Proposal Description
I would like to add the [VYFI] token in Aada V1 as a collateral option for borrowing. VyFinance is one of the earliest projects to build on Cardano and already in the wallets of thousands of users. For this reason VYFI would be a great addition as collateral to Aada.
Short Summary
VyFinance is an ambitious interpretation of a DEX, built upon four unique main pillars, as well as traditional DEX tools. Firstly, our Neural Net: this is a program that teaches itself how to perform tasks, in this case, it will be optimising liquidity across protocols. Secondly, a liquidity aggregator (auto harvester), this will be managed by the AI neural net which will invest users’ funds across the Cardano ecosystem. Thirdly, the Bar: This is out distributive mechanism in which users can share in part of the fee’s generated from our platform. Finally, the VyFinance LMS to tie it all together.
Motivation
- Project and token overview -
- Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?
- What’s the asset’s utility?
- Token data (Emission schedule, Market data)
1 – There is a tendency for DeFi ecosystems, particularly Decentralised Exchanges (DEX), to distribute income by continually minting more of their token, resulting in a runaway deflationary effect on their value. This can sometimes be a slow process, and results in an unsustainable downwards pressure on a tokens value. This issue is a function of deflationary systems, and their long-term tendency to decline in value. We believe it is important to design a sustainable DEX, thereby allowing long-term usage of this tool without consistent deflation to those holding the principal token of the platform.
2 – As mentioned in the proposal description, VyFinance is one of the earliest projects building on Cardano. We have had some amazing achievements in our time building within the ecosystem, including the first NFT staking, first muti-token reward pool and first on-chain governance. VyFinance will benefit the protocol as a collateral option via our large number of holders being able to provide liquidity and add volume to the protocol.
3 – Currently the VYFI token can both be used to stake, and as governance on the platform. Once our DEx and BAR launch we will have further utility provided to the token such as staking at the VyFi BAR.
4 – VYFI has a total supply of 450,000,000 tokens. As of 04.08.2022, the circulating supply of VYFI is 8,554,403.
More information can be found in the following documents: (VyFi | Info) (https://vyfi-docs.s3.amazonaws.com/emissionrate.pdf) (https://vyfi-docs.s3.amazonaws.com/whitepaper.pdf)
Conclusion
VyFinance is a significant project on Cardano and has proved to be a major innovator and community member. Adding VyFinance as a collateral option to Aada can provide value to both community and the wider Cardano ecosystem as a whole.
References
/Link to:/
- Project - https://app.vyfi.io/token-vaults
- Whitepaper - https://vyfi-docs.s3.amazonaws.com/whitepaper.pdf
- Document portal (GitBook) - https://docs.vyfi.io/
- Cardano asset ID - 804f5544c1962a40546827cab750a88404dc7108c0f588b72964754f (policy ID) - asset1znlnu4s2uv3ern2f52csz6s6pvr5rf6dj2uevx (Fingerprint)
- Audits (if any) - N/A
Communities (Discord, Telegram, Reddit, Governance Forum) - Telegram: Contact @vyfinance - VyFi Crypto Lobby - https://twitter.com/VyFiOfficial