The problem Passive solves

Nowadays, (almost) everyone agrees that passive investing beats active investing when it comes to the stock market. By purchasing indexes, we diversify our investments and bet on the long term economic growth. However, this does not possible yet in crypto, especially on-chain. This is where Passive comes in.

User Interaction and Data Flow

User wants to invest in the index fund => he approves and transfers USDC to the contract => the contracts computes the right token proportions according to the market cap of the index tokens, uses the users USDC to swap them for the underlying index tokens and custody them => The index fund contract mints PSVToken representing the index share => The index fund contract transfers it to the user.

User wants to redeem his USDC i.e burning his shares => the contract takes the shares tokens, swaps the custodied index tokens for USDC, burns the share tokens, and sends the USDC back to the user.

The project architecture and development process

IndexFund contract: handles the core functionnality (mint, burn tokens and store user data)

PSVToken: the index fund share token, minted when user purchases shares and burnt when user redeems USDC

Product Integrations

Integration with Uniswap smart contracts to perform underlying token swaps

Key differentiators and uniqueness of the project

The uniqueness of the project lies in the value proposition, which has never been solved so far especially when it comes to keeping the index fund token weights aligned with their market caps