Duce Aggregated Reserve Mechanism

Deposit Lifecycle

Investor deposits are securely recorded in an encrypted ledger using FHE. These deposits, combined with the reserve, form a consolidated investment pool. This aggregated reserve is dynamically managed by smart contracts that determine how funds are allocated to the investment strategy.

Blind Investment Strategy

Duce employs a blind investment strategy where the aggregated funds are deployed without revealing individual deposit details. This strategy is executed through FHE circuits that:

  • Process encrypted data to determine optimal investment allocation.

  • Compute yield outcomes in real time.

Algorithmic Overview of Duce Dynamic Adjustment Protocol

A dynamic adjustment protocol ensures that the distributed yield meets the guaranteed 1.2× return. (see Sample code below) outlines how the system:

  • Monitors yield accrual.

  • Adjusts bonus distribution in real time if the aggregate yield is temporarily insufficient.

  • Ensures that each investor receives at least their principal, with any additional bonus proportionally adjusted.

function distributeYield() internal {
    uint totalYield = computeYield(); // FHE-based yield computation
    for (uint i = 0; i < investorCount; i++) {
        uint idealReturn = investors[i].deposit * 120 / 100;
        if (totalYield >= idealReturn) {
            payInvestor(investors[i], idealReturn);
            totalYield -= idealReturn;
        } else if (totalYield >= investors[i].deposit) {
            payInvestor(investors[i], totalYield);
            totalYield = 0;
        } else {
            break; // Insufficient funds: wait for additional yield accrual
        }
    }
}

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