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The decentralized lending cross-chain platform Vee.Finance integrates lending agreements and leveraged transactions to improve asset utilization.
Written by: Funky
Although NFT was in the limelight in the second half of this year, DeFi is still the backbone of the growth of the entire encryption industry. According to data from DeBank on September 10, the total lock-up volume of the DeFi ecosystem is as high as 113.6 billion U.S. dollars. Among the top ten lock-ups, lending and DEX each account for half, indicating that lending platforms and decentralized exchanges have become the two largest DeFi platforms. pillar.
However, at present, DeFi lending and DEX are still in a state of isolation and no intersection, and there is a lack of direct borrowing use or transaction scenarios in the market, resulting in a low asset utilization rate of the lending platform, and ultimately resulting in a low asset deposit interest rate. In addition, the separation of lending and transaction agreements has also made it impossible for users to directly conduct leveraged transactions that are common and convenient in traditional financial markets on DeFi. If users want to trade with leverage, they first need to borrow a corresponding proportion of encrypted assets from Compound or Aave, and then go to Uniswap or Sushiswap to trade. The whole process is cumbersome and complicated, and it is difficult for users to centrally manage leveraged trading positions, which greatly increases costs and transaction risks.
The decentralized lending cross-chain platform Vee.Finance draws on the best practices of the traditional financial market, and innovatively integrates lending agreements and leveraged transactions: on the deposit side, through a more user-friendly product experience, lower the threshold for traditional financial users to participate in DeFi; on the loan side The option of DEX was added, and the function of leveraged lending was pioneered, which greatly improved the utilization rate of assets.
Compared with the first-generation DeFi lending agreements such as Compound and Aave, Vee.Finance’s advantage lies in the integration of DEX and cross-chain, ensuring the platform’s transaction depth and promoting the efficient use of capital; through the online leverage trading function, it meets the needs of traders at different levels. Users with high transaction volume needs and high risk preferences.
DEX based on AMM (Automatic Market Maker Model), which emerged in the midsummer of last year, is currently occupying the mainstream of the market, opening up a broad new horizon for more people to invest in more diverse financial products and services without a license, and has achieved great success. However, there are still problems such as impermanent losses, low capital efficiency caused by high gas and slippage, and the existence of multi-token risk exposure.
In response to the above-mentioned pain points, Vee.Finance redefines DEX through the following product function innovations:
First of all, in order to reduce the user’s transaction costs, Vee.Finance chose to build on the Avalanche protocol. Compared with other public chains, the avalanche protocol is a highly scalable public chain, with a performance of more than 5000 TPS (transactions per second), the block confirmation time only takes two seconds, and the security is also quite high, which can resist 80 % Attack of computing power. This choice of underlying blockchain platform allows Vee.Finance to provide users with a high-speed transaction and low-gas experience, and to help users grasp the market in a timely manner.
Secondly, in terms of liquidity provision, Vee.Finance integrates multiple DEXs in order to make full use of the market depth and liquidity of different decentralized exchanges to increase transaction depth.
Third, Vee.Finance uses an integrated oracle to correct the price of encrypted assets. Even if a certain DEX transaction is affected by external factors and there is a significant price deviation, Vee.Finance can still provide accurate quotations, which will Ensure that users can generate profits through transactions and will not depreciate with regular market price fluctuations, thereby reducing the seemingly inexplicable and impermanent losses in the DeFi field.
Finally, it is worth mentioning that Vee.Finance will launch price limit pending orders and smart order routing functions in the future. This will not only allow users to enjoy a trading experience comparable to that of centralized exchanges, but more importantly, they can discover better transactions for users. price.
Vee.Finance went live on the mainnet on September 14. The loan APYs of USDT, WBTC and LINK were all greater than 99,999%, and the loan APYs of AVAX and WETH were 716.12% and 115.81%, respectively, and the income was considerable.
Like other DeFi protocols, a total of 10 billion VEE, as the native token of Vee.Finance, will play the role of a connector in the ecology built by Vee.Finance:
Liquidity mining: Miners who provide funds for Vee.Finance can obtain a portion of newly minted VEE tokens. Time and value are two key factors in the calculation of VEE distribution, and the amount of VEE will follow the profit distribution curve. According to the plan, Vee.Finance plans to start mining at the same time as the mainnet. In addition to liquidity mining and transaction mining, it will also cooperate with the DEX Pangolin on the avalanche agreement to airdrop PNG tokens to encourage users to trade. The pledge mining function will soon be available. Will be online.
Governance: VEE represents the voting rights of token holders. Each VEE token represents a voting right, and the community will vote to support the new tokens as collateral, the highest leverage of each token, and the partnership of the new DEX.
A few days ago, Vee.Finance completed a $5.3 million private equity round of financing. Aussie Capital, AV Star Capital, BCA Investments, Black Mamba Ventures, Cobak, Crypto Avengers, DCI, Favor Ventures, Muhabbit Ventures, New Tribe Capital, Phoenix Capital, Phoenix VC, Redline DAO, Tokuto Capital, and Unpeeld Venture Labs participated in the investment.
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