BEP-20 tokenized investment fund smart contracts

Question

I’m working on a security token for a tokenized hedge fund and I need help in how to structure the project.

My background is in algorithmic trading and I’ve developed and tested an algorithm for trading cryptos. My goal is to turn this into a token to democratize the kind of investment usually only restricted to accredited investors. And of course, I would charge a small management fee.

My idea was to create a BEP-20 token, sell a number of tokens in an STO, burn whatever is not sold initially, and start trading with the funds from the STO. My management fee would be charged by minting new tokens periodically (daily or weekly).

A couple of questions:

1. I want to do the STO on a DEX (for regulatory reasons). I was thinking Pancakeswap, pairing my token with BUSD or USDT, but how can I control the price with their AMM algo? Is there a way to automatically adjust liquidity with a smart contract?

2. The value of the token will be linked to the underlying assets in the funds (10 different cryptos + 1 or more stablecoins depending on the size of the fund). Assuming you have the addresses where the 10 cryptos (plus the stablecoin) are held, how do you know how much is held in each and therefore are able to determine the total value of the fund?

3. And once you have determined the value of the token (total value of the fund divided by number of tokens in circulation), can you control the price on Pancakeswap with a smart contract? Or is this done separately?

In the end, the goal is to create a security token which value is guaranteed and linked to the underlying assets in the fund.

Am I approaching the problem the wrong way? If so, how would you do it?

Answer 1

1. You could theoretically "adjust" smart contract liquidity by using the router in Uniswap which would give you methods to add liquidity to a ERC-20 token.
2. Having a token linked to underlying assets could be achieved by having the token go through a defi protocol like avve, your token would have a value and by making your asset the collateral you could achieve purchasing power for other currencies.
3. The first price is given by the rate you make in the liquidity pool, if you were to create the token with a LP of 50 ETH then your token starting price would be 1/2 ETH. It's up to the market to determine the price after that.