Crypto Index Funds

Demo

About

Why are you participating for Based LatAm? The team at Xucre have managed developer teams in Ecuador and Guatemala. Discussions around blockchain and cryptocurrencies revealed a lack of DeFi solutions designed for LatAm markets—despite increased interest among a rapidly growing and tech savvy middle class. We see a massive opportunity to develop products that support underserved communities in Latin America, including the unbanked and those experiencing financial insecurity due to the economic policies surrounding many fiat currencies. Additional Features The original contract for our first Crypto index fund was built on Polygon; however, we decided to migrate development to Base for the buildathon. Additionally, we used this time to design a more seamless self-service user onboarding process, which leverages Coinbase CDP.

How it's made

What challenges are you focusing on? Our community faces challenges around economic insecurity—including hyperinflation—and income inequality. They also lack resources for financial literacy and inclusion, including investing and retirement planning. Thus, we see two primary areas of focus for our project: Education, and On-Ramping. Education — Xucre engages users via social media, blogs, and content produced in our audience's native Spanish language. On-Ramping — Xucre has been engaging with LatAm-based software development agencies to offer our first DeFi product: Crypto-based Index Funds for Retirement planning. The Index fund concept allows our users to gain exposure to a basket (or portfolio) of crypto assets, while reducing the complexity of research, individual purchasing, wallet creation, etc. For advanced users, self-custody is a core principle of our service offering, and our users are able to own their assets at their wallet address. How does your submission address this challenge? We've built index funds with bundles of crypto assets to be used for employee retirement benefits programs. The goal is to deliver onboarding, management, and security in as few steps as possible, creating a seamless user experience for consumers new to the crypto ecosystem. Some examples of the index fund portfolio bundles: Blue Chip L1 tokens, GameFi projects, Real-World Asset projects, etc. We minted LPs on UniSwap V3 and used those in our contract calling the Swap Router to initiate the funds for each of the tokens in the portfolio; this is all wrapped in an executing contract. We leverage Coinbase's CDP (OnchainKit) for generating a wallet and funding accounts. We use Covalent to get the token prices for each token in USD. The idea is for a brand new user—no wallet, only a computer and an email address—to onramp with Coinbase, generate a wallet, and purchase into the index fund in as few clicks as possible. To remove additional friction we also intend to use Coinbase Paymaster to cover the gas fees for these transactions. Base allows us to scale quickly, minimize gas fees, and have easy access to liquidity for the tokens in our Index portfolios. There are 3 key factors to our project's expected success: 1) An emerging middle class of tech savvy Latin American software developers; 2) A distrust of the traditional banking system, including fears of inflation; 3) A lack of privately-managed retirement programs in LatAm regions (typically, only government-managed pension programs), combined with a desire for company benefits programs. Ultimately, our solution allows individuals to participate in crypto markets and accumulate savings despite any economic uncertainties they may be facing. Challenges we ran into * We initially developed on Polygon using the Uniswap v3 contract, but hit significant gas challenges specifically with larger portfolios. * Then we tried developing using the Uniswap v4 contract on Base Sepolia testnet, but hit challenges in testing because of the lack of available liquidity on-chain. * Which led to us attempting to deploy the v3 contract to Base—but then we were getting transaction failures in scenarios that we knew should work. Investigation revealed that Uniswap routes v3 pools using the universal-router, as opposed to the swap-router that we were currently using. Re-implementing that fixed everything.