Stretch by Spreads Finance

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  Landing Page

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  STRC Looping

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  Performance vs AAVE USDC

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  Strategy Vaults

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  Stretch Your Savings

Inspiration

Stretch was inspired by Michael Saylor's $STRC, one of the most unique xStock assets currently listed. This is a perfect example of an equity, that when tokenised, unlocks a wide scope of opportunities to enhance what this asset can do. STRC in traditional markets has huge demand, at over $40b market cap, with $300m average monthly volume, this is one of TradFi's most exciting and used assets today. Despite that, users don't have access to unique strategies that can create upside for this instrument. They're often gated for institutions, have complex UI/UX or generally not been created yet.

Stretch by Spreads changes that. We wanted to create the DeFi tooling for this asset from leverage, to trading to savings, all in 1 app, all for $STRC.

What it does

Stretch by Spreads has 3 core functions around the $STRCx asset.

1. Leveraged STRCx - A 1 click, gasless and frictionless leverage product utilising Morpho for a leveraged STRCx where users can earn up to 40% APY.
2. Orange Dot Vault - A 'smart' buy the dip vault for STRCx that involves depositing USDC into Tydro whilst watching for price drops of STRCx at which point begins to DCA in with users choosing their interval periods.
3. Stretch your savings - A novel savings product for users to save via both $STRCx and $TBILx and USDC lending which then earns yield and can be used to earn rewards from some of your favourite consumer brands!

How we built it

We built the leverage product with 5 main components:

• Wrapper contract for STRCx to account for the monthly rebasing
• Cowswap Swap API
• Morpho Market set up with a custom Oracle adapter contract we built with Pyth interfacing.
• Privy Smart wallet set up with Paymaster
• SupaBase and Express JS
• Financial modelling applied for the leverage, market set-up and trading strategies, with BTC Hedging supported by statistical ANOVA and Linear Regression analyses.

Challenges we ran into

2 big challenges we faced were:

• The looping product had technical issues regarding RPCs, Bundling, smart wallet handling, execution. We solved this through quite vigorous testing, implementing sequential transactions and robust re-try mechanisms.
• We had a last-minute change with our team, and that resulted in us having to adjust the workload, and that was more of a challenge from a non-technical perspective. Strong teamwork got us here!

Accomplishments that we're proud of

This is the first time we've ever seen DeFi products around STRCx on-chain ever. It's in production, live on mainnet, and we're proud that just the two of us were able to execute all of this. One of the highest RWA yield opportunities in DeFi right now!

What we learned

Abstraction isn't easy! We wanted users to have a real seamless experience, and that involves bringing users who aren't crypto native to be able to access a complex product. Learned a lot about the tooling, infra and design we can use to make products that make things easier for these users. We also learned a lot about corporate events and how they work with xstocks assets!

What's next for Stretch by Spreads Finance

Spreads is live on Ink on top of xstocks already, this adds a new product in our arsenal and for us, we'll be shipping lots of new products for the xstocks ecosystem. It's business as usual and our duty to grow what's currently possible for tokenised stocks on-chain.

Next, we'll be focused on adding a suite of structured products, including BTC Hedging, which will all tie in to one-click risk management and abstraction for users looking to add convexity to their STRC looping positions. Users will not need to understand the technicals behind this.

Built With

• aave
• claude
• cowswap
• ether.js
• express.js
• finnhub
• ink
• morpho
• nextjs
• node-postgres
• paymaster
• privy
• pyth
• railway
• react
• solidity
• supabase
• tailwindcss
• tanstack
• tydro
• typescript
• vercel
• viem
• wagmi
• xstocks