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INVESTMENT_SETUP.md

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CTK Token Investment Setup

Overview

The investment functionality allows users to invest their CTK tokens into specific organizations. Tokens are transferred directly to the organization's treasury (owner address), eliminating the need for a centralized treasury configuration.

Implementation Details

Smart Contract

  • Contract: CTKToken.sol (ERC20 token)
  • Location: /contracts/contracts/CTKToken.sol
  • Functionality: Standard ERC20 transfer for investments

Frontend Integration

1. CTKToken Context (/client/src/contexts/CTKTokenContext.jsx)

Provides the following functionality:

  • balance: User's current CTK token balance
  • invest(amount, treasuryAddress): Transfer tokens to specified treasury (organization owner)
  • transfer(to, amount): Generic token transfer
  • approve(spender, amount): Approve tokens for spending
  • getBalance(address): Get balance for any address
  • fetchBalance(): Refresh current user's balance

2. InvestPage (/client/src/pages/InvestPage.jsx)

Features:

  • Organization Selection: Browse and select organizations to invest in
  • Real-time balance display
  • Preset investment amounts (100, 500, 1000, 5000, 10000 CTK)
  • Balance validation before investment
  • Toast notifications for success/error
  • Estimated returns calculator (12% APY)
  • Investment benefits display

Environment Setup

No Environment Variables Required! 🎉

The new system doesn't require a VITE_TREASURY_ADDRESS environment variable because:

  • Each organization has its own treasury (owner address)
  • Users select which organization to invest in
  • Tokens are sent directly to the selected organization's owner

Optional Fallback (Legacy Support)

If you want to support a default treasury for non-organization investments:

VITE_TREASURY_ADDRESS=0xYourDefaultTreasuryAddress

How It Works

Investment Flow:

  1. User connects wallet and authenticates
  2. System fetches available organizations
  3. User selects an organization to invest in
  4. User enters investment amount
  5. System validates:
    • Wallet is connected
    • User is authenticated
    • Organization is selected
    • User has sufficient CTK balance
  6. User clicks "Invest Tokens"
  7. Transaction is sent to blockchain (ERC20 transfer)
  8. Tokens are transferred from user to organization's owner address
  9. Balance is refreshed
  10. Success notification is shown
  11. User is redirected to dashboard

Transaction Details:

  • Function: transfer(organizationOwnerAddress, amount)
  • Gas: Standard ERC20 transfer (~50,000 gas)
  • Confirmation: Waits for 1 block confirmation
  • Recipient: Organization's owner address (acts as treasury)

Testing

Local Testing:

  1. Deploy CTKToken contract to local network
  2. Mint some tokens to test wallet
  3. Set treasury address in .env
  4. Connect wallet and test investment

Testnet Testing:

  1. Deploy to testnet (Sepolia, Mumbai, etc.)
  2. Get testnet tokens from faucet
  3. Mint CTK tokens to test wallet
  4. Test full investment flow

Future Enhancements

Potential Improvements:

  1. Staking Contract: Instead of simple transfer, use a staking contract that:

    • Locks tokens for a period
    • Distributes rewards automatically
    • Allows withdrawal after lock period

  2. Investment Tiers: Different APY based on amount/duration

  3. Compound Interest: Auto-reinvest rewards

  4. NFT Receipts: Mint NFT as proof of investment

  5. Governance: Investors get voting power based on stake

Security Considerations

  1. Treasury Security: Use a multisig wallet or audited contract
  2. Rate Limiting: Consider adding cooldown between investments
  3. Maximum Investment: Set caps to prevent whale manipulation
  4. Emergency Pause: Implement pause functionality for emergencies

API Integration

If you want to track investments off-chain:

Database Schema:

CREATE TABLE investments (
  id SERIAL PRIMARY KEY,
  user_address VARCHAR(42) NOT NULL,
  amount NUMERIC NOT NULL,
  tx_hash VARCHAR(66) NOT NULL,
  timestamp TIMESTAMP DEFAULT NOW(),
  status VARCHAR(20) DEFAULT 'pending'
);

Backend Handler:

Create /server/handlers/InvestmentHandler.js to:

  • Record investments
  • Track returns
  • Calculate rewards
  • Generate reports

Troubleshooting

Common Issues:

  1. "Treasury address not configured"

    • Solution: Set VITE_TREASURY_ADDRESS in .env

  2. "Insufficient balance"

    • Solution: User needs more CTK tokens
    • Check balance with fetchBalance()

  3. Transaction fails

    • Check gas price
    • Verify treasury address is valid
    • Ensure user has enough ETH for gas

  4. Balance not updating

    • Call fetchBalance() after transaction
    • Check if transaction was confirmed

Contact & Support

For issues or questions:

  • Check contract deployment addresses
  • Verify environment variables
  • Test on testnet first
  • Review transaction on block explorer