As CoinMetro has now opened trading for Vesper Finance, the ‘why’ question needs to be answered.
This article explains what VSP is and examines it’s potential going forward… Let’s dive right into it!
What is Vesper Finance?
Vesper Finance (VSP) is a comprehensive DeFi ecosystem and growth engine for crypto assets that provides a broad range of yield-generating products.
In essence, the Vesper project rests on three solid pillars: accessibility, optimization, and longevity.
At its core, Vesper Finance has interest-yielding Grow Pools – the first product ever launched on the Vesper platform.
Grow Pools, i.e., algorithmic DeFi lending strategies, enable the platform users to passively increase their crypto holdings – in a smart and easy way. All it takes is selecting the desired aggressiveness of your strategy and the digital asset held. In other words, if you have a crypto-finance goal, you can achieve it easily with Vesper Finance.
Understanding Vesper Grow Pools
Vesper Grow Pools are unlike any other. They pool capital from a user group and deploy it to generate interest across various DeFi protocols. Accrued interest is then used to buy back the pool’s deposit asset and award it as interest to participants.
Put differently, choosing the pool that’s of interest to you and depositing your asset. One transaction – and the selected pool will do the rest. Similarly, with just one transaction, you can withdraw your funds and claim your interest.
What’s the Benefit of Grow Pools?
Grow Pools deploy assets into various DeFi lending strategies. Users can choose pools based on risk tolerance and tokens. In a nutshell, this is what Vesper Finance does – it saves its users a lot of time, down to a one-time deposit and withdrawal.
What’s more, pool participants can also farm VSP tokens. This allows to further reward users with more passive returns, catalyze participation, and promote the progressive decentralization approach.
The VSP Token
The Vesper token (VSP) is the core economic engine that facilitates the building and expansion of the Vesper ecosystem and its community.
The VSP token incentivizes participation, facilitates governance, and catalyzes user contribution. Users earn VSP not only through pool participation, but also later participating in Vesper’s continuous improvement.
How Do I Earn VSP Tokens?
Members earn VSP tokens in three ways: participating in Grow Pools, providing liquidity, or staking VSP.
Participation in Grow Pools
A certain amount of VSP tokens is assigned to each Vesper Grow Pool. These tokens are distributed to participants proportional to the size of their stake in the pool.
In addition to VSP farming on Vesper pools, liquidity providers to VSP/ETH market pairs can also earn VSP rewards by staking their tokens into the corresponding Vesper liquidity pool.
The token pairs will be incentivized for the first twelve months. VSP holders decide upon any potential extensions beyond the above-mentioned time frame.
Users can deposit their tokens to the VSP treasury pool – just like depositing ETH in the ETH pool creates vETH, depositing VSP tokens in the VSP treasury creates vVSP.
So, withdrawal and yield fees are collected in the pool (ETH, BTC, USDC, etc.). They then go to the Treasury Box to buy back VSP tokens on Uniswap. This VSP is delivered to vVSP pool participants as yield on their deposit.
No doubt, a solid crypto community is what makes the project a success – at CoinMetro, we know that too well. By the way, join the rest of the CoinMetroids on Telegram.
Vesper Finance is building a user base that will sustain and grow the project’s product range, facilitate progressive decentralization as well as enable users to build new products – earning a share of products’ fees in the meantime.
Trading VSP on CoinMetro
As previously mentioned, the VSP/USD trading pair is open for trading on CoinMetro. Please note this asset is only available on the main exchange via limit orders.
In the near future, we will enable market orders and swaps for VSP as well as support additional fiat pairs, including EUR, based on demand.