Vovo Finance

Grow your crypto with customizable yield via Solana's first structured products protocol

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Inspiration

  • 1000% APY farming is no longer sustainable. With ~$200B DeFi TVL, huge amount of assets are actively searching for yield.
  • The demand of different DeFi users is different: the risk-averse want safe yield, while the degens can tolerate risks in exchange for high yield.
  • Retail investors are lack of financial knowledge to compose a better risk-reward payoff which far exceeds holding or simple yield farming.

What it does

Vovo Finance is a structured products protocol, enabling passive investing with customizable risk-return. It offers:

  • A sustainable yield
  • Investment selections for both the risk-averse and degen, bulls and bears
  • Easy access to on-chain financial instruments
  • Passive investing and socialized cost

The first few products it offers include:

  • Principal Protected Product: It allows users to get a chance to get over 100% APY without the risk of losing a penny. It is achieved by using the funds to yield farming and use farming rewards to do high leverage trading.
  • Yield Enhancement Product: A vault that allows users to earn a high capped yield in return for a downside risk of the underlying, by automating options selling.
  • Long Volatility Product: A vault that automates the option(call, put, straddle) purchase. It allows users to gain large potential profits if they decide to bet on the volatility increase.

How we built it

Principal Protected Products:

  • Users deposit USDC into the vault.
  • The vault deposit the fund into Mercurial Finance to start yield farming.
  • Periodically, the vault collects the farming rewards and swapped them to USDC via Mercurial Swap.
  • Then the USDC in step 3 is used to open a 10x SOL-USD leverage long trade on Bonfida Perpetual Swap.
  • The leverage position is closed periodically and collects profit(if any) back into the vault.

Yield Enhancement Products:

  • Users deposit USDC into the vault.
  • Every week, the fund is used to mint weekly ETH-USDC out-of-money put option on PsyOption and collects the option premium.

Challenges we ran into

  • Some of the protocols we integrate with are not on Devnet, so we need to deploy them ourselves.
  • Opening accounts and trade on Bonfida takes us some effort to make it right.

What we learned

It is our first time using Anchor Framework and find it a life saver!

What's next for Vovo Finance

Some of the developments mentioned above are still in progress and will continue the work after Hackathon. Please follow us on Twitter for future updates: https://twitter.com/VovoFinance

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