Build a truly universal DeFi application to meet the huge demands of global retail investors.
What it does
Global EthTF provides investors without access to the US markets an alternative platform to invest on. We use Universal Market Access to build Synthetic Asset Tokens that track the price of US ETFs.
In order to allow these investors to trade, a decentralized platform powered by 0x instant is used. Investors can buy these Synthetic Asset Tokens using ETH and maintain a long position on the ETF. Concurrently, the Token Creator can use the funds generated to purchase portfolios that hedge against these risks. In this way, market risk is mitigated and income is generated for the Token Creators through 1-5% trade commissions.
How we built it
We made a selection of a publicly listed ETF, SNSR that is focussed on IoT ( Internet of Things ). Created a contract on UMA platform based on custom price feed from Unibit ( pricing data provider ). Then we created a synthetic token GSN ( Global SNSR) pegged to DAI.DAIs were minted on the UMA dapp and provided the collateral for GSN. The collateral margin was set at 10% , hence for every $100 of GSN, total funding requirement was $110.
We used the 0x instant and connected them to the 0x-launch-kit-backend. This instant is hosted on a web application, thereby allowing investors to purchase the tokens.
Challenges we ran into
Our team also faced many issues when connecting the 0x backend server to the 0x instant. The documentation was not thorough in explaining the connection process, thus resulting in technical difficulties.
Accomplishments that we're proud of
That face that we could come up with a good business use case that is a good value proposition for our customers. The potential for growth is significant.
What we learned
How to build native DeFi application as opposed to porting a non-blockchain application to application.
What's next for GlobalEthTF - a global market place for high-growth ETFs
Create a group of synthetic tokens based on Sector ETFs. Resolve all integration issues between 0x and UMA. Take it to the mainnet and start selling these tokens and be profitable.