Primotif

Inspiration

Access to global markets is easy in developed countries, but not so much in undeveloped ones. We allow anyone in the world to get exposure to major indices such as S&P 500, FANG, Gold etc. in a permissionless and decentralized way using various financial primitives on Ethereum. Most importantly, not worry about the ETH/USD volatility because of our hedging strategy.

What it does

Primotif lets users buy sets, small portfolio units, that is comprised of Augur shares and dy/dx short tokens. Augur shares track the underlying major index, such as the S&P 500, while the short tokens provide a hedge against the volatility in the ETHUSD price.

How we built it

We used Augur, Set Protocol, dY/dX and 0x protocols to build this system. We've created Augur markets for all of our indexes. When a user expresses interest in buying a set on our platform, our backend issues a Set with components bought from Augur and short ether liquidity pools. Then this Set is exchanged for ETH with the user using 0x.

Challenges we ran into

Working with tools that were still in development poses many challenges. For example, Augur shares are ERC-20 tokens with 0 decimal places. This is unusual and did not play well with the Set Protocol. Through many hours working with the team, we were able to overcome this.