Value DeFi
Value DeFi , formerly YFValue (YFV), is a cryptocurrency and a fork of yEarn Finance with its own suite of products in DeFi (Decentralized Finance). Value DeFi Protocol is a yield aggregator, automated market maker, and DEX which allows users to turn their latent assets into productive ones.[1][2][3]
Overview
Value DeFi Protocol has a stablecoin pool which brings equal opportunity to big and small investors, and makes the true value of yield farming accessible to all users. Value DeFi does this via its unique features, namely the voting of the inflationary rate of the supply and a referral system with automatic burning done fully on-chain. Value DeFi Protocol deploys different strategies to give users the best yield possible. The protocol is controlled by a decentralized autonomous organization. VALUE (previously known as YFV) is the governance token of the Value DeFi Protocol. Users can deposit their idle funds into Value Vaults to get interest returns, farm various pools to earn VALUE, and get up-to-date statistics on the entire Value DeFi ecosystem on their official website.[4][5]
"We seek to bring equal opportunity farming and governance to everyone by providing next-generation on-chain voting and rewarding long-term YFV stakeholders with flexible and optimized vault strategies and aggregation services. We also prioritize the protection of community funds, providing peace of mind with the integration of an insurance treasury."
History
Value DeFi Protocol launched annonymously on August 16, 2020. Their contracts have undergone formal auditing done by The Arcadia Group, PeckShield, and Pessimistic, and found no high or critical severity issues.[6]
Mission and Principles
“To bring fairness, true value, and innovation to yield farming”.
Value DeFi's operates on four mission principles:
- increase accessibility to yield farming
- provide on-chain voting for governance
- reward stakeholders with flexible, optimized, and profitable vault strategies
- protect the community’s funds through the integration of an insurance treasury.[7]
Products
Value Token
VALUE is the governance token of the Value DeFi Protocol which allows the holders to influence the protocol and earn a portion of the profits made by the products of the platform.
Value Liquid
Value Liquid is an automated market maker and decentralized exchange (DEX), that allows users to create custom liquidity pools with flexible ratio pairs and swap fees.
Value Vaults
Value Vaults is a yield aggregator that uses multiple strategies to maximize the interest rate returns on users' assets.
Phase 2 - MultiStables Vault
Instead of putting your assets in one pool and hurting your own profit due to the dilution effect of large sums of capital, users spread the assets deposited into the vaults across multiple farms.
- New MultiStables Vault of ValueDeFi could absorb 100mil$ TVL with only a 14% decrease in profit, an 34% improvement over other vaults.
- Auto-reinvest feature is included to squeeze out maximum additional yield
- Multiple strategies are calculated in real-time
- VALUE incentive based on TVL to ensure high and fair APY for everyone.[8][9]
Composite Vault
Composite vaults use an upgraded version of Vault v1 (single share with multi-strategy). The vaults accept multiple inputs: UNI v2 LP, SLP, BPT or other paired assets directly. In addition, there is a converter contract to move between different liquidity pool assets. Composite Vaults are not multi-asset vaults that run multiple strategies with multiple LP assets like the MultiStables vault. As such, a conversion rate calculation isn't necessary between various LPs, making the vault more secure than MultiStables. There is no auto-rebalancing feature in Composite Vaults to optimize APY as in the MultiStables Vault. Users will need to switch between vaults manually.
Governance Vault
Stakers in the Governance Vault receive a share of all profits from the Value DeFi ecosystem. The Governance Vault has three income streams:
- The deposited idle VALUE can be used to farm other protocols, rewards get sold to buy more Value.
- 14% of the profit from the Value Vaults are used to buy VALUE, this is shared over the Governance Vault stakers.
- The Governance Vault also gets 33% of the swap fees from Value Liquid.[10]
Additionally, if users stake in the Governance Vault they also have the opportunity to make important decisions in the project such as, what rewards to give, pools to set up, and percentage share of profits.
Farm-as-a-Service (FaaS)
FaaS is Value DeFi's one-click liquidity mining program using the one-click solution of Value Liquid technology.[11]
Tokenomics
VALUE
Value Liquidity (VALUE) is a yEarn-inspired governance token that is rewarded to cryptocurrency yield farmers. VALUE can be used to vote on decentralized autonomous organizations (DAO) decisions. VALUE sets itself apart by also minting two elastic supply coins, $vUSD, and $vETH. coins that will rebase to target the price of USD and Ethereum respectively.
vUSD and vETH
vUSD and vETH tokens are rewarded to users who stake VALUE. An exact amount of 1 million vETH and 1 million vUSD will be distributed to all yield farming pools based on their percentages. Once the VALUE of all pools are used up, vETH and vUSD will utilize an oracle price feed to match USD and ETH based on their prices. The protocol also uses a rebase mechanism of vUSD and vETH every day, similar to how the Ampleforth system works.
gvValue
GvValue is the compounding interest token of the Governance Vault. When users deposit VALUE to the governance vault, gvVALUE will be generated and issued to the user. When the vault redistributes a portion of the profit in VALUE (from Governance Vault, Value Vaults and Value Liquid fees) to the Governance Vault, the number of VALUE in the Governance Vault increases while the amount of gvVALUE remains unchanged.
Flash Loan Exploit
On November 14, 2020, a hacker performed a flash Loan exploit on the MultiStables vault of Value DeFi protocol, which resulted in a net loss of roughly $6M USD. Following this incident, Value DeFi Prtotocol found Chainlink to be the best oracle solution that provides a sufficiently robust and tamper-resistant price oracle solution capable of mitigating flash loan attacks.
The MultiStables Vault relaunch will utilize Chainlink Price Feeds for all supported stablecoins to ensure our oracles maintain round the clock market coverage across all trading environments. This removes Value DeFi's exposure to temporary flash loan induced price distortions that exist when pulling data straight from Curve Finance on-chain liquidity pools or any other on-chain generated price feed such as Uniswap.[12][13][14]
