Volt Protocol, a decentralized, inflation-resistant stablecoin, has raised $2M in a seed round co-led by Framework Ventures, a venture capital firm known for its early entry into the decentralized finance (DeFi) space, and by Nascent, a team of crypto-native builders and investors. By tracking the consumer price index (CPI) instead of an existing fiat currency, Volt incorporates inflation into the equation, seeking to give DeFi users the ability to retain their true purchasing power during turbulent and uncertain times.
Volt Protocol tracks the CPI-U, a consumer price index which reports changes in the average price of goods for urban consumers. Utilizing a Chainlink oracle, Volt brings the CPI-U data from the US Bureau of Labor Statistics on-chain and transmits the data to a Volt smart contract where the current annual inflation rate is then stored. Each month, the target price of Volt is updated according to changes in the annual inflation rate, enabling the protocol to keep pace with inflation and maintain a value equivalent to the real price of purchasing goods or services in an inflationary economy.
“Most existing stablecoins peg their value to a real world currency, such as the US dollar, leaving the value of the stablecoin susceptible to inflation and forcing holders to actively manage their deposits and seek out additional yield across other platforms to combat the depreciation of their investments over time” said Kirk Hutchison, Founder of Volt Protocol. “By pegging its value to an inflation index, rather than a fiat currency, Volt seeks to give any DeFi investor the ability to preserve the true value of their wealth over time without having to actively manage their funds or worry about fluctuating interest rates and price volatility.”
VOLT is backed by both collateralized debt positions and stablecoins held in a peg stability module (PSM). Those who wish to obtain or sell VOLT will be able to do so through the PSM or on a decentralized exchange. Volt is built on Fuse, the open interest rate protocol, and will also integrate with other DeFi yield venues to earn returns greater than or equal to inflation on stablecoins in the PSM. Borrowers can access VOLT on Fuse, starting with the existing Fuse Pool 8.
“In an era of uncertain monetary policy and geopolitical events, we believe Volt is in a powerful position to make an impact across DeFi by streamlining new and easily accessible forms of wealth preservation,” said Michael Anderson, Co-Founder of Framework Ventures. “We’re always looking to partner with builders that are pushing the limits of innovation in DeFi, and we’re therefore very excited to work alongside the Volt team as they launch a next-generation, decentralized stablecoin.”
“Volt has taken a creative and collaborative approach to building a new tool for people around the world to protect the purchasing power of their savings,” said Dan Elitzer, Co-Founder of Nascent. “It is only now, as protocols like Chainlink and Fuse offer such flexible and powerful building blocks, that something like Volt has even been possible. The Volt team knows how to collaborate with other protocols and communities to continue to accelerate the entire DeFi ecosystem.”
Volt Protocol also garnered support from an impressive roster of angel investors including Jai Bhavnani, Joey Santoro, Brianna Montgomery, Sam Kazemian, Statelayer, and Julian Koh. The funds from the round are in use to fund development of the core product and security audits of the VOLT smart contracts ahead of a public guarded mainnet launch later this month. Following its upcoming mainnet launch, Volt Protocol plans to publicly launch its governance token. To learn more, visit https://linktr.ee/voltprotocol and join the Discord at https://discord.com/invite/Q5FK9gBTz.
About Volt Protocol
Founded in 2021, Volt Protocol is a decentralized, inflation-resistant stablecoin. By tracking the Consumer Price Index (CPI) for urban communities, rather than a fiat currency, Volt removes inflation and enables DeFi investors to preserve the true purchasing power of their wealth over time. Built on Fuse, Volt aims to be the most flexible stablecoin issuer by supporting a diverse range of crypto assets as collateral while also ensuring proper risk management for the protocol. To learn more, visit https://linktr.ee/voltprotocol and join the Discord at https://discord.com/invite/Q5FK9gBTz.
About Framework Ventures
Framework is a team of technologists, researchers and investors who buy assets of, who build for, and who participate in open crypto networks. At its core, Framework is a technology company, building products and services to support the open blockchain networks that they invest in. Through its registered investment adviser, Framework Ventures Management LLC (“Framework Ventures”), the firm has backed dozens of notable companies in the decentralized finance and Web3 space. To learn more visit: https://framework.ventures/.
About Nascent
Nascent is a team of crypto-native builders and investors, who work with founders and projects from the earliest stages. Building from a base of permanent capital, Nascent is a hands-on partner, providing financial, technical, and strategic resources to support the development of category-defining companies and protocols. To learn more visit: https://nascent.xyz.