Institutional-grade ETF factory, explained.
Understand the rails powering Basket.Finance: composable contracts, automation bots, and a governance loop tuned for Cardano.
Lifecycle
Design → Mint → Monitor
Runtime
Hydra scripts + bot playbooks
Audits
Quarterly external · weekly diff
Architecture Snapshot
Three independent subsystems coordinate basket health. Each subsystem exposes metrics inside Monitor → System Health.
Oracles + Pricing
6 feeds / basket
TWAP-sourced price feeds plus redundancy from Indigo + Minswap pools. Each basket stores oracle provenance metadata.
Automation Layer
24/7 coverage
Managed bots execute rebalances via Hydra scripts. Operators receive PagerDuty-style alerts when variance > 2%.
Risk Controls
0 incidents
NAV caps, redemption throttles, and staged parameter rollouts keep ETF baskets aligned with TradFi-grade guardrails.
Lifecycle in practice
From proposal to automated rebalances—here is the human + bot loop that keeps ETFs aligned with mandate.
1 · Basket design
Risk pod pairs oracles with index rules. Every basket references a transparent policy file stored on IPFS.
- Constituent whitelist with collateral ratios
- Deviation triggers for rebalance bots
- Governance + fee parameters
2 · Mint & monitor
Investors deposit ADA, mint ETF tokens, and receive live NAV plus PnL telemetry in the dashboard.
- Streaming NAV + weight drift cards
- Circuit breakers tied to oracle heartbeat
- Wallet UX that surfaces provider + role
3 · Automation + audits
Rebalance bots execute via managed scripts, producing signed proofs stored in the monitor page.
- Crankless execution (no user gas)
- Dual-sign review for parameter changes
- Weekly audit diff exported to CSV
Reliability guarantees
Twice-weekly chaos drills, multi-sig automation, and transparent dashboards reduce operational risk.
Transparent components
Contracts, off-chain scripts, and dashboards live in public repos with SPDX headers and semantic versioning.
Defense-in-depth
Automated policies + human committees; both must agree before fee or allocation changes propagate to mainnet.
Performance telemetry
Realtime monitoring across NAV, oracle freshness, and bot execution with exports for regulators and DAO ops.
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