VVS Finance, or Very Very Easy Finance, is an automatic market maker (AMM) DEX and the biggest challenge constructed on the Cronos blockchain, launched by Crypto.com in 2021.
VVS facilitates liquidity swimming pools, swaps, and staking and presents an intuitive UI aiming to drive world adoption of DeFi.
Learn on for a deep dive into the VVS Finance protocol and its key options.
Govt Abstract
- VVS Finance is an AMM DEX that facilitates buying and selling with no order books or intermediaries. It implements a sensible contract that makes use of the property and liquidity supplied by liquidity suppliers.
- VVS Finance’s distinctive promoting factors (USPs) embrace Bling Swap, Liquidity Provision, Crystal Farming, Glitter Mining, Preliminary Gem Choices (IGOs), and Analytics.
- VVS is the VVS Finance protocol’s utility, reward, and governance token.
What Is VVS Finance?
VVS Finance is a decentralized finance (DeFi) platform constructed on the Cronos blockchain. It was created to simplify the DeFi marketplace for everybody and empower the plenty to take management of their funds.
To make DeFi extra accessible to billions of shoppers worldwide, VVS Finance presents quick transactions, minimal fees, and excessive potential earnings. The DeFi platform additionally intends to create passive income streams for customers by way of numerous choices, corresponding to yield farming.
Definition: Yield farming is an funding technique permitting customers to lend their digital property in alternate for advantages like curiosity or a share of the platform’s transaction charges.
Primarily based on the Cronos blockchain, VVS Finance allows customers to swap cryptocurrencies or stake their digital property to offer liquidity in several liquidity swimming pools. In alternate, VVS Finance permits traders to obtain two-thirds of the collected swap charges. Equally, the platform permits customers to gather liquidity awards within the type of 0.2% of buying and selling transaction charges.
Using the AMM protocol allows VVS Finance to offer incentives to customers to make sure long-term sustainable development. The platform focuses on making it easy for customers to switch tokens and obtain dividends “whereas having enjoyable.” VVS Finance emphasizes the “enjoyable” facet of DeFi to onboard as many customers as potential, together with these with little to no prior expertise in blockchain and cryptocurrency. The VVS workforce believes the extra customers on the platform, the higher worth there will probably be for community contributors.
Who Created VVS Finance?
The VVS Finance workforce calls its members the “Craftsmen” – “Coming from a deep product design background, a workforce of humble farmers acquired collectively, decided to construct DeFi merchandise for our aunts and neighbors, to convey superb protocols to the plenty.”
Whereas staying nameless, VVS Finance has efficiently created a number of useful partnerships with key strategic companions, such because the Crypto.org and Crypto.com ecosystems.
What makes VVS Finance Distinctive?
VVS Finance’s distinctive promoting factors (USPs) embrace the next:
Bling Swap
Bling Swap is an algorithmic routing system that allows customers to swap tokens throughout a number of liquidity swimming pools to acquire a greater value for the requested pair. Customers can swap tokens for a small charge of 0.3%.
Liquidity Provision
Customers can turn out to be Liquidity-Suppliers (LPs) by including tokens to a liquidity pool. As proof of their share of the pool’s property, every LP is given a CRC-20 pool token (LP token). To commerce by way of their liquidity swimming pools, customers should pay swap charges to LPs.
- Liquidity suppliers get two-thirds of swap charges (0.2% of swap quantity at launch);
- 0.1% of the swap quantity at launch, or one-third of swap charges, is held in treasury.
The swap charges are stored in liquidity swimming pools’ reserves. Customers will obtain their proportionate half in alternate for his or her share of the reserves when pool tokens are returned.
Earlier than selecting to contribute to a liquidity pool, LPs are suggested to weigh the danger of impermanent loss towards the anticipated share of charges and earnings as a result of they could expertise impermanent loss if the tokens’ costs lower.
CRYSTAL Farming
LPs can stake their LP tokens in “Crystal Farms” to get VVS tokens as rewards.
- View: Customers can view the eligible pool, in addition to the staked, earned, and APR percentages for every pool (accessible after Pioneer Farming Mode);
- Stake: Permits customers to pay fuel charges and shortly stake certified LP tokens in just a few clicks;
- Declare: Facilitates clients’ fast and simple claims of their amassed VVS by paying fuel charges;
- ROI calculator: Permits customers to calculate their ROI by getting into the stake quantity, time-frame, and compounding length. (accessible after Pioneer Farming Mode).
Glitter Mining
The “Glitter Mine” permits non-LP customers to stake VVS tokens and get VVS tokens or different accomplice tokens as rewards. Along with the View, Stake, Declare, and ROI calculator options, customers can even use auto-compounding, which permits customers to activate the auto-compounding of staked VVS tokens for every person within the Auto VVS pool in alternate for VVS tokens.
