transcends traditional asset storage by enabling users to activate their funds across multiple yield-generating strategies, all while maintaining the security and programmability inherent to NFT Checks.

How It Works

When creating an NFT Check, users can activate the Auto-Investment feature, which seamlessly connects their locked assets to vetted DeFi protocols such as Aave, Compound, or specialized yield aggregators. The process involves:

  1. Strategy Selection: Users choose from various risk-adjusted investment strategies based on their preferences

  2. Automated Deployment: Assets are automatically deployed to selected DeFi protocols

  3. Auto-Compounding: Interest or rewards generated are periodically harvested, converted into the base asset, and automatically reinvested

  4. Optimized Returns: This process maximizes returns by leveraging the power of compound growth

Key Features

  • Automated Execution: The feature utilizes on-chain mechanisms such as keepers or scheduled contract calls to manage investments without requiring manual intervention

  • Yield Optimization: Advanced algorithms can automatically shift assets between protocols to pursue optimal returns based on market conditions

  • Flexible Asset Support: Initially supporting major assets like ETH, POL, and BNB, with plans to expand to additional cryptos based on liquidity, stability, and technical feasibility

Example Scenario

A user who locks ETH into an NFT Check with the Auto-Investment feature enabled could have their ETH automatically deployed to Aave for lending, with earned interest being harvested and reinvested at regular intervals. This ensures that even passive holdings remain productive, generating compound returns over time.

Economic Model

The Auto-Investment feature operates within the platform's economic model:

  • A small percentage of generated yields is directed to Yield Check holders

  • The majority returns to the user's position for compounding

  • This creates alignment between individual users and the broader ecosystem

Benefits

This feature will significantly enhance the platform's DeFi integration capabilities, enabling users to:

  1. Access sophisticated yield strategies via a user-friendly interface

  2. Maintain robust security and programmability inherent to NFT Checks

  3. Maximize returns on locked assets without manual intervention

  4. Diversify yield sources across battle tested DeFi protocols

The Auto-Investment feature ensures that users can optimize their yield without compromising the security and programmability that are the core strengths of NFT Checks.

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Last updated 22 days ago