Vingt.io Index and Strategy Protocol (VISP)
Last updated
Last updated
VISP is a decentralized platform built on BNB Chain and Arbitrum, designed to manage on-chain, tokenized asset indexes and leveraged investment positions. The protocol ensures that all assets and strategies are fully collateralized and traded transparently on decentralized exchanges (DEXs), providing a secure and efficient solution for managing digital assets in the DeFi ecosystem.
Tokenized Asset Indexes: VISP allows users to invest in diversified portfolios of digital assets through fully backed index tokens. These tokens are secured on-chain in smart contracts and can be easily traded or redeemed for underlying assets, ensuring transparency and efficient transactions on DEXs like PancakeSwap or Uniswap.
Leveraged Investment Positions: Amplify exposure to key assets such as BTC and ETH with leverage options like 2x, 3x, and negative leverage (short positions). All leveraged tokens are fully collateralized to ensure position security, with trusted platforms like Aave managing collateralization and debt positions.
Security and Transparency: All transactions are conducted on-chain, ensuring full transparency and security for users' investments. Assets remain in non-custodial wallets, giving users control and protection. Investment positions are trackable at all times, ensuring safety throughout the process.
Trading and Liquidity: Once adopted, VISP's index and leveraged tokens are available on secondary markets, including both decentralized and centralized exchanges (DEXs and CEXs). This creates liquidity, enabling users to buy, sell, or swap tokens representing their investment positions.
VISP manages several indexes such as BSK, PLT, and SIT on the BNB Chain, offering diversified exposure to digital assets. The leveraged positions for BTC and ETH are deployed on Arbitrum, with leverage options of 2x, 3x, and -1x, designed for optimized performance in leveraged strategies.
Flash Mint is a DeFi mechanism integrated into VISP that optimizes large trades on decentralized exchanges (DEXs) by reducing slippage and gas costs while improving liquidity and trade efficiency. It works by minting new token units directly from underlying assets, streamlining the process of acquiring components of an index or token set.
To initiate a trade, users send their currency (BNB, USDT, or ETH) to the Flash Mint contract, which exchanges it for underlying assets through 0x to secure the best DEX rates. The assets are then used to mint new units, which are transferred to the user’s wallet.
Flash Mint offers significant cost savings by reducing slippage, enhances liquidity for large trades, and simplifies integration for dApps. It supports various structured products and index tokens. However, users must approve tokens on the contracts beforehand, and only fixed amounts of Set tokens can be minted or redeemed.
Leverage Flash Mint allows users to interact with the Aave protocol under the hood. With this functionality, users can create debt and over-collateralized positions in a single transaction, enabling them to take long and short positions on assets like BTC and ETH. This advanced feature streamlines the process of setting up leveraged positions by handling the borrowing and collateral management automatically, offering a seamless experience for users seeking leveraged exposure without the need for multiple steps or transactions.
If a user wants to buy one token of PLT, which has 8 underlying assets, they would normally need to hold the exact amount of each of these assets in their wallet to mint one PLT through the issuance module. This process would involve multiple trades, acquiring each of the 8 underlying assets, leading to higher gas fees and slippage.
Using Flash Mint, the user can instead send USDT (or another currency) in a single transaction. The Flash Mint contract will automatically trade the USDT for the exact underlying assets required, and then mint one PLT, completing the entire process in one step. The user benefits from reduced complexity, lower costs, and minimized slippage, as everything happens in a single transaction.
