Searching for funds using the Melon Monitoring Tool

All funds created on the Melon Protocol are viewable using the Melon Monitoring Tool.

You can view and sort Melon funds by different metrics such as AUM (in USD and ETH), share price change and daily change.There is also a search box that you can use to search by fund name or fund address.

Clicking on the fund allows you to dig deeper into the fund fact sheet. In other words, its’ configuration, historical performance, investment and redemption history and much more.

The tool is a constant work in progress and the beginnings of what will be an incredibly powerful tool for shedding some much needed transparency and efficiency on to an opaque asset management industry.

Investing in a Fund

Investing in a fund is a two step process. You’ll need to initiate a request to invest and then after the next price update confirm that request.

Before getting started…

Before getting started, make sure you are logged into frame and are connected to the MMI with a wallet which has some ETH in it. You can use the same wallet you used to create your fund. If you plan to use ETH to invest, you will need to wrap it before you can invest in the same way you did in ELI5 Part One. As a reminder, to log in you can follow these steps:

Plug your hardware wallet into the USB port of your computer and log into the device. Select the Ethereum app on your hardware wallet. Open the Frame application on your computer click on the Ledger logo and then select the account you’d like to use. Open the Melon Manager Interface application on your computer. After a few seconds a warning message will pop up explaining the legal issues you should consider before proceeding. When you have read this and are happy to proceed click OK. Click Your Wallet in the top-right-hand corner of the MMI window. You should see a request in your Frame application from the Manager Interface, click Approve. On the Melon Manager Interface you should now see an option saying: “Use … from Frame”, click this.

Initiating a request to invest

In the MMI click on top-left Melon logo to view a list of funds. You can use the search box to filter the listed funds. For viewing historical data on the funds you can refer to the Melon Monitoring Tool. Click on the fund you want to invest in to open an overview of the fund where you can see the fund’s holdings (left hand side); the risk profile summary (bottom left); and open orders (bottom right). Click on the Invest button (top-left-hand corner). Select the token you want to use to invest into the fund from the drop-down menu (you will need to have that asset in your wallet in order to invest with that asset). Specify the Quantity of shares you want to buy (this can be a fraction, it doesn’t need to be whole shares). You may notice that the price listed by default is higher than the current price of the fund’s shares (shown in grey). This is to allow you some leeway in case the price of the fund at the next price update is higher than the last price of the fund published on-chain. You can adjust this as you see fit but it must be at least one point (0.000001) higher than the current price of the fund’s shares.

Note: You can specify your investment as a Quantity of shares or as a Total amount of your chosen investment asset.

7. Click Submit Request.

8. You will then need to confirm the Gas Price (remember to check the current prices on EthGasStation).

9. Sign the transfer on the Frame.

10. On your Ledger you need to confirm the transaction details: Selector, Field 1 and Field 2. Sign the whole transaction on your Ledger. (Note: You are able to check for progress in the Frame software. How long this process takes depends on how much Gas you specified.

11. When the transaction is complete you will see a requestInvestment window where you’ll need to confirm the Gas price again and sign this transaction on Frame.

12. On your Ledger confirm the following: Selector, Field 1, Field 2 and Field 3.

13. When the transaction is complete you will see an executeRequest window where you’ll need to confirm. You’ll need to come back to this after the next price feed update, and within 24 hours (before request expiration).

14. If you do try to execute request prematurely, you’ll get the following message in the MMI:

Note: If you are the first investor in the fund you can execute a price request immediately. However, after that — the price of the fund can only be provided accurately with the next on-chain price update. Therefore, placing a limit order and waiting for the next on-chain price update to price the fund shares accordingly ensures that this process happens fairly.

Whilst waiting for the next price feed update, you are free to navigate away from this window by clicking on Melon (top left) or Your Wallet (top right) but you’ll need to remember to come back to this page within the time frame specified (see Finishing the investment request below).

You can check the time of the last price feed from the Network Overview page of the Monitoring tool (at the bottom of the menu on the left of the page) to have an idea of when the next price-feed update should happen.

Finishing the investment request

After a price feed has run you need to execute your investment request. Make sure you are logged in using the same wallet you used to start the investment process.

Navigate back to this page by clicking on Melon to view the fund list and find the fund you’ve requested to invest in. Click on that fund to view the fund window and then click on the Invest button. You should now see an Execute Request button which you need to click on to confirm your investment. You will then need to confirm the Gas Price (remember to check the current prices on EthGasStation). Next, you need to sign this transaction on Frame. On your Ledger confirm the following: Selector and Field 1.

If you’ve managed to finish this three step tutorial, congratulations on becoming a Melon investor!. If you experienced any problems during this process, don’t hesitate to write to us on Discord or Twitter. We’re always happy to help!

Additional note: Please note that anyone can execute requests (publicly callable function), which means that you might come back to finish your investment request, and realize that someone has executed it for you. Executing valid investment requests is an incentivized action, which means that the party executing the request earns an incentive for providing that service.

Redeeming your assets from a fund

Fund redemptions work similarly to redemptions in kind. In other words, when you redeem you typically get a proportional “slice” of whatever is held in the portfolio as per your holdings. This is sent directly to your wallet, as the investor.

To make a redemption from a fund you need to go to the fund’s window and click on the Redeem button in the top-left corner. Next you’ll need to enter the number of shares you want to redeem. If you’re not sure how many shares you own you can find this on the Monitoring Tool under Current Investors (you‘ll need to know your wallet address). Confirm the Gas Price (remember to check the current prices on EthGasStation). Sign the transfer on Frame. On your Ledger review and sign the transaction. You are able to check for progress in the Frame software. How long this takes depends on the gas price you specified. When the transaction is complete you can view your wallet on Etherscan to see what ERC20 tokens it contains.

You can use MyCrypto to move these assets from your Melon wallet to another wallet but remember to move your ETH last or you’ll have nothing to pay the gas for the other transactions!

Closing Down a Fund

As always, before getting started, make sure you are logged into frame and are connected to the MMI with the same wallet you used to create your fund.

To close your fund down you need to go to the fund’s window and click on the Shut Down button in the top-left corner. Confirm the Gas Price (remember to check the current prices on EthGasStation).

After a fund is shut down, the only allowed action is for investors to redeem their shares. Trading and investing in the fund are permanently disabled once the fund is shut down.