The ItoVault community has been putting real assets on the blockchain over over a year now. Due to community demand, we’ve decided to expand our US-stock index to be much broader. There are over 5000 publicly traded companies in the USA, and so the top 500 only captures less than 10% of the count of companies out there. In an effort to track a more diverisifed, passive index, we are introducing vVTI, a tracker token for the VTI ETF in the USA. The mechanisms operate the same as the current vSPY (see whitepaper).
Enter the vVTI
The vVTI token launched in August 2021, and you can buy the token right here on Uniswap.
vVTI not only to tracks the value of the raw VTI ETF, but also dividends. Eventually it will capture short interest and rebate rates you would get from holding the ETF. This is an important point for users who want to buy and hold US Stock indexes for the long term. If an ERC-20 token doesn’t capture dividends, it would provide substantially worse returns over time.
The vVTI token follows the ERC-20 standard, which means it transacts on the Ethereum network. It inherits the security features of that blockchain and smart contracts written on that blockchain.
Further, vVTI is decentralized. No company or person is holding VTI shares on your behalf and issuing the vVTI token. Instead, anyone can deposit ETH into a vault and create vVTI tokens. Open, verifiable, smart contract code secure the locked ETH, not any company. vVTI pegs to the VTI ETF using a liquidation process that any crypto community member can participate in.