Vcop Protocol
The first DeFi protocol designed for Latin America
Created on 6th May 2025
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Vcop Protocol
The first DeFi protocol designed for Latin America
The problem Vcop Protocol solves
VCOP - Chainlink-Powered Peso-Pegged DeFi
The Problem
In the last ten years, the Colombian peso has lost about sixty-two percent of its value against the dollar.
Selling your crypto to patch that hole? You erase your upside.
Dollar-based DeFi loans? They liquidate you on the slightest dip.
There has to be a smarter way.
Our Solution
VCOP delivers that smarter way.
We help Latin American savers hedge against devaluation—without selling their crypto. Our system combines ultra-flexible collateral-backed loans with a peso-pegged stablecoin that stays 1:1 with the Colombian peso.
In one line: keep your crypto, spend in pesos, sleep at night.
đź”— Chainlink-Powered Core Architecture
⚡ Chainlink Custom Logic Automation
Smart Liquidation System
- Monitors all loan positions continuously using checkUpkeep/performUpkeep functions
- Batch processes up to 50 positions per execution for gas efficiency
- Risk-based prioritization with multi-tier response: Critical (95%+), Danger (85%+), Warning (75%+)
- Automated vault-funded liquidations requiring no keeper capital
📊 Chainlink Price Feeds Integration
Multi-Source Oracle System
- Primary: Chainlink Data Feeds (BTC/USD, ETH/USD on Base Sepolia)
- Fallback: Manual price feeds with staleness protection
- 24-hour staleness threshold with automatic failover
- 6-decimal precision for consistent VCOP/USDC calculations
How It Works
Step 1: You Set the Risk
Our Flexible Loan Manager lets you borrow up to 95% LTV—you control your risk level.
Step 2: Chainlink Guards You Every Block
- Custom Logic Automation monitors positions continuously
- Price Feeds track risk metrics in real-time
- Smart Liquidations use vault liquidity (no keeper capital needed)
Step 3: You Spend in Your Currency
VCOP maintains 1:1 peso peg through:
- Chainlink-powered multi-source oracle system
- Peg-Stability Module for instant VCOP↔USDC swaps
- Uniswap v4 hook
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 (1)
DeFi
Technologies used
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