Vcop Collateral system hook
VCOP is a collateral-backed stablecoin designed to maintain a 1:1 peg with the Colombian peso (COP). Implemented as an ERC20 token, VCOP offers protection from local-currency volatility
Created on 6th May 2025
•
Vcop Collateral system hook
VCOP is a collateral-backed stablecoin designed to maintain a 1:1 peg with the Colombian peso (COP). Implemented as an ERC20 token, VCOP offers protection from local-currency volatility
The problem Vcop Collateral system hook solves
The VCOP protocol builds a revenue-generating model that leverages the Colombian peso’s devaluation:
Profitable liquidation opportunities
When the COP weakens against the USD:
Users can spot under-collateralized loan positions.
Liquidating those positions awards them a USDC collateral bonus.
Thus, devaluation itself creates profit opportunities.
Dollar-value recovery
Users deposit USDC and receive VCOP via the Parity Stability Module (PSM).
During devaluation events they swap VCOP back to USDC, capturing extra value.
This mechanism lets them “dollarize” savings easily and reclaim them intact.
Incentivized systemic arbitrage
The Uniswap v4 hook sets market conditions that reward arbitrage.
Whenever VCOP drifts from its target price, traders earn by re-pegging it.
Market participants stabilize the system while collecting returns.
Economically advantageous lending
Loans cost less than in the traditional banking sector.
Users keep their digital assets while accessing liquidity.
Overall, VCOP turns monetary devaluation into an economic engine: users can actively profit from inefficiencies in the national currency while enjoying advanced DeFi instruments, transforming protection against devaluation into tangible profitability.
Base Sepolia
VCOP Token 0x3D384BeB1Ba0197e6a87668E1D68267164c8B776 Collateralized stablecoin token
VCOP Oracle 0x046fFDe3161CD0a8DCBF7e1c433f5f510703d56d Price oracle for rates
VCOP Collateral Hook 0xb1D909689f88Bd34340f477A0Bad3956113944C0 Uniswap v4 hook implementing PSM
VCOP Collateral Manager 0x8f17E2128a4F917ec4147c15FC90bADd79E7F090 Collateral reserves manager
VCOP Price Calculator 0x12C8498b96714615B7bF98456058D48e01C59DB3 Price calculation helper
Mock USDC 0x5405e3a584014c8659BA10591c1b7D55cB1cFc0d Collateral token (test version)
Base Mainnet
VCOP Token 0xE126098b5111330ceD47b80928348E4B8ED7A784 Collateralized stablecoin token
VCOP Collateral Hook: 0x00feAFe88e9441C10227Be8CcF2DC34D691b84c0
Challenges I ran into
The configuration of the VCOP Protocol’s contract system required writing two deployment-and-configuration scripts and implementing advanced permission management, setting up the Uniswap hooks for effective pool stabilization, and integrating the front end using OnchainKit so that end users can interact with the protocol. This last part was perhaps the most challenging, as it introduced many bugs and errors for some reason.
Tracks Applied (2)
Stablecoins
DeFi
Technologies used
Cheer Project
Cheering for a project means supporting a project you like with as little as 0.0025 ETH. Right now, you can Cheer using ETH on Arbitrum, Optimism and Base.