EquiBlock

EquiVault is a decentralized protocol that enables users to mint and trade synthetic representations of global assets — such as stocks, commodities, and indices — directly on-chain. Our goal is to bridge traditional finance and DeFi, allowing anyone to gain exposure to real-world asset prices using stable, permissionless infrastructure.

Traditional stock markets are slow, restrictive, and expensive. Retail investors face multiple barriers when trying to access international assets such as U.S. equities, Nikkei, or global indices.

💥 Key Barriers

Limited Global Access: Traditional markets are bound by geography, trading hours, and regulatory restrictions. Investors outside certain countries often cannot access these assets.

High Costs & Delays: Brokerage fees, verification processes, and lengthy settlements make cross-border participation inefficient.

Paperwork & Bureaucracy: KYC, banking intermediaries, and custodians slow everything down and exclude decentralized participants.

💡 Our Solution — EquiBlock

EquiBlock enables anyone, anywhere, to trade global stocks and indices directly from their crypto wallet — 24/7, with no brokers, paperwork, or geographic restrictions.

It’s powered entirely by on-chain synthetic assets (“EquiAssets”) that track the price of real-world equities via Pyth Network price feeds.

1. Collateral System — PYUSD as the Foundation

Users deposit PYUSD (PayPal USD) as collateral into the EquiVault contract.

PYUSD is a regulated, fiat-backed stablecoin with high stability, making it an ideal collateral asset.

The protocol enforces a collateralization ratio (CR) of 500%, ensuring system over-collateralization to maintain stability.

1. Minting Synthetic Assets (EquiAssets)

Once collateral is deposited, users can mint EquiAssets — synthetic ERC20 tokens that track the price of real-world assets (e.g., eTCS, eAAPL, etc.).

Each EquiAsset represents 1 unit of a specific real-world stock or commodity.

For example:

Alice deposits $5000 PYUSD.

She mints 1 eTCS, which tracks the price of TCS stock (₹ or $ equivalent via Pyth price feed).

Her collateral ratio (CR) = 5000 / 1000 × 100 = 500%.

1. Real-Time Price Feeds via Pyth Network

The protocol integrates Pyth Network, one of the most reliable decentralized oracle networks.

Pyth provides low-latency, institutional-grade price feeds for global assets like equities, forex, and commodities.

Our smart contracts fetch live prices of assets (e.g., TCS/USD, AAPL/USD) to:

Calculate minting limits.

Track collateral ratios.

Trigger liquidations when CR < threshold.

Example: If the price of eTCS rises from $1000 to $4166, the vault recalculates:

New CR = 5000 / 4166 × 100 = 120%

Since this is below the liquidation threshold (150%), the position becomes liquidatable.

1. Automated Liquidation System — Powered by Vincent

To maintain protocol health, EquiVault integrates Vincent, an automation layer for on-chain liquidation bots. When a user’s position falls below the liquidation threshold:

Vincent detects the undercollateralized vault via off-chain monitoring.

It automatically executes the liquidate() function on-chain.

The liquidator deposits PYUSD (equivalent to the user’s debt value), burns an equal amount of the synthetic asset, and seizes the user’s collateral with a 10% liquidation bonus.

Example:

Alice’s position falls to 120% CR.

Liquidator (via Vincent) repays her $4166 debt and burns 1 eTCS.

The liquidator receives $4582.6 PYUSD (10% bonus).

Alice’s vault is cleared, and the system remains solvent.

1. Liquidity Pool for On-Chain Swaps

To make the system composable and user-friendly, EquiVault includes a simplified liquidity pool:

Users can swap PYUSD ↔ EquiAssets directly within the protocol.

The pool uses Pyth oracle prices for fair value exchange.

Example: If eTCS = $100 and a user swaps $1 PYUSD → receives 0.01 eTCS.

This mechanism creates instant market access for synthetic assets without relying on external DEX integrations.