Vovo PPP on Arbitrum
Vovo is be the first structured products protocol on Ethereum Layer 2.
As the first working Ethereum layer 2, Arbitrum is getting great adoption among the Ethereum community. Thanks to its low gas fee, many perpetual swap exchanges(e.g., MCDEX, GMX) are deployed on it with huge user adoption. Especially, option protocols like Dopex, Opyn and Primitive Finance are or will soon be available on Arbitrum, making the creation of complex structured products possible.
- User deposits funds into Vovo PPP Vault.
- The vault deposit user funds to Curve Finance(or any other protocols that offers high yield farming rewards).
- The vaults periodically collect farm rewards and convert the rewards into USDC using Uniswap.
- The vault uses the USDC to open a 15x long/short positions on GMX exchange. We chose GMX because it supports 0 slippage trading, especially beneficial to protocols like us who could open large trade.
- The vault periodically close the leverage positions and collects profit(if any) to the vault.