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HomeWhat isWhat is VyFi? An interesting Decentralized Protocol in 2022

What is VyFi? An interesting Decentralized Protocol in 2022

What is VyFi?

VyFinance is the Decentralized Protocol side of Vy. Down the road there plans to be items such as Vy Learn and Vy Charity.
A Decentralized Finance protocol is a KYC-less method of OTC trading. KYC-Less means that no identification validation is required. Users just link their money and go about trading.

VyFinance is created by International Markets – to whom users may bet their tokens and participate in a successful investment fund [soon to be Hedge Fund].


Also in collaboration with VyFi and IM, some of the brains from Propella.ai are assisting us to develop a Neural Net, which will have numerous functionality on the platform

The VyFi Token

VYFI is a Cardano Native Token (CNT) that is intended to be used in decentralized financial (DeFi) apps on the Cardano blockchain.

Currently, Vyfi is developing a DeFi platform that is intended for both new and experienced users. VyFi is also developing a novel approach to the user interface, as well as a distributive mechanism that is handled by our Auto-Harvester.

They say they are able to merge cryptocurrency with a real-world activity since VyFi is backed by a proprietary trading company. On top of that, VyFi will be concentrating on teaching and offering knowledge on how to onboard new users into the DeFi ecosystem.

What makes VyFi stand out from the crowd?

Vyfi VS Other Defi’s

  • VyFinance is the first Crypto to be backed by an investment fund
  • Cardano makes for high speed, low cost transactions
  • Neural Net additions to auto-harvesting
  • Live impermanent risk calculations via Neural Net AI
  • Australian-founded and in the process of full ASIC certification

VyFi 101

Swap

Swapping is the capacity of the Automated Market Maker (AMM) to match two requested transactions that are higher in value than the first one they received. Consider the advantages of a Market Order versus a Limit Order as an example.

Liquidity Providing

Swaps and AMMs work best when they are instantaneous. Liquidity is required in order to be instantaneous and even to make deals in large numbers. On a centralized exchange, liquidity is supplied primarily by the exchange itself, as well as by its users.

When trading on a decentralized exchange, liquidity is virtually exclusively supplied by the users. Users get an equal portion of the return based on the amount of money they have put in during the registration process. As a result, the high annual percentage yield (APY) of certain liquidity pools makes them an excellent passive income option.

The most significant risk associated with Liquidity Pools is Impermanent Loss, which is essentially the difference between the return one might earn by keeping the coin and the return one could earn by providing liquidity. Vyfi’s platform is one of the few that provide Impermanent Loss measurements as close to real time as feasible.


A liquidity pool is a smart contract’s accumulation of money


Many decentralized exchanges (DEXs) like SundaeSwap rely on these pools. Users generate liquidity by putting two crypto currencies of equal worth into a pool. In return for their cash, users receive trading fees according to their ownership share of the pool.
AMMs (Automated Market Makers) have made market creation more accessible. Uniswap, Sushi Swap, and Curve were among the earliest protocols to employ liquidity pools.

Why are Liquidity Pools useful?


They enable on-chain trading without an order book, a key advance. Without a direct counterparty, traders may enter and exit positions on token pairings that would be exceedingly illiquid on order book exchanges.
An order book exchange is peer-to-peer, connecting buyers and sellers. Muesliswap is an example. Using an AMM, your order does not need to be matched with another user’s. The liquidity pool regulates the price.

Why utilize liquidity pools?


Liquidity pools allow users of crypto currencies to contribute money to services hosted on the blockchain. These services may be varied and possibly cover the whole financial business with enough inventiveness. Vyfi’s talk will concentrate on liquidity pools used to exchange tokens (Swaps).
To establish an exchange, users must have dollars to trade. In classical finance, the bank receives a fee for arranging an exchange. Similarly, when a consumer uses a liquidity pool, the liquidity suppliers are compensated. Due to the risk carried while waiting for these fees to be earned (mostly temporary risk), platforms give benefits to customers in return for providing liquidity. Liquidity mining

Liquidity Mining


To improve trading experience, several protocols incentivize users for supplying liquidity by increasing payouts for certain “incentive” pools. Users who provide these pools are rewarded with the protocol’s token. For supplying and mining liquidity, there are several DeFi marketplaces, platforms, and pools.

How can i supply liquidity?


Truly, it is not that hard! Simply provide liquidity to a smart contract (such as SundaeSwap). In exchange, you will be given an LP token (which symbolizes your ownership portion of the whole liquidity pool). Then you stake this LP token, and voila! You’re a liquidator.

