eosDAC Enabled: Vigor, The crypto-backed stablecoin on EOS

Soyoung Kim
Sep 16, 2019 · 4 min read

Back in May, eosUSD launched on Mainnet with the help of the eosDAC technology and Pieces, one of the eosDAC developers. Later the project renamed itself to VIGOR: https://vig.ai or eos://vig.ai for those who have EOS DNS Chrome Extension installed. VIGOR has published a brilliant explainer video which we encourage everyone to watch:

eosDAC is thrilled to have enabled yet another fully functioning live DAC on the EOS mainnet. We hope to accelerate the development of the DAC ecosystem with our upcoming DAC hosting service. (Sneak preview of the DAC Factory on mobile using the EOS Authenticator

About VIGOR:

VIGOR presents a stablecoin on EOS which tracks the US Dollar. The platform offers borrowing stablecoin against EOS native tokens and will later offer borrowing EOS native tokens against stablecoin.

VIGOR can be imagined as a decentralised prime broker with no central point of control, with on-chain risk and compliance, enabling peer to peer borrowing of both crypto tokens and “cash” stablecoin.

VIGOR Stablecoin

The VIGOR stablecoin system enables separating and transferring volatility risk of collateral and price jump risk from borrowers to insurers. The system is the crypto version of borrowing and lending, but lenders are called insurers. Borrowers lock up tokens as collateral and borrow stablecoins. The collateral is price risky, so excess collateral is required along with buying loan insurance (vaguely similar to homeowners paying PMI private mortgage insurance on a home loan). The insurers lock up crypto tokens as collateral that capitalise an insurance pool. Borrowers pay an insurance premium (VIG tokens) into the system. The insurers earn and bailout any loans that become undercollateralized. When a bailout is triggered the borrower’s collateral, and debt is assigned pro-rata (according to contribution to solvency) to the insurers which recaps the debt. A cut of the VIG premium is stored in the last reserve which acts as an insurer of last resort. Storing VIG in reserve over time has the effect of shrinking the free float of VIG, making it more scarce.

VIG Utility Token

The VIG token has four utilities:

  • Access to the system as a borrower or insurer enabling user vote power for electing DAC custodians.
  • For paying/earning stablecoin loan insurance premiums.
  • Provides backing to stablecoin loans as an insurer of last resort, a final reserve.
  • Paying the fee token on time allows the user to maintain a crypto credit score.

VIGOR DAC, as all the DACs out there, is a community effort. Anyone interested in this project is encouraged to participate in building this decentralised autonomous community! Sign the constitution as an on-chain record of your interest in the project at vigor.ai or vig.ai or vigstack.io, if you want to get even more involved, join the Telegram group, jump into the discussions, ask the team for a stake token and then register as a Custodian candidate! Top 21 voted candidates can claim VIG utility tokens every day. As for the distribution of VIG tokens, it is still being discussed but potentially will be airdropped to the core supporters, wider EOS community, and eosDAC holders. So stay tuned!

Other Resources

Website: https://www.vigorstablecoin.com
Summary: https://vig.ai/vigorstablecoin.pdf
Chart: https://vig.ai/vigorvsmakerchart.pdf
Medium: https://medium.com/@andrew.peter.bryan/vigor-stablecoin-vusd-on-eos-bd3d47a947ea

Mission of eosDAC

eosDAC is a community-owned block producer on the EOSIO blockchain and also, the DAC enabler. Following the recent launch of a couple of DACs, we will continue to serve the EOS community with our mission to incubate more DACs. We envision that in the future these fractals of DACs will be blooming, disrupting the traditional companies where things are still centralised. Over time we will see communities challenging larger organisation nurturing the concept of DACs.

Back in early 2018 when eosDAC just started developing tools for launching our own DAC, it was our grand mission to be a DAC enabler. Here we are only a year later — the seeds began to sprout. We cannot wait to see how many projects will be using the DAC structure by the end of 2019 and next year and many years into the future! Join us today — become an active worker, run as a Custodian candidate, vote for Custodians and support eosdacserver (on EOS mainnet and WAX mainnet / bosdacserver on BOS)


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Soyoung Kim

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eosDAC

eosDAC

The Community-owned EOS Block Producer

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