Over the last few years, we have seen the success of dollar-pegged stable-coins becoming an ever-growing part of DeFi ecosystems because of their lack of volatility compared to the rest of the crypto market. Stable assets are necessary for many aspects of DeFi but there is no reason why we need to keep exposing ourselves to government incompetencies and central bank thoughtlessness.
Enter $WIVX, a stable token backed by a treasury made up of wine, the least volatile and highest returning asset over the last two decades. All outstanding $WIVX tokens will be backed by a treasury made up of wine NFTs, LP tokens, and stable coins. Initially, each WIVX coin will be backed 1:$1 worth of value of the treasury but as the treasury increases in value, the tokens in circulation will not increase therefore creating an appreciation of each individual $WIVX token.
How does $WIVX remain stable
WIVX is backed, not pegged
It is important to understand that $WIVX is backed, not pegged. $WIVX does not remain at $1 like a stable coin pegged to the dollar but just has a lower bound that it will not go below.
As $WIVX fluctuates in value, anytime the tokens move below the value of the backed treasury the $WIVA DAO will purchase $WIVX tokens at a discount. These cheap tokens we turn into realized gains for the protocol because during rebalancing periods $WIVA will need to deposit $WIVX tokens to unlock the vaulted assets in order to sell them and rebalance the treasury. Acquiring WIVX tokens at a discount is therefore beneficial for the $WIVA DAO holders as well.
Pegged == 1, while backed >= 1. We do not impose an upper bound token price, that is for the market to decide.
As an investor how can I benefit from $WIVX?
$WIVX is simply the highest performing appreciating stable coin on the market. Just buy and hold $WIVX and you will see significant returns as the underlying assets in the treasury appreciate in value.
Additionally, if you own wine or a WiV Wine NFT, you can get liquidity on that asset by depositing it into our protocol and receiving $WIVX tokens in return. (More on this below)
What can I do with a WIVX token?
1) Provide liquidity and earn transaction fees
2) Use WIVX as a currency of exchange in the WiV wine ecosystem
3) Hodl and keep your wealth safe and diversified, while earning highly competitive returns
4) Swap for $USD
5) Use as a collateral asset in DeFi lending protocols
What is the Lending aspect of WIVX?
WIVX will work as a collateralized loan protocol for WiV Wine NFT holders. In the NFT space, it is very difficult to get a loan on your NFT or find liquidity when the market is cold. (This is true in the traditional wine industry as well.) This protocol will allow anyone holding a WiV Wine NFT to receive a loan, in $WIVX tokens, when the wine NFT is posted as collateral. This provides liquidity for NFT owners and a new source of financing for traditional wine investors and wine producers if they choose to tokenize their wine assets. WiV technology will consult and help traditionalists with all of their tech needs.
What is the blueprint for the Treasury?
The treasury will be composed of 80-90% NFTs backed by wine and 10-20% cash reserves used to pay for the expenses and compound. Each token distributed to investors will be worth $1 at the time of inception but as the value of the assets within the fund grows the token value should be backed by this growth as well.
How are the underlying assets secured?
Vault Smart Contracts
The vaults, or smart contracts, allow the fund to run in a totally decentralized manner where there will be no manipulation possible by the internal team or DAO. Smart contracts developed for $WIVX will all go under intense audits by third-party auditors.