What Is Value DeFi?
Many yield farming systems have entered the market since DeFi's initial appearance and surge in early 2020. While many have perished with time, some have survived to this day. There were numerous success stories, but there were also innumerable failures.
Value DeFi is an excellent example of how developers may succeed in the blockchain sector despite several hurdles and setbacks during the development process. Even though it is not currently a strong competitor, the project's growth over the previous year and possible future is worth watching.
A brief overview of Value DeFi
Value DeFi was formerly known in the DeFi domain as YFValue (YFV). The Yearn Finance protocol, a platform built specifically for yield farmers, inspired the project.
YFValue, a DeFi yield aggregator, debuted in August 2020, intending to provide a decentralized experience to everyone, including small and large investors. The goal was to entirely hand over control of the project and the decision-making process to the community, with YFV serving as the governance token.
In October, the programming team opted to rebrand to Value DeFi to disassociate itself from its yearn-like concept. It's also worth noting that the platform had been hacked a few months prior, which is most likely one of the main reasons for the rebranding.
What is Value DeFi, and how does it work?
Value DeFi is a collection of decentralized finance products and services that promotes community creativity and fairness. The primary goals of this project are to make yield farming more accessible, allow on-chain governance voting, reward stakeholders with variable yield techniques, and protect user funds with insurance treasuries.
In terms of accessibility, Value is built with the user in mind, with an easy-to-use interface. The VALUE governance token's tokenomics aim to create a long-term emission plan to reach new users more readily.
VALUE holders can vote for free in a method publicly confirmed by other token holders thanks to Value's revolutionary governance approach. Investors are also rewarded with vETH and vUSD tokens, which can be used to cover gas costs, incentivizing them to retain VALUE.
The team is working on developing flexible and optimal vault techniques that can support tiny market cap cryptocurrencies in terms of profitability. The Value team is in charge of developing the strategies. It's also worth noting that the project's aggregator guarantees the best pricing for trading VALUE and that the aggregator's fees are distributed to all token holders.
Last but not least, Value DeFi is dedicated to keeping its reputation by hosting an insurance treasury backed by team and community contributions. The fund assists in risk mitigation and user reimbursement in the event of a smart contract exploit.
DeFi Services & Products
The Value DeFi package consists of five distinct goods and services, each discussed in detail below.
Value DeFi's vSwap is an automated market maker solution that uses smart routing to give the best token swap rates. Traders can switch tokens with minimal price impact and low slippage rates, regardless of their trade size.
The Value will borrow funds from other decentralized exchanges to cover trades on token pools with insufficient liquidity because it is a DeFi aggregator. According to the researchers, the idea borrows liquidity from DEXs such as Uniswap, SushiSwap, and PancakeSwap.
VPegSwap is a tool for efficiently swapping stablecoins.
Standard AMM models, such as the one employed by Uniswap, hurt pegged assets such as stablecoins. Users who trade them with huge sizes face significantly greater slippage rates than those who trade other asset types.
The developer team built a Solidity implementation of Curve's StableSwap utility to address the problem, allowing stablecoin trades with minimum slippage. Because it costs substantially lower fees and is more favorable for stablecoins, vPegSwap is made on the lid of the Binance Smart Chain (BSC) ecosystem.
Price slippage on vPegSwap, according to the Value DeFi team, is 100 times lower than on other decentralized exchanges. When trading 10,000 USDC for BUSD, the user received only $4 less than he should have received.
VFarms is a virtual farm (Farms-as-a-Service)
Farms-as-a-Service (FaaS) is a service for developer teams that enables new projects to jump-start their token's liquidity without incurring any upfront costs. On the Value DeFi exchange, token producers are free to construct liquidity pools where investors can stake the token and provide it as market liquidity.
VFarm creators can adjust essential features, including the trading pair, fees, and token ratio while building a pool.
VFarms are thought to be safer than traditional liquidity pools because pool creators cannot rug pull and steal the liquidity offered by users. Furthermore, the project's community is rewarded for analyzing new pools and determining whether or not they are safe. The team and the community may verify vFarms, adding another layer of security to yield farming.
Value DeFi's version of a 'vault,' a yield aggregator service that seeks out the most significant yield rates and multiplies gains to generate more crypto and reward members with more significant returns, is dubbed vSafe.
Users can lock their investments in a vSafe, which will combine numerous tactics to obtain maximum amounts of profitability rather than yield farming in traditional LPs. These safes look for a farming opportunity, deposit your assets in the selected LP, utilize LP tokens to win more rewards in order pools, and reinvest the prizes to generate more money.
VGovernance is a feature of the project's governance concept that allows VALUE holders to farm in a governance vault and receive double the rewards.
The governance vault employs multiple streams of cash generated within the Value ecosystem to reward stakeholders. Stakeholders, for example, receive 35 percent of vSwap's swap fees and 14 percent of vSafe's profit.
VALUE holders gain the capacity to use their voting power by staking in the governance vault. Which pools are added, how incentives are allocated, and how earnings are divided throughout the community are all decisions made by the community.
Users receive gvVALUE, a compounding interest token, after depositing assets with vGovernance. The project redistributes a percentage of the VALUE revenues to the vault, and the number of gvVALUE tokens remains constant as the number of VALUE tokens grows.
Additional VALUE tokens are deposited into the vault regularly, known as harvests. As the amount of VALUE tokens grows, so does the ratio of gvVALUE to VALUE tokens.
VALUE, gvVALUE, vBOND, and vTokens are the four key tokens in the project's tokenomics.
As previously stated, VALUE is a governance token that can be staked at the vGovernance vault to achieve access to voting and earning rewards. Stakeholders can vote on strategy, token emission schedules, profit shares, and other key aspects. The token has speculative Value because it is linked to Value DeFi's market performance.
The gvVALUE token is earned due to staking VALUE in the governance vault. It automatically compounds a portion of the project's costs and can also be used to vote on governance concerns. Furthermore, holders can transfer their gvVALUE tokens to the Binance Smart Chain to gain access to even more perks and increase their earnings.
VBOND is a compensation token provided to consumers harmed by the smart contract exploit on November 14th. These tokens earn a 10% APY every week, thanks to a rebasing factor of 0.183 percent. Value uses 15 percent of exchange fees and 6 percent of vault fees to pay the compensation fund.
Synthetic and wrapped tokens are both supported by vTokens. They allow users to exchange BTC and DOT tokens for other ERC-20 tokens without using a centralized platform. Value DeFi's loan protocol, which accepts vTokens as a new class of seigniorage tokens, will include vTokens in the future.
Despite several security issues in the past, Value DeFi is a protocol for the decentralized finance industry that continues to offer novel features meant to make DeFi easier for the typical user.
Even though it has been exploited several times, the developer team has not taken a break or abandoned the project. Given how frequent it is for smart contract engineers to abuse their positions due to their anonymity, observing the team's zeal is at least enough of a reason to keep track of the project's progress.
The team has demonstrated its dedication to producing a quality product by joining the Binance Smart Chain ecosystem and having its token published on Binance. Given the breadth of services and capabilities offered by Value DeFi, it's no surprise that the community has stuck with the project for so long.
Despite being a newcomer to the yield farming game, Value DeFi still has a long way to go before being considered a major contender. No amount of promotion will be able to alter the project's reputation, and it will take considerably longer to establish Value as a dependable yield farming aggregator based only on development.