vpBTC | Value-Protected Bitcoin

Strategy

How it works

Every day, the vault checks if BTC price is above its 45-day average. Above → hold BTC. Below → hold USDC. Simple, transparent, on-chain.

Compute SMA on-chain

The vault maintains a 45-entry daily price ring buffer on-chain. Each day, the keeper pushes the latest BTC/USD price (via Pyth oracle) into the buffer and the contract computes the simple moving average.

Binary signal

If BTC price > SMA(45d), the target weight is 100% BTC (WBTC). If BTC price ≤ SMA(45d), the target weight is 0% BTC (100% USDC). No gradients, no complex math — just above or below.

Daily rebalance

The keeper rebalances WBTC/USDC holdings daily to match the signal. Swaps execute via Uniswap V3 multi-hop (USDC→WETH→WBTC) with 0.05%+0.05% = 0.10% total fee and 1% max slippage.

// 45-day Simple Moving Average (on-chain ring buffer)
SMA_45 = sum(price[i] for i in last 45 entries) / 45

// Binary signal
weight = (btcPrice > SMA_45) ? 100% : 0%

// Rebalance: swap only on signal flip (~13x/year)
if weight changed: swap WBTC ↔ USDC via USDC→WETH→WBTC (0.10% fee)

Get Started

How to invest

Deposits are in-kind only. When signal is ABOVE SMA (weight=100%), deposit WBTC. When signal is BELOW (weight=0%), deposit USDC. The vault shows you which token to deposit. Entry fee: 0.10%.

Connect your wallet

CLI instructions (advanced)

Get WBTC or USDC on Arbitrum

Check the current signal. If ABOVE SMA, you need WBTC. If BELOW SMA, you need USDC (native, not USDC.e). Send to your wallet on Arbitrum One.

Approve & deposit

Approve the vault to spend your token (WBTC or USDC depending on signal), then deposit. Shares are minted instantly. No swap on deposit.

# Example: deposit USDC (when signal = BELOW SMA)
cast send 0xaf88d065e77c8cC2239327C5EDb3A432268e5831 \
  "approve(address,uint256)" \
  0x3034E68Ecc4e5B133a148d7D8c9F5c2Cf2a2EF12 \
  <AMOUNT> --rpc-url https://arb1.arbitrum.io/rpc --private-key <KEY>

cast send 0x3034E68Ecc4e5B133a148d7D8c9F5c2Cf2a2EF12 \
  "deposit(uint256,address)" \
  <AMOUNT> <YOUR_ADDRESS> \
  --rpc-url https://arb1.arbitrum.io/rpc --private-key <KEY>

USDC: 6 decimals (100 USDC = 100000000). WBTC: 8 decimals (1 WBTC = 100000000). Entry fee: 0.10%.

Done — you're invested

vpBTC shares are in your wallet immediately. The vault automatically rebalances BTC/USDC daily based on the MA(45d) trend signal.

Redeem In Kind (instant)

Withdraw your pro-rata share of USDC + WBTC immediately. No swap, no slippage, no fee. Sell the WBTC yourself on any DEX.

cast send 0x3034E68Ecc4e5B133a148d7D8c9F5c2Cf2a2EF12 \
  "redeemInKind(uint256)" \
  <SHARES> --rpc-url https://arb1.arbitrum.io/rpc --private-key <KEY>

SHARES is in 6 decimals. 1 share = 1000000.

How it works

⇩

Deposit

Instant

Deposit in-kind: WBTC when signal=ABOVE, USDC when signal=BELOW. Receive vpBTC shares instantly. Entry fee: 0.10%. No swap on deposit.

⇧

Withdraw

Instant (in kind)

redeemInKind: withdraw pro-rata USDC + WBTC instantly. No swap, no slippage, no fee. Always works, even when paused.

⟳

Rebalance

Daily (keeper)

The keeper rebalances WBTC/USDC daily to match the MA(45d) signal. Swaps only on signal flip (~13x/year) via multi-hop routing at 0.10% fee. 1-day minimum interval.

Transparency

Risks

This is experimental software. Understand the risks before investing.

High

Trend-following risk

The MA(45d) signal may lag during sharp reversals. In choppy, sideways markets the strategy can whipsaw — flipping between BTC and USDC repeatedly, incurring swap costs without capturing trend. Past backtest performance does not guarantee future results. You can lose money.

