High level overview of Aragon Fundraising

To reitirate Aragon Fundraising is a suite of Aragon apps providing Aragon organizations continuous fundraising capabilities.

It enables users to buy and redeem one organization's token through an automated market maker automatically matching orders according to a bonding curve tied to the Bancor formula. The funds held by this market maker reserve pool are controlled by a tap and released over time into a discretionary pool controlled by the organization's board to sustain the project. This architecture provides smart-contract enforced accountability between investors and board members throughout the lifecycle of a project while simultaneously ensuring sufficient liquidity to support the emergence of a long-tail of micro-organizations. To achieve these goals Aragon Fundraising implements the following features.

Automatic Batched Market Making

This module provides market liquidity to the fundraising campaign by automatically matching all the buy and sell orders according to a bonding curve tied to the Bancor formula. To mitigate front-running attacks and authorizing slow-trading this module also batches all the buy and sell orders received during a parametrable period of time to be matched given a common price.

Tap

This module enforce a tap-based control of the funds allowed to be withdrawn from the market-maker reserve pool to a discretionnary pool whose funds can be spent to sustain the organization. To provide more guarantees to the investors this tap module also allows this flow of funds to be floored [thus ensuring that the market maker reserve pool can't be emptied even slowly during a long period of time].

Controller

The controller app interacts with the bonding curve on behalf of a User.

Presale

This module allows organizations to set a presale target that must be reached during a given period of time for the continuous fundraising campaign to actually start.