Built on Ethereum, MoneyFund is a novel DeFi protocol that includes three assets (MONEY, USDM, FUND) and five smart contracts (DEX, Staking Pool, DAO, Airdropper and Launchpad). This white paper outlines the operational mechanics of MoneyFund’s components, outlining their functionality, fee structures, and interconnected revenue streams.

Asset Structure

The MoneyFund ecosystem revolves around three core assets: a central token, an ETF, and a stablecoin. MONEY, with a fixed 1 million token supply, serves as the backbone of the protocol as it captures value from all five smart contracts. Revenue is distributed to MONEY holders through staking dividends and DAO treasury allocations. FUND, an on-chain ETF token, offers exposure to a weighted basket of eight assets: MONEY, WBTC, ETH, LINK, TON, PEPE, UNI, and PAXG. Each FUND transaction incurs a 0.2% fee, split equally between the staking pool and DAO treasury. USDM is a decentralized hybrid stablecoin that is pegged 1:1 to the US dollar. Most popular stablecoins have a blacklist mechanism that enables the issuer to render funds used in crimes useless. USDM is uncensorable; Unlike USDC and USDT which have centralized issuers (Circle and Tether respectively), USDM has no issuer and no off switch, as it is managed by smart contracts. Perhaps an even greater advantage of USDM is its basketized structure. The biggest risk to stablecoins is a black swan event where they depeg from the US Dollar- one example being TerraUSD in 2022 which wiped out 40 billion dollars. Even the world’s most popular stablecoin (USDC) has briefly depegged. To mitigate these singular risks, USDM self-collateralizes with four different stablecoins: USDC, DAI, USDP, and GUSD. This equal allocation between the 4 stablecoins spreads the risk across multiple issuers so that no singular black swan event can nuke your entire savings. Minting USDM incurs a small fee (0.2%), split between the staking pool and DAO treasury. To mint USDM you must simultaneously burn MONEY which creates uncapped deflationary pressure on the central token.

Staking Mechanism

The MoneyFund staking mechanism enables MONEY holders to earn passive income by depositing tokens into a dividend pool. Stakers receive a proportional share of ecosystem revenue from 0.1% DEX swap fees, USDM minting fees, 0.1% all launchpad tokens, 0.1% of airdrops, and 0.1% of FUND ETF transactions. Staked tokens require a 7-day minimum lock-up. Early withdrawal incurs a 20% penalty to prevent exploitation. Daily dividends, including ETH and ERC20 tokens, are distributed based on each staker’s pool share. For example, 1% of staked tokens yields 1% of daily revenue. A daily claim cooldown ensures fair distribution. The system ties ecosystem activity to holder rewards, aggregating diversified fees from multiple sources. Contributions from these five revenue streams makes staking attractive for investors seeking sustainable returns.

Fund Launcher

The MoneyFund Fund Launcher allows users to create custom, ETF-style weighted funds. Users can create hybrid assets that combine any ERC-20 tokens at any weights, so long as they sum to 10,000 basis points. ETF creators are incentivized during the creation process whereby they’re able to specify the fee amount (in basis points) and the fee reciever of their choice.

DAO

The MoneyFund DAO enables MONEY holders to govern the protocol through a voting system where influence is proportional to MONEY ownership. For example, holding 1% of the 1 million tokens grants 1% voting power. The DAO treasury is funded by 0.1% per DEX Swap, 0.1% of Launchpad tokens, 0.1% of FUND ETF transactions, and 0.1% of airdrops, and USDM minting fees. Up to 5 daily proposals undergo a 24-hour voting period, requiring 51% approval for actions like withdrawing funds or swapping ERC20 tokens. At the end of the voting period all non-voting weight automatically supports proposals to prevent stagnation. Approved proposals are executed autonomously by the smart contract.

Coin Launcher

The MoneyFund Launchpad enables ERC20 token creation in under 30 seconds. Developers specify name, ticker, supply, and image, then hit launch. Additionally, 0.1% of the new token’s supply goes to the staking pool and 0.1% goes to the DAO treasury. Created tokens integrate with the DEX for trading and liquidity provision. The Launchpad simplifies issuance, attracting new Ethereum projects to the ecosystem.

DEX

The MoneyFund DEX, a Uniswap V2-inspired decentralized exchange, facilitates token swaps and liquidity provision for MONEY, FUND, USDM, and other assets. It charges a 0.1% fee per swap, directed to the staking pool. Users deposit token pairs, such as MONEY and USDM, to receive LP tokens and earn 0.3% of pool swaps proportional to their contribution. The DEX supports seamless pair creation and liquidity management with an incentive structure that benefits both liquidity providers and MONEY holders.

Airdropper

The MoneyFund Airdropper streamlines token distribution, enabling projects to send tokens to unlimited addresses in one transaction. This compression contract reduces gas costs by approximately 40% compared to individual transfers. A 0.1% fee per airdrop splits evenly between the staking pool and DAO treasury. 

Wallet Interface

MoneyFund wallets are the central interface for interacting with the protocol. The platform supports secure wallet management, allowing users to create/import MoneyFund wallets starting with 0x100 or connect MetaMask to manage assets on Ethereum. 

Systemic Integration

MoneyFund is a cohesive system where MONEY underpins all functions, capturing fees from trading, token launches, minting, and more. FUND offers diversified investment, with 0.1% transaction fees feeding the staking pool and DAO. USDM ensures stable transactions, contributing small minting fees and deflationary MONEY burn. The staking pool aggregates and distributes fees from the DEX, Launchpad, Airdropper, ETF, and stablecoin. The DAO funds community initiatives with fees, directly tying voting power to MONEY ownership. This interconnected design ensures every action generates revenue for MONEY holders, positioning MoneyFund as an efficient, transparent, and incentive-driven DeFi infrastructure platform.