Creators in the Dayhub ecosystem are individuals or entities who create and configure trading challenges. They set the rules, trading goals, and determine the amount and method of fee distribution. Creators have significant freedom in designing challenges that can attract traders and promote their own protocols or initiatives. Thanks to Creators, traders have access to a variety of trading challenges that allow them to test their skills, acquire trading funds, and withdraw profits upon achieving set goals.
Creators have two types of protocols to choose from:
Live Trading protocol
The Creators configure the trading goal and the challenge rules. Then, they create a Funded Pool, which will serve as a deposit on their chosen perpetual DEX. Additionally, they specify the fee amount and how it will be distributed. These funds can be allocated in various ways, such as royalties, the Funded Pool, liquidity pool, token buy-backs, burns, incentives, etc. After completing the challenge, the Trader can open long and short positions on the perpetual DEX using the funds available in the Funded Pool. Trading must be conducted according to the rules, and breaking them results in loss of access to the capital. The Funded Pool is shared by all Funded Traders of a given challenge.
When the Trader makes a profit, he can withdraw it to his cryptocurrency wallet. The Creator decides the profit split (e.g., Trader 80%, Funded Pool 20%).
Sim Trading protocol
Similar to Live Trading, the Creator configures the trading goal, challenge rules, and the Funded Pool along with the fee amount and its distribution. However, in this case, the Funded Pool serves as a Prize Pool from which traders' profits are financed. After completing the challenge, traders start playing for real money, although this still takes place on a simulator. Nevertheless, the Trader has the right to withdraw the profits he generated after completing the challenge. The goal for the Creator might be to ensure that the inflows to the Funded Pool / Prize Pool (from fees or other sources) exceed the traders' withdrawals. Examples of use cases:
Sim Trading allows you to implement tokens that are burned with each challenge purchased by Traders and new tokens are minted with each profit withdrawal by the Trader. Under the right conditions, this can lead to infinite deflation of a given token.
The Creator can offer very favorable trading conditions (including for passing the challenge) to attract significant interest from Traders. The traders, in turn, compete on the simulator to pass the challenge and then drain the Prize Pool of tokens it contains. The pool Creator decides where the fees from the challenge go. For example, part of it can go towards their own or liquidity providers' profit, and part to increase the prize pool to attract more traders. The game ends when the pool is completely drained and/or after a specified period.
The above models represent example applications of the Dayhub ecosystem. Creators have significant freedom in configuring challenges, and their role is to set up conditions that achieve their goals, such as promoting their protocol, attracting as many traders as possible, testing skills, or conducting training. For passing the challenge, Creators can also offer rewards such as NFTs. This could be a good field to use Soulbound EIP-4671 tokens as challenge certificates.
