V3S Finance - the first ecosystem to operate around an algorithmic token, linked to VVS on the Cronos network. Created by the VVS Diamond owners team, V3S is inspired by the most successful algorithmic stablecoin on Fantom: Tomb and the most famous algorithmic token project on Cronos: DarkCrypto.
About V3S Finance
V3S — an algorithmic stablecoin, pegged to the price of 1 VVS. The algorithm helps to increase the supply in case of a deflationary trend of the token or reduce the supply in case of a decrease in the purchasing power of the token. In this way, the supply and demand of V3S balance out, which helps to keep it tied to 1 VVS in the long run. We are happy for investors and developers too.
V3S maintains its binding to 1 VVS with a three token structure:
| V3S | algorithmic token, tied to VVS. |
| VSHARE | holders can claim V3S inflation as the network expands. |
| VBOND | can be purchased when the network is in a contraction state and can be exchanged for V3S when the network enters a deflationary phase. |
The epoch defines the period in the V3S ecosystem during which the overall V3S supply is adjusted. 1 epoch is equal to 6 hours, 4 times a day. During the epoch, the price of the token will be measured to decide whether an expansion or reduction in supply is necessary. It also allows token participants to put forward and vote on governance proposals.
The debt phase takes place during expansion eras that begin after the contraction period, when there are still VBONDs to be redeemed. 50% of the expansion at the debt stage is directed to the Treasury fund to prepare for VBOND repayment. This amount is still set aside regardless of whether VBOND holders redeem the bonds or not. Once the V3S in the Treasury is filled enough to redeem all outstanding bonds, the pace of expansion will resume to normal levels.
More about defi app
Depending on the price of the V3S, the Atlantic seal will have to adjust to provide a buffer for any unclaimed VBOND. As the price of V3S rises above the peg, more V3S needs to be allocated to the treasury to account for the redemption of the VBOND bonus. Unlike previous algo projects, V3S focuses on making the protocol strong and keeping it stable in the long run. Since the APR in V3S is lower than in Pacific for LP, the team aims to encourage users to add liquidity rather than staking a single token. This will ensure the stability of V3S in the long run. However, it is important to note that the board's annual interest rate is still good enough for members.
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