What Is Velero Stablecoin? (COW) Complete Guide & Review About Velero Stablecoin?

What Is Velero Stablecoin?

The Velero Stablecoin Platform allows users to generate USDV by leveraging collateral assets approved by VeleroDAO Governance. The Governance is the community organized and operated process of managing the various aspects of the VeleroDAO Platform. USDV is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar.

Resistant to hyperinflation due to its low volatility, USDV offers economic freedom and opportunity to anyone, anywhere. This white paper is a reader-friendly description of the Platform, which is built on the Velas blockchain. This is a full-fledged fork of MakerDAO.

VeleroDAO is an open-source project on the Velas blockchain and a Decentralized Autonomous Organization created in 2021 and based on the MakerDAO Protocol. The project is managed by people around the world who hold its governance token, VDGT.

Through a system of scientific governance involving Executive Voting and Governance Polling, VDGT holders manage the Velero Stablecoin Platform and the financial risks of USDV to ensure its stability, transparency, and efficiency. VDGT voting weight is proportional to the amount of VDGT a voter stakes in the voting contract. In other words, the more VDGT tokens locked in the contract, the greater the voter’s decision-making power.

How does it work?

Velas deposited to open CDP

You deposit / send VELAS to the VeleroDAO smart contract, creating a Collateralized Debt Position (CDP)

Draw USDV

Let’s say for $150 in VLX you issue USDV worth $100. Important: you are not selling your asset. If the asset price goes up, you can generate more. If it goes down, your position is liquidated. Thus, the issue of USDV works as a hedging mechanism for capital preservation.

Pay back USDV to unlock VLX

Velero Stablecoin you want to return your VLX you need to return the withdrawn amount from adding a small commission to it. That’s all.

Advantages of VELERODAO

Liquidated Assets Auction

At these auctions, VDGT token holders are able to purchase the collateralized assets. They are usually 5-10% cheaper than the market price.

Voting

VDGT token manages the VeleroDAO platform, identifying key parameters (e.g. stability fees, types / rates, security, etc.) through the voting rights of the VDGT holders.

VeleroDAO Platform

The VeleroDAO Platform, built on the Velas blockchain, enables users to create currency. Current elements of the Platform are the USDV stablecoin, The Collateral Vaults, Oracles, and Voting. The governs the VeleroDAO Platform by deciding on key parameters (e.g., stability fees, collateral types/rates, etc.) through the voting power of VDGT holders.

The VeleroDAO Platform, one of the largest decentralized applications (dapps) on the Velas blockchain, was the first decentralized finance (DeFi) application to earn significant adoption.

VeleroDAO Team

The Velero Stablecoin Coin Team is part of the global VeleroDAO community, built and launched the The Platform in conjunction with a number of outside partners. It is currently working with the VeleroDAO community to bootstrap decentralized governance of the project and drive it toward complete decentralization.

The VeleroDAO Platform

The Velero Stablecoin platform is one of the digital applications on the Velas blockchain. An experienced development team participated in the creation of. The is a decentralized finance (DeFi) application built on the MakerDAO protocol. The Platform is managed by people around the world who hold its governance token, VDGT.

Through a system of scientific governance involving Executive Voting and Governance Polling, VDGT holders govern the Platform and the financial risks of USDV to ensure its stability, transparency, and efficiency. One VDGT token locked in a voting contract equals one vote.

VeleroDAO Vaults

All accepted collateral assets can be leveraged to generate USDV in the VeleroDAO Platform through smart contracts called Velero Vaults. Users can access the VeleroDAO Platform and create Vaults through a number of different user interfaces (i.e., network access portals), including vaults.velero.finance and various interfaces built by the community.

Creating a Vault is not complicated, but generating USDV does create an obligation to repay the USDV, along with a Stability Fee, in order to withdraw the collateral leveraged and locked inside a Vault. Vaults are inherently non-custodial:

Users interact with Vaults and the VeleroDAO Platform directly, and each user has complete and independent control over their deposited collateral as long the value of that collateral doesn’t fall below the required minimum level (the Liquidation Ratio, discussed in detail below).

Key External Actors

In addition to its smart contract infrastructure, the Velero Stablecoin Platform involves groups of external actors to maintain operations: Keepers, Oracles, and Global Settlers (Emergency Oracles), and community members. Keepers take advantage of the economic incentives presented by the Platform; Oracles and Global Settlers are external actors with special permissions in the system assigned to them by VDGT voters; and VeleroDAO community members are individuals and organizations that provide services.

Keepers

A Keeper is an independent (usually automated) actor that is incentivized by arbitrage opportunities to provide liquidity in various aspects of a decentralized system. In the VeleroDAO Platform, Keepers are market participants that help USDV maintain its Target Price ($1): they sell USDV when the market price is above the Target Price, and buy USDV when the market price is below the Target Price. Keepers participate in Surplus Auctions, Debt Auctions, and Collateral Auctions when Velero Vaults are liquidated.

Emergency Oracles

Emergency Oracles are selected by VDGT voters and act as a last line of defense against an attack on the governance process or on other Oracles. Emergency Oracles are able to freeze individual Oracles to mitigate the risk of a large number of users trying to withdraw their assets from the Velero Stablecoin Platform in a short period of time, as they have the authority to unilaterally trigger an Emergency Shutdown.