[ANN][vSPY] vSPY (itovault.com) | Defi Token Pegged to S&P 500 Total Returns

[itovault]

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Whitepaper

https://i.imgur.com/iTjGovs.png

Latest Version: vSPY Itovault V0.1 Release - Buy on Uniswap here.

vSPY by ItoVault is an open source, decentralized finance (defi), token that tracks the S&P 500, with dividends included in the token price.  vSPY offers a token that has better returns than stablecoins.  vSPY do not need to be locked, sold, or otherwise transacted to capture the full benefits of owning the S&P 500. 

vSPY is an ERC-20 token trading on the Ethereum mainnet blockchain.  The value of vSPY is backed by ETH locked in a vault, similar to the MakerDAO/DAI system.  No centralized custodian or counterparty needs to be trusted for vSPY to hold its value.  Vault owners must maintain ETH in a vault above a safety margin.  If the ETH is below that margin, the vault may be liquidated by anyone in the ecosystem to claim a reward.  This incentivizes vault owners to overcollateralize the vSPY.  Vault owners who deposit ETH and mint vSPY can lever up their long ETH and short vSPY position.  Likewise, vault owners may deposit vSPY and withdraw ETH to create an opposite position: to be levered long vSPY and short ETH.

Quick vSPY Facts:

- Based on the open-soure ItoVault system.
- Decentralized finance: a smart contract holds the backing funds, not any counterparty.
- Dividends on S&P 500 automatically integrated into price.  Just buy and hold vSPY to capture full S&P 500 value.  No locking or complex transactions needed.
- Currently a 30% maintenance margin for vaults.
- Deposit ETH, mint vSPY and repeat to obtain levered ETH-vSPY positions.
- Deposit vSPY and withdraw ETH (with a margin) to obtain levered vSPY-ETH positions.
- No system fees for using vSPY.
- ERC-20 token standard.
 

Main Pages:

Whitepaper
https://www.itovault.com/wp-content/uploads/2020/11/ItoVault-V1.0-Whitepaper-PDF.pdf

Uniswap: Buy, Sell, or Provide Liquidity:
https://app.uniswap.org/#/swap?outputCurrency=0x3e1e15AFD5d50b090aDcC88160dD84a48EA1B80E

Mint vSPY Tokens:
https://www.itovault.com/tools/

$100 vSPY Promo for Customer Feedback
https://itovault.com/get-100-in-vspy-tokens-talk-to-us/



Other Pages:

Blog:
https://itovault.com/welcome-to-the-blog-of-itovault/

FAQ:
https://itovault.com/faq/

Etherscan Smart Contract Address:
https://etherscan.io/address/0xf9e8c18a855183246dbf19c8b249921fa64bd33c#code

Buy vSPY on Uniswap:
https://app.uniswap.org/#/swap?outputCurrency=0x3e1e15AFD5d50b090aDcC88160dD84a48EA1B80E

Learn More About vSPY on the FAQ

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[itovault]

If you're interested in this, feel free to post any questions here.  If you think you'll use this, add feature request here too!  Our official discussion is in the discord link above.

[24Kt]

I have seen similar project before about pegging to S&P500, but don't know what happened to them. What do you think will be an attractive feature of this DeFi token as compared to a lot of DeFi tokens out there? Right now, the popularity of DeFi seems to slow down as people are now focus in bitcoin's performance in the market.

[itovault]

Good point -- there have been past efforts before to put stock indexes on the blockchain.  Some efforts aren't defi --  FTX requires you to register with their centralized exchange.  Synthetix has a good FTSE and NIKKEI index shares, but they don't capture the dividend of the index.  Capturing the dividend is important for a buy-and-hold token. 

For someone looking for S&P 500 exposure, I think the main differentiators then are:
- Defi (so permissionless / trustless).
- Capture dividends automatically, low system fees (so you can buy and hold without worrying about frictional losses to the system)
- Lever up long or short (MakerDAO lets you lever up long ETH-USD, but doesn't let you deposit DAI and withdraw ETH).

You're also right that these few months, people are looking at the great returns of BTC and not thinking about the lower returns of the stock market.

I'm also thinking of launching other derivatives.  Are there any exposures you've been really looking hard to get (e.g. leveraged long bitcoin exposure, GDP indexes, pre-IPO stock, etc)?

[nutildah]

The question I want to know is what kind of guarantee do your investors have that the oracle for vSPY will remain up and running, connected to a DEX to help keep the proper price peg? I would be afraid of going in to this project only to see the oracle disconnect from the DEX a month or two into it, leaving anyone holding vSPY with a bunch of worthless tokens.

[itovault]

Good point on the oracle.  Currently, it's a centralized oracle with an Augur-like fallback system (where users can challenge each other).  Top priority for me is to add something like Chainlink into the system and ensure the data feed is good for years.  There's also a global settlement mechanism where if say, the S&P 500 dissolves in the future, the vSPY tokens just settle at the last known good value.

If the oracle problem were solved, would you buy?  What are top token's you've bought in the past & main reasons?  I'm trying to collect some opinions to help me develop the next stage of this.

[nutildah]

Good point on the oracle.  Currently, it's a centralized oracle with an Augur-like fallback system (where users can challenge each other).  Top priority for me is to add something like Chainlink into the system and ensure the data feed is good for years.  There's also a global settlement mechanism where if say, the S&P 500 dissolves in the future, the vSPY tokens just settle at the last known good value.

If the oracle problem were solved, would you buy?  What are top token's you've bought in the past & main reasons?  I'm trying to collect some opinions to help me develop the next stage of this.

No, I'm not interested in anything related to defi whatsoever. Having said that, I read through your white paper and was glad to see original concepts being presented for a change, compared to the average trend chasers that advertise projects in this section.

I don't think its going to work but since I've now commented in this thread I'll receive updates on your progress, and you're more than welcome to prove me wrong.

[itovault]

Okay just finishing collecting feedback for the next iteration on this and other forums. It seems like the features people would like to see the most include:
- Tokenizng assets other than the SPY, especially ones that are hard to get normally.
- Having a more decentralized oracle system.  This is the last piece of centralization in V1.0, so the next iteration will definitely need to drop this.

Other requests that are on the list:
- Allow USDC/DAI as collateral in the vaults instead of ETH.  This will allow margin reduction. 
- More formal code review.

Let me know if there are other top request I'm missing.  Or if you want to upvote any of the requests above.