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Last updated: Nov 22, 2022
VVS Finance is an Automated Market Maker which comes with standard DeFi features like instant token trading, liquidity pools, staking, and liquidity mining programs all in one forming an umbrella ecosystem aimed at increasing users’ income. Furthermore, the protocol helps DeFi projects to turn their ideas to life with their Launchpad platform Initial Gem Offering (IGO) program.
VVS is built on Cronos and is claimed to be the first and biggest AMM DEX on Cronos so far.
The following four products are the core components of the VVS Finance platform: Bling Swap, Crystal Farms, Glitter Mines, and Initial Gem Offering.
Bling Swap is the AMM based on liquidity pools allowing users seamlessly trade tokens by paying a 0.3% trading fee that is split between the Liquidity Providers and the VVS Finance treasury. Users contributing their crypto holding into the VVS finance liquidity pools will receive the LP tokens in exchange proportional to their share and earn 2/3 of the trading fees generated from any pair of tokens they have provided liquidity for.
To earn additional rewards in the form of the protocol’s native token VVS, these LP tokens can be deposited into the Crystal Farms.
Flash LP is a newly introduced feature on the VVS Finance platform which enables providing liquidity, obtaining LP tokens, and instantly staking them in the corresponding Crystal Farm in a few clicks.
VVS Finance has also integrated a Limit order function, which allows users to buy or sell a cryptocurrency at a specific price. However, this feature is powered by a third-party protocol Gelato and hence recommended to be used at one’s own risk.
VVS token holders may earn more VVS by staking them via Glitter Mines with two options: Auto VVS will autocompound the staked VVS and Manual VVS will require manual harvest and reinvesting of rewards. Auto VVS will imply a VVS Finance fee charged in case of unstaking (1%) and a 2% performance fee subtracted automatically from each harvest.
Initial Gem Offering (IGO) is a launchpad platform that empowers the VVS community to participate in the initial purchase offering of tokens from new projects launching on Cronos while giving partners a chance to launch their projects on VVS Finance.
Before proceeding with the VVS Finance app, it is first required to connect a wallet. The three wallets VVS Finance supports are Metamask, Crypto.com Defi wallet, and Crypto.org Chain Desktop wallet.
The upper navigation bar of the VVS Finance app locates several sections. For swapping tokens, it is required to click on the Trade section and select Swap from the drop-down menu, then select the desired token pair, enter the amount, and confirm the trade by clicking the “Confirm Swap” button and paying the gas fee.
To provide liquidity, users have to switch to the liquidity section, then select the desired token pair to provide liquidity for, enter the desired amount and then click “Supply” to confirm the operations.
Once LP tokens are on hand, they can be locked into Crystal Farms to earn additional rewards. For that to happen, user can navigate to the Earn section and select Farm from the drop-down list, then choose the relevant farm from the list, Click “Start Farming”, then deposit the desired number of LP tokens and click “Confirm”.
Users wishing to stake their VVS tokens via Glitter Mine, have to click on the Earn section and select Mines from the drop-down list, then choose between Auto VVS and Manual VVS, then click “Stake”, confirm the amount of VVS to stake in the Mine, and confirm the operation.
VVS is the VVS Finance native CRC-20 token. Launched in early November 2021, VVS adopted an emission model where the 50 trillion will be produced in the first year and then halved every year after that. The initial token distribution plan was as follows: 30% - farms and liquidity mining; 23% - team; 15% - community wallet for future initiatives; 13.5% for the network security and maintenance; 13.5% for ecosystem development; 2.5% to traders and referrers; and 2.5% to market makers.
VVS Finance has recently amended its token economy by introducing a new xVVS yield-bearing token. The main goal of this token is to drive the long-term utility of the VVS token and provide higher incentives to miners.
xVVS can be obtained by staking VVS tokens. xVVS holders can benefit from receiving a portion of the protocol’s revenue, as well as locking these tokens into xVVS Vaults to earn VVS. In the future, xVVS is planned to be used for submitting and voting on proposals as soon as the protocol introduces its Governance vehicle.
With the new tokenomics, out of the 0.3% platform trading fee, 0.2% will go to LP providers, 0.08% to be used for VVS tokens buyback from the open market and redistribute them to xVVS holders as yield, and the remaining 0.02% will be kept for the treasury.
VVS finance smart contracts are open source and can be reviewed by the community. The team behind VVS finance names itself Craftsman and does not reveal the identities of its members.
VVS Finance hosted the following projects under its Initial Gem Offering program: Versa Game, the next-generation community-driven NFT-gaming ecosystem, Ferro Protocol, a StableSwap AMM project, Argo Finance, a liquid staking protocol.
Other strategic partners of VVS finance in the field of liquidity mining programs are Beefy Finance and Tectonic Finance.
According to VVS Finance 2022 roadmap, the protocol plans to introduce a governance mechanism, where the community’s voting power will be proportional to their share of xVVS; launch a VVS Referral System, establish VVS Union Club to give additional utility to VVS holders, and reward the long-term supporters; launch VVS NFT Collection and VVSgotchi GameFi.
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