Medium

Rebalance swap cost

Each signal flip costs ~0.10% in multi-hop swap fees (USDC→WETH→WBTC, 0.05%+0.05%). With ~13 flips/year, annual swap drag is ~1.3%. In choppy markets, flips may increase. 10% drift gate and 1% max slippage protect against excessive trading.

Mitigated

WBTC depeg risk

Mitigated by in-kind model — all deposits and withdrawals are in-kind (pro-rata USDC + WBTC). No oracle-priced USDC payout that could create insolvency during a depeg. The vault never needs to sell WBTC at a depegged price.

Medium

Keeper risk

If the keeper stops, the vault cannot rebalance or update the SMA buffer. Users can always exit via redeemInKind regardless of keeper status. Withdrawals always work, even when the vault is paused.

Verified & Open Source

Contracts

All contracts are verified on Arbiscan. Source code is fully readable on-chain.

DeltaVault	0x3034E68Ecc4e5B133a148d7D8c9F5c2Cf2a2EF12
Network	Arbitrum One (Chain ID: 42161)
Token	vpBTC — Value-Protected Bitcoin (ERC-20)
Holdings	USDC (native) + WBTC

Strategy Parameters

Strategy	Binary MA(45d) — 100% BTC above SMA, 0% below
SMA Window	45-day on-chain ring buffer (no oracle contract)
Price Oracle	Pyth BTC/USD (MAX_PRICE_AGE = 120s)
Rebalance	Daily (1-day minimum interval, keeper-triggered)
Swap Route	USDC → WETH → WBTC (0.05%+0.05% = 0.10%)
Drift Gate	10%
Streaming Fee	0.5% / year
Entry Fee	0.10%. No exit fee.
Slippage Guard	1% max per rebalance swap
Deposits	In-kind only (WBTC when weight=100%, USDC when weight=0%)
Withdrawals	redeemInKind — pro-rata USDC + WBTC, no fee, always available

Code is Law

The complete vault source code is below. Copy it, paste it into ChatGPT / Claude / any LLM, and ask it to audit. The same code is deployed and verified on Arbiscan. What you read here is what runs on-chain. No proxy, no upgrades, no admin override on the core logic.

Security Audit

The DeltaVault contract passed 3 rounds of security audit by 15 specialist agents. All formal invariants hold. All economic attacks verified unprofitable.

Key Findings

PASS — redeemInKind is immune to flash loans and price manipulation. Pure proportional math, no oracle, no swap. Cannot extract more than your fair share.
PASS — WBTC depeg risk mitigated. In-kind deposits and withdrawals (pro-rata USDC + WBTC). No oracle-priced USDC payout means no insolvency risk during a depeg.
PASS — redeemInKind always works, even when paused. Emergency exit path is never blocked.
PASS — SMA computed on-chain. No external oracle contract dependency. 45-entry ring buffer is fully transparent and verifiable.
PASS — Entry fee (0.10%) protects existing holders. Fee stays in vault. No exit fee.
PASS — Owner cannot steal funds. All critical parameters are immutable constants burned into bytecode.
PASS — Rebalance swap cost minimized. Multi-hop USDC→WETH→WBTC at 0.10% total fee. 10% drift gate prevents unnecessary swaps.
PASS — All formal invariants hold. Share price monotonicity, pro-rata fairness, fee accrual correctness verified across all edge cases.

Audit It Yourself

Don't trust us — verify. Copy the source code above and paste it into any LLM (ChatGPT, Claude, Gemini, Grok) with the question below. Compare the answer to our published findings.

Here is the full source code of a BTC trend-following vault (DeltaVault / vpBTC) deployed on Arbitrum. Strategy: binary MA(45d) — 100% BTC when price > SMA(45d), 0% (USDC) when below. SMA computed on-chain from a 45-entry daily price ring buffer. Deposits are in-kind only (WBTC when weight=100%, USDC when weight=0%). No swap on deposit. 0.10% entry fee. Withdrawals via redeemInKind: instant pro-rata USDC + WBTC, no fee, always works even when paused. Daily keeper rebalance with multi-hop swap USDC-WETH-WBTC (0.10% fee). 10% drift gate, 1% max slippage. 0.5% annual streaming fee. Pyth oracle for BTC/USD (MAX_PRICE_AGE=120s). Please audit for: (a) any way to steal funds or extract more than your fair share, (b) flash loan attack vectors on redeemInKind, (c) whether the owner can rug users, (d) MEV/sandwich risks on daily rebalance swaps, and (e) rate its overall production readiness from 1-10 with the single biggest risk.

Bitcoin exposurewith trend protection