Good morning everyone and welcome back to a new article! As you may see, today we are starting a new series, in which we are going to look at little known coins that may turn out to be gems in the short or long term. To begin, today, we are going to analyze Vader Protocol (VADER).
What is it?
Vader Protocol is a DAO governed protocol owned liquidity anchored by native stablecoin (USDV) with slip-based fees AMM. It also providing liquidity IL protection and synthetics. VADER utilizes a hybrid algorithmic-collateralized stablecoin with LPs that utilize synthetic assets. The USDV stablecoin is issued by burning to and from the VADER token which acts as the stability mechanism.
Stablecoins and synthetic assets are a noble problem that needs to be solved. The key issues are liquidity issues and always perceiving the correct purchasing power of an asset. In addition, the use of incentives can ensure maximum uptake of the system and quick bootstrapping of capital, especially through the liquidity owned by the protocol. Existing stablecoins and synthetic assets are poorly designed because they rely on price oracles that are insensitive to liquidity, vulnerable to manipulation, and do not properly incentivize liquidity makers.
VADER is a new form of liquidity protocol designed to be self-service. It leverages its own liquidity and awareness of the purchasing power of assets to support the creation of collateralized stablecoins. It is also able to use liquidity units as collateral for synthetic assets and always guarantee their redemption liquidity. It has a fair and transparent incentive strategy to maximize liquidity pool depth and adoption of synthetic assets.
Now, let’s see some key features:
- Uses a stablecoin settlement asset.
- An ability to expand and contract the supply of both VADER and USDV.
- Impermanent Loss protection for Liquidity Providers in the pools.
- Continuous liquidity pool incentives.
- An ability to mint synthetic assets from pool liquidity.
- Liquidity incentives that fund Protocol Owned Liquidity to reduce rent-seeking costs over time.
VADER Token
VADER and the TWAP function transmit the “anchor” price of VADER in USD. This allows anyone to burn VADER to mint USDV at 1:1 the TWAP price. VADER is issued 10,000:1 for holders of Vether (VETH) , which itself is distributed via a fair process of Proof-of-Value. Since VETH is acquired only by the provable burning of ETH via a daily auction; it is sybil-resistant, decentralized and has unforgeable costliness. VADER has a maximum supply of 25bn. 7.5bn is claimed by the holders of VETH, and the additional 12.5 bn is paid out as liquidity incentives, 2.5bn for partnerships and 2.5bn for the team linearly vested over 2 years. VADER contains a Fee-On-Transfer which is proportional to the current supply, but increases linearly the closer VADER is to its Maximum Supply in the range from 0 to 100 Basis Points.
VADER was quoted on December 13th starting at a value of $0.03. In about 20 days it made a +200% reaching 0.13$ and then started a bearish trend. Now we are around $0.04, and we may have found a good entry point.
Negative side that I don't like currently is that the team is still hidden and we don't know who is developing the project.
Here you can check the Twitter profile: https://twitter.com/VaderProtocol
This is their roadmap for Q1 and Q2 2022:
Q1 2022:
- USDV partnership integrations.
- Collateral Debt Leveraged Positions.
- Crosschain Deployments.
- DAO transition.
- Expansion of Asset Pools.
Q2 2022:
- Treasury Partnerships.
- Sponsored Liquidity Partnerships/IDOs.
- Sponsored Bond Sales Partnerships.
The way I see developments and the information we have right now, Vader Protocol right now I see as a possible short-term investment given the current market price. However, nothing prevents that, if the roadmap will be respected and will bring new innovations, it could become a longer term holding.
Here is the website where you can also DYOR and get the access to their Discord channel: https://www.vaderprotocol.io/
That's it for this first episode. I hope you will be interested in this series!
Do you have any hidden gems you think are interesting? Did you already know about Vader Protocol?
Let me know in the comments.