Vesta Finance (VSTA) [CDP]
Vesta Finance is a decentralized finance (DeFi) protocol that enables users to borrow against their crypto assets through collateralized debt positions (CDPs) without needing to sell their assets. The platform boasts a total value locked (TVL) of $21.4 million and a rapidly growing user base of nearly 100,000 addresses.
About Vesta Finance
Vesta Finance is a lending protocol that provides users optimal liquidity against their collateral without imposing any interest fees. The primary objective of Vesta Finance is to enhance the efficiency of leveraging holdings for a larger pool of users.
Vesta Finances believe that a lending protocol with a low collateralization ratio and competitive rates could further expand the total wealth within DeFi. It aims to become one of the most prominent lending solutions in the market, providing users with low borrowing costs and high capital efficiency.
Vesta Finance offers several core features to its users. Firstly, users will be able to collateralize ETH and renBTC to borrow Vesta Stable - VST, which is Vesta Finance's version of a USD stablecoin. Once the price oracle becomes ready, users will also be able to collateralize gOHM. Vesta Finance has chosen these three to start with, but moving forward, the choices will be opened up to riskier assets, with the input from the community.
Besides, Vesta Finance allows users to borrow VST against crypto at a much lower minimum collateralization ratio compared to single-vault-based systems such as Maker, Unit, Abracadabra, etc. Using ETH as an example, users will be able to borrow against ETH on Vesta Finance at 110% minimum collateralization ratio at zero-interest rate. This means that users can mint up to $90.9 worth of VST with every $100 worth of collateral.
Not only that, Vesta Finance allows for instant liquidation. Users can deposit VST to stability pools, which are used to instantly liquidate the individual vaults that are under the minimum collateralization ratio. This liquidation process can be initiated by anyone and provides a return for people who deposit into the stability pools.
Lastly, Vesta Finance is natively L2 and offers competitive fees. The current fees on Ethereum mainnet are not ideal for small portfolios to borrow, as the high gas fee makes it uneconomical. As a result, Vesta Finance's first deployment will be on Arbitrum, where the cost of operation is a fraction of mainnet costs without sacrificing decentralization as much as possible. Vesta Finance offers interest-free borrowing on ETH, renBTC, and gOHM and competitive rates on other assets. More information on this will be released soon.
Vesta Finance provides a collateralized stablecoin known as VST. Unlike under-collateralized stablecoins, each unit of VST is backed by more than $1 worth of assets. Users can engage in the Vesta Finance ecosystem by depositing ETH, renBTC, gOHM, or GMX collateral to generate VST, a stablecoin that is pegged to the USD.
The generation of VST is regulated by an algorithmic interest fee based on the token's peg. Users can issue tokens from their vaults if the collateralization ratio remains above 110%. Vaults that fall below this ratio are subject to liquidation. Anyone can deposit VST tokens to the Stability Pool and earn collateral from the liquidated vault. During a liquidation event, the liquidated debt is canceled with the same amount of VST in the pool, which is then burned. The liquidated Ether is distributed proportionally to depositors, resulting in generally net gains.
VSTA is the governance token of Vesta Finance. It plays a vital role in the project’s decentralization. Vesta Finance plans to allocate more than 50% of its total token supply to the community through incentive programs, allowing token holders to help direct the protocol's future. VSTA holders can vote on parameters such as interest rates, new collateral types, and new product direction via Vesta's governance system. A Genesis DAO will be created to prevent malicious actors from damaging the protocol, and it exists only to execute the decisions of governance proposals.
How to Use Vesta Finance?
1. Launch the Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) wallet and switch to the Arbitrum network. Then, click on [DApp] and search for [Vesta Financial].
2. Review the details of the DApp and click on [Confirm] to enter [Vesta Finance].
3. After connecting your Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) wallet, click on the left menu bar to explore all features available on Vesta Finance. Then, select [Staking].
4. Select the vault you wish to stake in and fill in the amount. Click on [Stake], tap [Confirm], and enter your password to authorize the transaction. After completing the staking, go back to the staking page and scroll down to the "Locked Deposits" section to view your current staking status.