Volt Protocol
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Volt Protocol

Introducing VOLT

a future proof stablecoin worth holding

All over the world, people see their hard earned savings eroded by inflation. Volt Protocol’s mission is to allow anyone to preserve the value of their earnings and prepare for the future without unnecessary risk taking to “beat” the inflation.

Volt is a new kind of stablecoin that uses purchasing power, not a depreciating fiat currency, as its measure of stability. A neutral money for the world shouldn’t be subject to manipulation due to the economic priorities of governments or central banks. No matter which fiat currency you hold, the central bank is able to consistently erode the purchasing power of savers through inflation.

VOLT and the CPI

A credibly neutral currency starts with basing price on real world purchasing power data. Volt uses consumer price index data collected by the US Bureau of Labor Statistics, the “CPI-U”. One of the most frequently asked questions about VOLT is, why use the CPI-U instead of an alternative measurement? Don’t the official government inflation numbers understate recent increases in housing, healthcare, and education costs?

CPI-U is a starting point for VOLT, but the end goal is a truly neutral international money. This means using the most credible data sources available, and in the future expanding beyond a US-only CPI data source or a single measurement. In the short term, the official CPI-U is an important number throughout the economy and a much stronger preservation of purchasing power than pegging to a fiat currency directly.

How VOLT Supply Expands and Contracts

Out of the existing stablecoins, VOLT is most similar to DAI in its high level architecture, in that it can be minted or redeemed in two ways:

Debt issuance

Users deposit a collateral asset, such as ETH, and mint VOLT which they borrow. In order to withdraw the collateral, they must repay the borrowed VOLT plus an additional borrow cost. The deposit must be overcollateralized and is subject to liquidation if the price drops. VOLT is built on top of Fuse, the premier decentralized lending market currently supporting 170m in permissionless loans. Volt protocol will support a wide variety of collateral assets on Fuse in the future. At launch, all VOLT debt issuance will be in the Tribe DAO pool (Fuse pool 8).

Peg Stability Module (PSM) issuance

Users exchange a stablecoin (initially only FEI is supported) for VOLT or redeem VOLT for PSM deposits. Stablecoins deposited into the peg stability module will then be deposited by the protocol into a yield venue. At first, all PSM deposits will go into the same Fuse pool 8 as VOLT minted through Debt Issuance.

VOLT was born out of the understanding that while USD pegged stablecoins (a large majority of all stablecoins today) are essential technology and innovation, they fail to protect users from inflation. Many feel that the true vision of crypto is a neutral unit of account outside direct “money printer” manipulation.

Cryptocurrency offers the possibility for a rule-bound neutral international money that preserves wealth across time, VOLT is bringing innovation and infrastructure we hope many to use, and help build a purchasing power based stablecoin class worth holding.

LAUNCH PLANS

Audits

Volt puts security at the top of priority list right next to the preservation of value itself. Volt code has been audited by Zellic with no vulnerabilities found. A Code4rena public audit contest is currently underway at time of writing (April 2nd). There is $75,000 in prize money available for those who help secure Volt Protocol. The launch timeline will be announced following the conclusion of the Code4rena audit.

Guarded Launch

Volt will launch with issuance limits of 40m VOLT in total, split as 30m in Fuse and 10m in the Peg Stability Module (PSM). Further issuance will consist of a daily “drip” of VOLT into Fuse and the PSM available for minting. The “drip rate” will start at zero and be set based on market data following Volt launch. Volt issuance and redemption will be launched prior to the release of the VCON governance token. Anyone will be able to borrow, lend, mint, redeem, buy, or sell VOLT following launch. As this is an early stage system, please do your own research and act responsibly, especially regarding the use of leverage.

Separate from the VOLT made available to the open market, the TRIBE DAO will obtain 10m VOLT as a liquidity backstop for the PSM. This will help participants access sufficient liquidity to redeem VOLT through the PSM before external DEX liquidity is established.

After the launch, the Volt team will work to onboard additional yield venues and collateral types. The mid term objective is to onboard the most promising yield venues in terms of scalability, safety, and returns. This will allow the protocol to safely raise issuance limits through the PSM.

The VCON token will be launched following the release of the core VOLT system. The VCON launch will occur as a public liquidity bootstrapping pool on Balancer, with all details announced publicly well in advance through multiple channels. Participation in this process will be public. Please do not fall for any scams or attempts to impersonate VOLT or its contributors.

GET INVOLVED

Join the Volt community on Discord where you can ask questions and give feedback.

Follow Volt Protocol on Twitter for updates.

Dive into the system architecture to learn more about how VOLT works.

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Volt Protocol is a stablecoin that helps holders protect their purchasing power from inflaiton by pegging its price to the consumer price index (CPI) instead of the dollar.

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Kirk Hutchison

Kirk Hutchison

volt protocol founder, garden enthusiast

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