How It Works

overview thissofire operates as a fully on chain, non custodial index protocol on bnb chain it allows users to convert bnb into a basket of predefined assets and receive a fundshare token representing ownership of that basket unlike centralized funds, thissofire never takes custody of assets — all operations are performed transparently via smart contracts deployed on bnb chain users interact through a simple flow deposit bnb into the chosen fund receive fundshare tokens representing a proportional claim on the fund’s assets trade fundshares on dexs, or redeem them anytime for bnb each fund, or vault , has its own set of parameters, underlying assets, fee structure, and self governance — making every index token a mini protocol within the thissofire ecosystem key components in the flow user wallet — holds bnb and interacts with vault contracts fundvault (smart contract) — manages assets, executes swaps, mints and burns fundshares, and tracks nav (net asset value) fundshare token (bep 20) — tokenized representation of ownership in a given fund dex integrations (e g , pancakeswap) — provide liquidity for secondary trading of fundshares oracle router — supplies price data for nav calculation, impact caps, and rebalancing fee engine — handles mint/redeem fees and the trading tax loop for buyback & burn operations step by step flow step 1 deposit bnb when a user deposits bnb into a thissofire vault the vault contract automatically swaps bnb into the tokens defined in that index’s composition (for example floki , baby doge , pit for the memecoin index) swaps are executed via pancakeswap’s router , with strict price impact and slippage limits enforced by the protocol the system calculates the current nav per share and mints fundshare tokens proportionally to the user’s deposit example user deposits 10 bnb into the memecoin index the vault buys 4 bnb worth of floki, 3 bnb of baby doge, and 3 bnb of pit a 0 3% deposit fee (0 03 bnb) is deducted the user receives fundshares equivalent to 9 97 bnb of value, based on the fund’s current nav step 2 receive fundshare tokens the user’s wallet now holds fundshare tokens , a bep 20 token specific to the chosen index (e g , $ofire for the memecoin index fund) fundshares are fully composable across defi — they can be held, traded, used as collateral, or staked in other protocols each fundshare represents a pro rata claim on the vault’s assets the nav per share changes as underlying token values move, so holders gain or lose proportionally with the index’s market performance step 3 secondary trading (dex layer) all fundshare tokens are listed on pancakeswap (and later other dexs) in liquidity pools, typically paired with bnb (e g , firememe/bnb) traders can buy or sell fundshares freely on dexs arbitrageurs keep market price aligned with nav if market price > nav → arbs mint new shares and sell them if market price < nav → arbs buy cheap fundshares and redeem for nav value this mirrors how etfs trade in traditional finance and keeps fundshare prices efficiently balanced with vault holdings step 4 the deflationary fee loop every time a fundshare token is traded on pancakeswap, a small transaction tax is applied (configurable per index) 80% of this fee is used to buy more fundshares, triggering underlying memecoin purchases inside the vault the purchased fundshares are burned, reducing total supply and making the token deflationary the remaining 20% may go to the vault treasury or operational funds result every dex trade makes the fund stronger and more scarce, while continuously generating buy pressure for assets inside it this creates a flywheel effect more trading → more burns → higher backing → greater scarcity → more demand step 5 redeem for bnb (exit flow) when a user wants to exit they return their fundshares to the vault the vault calculates the user’s share of underlying assets based on current nav the vault sells the corresponding portion of assets for bnb via pancakeswap, applies a small redemption fee (e g , 0 3%), and transfers the bnb back to the user example if the user redeems 1,000 fundshares worth 5 bnb of underlying value, they receive ≈ 4 985 bnb (after a 0 3% fee) this ensures complete on chain redemption without intermediaries or custodial risk behind the scenes — smart contract mechanics when a user interacts with a vault, multiple processes occur atomically oracle validation checks latest prices for each asset via oracle router if data is stale or deviates beyond thresholds, the transaction reverts swap execution the tradeexecutor library builds and verifies pancakeswap router calls to match expected allocations impact limits each vault enforces a maxpriceimpactbps (e g , 500 = 5%) to prevent manipulation or front running nav update vault recalculates total tvl (in bnb) after swaps to update nav per share event emissions transactions emit events (deposited, redeemed, rebalanced, etc ) for subgraph and dashboard indexing this automation makes thissofire trustless yet transparent — users can verify every operation on chain continuous rebalancing to maintain accurate exposure each fund defines target weights for its tokens the rebalancer periodically adjusts holdings to stay within a defined drift (e g , ±5%) rebalancing uses twap (time weighted average price) orders to minimize slippage and mev risk all rebalances are visible on chain via events example if floki rises 30% in price, the vault sells some floki and buys baby doge and pit to restore balance per vault governance flow each vault is self governed by its fundshare holders through on chain votes, holders can adjust index weights add or remove tokens from the basket modify fee parameters (within defined caps) trigger rebalances or emergency actions there is no global thissofire token — each fundshare acts as its own governance layer, ensuring autonomy and flexibility transparency & verifiability everything in thissofire is on chain and queryable vault state accessible via getsnapshot() — includes nav, holdings, supply, and weights transactions all mints, burns, trades, and rebalances are public events oracles show live bnb denominated prices for each constituent token fees visible via feecollector balances and historical data no hidden logic, no opaque pricing — thissofire is built for verifiability and open auditing integration across defi because fundshares are bep 20 tokens, they integrate seamlessly into wallet swap uis (trust wallet, rabby, okx, etc ) dex aggregators (1inch, openocean, 0x, paraswap) portfolio trackers (debank, zapper, zerion) yield vaults and defi strategies on bnb chain users can buy or use fundshares just like any other bep 20 token — without needing to understand the underlying complexity user flow this so fire lifecycle \[user wallet] ↓ deposit bnb \[fundvault] → \[swap router] executes bnb → basket → \[oracle router] fetches prices → mints \[fundshare token] to user → stores assets in vault \[user wallet] holds fundshare ↓ \[pancakeswap pool] allows trading with small tax ↓ \[fee engine] uses 80% of tax → buy + burn fundshares ↓ reduced supply → increased scarcity → buy pressure ↓ users can redeem fundshares anytime for bnb summary stage user action protocol action outcome deposit send bnb buy tokens, mint fundshares user gets index exposure hold keep fundshares nav tracks token performance value rises/falls with market trade swap on pancakeswap fees trigger buy & burn fund becomes deflationary redeem burn fundshares sell tokens, return bnb exit anytime govern vote per vault adjust weights, fees, assets community led evolution this so fire makes complex defi exposure as simple as holding one token — while each trade and rebalance continuously reinforces the bnb ecosystem around it