/1
I came across a new project called @vestafinance and decided to dive deeper into it because it drew my attention. Why?
Let’s make a 🧵👇🏽 about it!
I came across a new project called @vestafinance and decided to dive deeper into it because it drew my attention. Why?
Let’s make a 🧵👇🏽 about it!
/2
First things first, what is @vestafinance? It is a #collateralized #debt protocol which means that the protocol allows for borrowing with a slight over-collateralization of just 110% instead of the usual 150 - 180% rates in $DeFi.
First things first, what is @vestafinance? It is a #collateralized #debt protocol which means that the protocol allows for borrowing with a slight over-collateralization of just 110% instead of the usual 150 - 180% rates in $DeFi.
/3
At the launch of the project you can deposit #ETH/#gOHM/#renBTC to mint $VST. (This is the stablecoin which can be minted through the protocol). If wanted, the $VST can always be converted back to redeem the underlying collateral.
At the launch of the project you can deposit #ETH/#gOHM/#renBTC to mint $VST. (This is the stablecoin which can be minted through the protocol). If wanted, the $VST can always be converted back to redeem the underlying collateral.
/4
How to keep $VST stable?
There is a #liquidation mechanism in place which will be activated if a user will pass the treshold of 110%. There is a vault in place called the “Stability pool”. Everyone can deposit $VST tokens in this vault. This vault will be mainly used …
How to keep $VST stable?
There is a #liquidation mechanism in place which will be activated if a user will pass the treshold of 110%. There is a vault in place called the “Stability pool”. Everyone can deposit $VST tokens in this vault. This vault will be mainly used …
/5
Whenever a borrower is #liquidated, in most of the cases depositors in the stability vault will make a net profit because there will be smt like 109.x% liquidated. If not, then the collateral will be redistributed among the other active vaults.
Whenever a borrower is #liquidated, in most of the cases depositors in the stability vault will make a net profit because there will be smt like 109.x% liquidated. If not, then the collateral will be redistributed among the other active vaults.
/6
In the protocol, agents of the protocol called “liquidators” can prompt to liquidate a vault (only if the treshold is being passed ofc). But this costs #gas. @vestafinance found something on this, the first solution is to use a cheap #L2, @arbitrum in this case ...
In the protocol, agents of the protocol called “liquidators” can prompt to liquidate a vault (only if the treshold is being passed ofc). But this costs #gas. @vestafinance found something on this, the first solution is to use a cheap #L2, @arbitrum in this case ...
/7
As second measure that’s being implemented is that the #gasfees will be paid by the protocol itself. This is done to stimulate liquidators so that under-collateralized loans won’t be standing out too long and will resulting in a net loss for the @vestafinance
As second measure that’s being implemented is that the #gasfees will be paid by the protocol itself. This is done to stimulate liquidators so that under-collateralized loans won’t be standing out too long and will resulting in a net loss for the @vestafinance
/8
This #gas comes from the 50 $VST that additionally needs to be paid when someone wants to start a #vault. If you want to close the vault this 50 $VST will be refunded (assuming that you’re not #liquidated).
This #gas comes from the 50 $VST that additionally needs to be paid when someone wants to start a #vault. If you want to close the vault this 50 $VST will be refunded (assuming that you’re not #liquidated).
/9
There will also be a #governance token dubbed $VSTA. The token gives the right to vote for certain adjustable parameters such as interest rates, new collateral types and minting-, & liquidation fees. There will be a total of 100 million tokens. It's allocated as follows:
There will also be a #governance token dubbed $VSTA. The token gives the right to vote for certain adjustable parameters such as interest rates, new collateral types and minting-, & liquidation fees. There will be a total of 100 million tokens. It's allocated as follows:
/10
Wen token? Good question, bit basic though. If everything is going well, the token will be launched in mid January 2022. The project will be doing a #fairlaunch, the details are #TBA.
Wen token? Good question, bit basic though. If everything is going well, the token will be launched in mid January 2022. The project will be doing a #fairlaunch, the details are #TBA.
/11
The $VSTA token can also be used to stake. When it’s staked it gives you a share of the fees generated by the platform. You’ll also be able to LP the tokens in designated liquidity pools this is for $VST and $VSTA.
The $VSTA token can also be used to stake. When it’s staked it gives you a share of the fees generated by the platform. You’ll also be able to LP the tokens in designated liquidity pools this is for $VST and $VSTA.
/12
The current model (V1) uses snapshots and a manual multi-sig to incorporate governance into the protocol. In V2 @vestafinance is looking for a full on-chain solution.
The current model (V1) uses snapshots and a manual multi-sig to incorporate governance into the protocol. In V2 @vestafinance is looking for a full on-chain solution.
/13
@vestafinance is also looking to expand to other #L2’s and eventually non-EVM compatible chains such as #Solana and #Near. What I found particularly attractive was the fact that the project will be creating a fully native application in the future. I’m excited for that!
@vestafinance is also looking to expand to other #L2’s and eventually non-EVM compatible chains such as #Solana and #Near. What I found particularly attractive was the fact that the project will be creating a fully native application in the future. I’m excited for that!
/14
The angelooors of this project are simply amazing! The round includes (but is not limited to):
@Tetranode
@sassal0x
@n2ckchong
@samkazemian
@0xmons
@dcfgod
@Not3Lau_Capital
The last 2 will join the project (with @0xMaki who already had joined ) as strategic advisors.
The angelooors of this project are simply amazing! The round includes (but is not limited to):
@Tetranode
@sassal0x
@n2ckchong
@samkazemian
@0xmons
@dcfgod
@Not3Lau_Capital
The last 2 will join the project (with @0xMaki who already had joined ) as strategic advisors.
/15
What attracts me the most about the project is what they are doing, if @vestafinance can really pull this off it could become a true upgrade for the whole #DeFi space (and $crypto in general) because capital lending and borrowing will be much more efficient.
What attracts me the most about the project is what they are doing, if @vestafinance can really pull this off it could become a true upgrade for the whole #DeFi space (and $crypto in general) because capital lending and borrowing will be much more efficient.
/16
I’m not related with the project or whatsoever but I probably will be buying in when I’ll have the opportunity. I used the docs as main source but they are based on @LiquityProtocol.
I’ll be posting any new updates regarding the project. If something's not good, please lmk!
I’m not related with the project or whatsoever but I probably will be buying in when I’ll have the opportunity. I used the docs as main source but they are based on @LiquityProtocol.
I’ll be posting any new updates regarding the project. If something's not good, please lmk!
/17
Found this #tweet interesting? Please give me a:
- Like❤️
- RT🗣
And follow me to stay up-to-date for any further developments of this project. This definitely IS a project to keep an eye on imho!
Don’t miss it #anon.
Found this #tweet interesting? Please give me a:
- Like❤️
- RT🗣
And follow me to stay up-to-date for any further developments of this project. This definitely IS a project to keep an eye on imho!
Don’t miss it #anon.
Update: I’ve got the “Scriba” role in the Discord.
The task of this role is to “Create more in-depth material relating to the inner workings of the protocol.”
I got this role after my thread. I felt that it is worth pointing because I want to be as transparent as possible🔥
The task of this role is to “Create more in-depth material relating to the inner workings of the protocol.”
I got this role after my thread. I felt that it is worth pointing because I want to be as transparent as possible🔥
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