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Decentralized Asset Manager

What is a DAM?​

Decentralized Asset Manager (DAM) is a central element of Nektar that aggregates liquidity and directs its flow between all marketplace participants. With asset delegation at its core, DAM connects system components to facilitate actor interaction and the designated asset flow.

Anyone can set up a DAM, from liquid restaking protocols and risk managers to syndicates, operators, or existing networks. DAMs also enable Operators to manage infrastructure operations that benefit Networks.

Smart contracts​

Each DAM is a new smart contract created from a factory, either by a Manager or an Operator, who defines key parameters like:

  • Fees to be collected
  • DAM type (Security, Liquidity, Growth)
  • Contract parameters mutability (Gatekeeper/Whitelister, Catalyst, Fees)
  • Transferability of the LRT (the ERC20 token that represents the shares of the DAM)

If a Manager creates a DAM that involves providing infrastructure, he must whitelist Operators to run the operations. This setup enables distributed networks to implement custom incentive schemes that strengthen loyalty among existing node operators, who also benefit from the network effects of the marketplace after joining as Operators.

Network installation​

Adding a live Network to a DAM is called "installation." Their types need to match for successful installation, e.g. both being ‘Liquidity’. Once installation request is sent, it needs to be confirmed on the Network side, which complete the process.

Installed Networks can access delegated liquidity and compute resources. For each installed Network, the DAM owner specifies:

  • Type and amount of allocated liquidity
  • Maximum committed amount

This initial matchmaking step connects Networks with Operators.

Asset delegation​

Through the marketplace interface, Delegators can review DAM details and Network terms before selecting and depositing assets. They delegate the required tokens to DAMs to scale their operations, completing the matchmaking process.

While assets are held in a DAM, its owner or other actors do not have direct access to them, ensuring secure and non-custodial participation for Delegators. Depending on the designated flow, they may or may not be returned to Delegators after use.

Rewards Distribution​

Network smart contracts calculate and distribute rewards, based on the criteria in each DAM/Network combination. They are automatically transferred to the Operator and Delegator addresses listed in the DAM. Multiple Operators can participate in a single DAM, with rewards distributed accordingly.

Learn more about Rewards →

Penalty Application​

Unlike liquidity flow, providing infrastructure or performing other tasks happen off-chain. DAMs are not directly involved in managing penalties between Networks, Operators, and Delegators. Instead, these are handled by the respective Network.

Learn more about Penalties →