What Is Vesta Finance(VSTA)?
Vesta Finance enables users to borrow against their crypto-assets without selling them. VST is a collateralized stablecoin powered by Vesta Finance. Unlike under-collateralized stable coins, there is more than $1 worth of assets for each unit of VST. Users can participate in the Vesta Finance ecosystem, by using their borrowed or purchased VST to contribute to the stability pools.
| Coin Basic | Information |
|---|---|
| Coin Name | Vesta Finance |
| Short Name | VSTA |
| Circulating Supply | 5,000,000.00 VSTA |
| Total Supply | 100,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
Flexible Price
Arbitrum-Native Stablecoin
VST is a Arbitrum-native over-collateralized stablecoin that can be minted by depositing supported crypto assets and borrowing against them.
Borrow on Demand
Vesta Finance Coin Borrow against your crypto with the lowest interest rate in the market. You can use your borrowed balance as you please and repay whenever you want.
Earn Risk-Minimized Yield
Provide liquidity on VST liquidity pools to earn your fair share of the protocol’s fees, through various reward programs.
VSTA – Vesta’s Governance Token
Vesta Finance is the governance token of Vesta Finance. It plays a key role in the project’s decentralization.
Farm VSTA
Participate in liquidity incentive programs and earn VSTA.
Govern with VSTA
Participate in the future of the protocol by voting in community decisions with your VSTA tokens.
How It Works
Stablecoin:
Vesta Finance Users can deposit collateral to mint VST (Vesta Stable) – a USD-pegged stablecoin.
Multi-collateral:
users can deposit collateral (ETH/renBTC etc.) to mint VST. More types of collateral will come soon.
Low collateralization ratio:
Vesta Finance Coin a user’s collateral vault is required to be collateralized at a minimum collateralization ratio much lower than that from the competition (e.g. 110% for ETH, 110% for renBTC, and 175% for gOHM).
Immediately redeemable:
VST holders can redeem their VST stablecoins for the underlying collateral at any time. The redemption mechanism along with algorithmically adjusted fees guarantee a minimum stablecoin value of 1 USD.
Community-oriented tokenomics:
50%+ of the governance token (VSTA) supply will be distributed to the community.
Governable:
Vesta Finance Coin Parameters in the system, such as minting fees, liquidation fees, and liquidation incentives will be modifiable by governance.
Natively layer 2:
The deployment on Arbitrum will be a fraction of mainnet costs, without sacrificing decentralization as much as possible.
Fees in Vesta
Vesta generates fee revenue from two operations: redemptions, and issuance of new VST tokens. Redemptions fees are paid in the underlying collateral. Issuance fees (when a user opens a vault, or issues more VST from their existing vault) are paid in VST.
Redemption Fee
The redemption fee is taken as a cut of the total collateral drawn from the system in a redemption. It is based on the current redemption rate. In the Trove Manager, redeem Collateral calculates the fee and transfers it to the staking contract, LQTY Staking.sol
Issuance Fee (Mint Fee)
The issuance fee is charged on the Vesta Finance drawn by the user and is added to the vault’s VST debt. It is based on the current borrowing rate. When new VST are drawn via one of the Borrower Operations functions open Trove, withdraw VST or adjust Trove, an extra amount VST Fee is minted, and an equal amount of debt is added to the user’s vault. The VST Fee is transferred to the treasury.
They are working on a feature that allows users to pay their issuance fee through their collateral, freeing them from acquiring extra VST to pay for fees. To learn more about the actual fee charged, please visit the next page: Fee Schedule.
VSTA Tokenomics
Alongside decentralization through community, transparency has been a core tenet Vesta’s core contributors have built the protocol around. The following are the details regarding the distribution of VSTA between our community, contributors, and partners.
Tokenomics
VSTA total supply will be 100 million. Below please find the detailed breakdown of the token distribution.
Pre-Launch Community Distribution
- Treasury bootstrapping event/LBP, 8% of total supply: Tokens that are not distributed by the TBE will be returned to the treasury for distribution via other mechanisms. All tokens sold via this mechanism will be immediately liquid. More details about the TBE can be found here.
- First round of whitelisted community contributors, 1% of total supply: Early supporters of Vesta received the ability to acquire our governance tokens at a discount to the TBE event. 2% of all token supply was allocated to this event, of which ~1% was filled. To learn more, please visit the link below.
