Introduction

The Alvara Protocol facilitates the establishment of decentralized, meritocratic, and tokenized on-chain investment groups, allowing for the creation and management of tokenized investment funds. This is made possible through an innovative token standard called the Basket Token Standard (ERC-BTS or BTS). Alvara's built-in leaderboard automatically populates and ranks each ERC-BTS minted on-chain.

To enable widespread user interaction with the new BTS technology, Alvara provides essential infrastructure. This involves an automatic BTS minting factory contract that amalgamates and encrypts tokenized assets, resulting in a singular 'fund-token,' following the Basket Token Standard. While the protocol is based on the Ethereum blockchain, it will also be accessible on various other major EVM-compatible chains.

Functioning as a decentralized application (dApp), Alvara allows fund managers to create and mint their own "Basket of Tokens" by contributing an initial investment of 1 ETH, payable in any currency through a router.

Alvara's orderbook DEX, the HiveX, empowers BTS managers and/or their DAOs to transform their investment funds into tokenized ETFs (exchange-traded funds), offering benefits such as increased liquidity, passive earnings, and arbitrage opportunities. The HiveX utilizes decentralized liquidity pools, incentivizing both the fund manager and liquidity providers with a percentage share of the trading fees.

The protocol comprises four distinct components:

• ERC-BTS Factory

• The Alvara DAO (governance and reward flow)

• The HiveX (the orderbook exchange)

• The ERC-BTS Marketplace (fund manager marketplace)

Alvara envisions accelerating the decentralization of the global economy by bringing the world's most popular financial products, mutual funds, and ETFs, to the blockchain.

Traditionally, diverse investment vehicles were provided by centralized financial institutions. Before the advent of blockchain technology, these specialized services were predominantly offered by centralized financial institutions. The widely used services include funds, whether "passive" funds tracking an index or sector, exchange-traded funds (ETFs), or hedge funds. They all operate on the fundamental principle of diversifying capital allocation across multiple individual assets within the same wrapper, a basket. As of the current writing, tokenized investment funds have yet to make significant inroads into blockchain or decentralized finance.