VVS Finance DeFi project overview

The decentralized exchange appeared in 2021 after Crypto.com launched the Cronos blockchain. VVS Finance positions itself as the simplest DeFi marketplace. It is open not only to hardened crypto-enthusiasts, but also to people who are far from blockchain technology.

The platform works on the principle of an automated market maker. The exchange of cryptocurrencies is provided by liquidity pools where users deposit their funds. According to the data aggregator DeFillama, at the end of September, the total amount of the project’s blocked funds was $413.6 million. Therefore, VVS Finance can be considered the largest dApps in the Cronos network.

The founders of the company preferred to remain anonymous, they call themselves masters. Some people may be suspicious of this, but at the same time, the project has been approved by the reputable smart contract auditor Slowmist. VVS Finance was also audited by Rugdoc, a company that specializes in checking decentralized applications. According to Rugdoc experts, DEX has a medium risk.

The standard exchange function for cryptocurrencies and tokens, which is present in all DEXs. Trading commission - 0.3%. Fees are shared between liquidity providers and the VVS Finance team.

Anyone can provide liquidity to the exchange. To do this, the user needs to select the cryptocurrency trading of which he wants to provide, and deposit these tokens into the pool. After that, he will become a liquidity provider (LP) and the platform will provide him with LP tokens confirming the ownership of these funds. As a result, you receive part of the funds from the commission when the token exchange is made, which the pool supports, and you can also farm and stake VVS. 

A section on the site that displays existing liquidity across different pools and user rewards for depositing funds. For example, about $128M is locked in the CRO-VVS pool and the rewards are 25.32B VVS. The annual percentage rate of return in this farming pool is 44.54%. You can also place your LP tokens here to get rewarded in VVS tokens.

Another opportunity to get LP tokens is to start farming VVS. To do this, select the exchange token and the pair you want to connect to the liquidity pool. 

This name hides the VVS staking function, which allows you to multiply tokens. There are two modes: automatic and manual. In the first case, the income is automatically collected and re-staken, and in the second case, it is necessary to collect the profit manually. 

The initial offer of game tokens allows you to participate in the pre-sale of various GameFi projects that are launched on the Cronos blockchain. The user can invest the required amount of VVS in the game they like, and then expect a return on investment after the listing of the token on crypto exchanges and the popularity of the game among blockchain gamers.

A section where users stake VVS tokens in order to receive another xVVS platform token, which gives the user voting rights to better manage the exchange. xVVS can also be blocked on the site to maximize income.

This is an NFT collection of 10,000 utility mole miners. According to the VVS Finance roadmap, holders of non-fungible tokens will be able to stake them to receive advanced farming opportunities as early as the end of 2022. Also, by the end of the year, the release of the VVSgotchi blockchain game based on Miner Moles is planned.

At the beginning of 2022, criticism poured in towards DEX due to the inflationary tokenomics of the project. The VVS supply is limited by too many tokens, the figure is 100 trillion. There are 29 trillion VVS in circulation on the market, while, for example, Uniswap has about 746 million in circulation, and SushiSwap has “only” about 127 million.

Unless the DEX attracts a large number of new users to its platform, it will be almost impossible to achieve a high value of VVS with such a large number of tokens.