1/ A short explanatory thread on @vestafinance covering:
• What the project is about
• How they differentiate themselves from competitors
• Mechanisms
• Why I am excited about this project
• What the project is about
• How they differentiate themselves from competitors
• Mechanisms
• Why I am excited about this project
2/ TLDR
Vesta Finance is a lending protocol (currently building on Arbitrum) that allows users to borrow $VST stablecoin against their collateral without having to pay interest rates
It offers instant redemptions and is governed by a stability pool (auto liquidations)
Vesta Finance is a lending protocol (currently building on Arbitrum) that allows users to borrow $VST stablecoin against their collateral without having to pay interest rates
It offers instant redemptions and is governed by a stability pool (auto liquidations)
3/ Some things to take note of before delving deeper:
• $VST - Vesta stablecoin pegged to the USD
• $VSTA - Vesta governance token
• MCR - Minimum Collateralization Ratio
• Vaults - Collateralized debt positions
• Stability pool - Liquidate vaults that are below MCR
• $VST - Vesta stablecoin pegged to the USD
• $VSTA - Vesta governance token
• MCR - Minimum Collateralization Ratio
• Vaults - Collateralized debt positions
• Stability pool - Liquidate vaults that are below MCR
4/ Vesta's Inspirations
Vesta is similar to @MakerDAO and @LiquityProtocol which allow users to collateralize their ERC-20/$ETH tokens to mint stablecoins
These are excellently covered by @n2ckchong and @ishaheen10 linked below
Vesta is similar to @MakerDAO and @LiquityProtocol which allow users to collateralize their ERC-20/$ETH tokens to mint stablecoins
These are excellently covered by @n2ckchong and @ishaheen10 linked below
https://twitter.com/n2ckchong/status/1391278152224174081
https://twitter.com/ishaheen10/status/1445504984091557888
5/ Limitations of Incumbents
However, several limitations exist with these protocols of which Vesta Finance took note and improved on
Both the limitations and improvements are outlined below:
However, several limitations exist with these protocols of which Vesta Finance took note and improved on
Both the limitations and improvements are outlined below:
6/ Analysis
From there, we analyse Vesta from the borrower and depositors' perspective who are ultimately the key end users and how Vesta can be beneficial to both parties
From there, we analyse Vesta from the borrower and depositors' perspective who are ultimately the key end users and how Vesta can be beneficial to both parties
7/ Borrower POV
Users can choose to borrow $VST or redeem back their collateral
a) Borrow: Users lock up collateral in vaults to borrow $VST in return which are fully redeemable (e.g. $100 $VST for the same $100 worth of the collateral)
Users can choose to borrow $VST or redeem back their collateral
a) Borrow: Users lock up collateral in vaults to borrow $VST in return which are fully redeemable (e.g. $100 $VST for the same $100 worth of the collateral)
8/ Should the minimum collateralization ratio (MCR) fall below 110%, the position is under-collateralized and liquidated
b) Redemption: To get back the collateral, simply exchange the borrowed $VST back for the underlying collateral at face value (minus redemption fees)
b) Redemption: To get back the collateral, simply exchange the borrowed $VST back for the underlying collateral at face value (minus redemption fees)
9/ Depositor POV
Users can choose to deposit $VST or $VSTA into the protocol
a) Deposit: Deposit $VST into the Stability Pool to earn collateral from any liquidations (if positions go below the MCR)
b) Stake: Stake $VSTA to earn a share of the redemption/ issuance fees
Users can choose to deposit $VST or $VSTA into the protocol
a) Deposit: Deposit $VST into the Stability Pool to earn collateral from any liquidations (if positions go below the MCR)
b) Stake: Stake $VSTA to earn a share of the redemption/ issuance fees
10/ Closing Thoughts
a) Acquiring larger user base: With the absence of MakerDAO and Liquity, Vesta Finance can take adv of Arbitrum's low fees to capture users who are priced out of using Ethereum
b) Community focused: 50% of total supply will be distributed to the community
a) Acquiring larger user base: With the absence of MakerDAO and Liquity, Vesta Finance can take adv of Arbitrum's low fees to capture users who are priced out of using Ethereum
b) Community focused: 50% of total supply will be distributed to the community
11/
c) Strong advisors: @dcfgod and other beeg pps as advisors, need I say more anon?!
Be sure to check out their documents to more DD on their protocol, as well as their Discord since they are still handing out roles for active contributors
c) Strong advisors: @dcfgod and other beeg pps as advisors, need I say more anon?!
Be sure to check out their documents to more DD on their protocol, as well as their Discord since they are still handing out roles for active contributors
11/ Official links
Discord: discord.gg/7KxyQREU
Twitter: @VestaFinance
Docs: docs.vestafinance.xyz
Medium: medium.com/@vestafinance
Dev/ Admin: @mikey_milken @0x_tani
Discord: discord.gg/7KxyQREU
Twitter: @VestaFinance
Docs: docs.vestafinance.xyz
Medium: medium.com/@vestafinance
Dev/ Admin: @mikey_milken @0x_tani
12/ Happy holidays my fellow degenerates and trusty intern squad!
@cmsintern @Darrenlautf @analyticalali @M6intern @wassiecapital @The_ReadingApe @0x4C756B65 @jiminstupid @0xminion @0x_intern @delphiintern @sandraaleow @Kyros_Intern @Trudahamzik @playtern @LongHashIntern
@cmsintern @Darrenlautf @analyticalali @M6intern @wassiecapital @The_ReadingApe @0x4C756B65 @jiminstupid @0xminion @0x_intern @delphiintern @sandraaleow @Kyros_Intern @Trudahamzik @playtern @LongHashIntern
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