Marketplace for Tokenized Closed-End Fund Shares

Website

https://cef-marketplace.vercel.app/

Github Repository

https://github.com/tuncpolat/cef-marketplace

Stack

Next.js

Solidity

Tailwind CSS

Introduction

During my Masters in Business and Technology at the University of Basel, I took part in the Blockchain Challenge 2022. Collaborating with a team, we tackled a complex case provided by Credit Suisse Asset Management (CSAM), focused on innovating within the realm of closed-end funds, particularly in real estate.

Tech Stack

  • Blockchain Platform: Ethereum
  • Smart Contract Language: Solidity
  • Token Standard: ERC-20
  • Web Development: Next.js for building the marketplace
  • Blockchain Development Tools: Web3.js library and Truffle Suite
  • Deployment: Ropsten testnet

Role and Contributions

  • Lead Developer and Project Manager: I was responsible for the entire development process, overseeing all technical aspects and managing the project's progress.
  • Concept Development and Presentation: Contributed significantly to the conceptual framework and presentation of our innovative solutions.

Outcome

Our project's innovative approach was recognized with a win in the challenge, earning a prize of 10,000 Swiss Francs.

Project Insights

The project's focus was on creating a blockchain-based marketplace for tokenizing shares of closed-end funds, addressing various operational challenges:

  1. Smart Contract Development: I developed the 'ClosedEndFund.sol' smart contract, facilitating efficient tokenization (ERC20) and transaction management.
  2. Marketplace Development: I built a Next.js-based marketplace, deployed on the Ropsten testnet, with the following functionalities:
  • Fund Creation: Portfolio managers can create funds with tokenized shares, including naming the fund and providing descriptions​​.
  • Token Minting and Pricing: Managers set the number of tokens to issue and their initial price.
  • Price Mechanism Selection: Choice between a Dutch Auction or a waiting list mechanism.
  • White-List Management: Ability to add or remove qualified investors.
  • Token Trading: Qualified investors can trade tokens, participate in Dutch auctions, or buy directly from the waiting list.
  • Token Balance and White-List Checking: Investors can check their token balance and white-list status​​.
  1. Dynamic Pricing via Dutch Auction: Implemented a Dutch Auction system within the marketplace for flexible share pricing.
  2. Enhanced Liquidity Management: The solution enabled fund managers to quickly issue new tokens for raising capital, improving liquidity management.

The code and the concept paper is available on Github.