Introducing Valas

2 min readMar 27, 2022

What is it?

Valas is a lending market based on AAVE v2 and Geist which is the largest lending protocol on Fantom. On Valas, stakers and lockers earn 50% of the protocol revenue, and liquidity providers the other 50%.

Valas is a native BNB Chain (previously BSC or Binance Smart Chain) protocol, its entire supply will be distributed to users of the protocol through liquidity mining and everyone gets a chance of reaping the rewards of using the protocol. Like Geist, half of Valas protocol revenue will be shared with VALAS holders that stake or lock their tokens.

Token

The VALAS token is a revenue sharing token allowing its holders to receive a share of the protocol revenue. Like GEIST, it is not a governance token, as communities have continuously shown preference for revenue over voting rights.

Ecosystem

The BNB ecosystem benefits from Binance which in turn allows most native BNB tokens to have Chainlink feeds unlike many other L1s. This means Valas will support many different assets available on BNB from launch, assets which may not be supported on other lending markets as of yet.

Improvements

Penalty fees for VALAS are different from Geist Finance. Instead of having a fixed 50% penalty fee to those who exit their vesting period, the penalty fee will start at 75% and decay linearly to 25% over three months.

Burn mechanism

VALAS lockers earn early exit penalty fees up to a maximum of 50%, the rest is burned. This means that if a user chooses to immediately break their vesting period and pay the maximum 75% penalty, 50% is distributed to VALAS lockers, and 25% is burned, taking the tokens forever out of circulation. If the exit penalty is below 50%, the entire penalty goes to VALAS stakers.

Tokenomics

50% liquidity mining incentives
20% VALAS/BNB incentives on PancakeSwap
20% Team
10% Airdrop, Bribes, and other Valas usage incentives

Launch assets

BNB
BUSD
USDC
USDT
DAI
CAKE
ETH
BTCB

Airdrops

Communities from Blizz and Geist will each receive 1% of the supply proportional to their registered balance. Users will be invited to register their balance on Avalanche and Fantom before midnight UTC on the 4th of April.