Preliminary Gem Choices (IGOs)
Customers can profit from bigger rewards and early entry to Cronos ecosystem’s new initiatives by way of the VVS Preliminary Gem Choices. They will purchase the brand new initiatives’ tokens utilizing VVS-CRO LP tokens by collaborating in one of many two sale choices: fundamental sale or limitless sale. Let’s discover their traits.
Fundamental Sale
- Customers can commit VVS-CRO tokens as much as a most decided quantity (differs for every challenge, e.g., $100, $500 value)
- No participation charges
- If there’s an overflow within the subscription, any unspent LP token will probably be returned.
Limitless Sale
- No cap on the quantity of VVS-CRO to commit
- The participation charge will decline based mostly on the proportion of overflow. The preliminary participation charge is about at 1%.
- If there’s an overflow within the subscription, any unspent LP token will probably be returned.
Analytics
Analytics permits customers to entry the general VVS Finance protocol’s per-token/pair knowledge, together with liquidity, buying and selling quantity, and so forth. Customers can entry the VVS protocol by way of a devoted internet interface and join utilizing the Crypto.com Pockets Extension or any cellular pockets that helps WalletConnect (obtainable on the Crypto.com DeFi Pockets).
VVS Finance intends to offer native pockets integration with standard wallets and API entry sooner or later.
Why Is VVS Finance Standard?
VVS Finance intends to simplify DeFi by providing a user-friendly interface, seamless swaps, liquidity swimming pools, staking, quick and low cost transactions, and so forth.
A cryptocurrency challenge’s well being can be evaluated in keeping with the next standards:
- Substantial market cap: Within the first few months since its launch, VVS Finance’s market cap elevated from $20 to $170 million and has mirrored the final market pattern since then.
- Affordable buying and selling quantity: VVS Finance’s buying and selling quantity has primarily stayed inside 5 and 20% of its market capitalization vary.
- Worth motion: The protocol’s VVS token’s value motion is roughly as risky as you’d anticipate from a brand new DEX challenge and a brand new chain, however with out unusual pumps.
What Is VVS Token?
VVS is the VVS Finance protocol’s utility, reward, and governance token. The VVS token was created on the Cronos blockchain’s CRC-20 structure. VVS adopts an emission mannequin through which 50 trillion VVS will probably be created within the first yr and half of that yearly after that (for instance, 25 trillion within the second yr), and the per-block emission relies on the chain’s technological design.
VVS tokenomics is as follows:
- 30% to farms and liquidity mining
- 23% to the workforce
- 15% to the neighborhood pockets for future initiatives
- 13.5% for community safety and upkeep
- 13.5% for ecosystem growth
- 2.5% to merchants and referrers
- 2.5% to market makers.
Along with the Cronos blockchain’s core VVS and CRO tokens, the protocol additionally helps USDT, USDC, SHIB, ATOM, and different tokens.
The VVS Finance workforce makes the present governance choices in session with the neighborhood suggestions; nevertheless, to totally decentralize the protocol, VVS Finance intends at hand the challenge over to VVS token holders regularly.
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How Many VVS Tokens Are in Circulation?
VVS’s whole circulating provide is 2.2 trillion. Its whole provide is over 36 trillion, growing to 100 trillion over ten years by way of its emissions schedule.
How Does VVS Finance Work?
VVS Finance focuses on examined and audited protocols. It supplies a profitable inventive program supported by the native VVS Finance token (VVS).
The protocol presents liquidity swimming pools, every consisting of two tokens. Tokens are added to the pool by liquidity suppliers after which traded amongst merchants.
The methodology relies on a formulation for producing a constant product. To make clear, after a swap is carried out, the sum of the portions of each tokens in a pool stays the identical. Moreover, the worth slippage from the swap could differ in keeping with the whole quantity and distribution of tokens within the pool.
The stakeholders can revenue from VVS Finance’s underlying mechanisms within the following methods:
- Liquidity suppliers (LPs): LPs obtain 2/3 of the person swimming pools’ transaction charges. You’ll get VVS incentives for staking legitimate LP tokens below the “Crystal Farm” tab.
- VVS stakers: Stakers are rewarded in VVS and accomplice tokens for staking VVS on the “Glitter Mine” web page.
- Buying and selling incentives: Rewards for buying and selling tokens on VVS Finance are promised to customers who swap tokens on the platform however have but to be made public. Referral program: Customers recommending others to commerce on VVS Finance will obtain advantages which have but to be disclosed.
A large quantity of the VVS provide is put aside for future neighborhood initiatives to make sure advantages for the VVS Finance contributors and customers.
Backside Line
VVS Finance is constructed on the Cronos blockchain that facilitates low cost and quick transactions and leverages confirmed and audited protocols. It additionally supplies a rewarding incentive scheme powered by the VVS Finance token.
The VVS Finance value prediction anticipated regular development, drawing inference from its market capitalization transferring from $20 to $170 million after which to $350 million in early April. If VVS Finance continues its regular development, the protocol might retain its giant market share on the Cronos blockchain.
