What is the Utility of the VSO token?
What is Verso Finance?
Verso Finance is a decentralized marketplace which is standardizing how financial products are created, distributed and settled. In order to create, distribute and settle these financial products Verso Finance created the Verso Token (VSO) on the Avalanche C Chain.
The VSO Token is used for a variety of purposes such as granting access to the platform. It is also used for the marketing, placement and conversion of products.
If you want to know more details/examples about the idea of Verso Finance check out our Blog post: What is the Verso Ecosystem? In short, the VSO Token grants users the access to Verso financial platform and its services. The token is required for product funding, validator rewards, voting and processing product fetching. In addition to VSO, stable coins are used as well depending on the implemented use case.
Verso process flow
- Financial service providers can create a product and set the product’s campaign criteria which require the purchase of VSO Tokens.
- Financial providers pay fees in VSO into the participation pool to offer the product and validators collect these VSO fees from the pool as a reward for validating financial provider products.
- To become a Validator you need to stake 1 million VSO Token
- Validators are the ones who validate the legitimacy of the products offered by financial institutions in a given country and are rewarded with VSO tokens.
- Validators ensure the compliance of the product which is then transferred from the unverified to the verified product pool.
- Wallet providers can fetch products for in-App display. These products are only displayed to appropriate customers. The wallet will receive a “fetch bonus” in VSO Token based on the product they choose. A conversion bonus (a flexible rate depending on the amount of successful conversions made with their customer base) will be paid in VSO Tokens to the wallet.
In summary, the parties involved for the VSO Token usage are financial institutions/service providers, validators, wallets/e-money providers
This means that the more institutions join the Verso Network and the higher the conversion rate is, the more buying pressure is created for VSO.
Below you can find an illustration of the process flow of an insurance product and all the transactions that take place:
How can VSO Token be used for governance?
As part of the Verso community, you can stake VSO Token in order to participate in the Verso governance process. This results in that VSO Token holders can shape Verso Finance as a marketplace going forward.
The community can make decisions about new product types, add or remove product parameters, participate in data sharing, adjust to product placement price and related allocations, approve new validators.
Any future actions to be taken on the tokens in the Ecosystem Development Pool are also taken by the Verso community.
Conclusion
As shown above, the VSO Token plays a crucial role for the Verso Finance project. VSO Token has a fundamental role in the mechanics of Verso Finance and makes it possible that financial product providers, validators and e-wallets can interact with each other through the VSO token.
Got any questions or would like to participate in the life of the Verso community?
Head on over to our social media:
https://www.facebook.com/VersoFinance/
https://twitter.com/versofinance
Our English Telegram Channels:
https://t.me/versofinance — English Telegram Channel
https://t.me/versofinance_ANN — Announcement channel
Our Other Telegram Channels:
https://t.me/versofinanceturkey — Turkish
https://t.me/versofinancech — Chinese
See you there!
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