Dear members and investors,
We’re looking forward to launching the first official Vox Vault that will allow users to earn profits from secure self-generating income strategies that deposit collective funds into different underlying decentralized finance products.
Because of a lot of recent news about flash-loan attacks, where several prominent projects have been targeted, we have decided to delay the launch for a short period of time to make sure the security of user assets is ensured. Once we finish our due diligence and are sure about every last detail of the smart contracts, the first strategy will be deployed live and our users will be able to deposit funds into it.
To show you our progress and to update you on the development behind the scenes, we’ve decided to share all relevant details about the first two strategies being used and general information about vaults.
Basic functionality of vaults
The vaults provided by the $VOX ecosystem will be similar to those you have seen on other platforms, however, they will have a few unique features attached to them.
Firstly, the initial vaults launched will not have any entrance barriers. This might change as time goes on and we require all vault participants to hold a minimum amount of $VOX tokens to be able to enter. This amount will be dependent from the amount being deposited and the ratio will be disclosed in the future.
Therefore, for the time being, there is no entry barrier for interested depositors. You will simply need to navigate to our website, open the “Vaults” page and select the vault you wish to deposit into and that is basically it.
Withdrawals will be almost without a fee — however, to fund initial development and allow us to create a budget for the promotion and funding of private pools, a withdrawal fee of 0,15 % will be set. This fee will be distributed 100 % to the treasury for the project budget.
There will be no locking periods for our vault strategies. Users can exit the vaults at any time.
As with other strategies employed by projects such as Harvest Finance, Pickle Finance and others, underlying assets will be “harvested” at certain periods carried out at random periods once or twice per day. Therefore, to make a profit on your initial investment, you will be required to stake for a longer period than just a few minutes and no front-running will be possible, as only the governance address and strategist will be able to execute the harvest() function.
The next unique feature that we will bring to the market with our vaults platform will be the ability to purchase so-called “multiplier boosters” that will allow the individual to gain more shares in the pool once an amount is deposited.
Therefore, the formula is:
Received shares from deposit = (user multiplier * deposited amount)
The cost of the multipliers will be dynamically set to reflect changes in price, but the initial costs will be:
Multiplier tier (from 1–5) = (tier)^2 * initial price of 0,03125 VOX
The multiplier tiers will therefore cost:
The tier 1 multiplier costs 0,03125 VOX and gives a 1,01x multiplier
The tier 2 multiplier costs 0,12500 VOX and gives a 1,02x multiplier
The tier 3 multiplier costs 0,28125 VOX and gives a 1,03x multiplier
The tier 4 multiplier costs 0,50000 VOX and gives a 1,04x multiplier
The tier 5 multiplier costs 0,78125 VOX and gives a 1,05x multiplier
If you were to upgrade to a 1,05x multiplier immediately, the total cost would be 1,71875 VOX. This would grant you a 5,0 % bonus on your share amount.
Shares without 1,05x multiplier on 100 unit deposit: 100 shares
Shares with a 1,05x multiplier on 100 unit deposit: 105 shares
The multiplier count will be capped at tier 5 and no further multipliers can be purchased. For the initial vaults, the multipliers will have no maximum time period, however they will not be transferable between vaults. This means you will be able to use them for the duration of the vault itself.
We suggest all users to only buy multiplier after a few days of normal operation of the vault. If we need to migrate the vault contract itself, these funds will not be recoverable.
The extra amount of shares will also help you to earn more rewards when they are staked into the vault pools themselves, meaning you have double advantages!
What are the $VOX tokens obtained from multipliers used for?
The budget obtained from the purchases of multipliers will be distributed as follows:
50 % of the tokens will be automatically burned.
50 % of the tokens will be distributed to the treasury.
This will help keep the circulating supply of the token low and the funds sent to the treasury will be used for the project budget (including but not limited to marketing, campaigns, bug bounties and private pools).
Vault fee structure
The initial vault fee structure will look as following. All the values mentioned below are the MAXIMUM values acceptable in the vault smart contract. Therefore, the fees may only be lowered or otherwise allocated, but the total fee percentage can not be higher as currently planned.
Withdrawal fee: 0,15 % → 100 % to treasury
Performance fee: 17,5 %
→ 10,0 % goes to the treasury
→ 5,0 % goes to the strategist
→ 2,5 % goes to the developer fund
We would like to allocate most of the fees to the project itself to show our transparency and dedication to the success of the platform. Almost all of the proceeds will be used to fund private pools, future marketing campaigns and possible exchange listings, if the community decides to apply for one.
First two vault strategies
Finally, we’d like to discuss the first two vault strategies that will be deployed at launch time tomorrow. Please, remember that these two strategies are pilot prototypes that will be further developed! Make sure to only deposit funds that you are willing to risk to lose. All strategies and the vault contract itself will be audited in a few days after launch.
First strategy will be: 3pool Curve Strategy (current APY: 16,08 %)
Second strategy will be: BarnBridge BOND Pool (this strategy will have some special properties that will be explained on launch)
Important note for the Curve strategy: This strategy is not susceptible to flash-loan attacks because it simply deposits into the Curve pool to collect CRV rewards. There is no arbitrage calculation or trading of underlying assets. Rewards are simply collected, converted and deposited back into the pool.
After deep considerations and project planning and to ensure everything works completely perfect on the beta launch, we’ll be launching the vaults on 17th November 2020 at around 21:00 UTC.
Deposits will be opened at that time. First earnings should come in around 24 hours thereafter. We will allocate the first batch of earnings at midnight 3 hours after launch and the second batch will be deposited at 09:00 UTC the next day. Afterwards, deposits will be regularly transferred to start earning interest.
Both vaults will be receiving their own relevant farming pools for the vault tokens. The distribution is planned as following for launch:
VOX Staking pool: 25,0 %
ETH/VOX Liquidity pool: 35,0 %
ETH/USDC Liquidity pool: 35,0 %
3poolCRV pool: 2,5 %
BarnBridge BOND pool: 2,5 %
These values might need to be edited after launch to be fully balanced and to provide a good balance between the rewards for liquidity pools and the vault pools.
Multiplier purchases will also be activated already at launch. Please keep in mind, multipliers need to be activated PRIOR to deposits into the vault itself.
All relevant information will be provided on the vault page.
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.”