  We develop several innovations to bring the best practices of traditional
investment funds to the blockchain landscape. Specifically, we illustrate how:
1) fund prices can be updated regularly like mutual funds; 2) performance fees
can be charged like hedge funds; 3) mutually hedged blockchain investment funds
can operate with investor protection schemes, such as high water marks; and 4)
measures to offset trading related slippage costs when redemptions happen.
Using our concepts - and blockchain technology - traditional funds can
calculate performance fees in a simplified manner and alleviate several
operational issues. Blockchain can solve many problems for traditional finance,
while tried and tested wealth management techniques can benefit
decentralization, speeding its adoption. We provide detailed steps - including
mathematical formulations and instructive pointers - to implement these ideas
and discuss how our designs overcome several blockchain bottlenecks, making
smart contracts smarter. We provide numerical illustrations of several
scenarios related to our mechanisms.
