We’re proud to announce the Vox Finance Stablecoin Swap Platform!
Dear VOX supporters, starting on Saturday, 23.01.2021, you will be able to swap stablecoins, become a stablecoin LP provider and earn rewards from joining the new platform!
The Stablecoin Swap Platform is a zero-slippage, 1:1 exchange platform built for efficient and gas-efficient stablecoin swaps. The platform charges a fee of 0.035 % on each swap, which is cheaper than most other market competitors.
We will also discuss the changes which need to happen to the pool allocation in order to account for the new release. Most importantly, USD stablecoin vaults & pools will be decommissioned as we open up our own offer.
Read more below on each of the new platform’s features and make sure to join our social media channels to receive sneak-peak reviews of the new interface and more last-minute information! We’re very proud to be able to finally unravel the next step in the Vox Finance journey.
💱 Swap Functionality
The basic functionality of the Stablecoin Swap Platform will be to provide zero-slippage and gas-efficient swaps between different stablecoins. In our first iteration of the platform, we will offer swaps between the following four stablecoins: USDT, USDC, TUSD and sUSD.
Trades will be made in a 1:1 fashion and will incur a fee of 0.035 % on the traded amount. The fee will be distributed as following:
- 50 % will be used as an administration fee and will be deposited into the project treasury
- 50 % will be deposited into a separate treasury account for the stablecoin swap platform, which will be used to buyback VOX in random time intervals. The bought tokens will be partially burned and the rest will be distributed to LP providers.
Users will immediately receive their tokens and have no other limitations/requirements to use the platform.
💰 Providing Liquidity
In order for the platform to function, sufficient liquidity will need to be present in the protocol to allow people to trade. Users will be able to become stablecoin liquidity providers by depositing single or multiple assets into the asset pool (as mentioned above: USDT, USDC, TUSD and sUSD).
By doing so, the LP providers will receive the stablecoin USDv, backed by the Vox Finance Stablecoin Swap asset pool, which means that the new stablecoin will always be 100 % collateralized by the assets in the protocol itself and can be redeemed at any moment with one or a ratio of all of the underlying tokens.
To become a liquidity provider, users will need to “purchase” their entrance with a one-time cost of 1 VOX (subject to change) per deposit. We’re implementing this feature because the LP provider will in turn be provided with $VOX rewards (should the LP provider choose to join the reward pool) and we want to follow our deflationary token model.
The USDv stablecoin is an ERC-20 compliant token and can be freely traded on any venue. We will be opening the USDv-VOX liquidity pair on Uniswap to start trading, but further plans could be added going forward (we’re looking for a way to include a pool on Balancer with a stablecoin quote).
🌾 Earning Fees and Rewards
To incentivize users to become a stablecoin LP provider, we will be opening a USDv-VOX liquidity pair on Uniswap as previously described. This new pair will receive 5,0 % allocation of the daily minted amount of $VOX. This percentage might change as new users enter and we can accurately measure the capacity of the stablecoin swap platform.
This means interested users will need to add liquidity on Uniswap in a 50 % / 50 % ratio between VOX and USDv which should have a positive impact on the token economy.
Further pools might be opened in the future with stablecoin pairs in order to provide larger liquidity. This is still in discussion internally and updates will be given out soon after the protocol launch.
🛒 Redeeming stablecoins
At any given point, users can redeem their USDv stablecoins in a 1:1 ratio with the underlying tokens, which will incur a 0.015 % fee. The fee amount will be deposited into the project treasury and will be used to fund future development and marketing efforts.
Users can choose to redeem their USDv tokens in only one underlying token or in a ratio of all underlying tokens to their liking (note: the required amount of the desired underlying tokens will need to be available in order to withdraw in a customized fashion).
✨️ Further platform changes
In order to allow the new platform to become functional, a few changes need to be made to the current pool allocation.
- The 3CRV, sCRV and usdnCRV pool and vault will be closed.
- The EURS Curve pool and vault will continue to be operational with
a 2.5 % allocation.
- The TBTC Curve pool will continue to be operational with a 2.5 % allocation.
- A new ETH vault and pool will be opened in the near future with a proposed 2.5 % pool allocation.
This means that the following pool allocation will become effective on Saturday:
→ Staking pool: 25.0 %
→ ETH-VOX liquidity pool: 65.0 %
→ USDv-VOX liquidity pool: 5.0 %
→ EURS vault token pool: 2.5 %
→ TBTC vault token pool: 2.5 %
Once the ETH vault and pool are operational, the ETH-VOX liquidity pool allocation will be lowered to 62.5 % in order to allow the new vault to become operational.
📚 Short Summary
We hope that the proposed stablecoin swap platform model as described above makes you excited for the launch and we can’t wait to hear the feedback of the community. If you have any suggestions or require more information, please don’t hesitate to contact us in the Telegram chat.
Basically, the Vox Finance Stablecoin Swap platform will allow you to earn rewards by providing your stablecoin tokens in the platform and becoming a liquidity provider. By doing so you will help the entire token economy by supporting Vox Finance and by making sure that stablecoins stay closer to their intended 1:1 peg to the USD.
We will be providing pictures of the platform in the following days as we prepare for launch.
Thank you for reading though this article and for all the support you’ve shown to our project. We’re happy that you’re with us as we continue developing.
About Vox Finance
“Vox Finance is a decentralized finance (DeFi) project developed by an independent team of developers, seeking to bring an innovative approach to the new emerging market by providing high-quality and profitable services while relying on the voice of the people to bring in community engagement to the underlying protocol.”