+------------------+
                                           |    Embankment    |
             +-------+                     |------------------|
      +------+  DAO  +-------+             | - ERC4626 Vault  |
      |      +-------+       |             | - Owned by DAM   |
      |                      |             +------------------+
      |                      |                   |   ^
      |                      |                   |   |                   +------------+
 +----+----+     +-----------+-------------+     |   |                   | Protocol D |
 |  Dapp   |     | ERC20 Compatible Wallet |     |   |                   +------------+
 +----+----+     +-----------+-------------+     |   /                         ^
      |                      |                  /   /                          |
      |                      |                 /   /                           |
      |                      |                /   /                            |
      |                      |               |   /                   +---------+--------+
      |                      v               v  /          +-------->| Community Stream |
      |     +----------------------------------+           |         +---------+--------+
      |     |               DAM                |           |                   |
      |     |----------------------------------|           |                   |
      |     | - Owned by DAO                   |           |                   |
      +---->| - Start/End Rounds               |           |                   v
            | - Discharge yield as incentive   +-----------+             +------------+
            | - Upstream Configuration         |           |      +----->| Protocol C |
            +----------------------------------+           |      |      +------------+
                             ^                             |      |
                             |                             v      |
                             |                      +-------------+        +------------+
                             |                      | Auto Stream +------->| Protocol B |
                             |                      +------+------+        +------------+
                        +----+---+                         |
                        | Oracle |                         |
                        +--------+                         v
                                                     +------------+
                                                     | Protocol A |
                                                     +------------+

Dam is an EVM smart contract application designed for growth-oriented programs within a specific ecosystem and yield distribution from funded yield bearing token, for example mETH to the projects of the ecosystem. It operates on a round-based system, where each round is configured with specific parameters for yield distribution, aligning with strategic goals such as fostering ecosystem development and project growth.

1. The yield distribution is organized into rounds, each with a defined period and specific configurations for reinvestment and auto-stream ratios.
2. Allows setting the parameters for upcoming rounds, including the period, reinvestment ratio, and auto-stream ratio.
3. Supports standard and permit-based deposits, adhering to EIP-2612 and EIP-712 standards, catering to various user preferences.
4. Utilizes an oracle for data verification in the round-ending process, ensuring data integrity and proper distribution of yields.
5. Handle errors on scheduled fund withdrawals.

The DAM is operated by the DAO who deposits an initial amount of ybToken and sets the parameters for the first round. These parameters include the duration of the round, the ratio of yield reinvested to next round, and the ratio of yield distribution to projects applied for the automatic stream.

Each round has a start and end time, during which yield is generated from the deposited yield bearing tokens. At the end of a round, the DAO or oracle can call endRound to process the yield distribution based on the provided off-chain calculated data. Next round starts once the round ends, unless the DAM is dicommisioned by the DAO.

Additional deposits can be made during a round, increasing the principal amount and potential yield. Withdrawals are scheduled and processed at the end of a round to ensure seamless yield distribution and fund management.

The yield generated during a round is distributed according to the predefined ratios. A portion of the yield can be reinvested to generate further growth, while the rest is distributed to designated projects or community initiatives.

1. If a scheduleWithdrawal() request fails due to insufficient balance or other constraints, the contract catches and handles these exceptions, ensuring system stability. The _withdraw() function, in particular, includes safeguards against failures, including try-catch blocks to manage unexpected errors during the withdrawal process. The failed withdrawal request simply be removed from the withdrawal queue.

2. If _scheduleWithdrawal() on decommisionDam() request fails, DAO can call withdrawAll() to withdraw all funds. The withdrawAll() function exists as a safe guard to prevent fund stuck in the Embankment.

Here are some example scenarios to help illustrate how DAM works. All figures, are simple assumptions for the sake of these examples.

Assumption:

1. Mantle DAO has mETH in their wallet on Mantle Network. They want to operate their ecosystem fund and at the same time, prevent dilution of the MNT governance token value.
2. APR of mETH is 10%. Let's say alice has 10 mETH and she has held it for a year, the amount of mETH alice has will be 11 mETH after holding for a year.

1. Mantle DAO opreates a DAM by depositing 10000 mETH tokens into the Dam contract with 30 days period of round, 5% reinvestment ratio and 50:50 autoStream <> communityStream ratio.
2. The deposited 10000 mETH tokens are transferred to Embankment and no one can withdraw these tokens during the round, 30 days in this case.
3. During the round, these tokens generate yield based on the 10% of APR by itself. The generated yield during this round will be approximately 83 mETH. (10000 * 0.1 / 12)
4. After 30 days passed, the Mantle DAO ends round with verified data from an oracle.
5. Part of generated yield, 4.15 mETH (83 * 0.05) is reinvested to next round according to the reinvesment ratios set for the round.
6. Rest of the generated yield, 78.85 mETH will be distributed to the treasury of each projects according to the project's weight given by the oracle. Each weight is calculated based on the autoStream <> communityStream ratio set for the round.
7. If upstream is flowing, meaning the DAM is not decomissioned by the Mantle DAO, next round will be started immediately with increased fund, 10083 mETH. (10000 initial deposited fund + 83 from reinvested amount of last round's yield)

After several rounds, Mantle DAO decides to withdraw their funds.

1. The Mantle DAO schedules 100 mETH withdrawal to Mantle DAO Treasury.
2. At the end of the ongoing round, generated yield during the round is distributed to projects first, ensuring projects receive expected incentive.
3. After the distribution, the scheduled 100 mETH is withdrawn from the Embankment and transffered to the Mantle DAO Treasury.
4. Next round starts immediatley with decreased fund.

After several rounds, Mantle DAO decides to decomission a DAM.

1. The Mantle DAO decomission the DAM with receiver set to Mantle DAO Treasury.
2. Upstream flowing is set to false and withdrawal of all of their fund is scheduled.
3. At the end of the ongoing round, generated yield during the round is distributed to projects first, ensuring projects receive expected incentive.
4. After the distribution, all mETH tokens in Embankment is withdrawn from the Embankment and transffered to the Mantle DAO Treasury.
5. Next round will not be started unless they operate the DAM again.

Distributed under the MIT License. See LICENSE for more information.

• Madiha