What can you do with DPX on Vesta?
Users can now collateralize DPX on Vesta and take out VST loans at as low as 150% collateralization ratio. During critical mode, the collateralization ratio will be set at 170%. The mint fee is set at 1.25% and is subject to change by governance.
To open a vault, simply use vestafinance.xyz. For more detailed instructions, please go to: https://docs.vestafinance.xyz/tutorials/lending-tutorials/opening-a-vault
Beside depositing into the VST-FRAX farm for 30% yield on FXS or deposit into the stability pools to earn rewards + liquidation gains, here are some other ideas for using the liquidity that Vesta can give you ⬇️
“The Dopex bull”
This is an idea for users that want to accumulate more DPX by leveraging their current holdings.
The user can deposit their DPX to Vesta, mint VST and use the freshly minted stablecoin to buy more DPX. If the price of the token keeps going up, the users’ profits will increase significantly.
However, the user needs to remember about the risk of liquidation — as if the price goes down, they may lose their tokens posted as a collateral
“Cash for DPX”
This one is for long-term holders that don’t want to sell their DPX, because they hold the token long-term, but they need some short-term cash. Maybe they want to buy a Diamond Pepe NFT. Maybe they need to pay their taxes. Maybe they need to buy a birthday gift for their parents.
What can they do? They can post some of their DPX to Vesta and mint VST.
They can use VST as they wish, while they keep exposure to DPX price movements. Once they collect their cash back — they can repay the VST loan and release the collateral.
“The Options Degen”
It’s for Dopex degens. It’s for a degen that wants to buy more options from SSOV or wants to buy more options from the OTC platform. It’s all-in risk.What if the user is 100% in DPX and wants to keep the price exposure? Well, such a user can post DPX as collateral in Vesta and mint some VST. This VST can be used to buy more options. But the degen user needs to remember, it’s a high risk idea.
Vesta will continue to seek collaboration with Dopex on more fronts. As Dopex rolls out its Atlantic Options product, Vesta will work with Dopex on creating more structured products to enrich your trading journey. Stay tuned!