Vires.Finance: Tokenomics and Roadmap
Vires.Finance is a pool-based liquidity protocol facilitating lending and borrowing capabilities at rates defined by the market equilibrium.
Launched in July 2021, we haven’t yet shared our plans for Vires. Today, we present our vision of the future of Vires.Finance Protocol: what’s coming this year, 2022 and beyond.
Asset Voting
In the nearest future, voting for assets to add will be enabled. Everyone can propose, everyone can vote for and against. After soon as the voting is successfully passed, the assets will be added to the interface, available for lending and borrowing.
Voting is not enough though: certain limitations on liquidity and volatility need to be imposed, also the collateral factor and the liquidation threshold will depend on that.
To make the process smoother, kindly use the forum:
- to discuss requirements: https://forum.vires.finance/t/token-onboarding-requirements/13
— to propose a token for onboarding, create a thread here: https://forum.vires.finance/c/vip/5
Metamask support
As soon as Zegema release is live and activated, everyone will be able to execute all transactions at Vires.finance directly with metamask🦊.
vTokens
A relatively small user-side improvement to allow protocol participants to export their lender position in the form of tokens. Tradeable and transferrable.
ViresUSD(vUSD)
Vires Finance is designed as a digital assets ecosystem, and introducing a stablecoin is one of the next steps on that path.
ViresUSD(vUSD) is a future stablecoin cryptocurrency that aims to keep its value as close to one United States dollar (USD) as possible. It is to be regulated by Vires DAO, who may vote on changes to certain parameters to ensure stability.
Minting ViresUSD(vUSD) is to be as simple as borrowing: technically there’ll be no difference between minting ViresUSD or borrowing USD(N/T/C) for a basket of other coins.
Of course, when there’s borrowing, there’re liquidations. Yet another not unusual mechanics for current protocol architecture: Liquidators will seize part of collateral and part of the debt(“minted ViresUSD(vUSD)”). Now it’s up to a liquidator to sell the collateral for vUSD and close the debt for the minter.
Altogether, ViresUSD(vUSD) is a collateralized debt position (CDP) via Vires DAO to secure assets as collateral on the blockchain. With this architecture, ViresUSD falls into the category of Crypto-Backed Stablecoins(like DAI/Oasis) as opposed to algorithmic stablecoins(sUSD, USDN) or fiat-backed stablecoins(USDT, USDC), the most stable answer to the question of collateralization of the assets. If we continue that analogy, $VIRES is set to play a role similar to one of MKR.
Minting fees are set to be distributed among Vires stakers.
Protocol Governance and Profit Distribution
VIRES stakers get direct control of the protocol
Good or bad, every decision made is to be voted through on-chain governance.
This is how it is going to work: Every transaction, changing the rules of the game, can be created by anyone, but need to pass voting to be applied. Everyone gets a chance to review, comment, vouch for or against it. After the vote has passed, anyone can broadcast the transaction, making the changes immediately affective.
This is pure DeFi governance, also powered by waves’ flexible smart contract system: why make a market obsolete if DAO(and only DAO) can simply upgrade it?
VIRES stakers directly share the revenue of the protocol
Revenue streams from all lending pools are to be shared across Vires Stakers.
Simple as that: if you stake Vires, you get revenue. Governance and profit distribution can only come together. There’s no such thing as decentralized buybacks, there’s no distribution for guests. However, one more thing is missing in the picture, and that is commitment.
Responsible DAO: From Naïve Staking to Commitment through Locking
It would be a very undesirable scenario if a group of individuals forces a suboptimal proposal to pass, gaining the advantage of it and immediately selling afterward. This is not the right way by any means, and here’s the balance as we understand it should be done:
- VIRES stakers make governance decisions,
- VIRES stakers share revenue stream,
- to become VIRES staker, one will need to lock VIRES;
In short, if you commit to participating, you get your share of what’s to come, including risks, fair and simple.
What to do?
Provide liquidity to pools, earn and stake VIRES, follow us on social media for the latest updates:
