WAVES Leasing & USDN Staking
Vires.Finance is a pool-based liquidity protocol, facilitating lending and borrowing capabilities at the rates defined by the market equilibrium.
Native WAVES leasing & USDN staking has been enabled on Vires.Finance. This increases APYs for those tokens, but also requires an update on borrow rates.
What does it mean for liquidity providers?
Just the good news: Every WAVES and USDN provided to Vires.Finance now generates income!
Here’s how it works:
When users provide liquidity to Vires.Finance, part of it is lent to other users. The borrowers pay Borrow APR, which is distributed across liquidity providers in the form of Lending APY. The higher the utilization is, the greater the APY and the APR are. With the new update, the unused(non-lent) USDN are automatically staked to Neutrino to generate additional USDN revenue for the liquidity providers.
The same is true for WAVES: the unused(non-lent) WAVES are always automatically leased to a node to generate additional WAVES revenue for the LPs.
Altogether this makes Vires.Finance the best place to stake WAVES and USDN: not only the liquidity providers enjoy the highest return via the combined revenue streams, but also participate in the early-bird campaign to earn additional $VIRES!
What does it mean for the borrowers?
As of today, you(might) see a bit of a confusing picture: Borrow APR is lower than Deposit APY.
This is not an equilibrium by any means, and the market can rebalance itself.
However, we think USDN staking and WAVES leasing APYs should be treated as the base rates for those assets, so the minimum Borrow APR for assets needs to become higher. However, since there’re open borrows, it would be incorrect to do that instantly.
The ‘A’ param(minimum Borrow APR) for WAVES(from 0% to 3%) and USDN(from 0% to 6%) will slowly be tweaked over the next few days(the rest of the parameters will remain intact). This will additionally increase Lending APY for WAVES & USDN suppliers.
What to do?
Provide liquidity to Vires.Finance, enjoy the highest returns for staking assets with no impermanent-loss risks, and, as always, follow us on social media for the latest updates:
