Vesq — a decentralized reserve currency protocol, available on the Polygon (MATIC) network, based on the VSQ token. Each VSQ token is backed by a basket of assets (e.g. FRAX, MATIC) in the VESQ treasury, giving it an intrinsic value below which it cannot fall. VESQ also brings unique economic and game-theoretic dynamics to the market through staking and binding.
About Vesq platform
Vesq's goal - to build a policy-driven monetary system, where the behavior of the VSQ token is controlled at a high level by the DAO. In the long term, this system can help to optimize stability and consistency so that the VSQ can function as a global unit of account and medium-of-exchange currency. In the short term, the team intends to optimize the system for growth and wealth creation.
Market participants have two main strategies - staking and binding:
| 1 | Stakers stake their VSQ tokens in exchange for more VSQ tokens. |
| 2 | Obligators provide LP or DAI tokens in exchange for VSQ tokens at a discount after a fixed vesting period. |
The main benefit for stakers comes from increased supply. The protocol mints new VSQ tokens from the treasury, most of which is distributed among the participants. Thus, profits for stakers will come from their auto-adding balances, although price risk remains an important factor. That is, if the increase in the balance of tokens outpaces the potential drop in price (due to inflation), the stakers will profit.
This yield is in VSQ and the guarantor's return will depend on the VSQ price at maturity of the bond. Bonds benefit from rising or static VSQ prices. VESQ aims to solve the problems by creating a no-peg stablecoin, called VSQ. By focusing on rising supply rather than rising prices, VESQ hopes that VSQ can function as a currency that can maintain its purchasing power regardless of market volatility.
More about defi app
VSQ is minted and evenly distributed to reward staking. Increasing VSQ rates lowers APY but raises the price of VSQ, creating a balance that protects your investment. Designed with a long-term health protocol in mind. All VSQ minted for staking rewards are backed by a reserve from the treasury.
For more information, please refer to the introductory document. It has a general description, answers to questions and much more. From social networks, the community leads:
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