One of the bottlenecks of cryptocurrency used to always be that it wasn’t very accessible to everyone. Thanks to projects like Vee Finance, blockchain, crypto and DeFi are becoming more and more accessible for traditional finance users.
By bridging the gap between traditional banking and crypto, Vee Finance is making an important contribution towards cryptocurrency being easier and clearer to use for everyone.
Vee Finance in shortIn the past, financial users with little knowledge of DeFi were hesitant to participate in it. By creating a friendly and easy to use platform, Vee Finance lowers the threshold for traditional finance users to participate in DeFi. The project acknowledges that the needs of suppliers and borrowers are different, and provides both types of users with unique features which are not found on different lending platforms. More about these features will be explained later in this article.
Why did BCAi partner up with Vee Finance?We believe that cryptocurrency will play a big part in people’s future. That’s why it’s important for people to understand it. The sooner people find cryptocurrency easy and clear to use, the better! This is the main reason we decided to partner up with Vee Finance: it allows for everyone, including traditional finance users, to be able to participate in DeFi. As people get more comfortable using cryptocurrency financially, more and more projects will be able to grow. This makes Vee Finance a very interesting project and definitely is the reason we invested in and partnered up with them.
What does Vee Finance do differently?As mentioned above, a couple of unique features for both suppliers and borrowers make Vee Finance stand out among lending services. These features are:
- Suppliers will have more token options
- There is support for multiple public chains and cross-chains. Tokens can be moved across multiple public chains thanks to the Token Bridge. This helps people maximize their returns.
- For traditional financial users, there is a new fixed rate deposit option.
- Vee Finance adds fiat deposit aggregation for the new crypto users. The project also supports Wyre direct fiat deposit.
- Finally, the project also supports NFT tokens.
- By providing an embedded arbitrage mechanism for lending and trading, Vee Finance allows for precise profit-taking during upward cycles of markets. This ensures the relative stability of returns, which is very desirable in the current digital currency markets (due to unpredictable fluctuations).
- The parametric market is also a unique feature. This project provides flexible parameter control of the above-mentioned arbitrage mechanism. There are default configurations for beginning users, while professional and experienced people can use the flexible parameter configuration.
- The integrated DEx option allows leveraging of collateralized borrowings for trading.
- Borrowers will also have an automatic repayment feature.
The Vee Finance Protocol explainedThis project wants to solve the liquidity problem by building a pool of various underlying tokens, with the goal of achieving the fast collection of lending needs. Tokens within the protocol have time value. Below, a couple main elements of the Vee Finance protocol will be summarized.
- Supply and withdraw: Users can supply to earn rewards and are able to withdraw tokens whenever they want. The project supports multiple tokens. To name a few: BTC, ETH, LINK, AVAX, ADA, RXP and DOGE.
- Borrow and repay: Users can borrow by the way of collateral lending. Borrowers will be able to borrow up to (without exceeding) their borrowing capacity. The borrowing rate is automatically determined by the market, using a floating rate mechanism. Borrowing and repaying can be done at any time (both partial and full repaying is supported). Finally, the security of funds is secured through a collateralized borrow model. The Vee Finance Protocol uses a liquidation process to eliminate risk.
- Trade and borrow: After borrowing, tokens can be consumed and invested. With the embedded DEx, users can convert borrowed tokens into valuable tokens and earn rewards doing so.
- Reward Lock-in: After exchanging borrowed tokens into ‘value tokens, users are provided with a lock-in strategy. This allows users to automatically reserve trade the tokens if they’ve reached a certain threshold, which basically locks in gains.
- Automatic repay: With this unique tool in the Vee Finance protocol, earnings can be directly locked in. Apart from taking profit automatically, setting up a stop loss to minimize losses is also possible.
- Parameter market: As already mentioned in the features, the unique parameter market provides flexible parameter control of the arbitrage mechanism.
- Cross-chain: Vee Finance supports multiple public chains like Avalanche, Solana and Algorand.
- Leveraged trading: Vee finance enables leveraged trading through smart contracts.
- DExes aggregation: By working with all the DExes within the ecosystem, Vee Finance provides more options for users to trade and earn rewards.
- NFT token support: The last main element of the Vee Finance protocol is the support of NFT tokens.
The VEE tokenLastly, it’s important to know that this project also has its own token: the VEE token. This is an ERC20 & Ethereum based token, serving as the connector of the protocol. The token has two main use cases: liquidity mining and governance.
By contributing capital to the protocol, miners will be qualified for part of the newly mined VEE. For the distribution of these VEE tokens, time and value are key.
Vee Finance strongly believes in decentralized governance, which is why they’ve designed a governance framework. Each token entitles the holder to one community voting right. This means that by having VEE tokens, people can vote about things like partnerships and the support of new tokens.
In total, VEE will issue 10,000,000,000 tokens. The image below shows the token distribution.