Frequently asked questions

What is OpenPool?

OpenPool is a site you can use to create, join and manage on-chain crypto index funds, or pools. Each pool on OpenPool is launched and operates on the Ethereum blockchain as an instance of the OpenPool smart contract. On OpenPool, anyone can set up their own pool, with their own specified index methodology, allocation and fee structure, and pool token. Once their pool is deployed on the Ethereum blockchain, anyone on the site will be able to visit and join it.

What is an on-chain fund?

On OpenPool we refer to any pool, or tokenized index fund, that is deployed on the Ethereum blockchain as an on-chain fund. What this means is that every deposit, withdrawal done by members, along with any update to the index methodology for the pool, is recorded on the Ethereum blockchain. One of the key benefits to using on-chain pools is the transparency they offer. Since every action done on the pool is available for anyone to review, both members and prospective members of a pool are always able to verify the state of that respective pool.

What is a pool token?

Since every pool is deployed on the Ethereum blockchain, we use the phrase to pool token to refer to the respective tokens that represent a share of value of that pool. Every pool token on OpenPool is designed by the creator of its corresponding pool when that pool is created. In technical terms, every pool token on OpenPool adheres to the ERC-20 standard and are all identical, with the corresponding set of built-in functions designated for ERC-20 tokens.

What are governance rules?

We use the term governance rules to refer to the respective parameters, and index methodology that determine how a pool will function. Specifically, these are used to set the allocation of a given pool and the fee structure for that pool. Every pool on OpenPool operates based on the OpenPool smart contract, which, when provided these governance rules will automate those respective areas.

How is custody handled?

Every on-chain fund on OpenPool has its assets held on the OpenPool smart contract.This means that assets are custodied on-chain, or in other words on the Ethereum blockchain. In doing so, there is full transparency for both current and prospective investors to understand what a given on-chain fund is composed of.