Vector Finance Crypto Platform

Pros

$35,827,005 USD currently invested (TVL)

Investments in 19 coin pairs available

Operating on Avalanche C-Chain protocol

Cons

Investments in liquidity pools can be higher risk

Liquidity pool investments are only suitable for advanced crypto users

Vector Finance Reviews

Vector Finance is a decentralized yield optimizer built on the Avalanche blockchain network. Vector finance is a protocol to magnify yields on some stablecoins and cryptocurrencies by aggregating Trader Joe and Platypus Finance platforms’ pools.

The main use case of Vector Finance is benefiting from increased capital efficiency. We need to explain how Trader Joe and Platypus Finance platforms work to understand Vector Finance’s role. Both Trader Joe and Platypus have utility tokens, JOE and PTP. For example, if you stake PTP tokens, you can earn vePTP on the Platypus platform, and vePTP tokens provide enhanced rewards. The more vePTP tokens you have, the better rate you receive from the pools. vePTP tokens are not transferable, nor tradable. Once you unstake your PTP tokens, the balance of vePTP tokens is reset, which means you must stake and start earning vePTP from zero again.

This system is the same for Trader Joe as well. veJOE tokens accumulate over time when you stake JOE tokens and the more veJOE you have, the better rates you will receive from the pools. Here comes Vector Finance into play. Vector Finance offers xPTP for vePTP and zJOE for veJOE tokens. Instead of staking PTP or JOE on the native platforms, you can easily lock your PTP and JOE tokens and Vector Finance will earn veTokens for you. By doing this, you will be able to trade your veTokens without the risk of a reset. Since Vector Finance is a big veToken holder on those platforms, Vector Finance has a much higher reward rate on the pools and the platform share that generous rates with its clients.

VTX is the governance token of the platform. VTX tokens automatically receive a share of the platform’s revenue. VTX tokens are distributed to stablecoin and JOE LP depositors, liquidity providers, and xPTP zJOE staker. VTX tokens have a hard cap which is 100 million. More than half of the total supply will be released as an emission to the liquidity providers. VTX tokenomics have a fair distribution with a vesting schedule.

The platform offers two types of pools, auto compounding pool and manual pool. The difference is that you need to stake your earnings at the end of the term at the manual pool while the earnings are automatically converted to initially deposited assets and then added to the pools.

Vector Finance is a relatively new protocol with a short history on the Avalanche blockchain network. The protocol doesn’t have any hack or exploit in its history. Smart contracts are shown on the documents page of the protocol. There is an independent audit report from Omniscia which also audited the Platypus platform. Avalanche is a very promising network and works hands-on with projects like Vector Finance, Platypus, and Trader Joe.