Vy Finance

Bar

The VyFi Bar makes money in many ways:

  • 15% of farm from auto-harvester
  • 15% of Vyfi’s proprietary trading firm’s revenue
  • 0.05 percent of all DEX trades
  • 6% of all NFT royalties

Harvester

The Auto-Harvester (Vy Harvester) is a major element of Vy Finance. This is one of Vyfi’s main focuses and products.

With a certified Neural Net designer, VyFi is now employing state of the art AI. Visit the Neural Net AI website to learn more.

Operation

Users may choose their stake and supply the following.

Example: On platform release, users may stake stablecoins to the neural net’s Low-Risk end. Users may also stake ADA straight to the neural network, bypassing pools and 50:50 splits.

Pools

Pools, or Liquidity Pools, allow users to supply liquidity to VyFi in exchange for a token. Pooling liquidity for transactions implies providing both sides of the deal. In terms of liquidity, this represents a 50:50 split.

Obtaining Liquidity Providing LP tokens to monitor stake into pool. This also tracks and rewards. The tokens’ names correspond to the staked pair. A user entering $VYFI and $ADA would receive VyFi-ADA-LP.

What is VyFi ? An interesting Decentralized Protocol in 2022
Source: Vyfi

How To Trade – Guide

Vy Finance makes swapping/trading simple

  • First, the user should choose a token (top part) and check the balance.
  • Second, the user should choose the token they want to buy (bottom portion).
  • Set up your wallet.
  • Have crypto in your wallet! They do not presently provide FIAT on-ramping.

In the aforementioned example, the user chose VyFi to acquire ADA. This indicates they’ll swap VyFi for ADA.

image 3 HodlCryptonite
Source: Vyfi

Tokenomics

Total Supply/Full Diluted Market Cap: 450 million

Yield farming will be possible for a lengthy period of time in the (then) beginning because of a big supply of the inputs required.

A total of around 85 percent of the token supply will be reserved for yield farms. Approximately 8% of the total supply will be reserved for Vyfi’s use in the Treasury (Controlled by the governance token). The team will earn a 2.5 percent share of supply, which will be vested over a period of four years, in exchange for their efforts.

The crypto’s anticipated market capitalization at launch would range between 0.5 percent and 1.5 percent of total supply (depending on how well the ICO preforms). On the day of launch, VyFi would have a market capitalization ranging between 2.25 and 6.75 million tokens.

After the ICO, any money that remains from this 1.5 percent will be divided evenly between the farms and the treasury.


Take note that this will be with the Cardano token decimal count of 6, which is significant. When compared to other Cryptocurrencies

Delegation

Delegation HodlCryptonite
Source: Vyfi

Inflation

Being that token ownership is the sole method to stake at the VyFi Bar, there is a built-in source of distributive revenue from owning the token. Because a proportion of all fees and investment gains on the site will be used to acquire the tokens on a weekly basis, the price of the tokens will rise in tandem with the number of people who use the website.

With time, the liquidity provision pay-out ratio for the yield farms will drop, resulting in a lower supply as well as a reduction in the overall supply. The combined profits from the Auto-Harvester will also be distributed as VyFi, resulting in a constant upward pressure on Vyfi’s token from the liquidity aggregator, further increasing the value of the token.

Burning Mechanism

There are plans to debut with a raffle that includes a burn mechanism as part of the prize package.

This is be comparable to PancakeSwap in terms of functionality. Additionally, the site will be starting with an official VyFi NFT that can be used as an avatar on the platform while also providing access to higher level farms and benefits to certain farms on a rotating basis.

This feature will not be accessible at the time of the original launch. The minting of these NFTs will cost VyFi, and the vast majority of this VyFi will be destroyed in order to complete the process.

How does VYFI enter circulation?

Through the yield farms, of course. VyFi will circulate with each block, at a diminishing pace, until the whole 450 million has been released into the public domain.


Marketing, the pre-ICO, the ICO, and airdrops will account for around 0.15 percent of total supply allocated. VYFI will also be made available by lending against the margin of the margin account.

Distributive Token

VyFi may be staked at the Bar, allowing users to participate in the profits generated by the whole ecosystem. Holding the currency provides an incentive for yield-farmers to do so, since doing so provides them with access to money.

Users that hold the token will have access to pools for other tokens in the Cardano ecosystem, which will further motivate them to do so.

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