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$VALUE recently introduced the first cross-chain Synthetic Seigniorage pegged assets - $vUSD, $vBTC & $vDOT - with the support of renowned projects including @Polkadot & @Chainlink 
Why are #vTokens the next generation of algorithm synthetics?
(1/25)
$LINK $DOT #DeFi
Why are #vTokens the next generation of algorithm synthetics?
(1/25)
$LINK $DOT #DeFi
Before understanding what @value_defi's vTokens are, let's grasp concepts of:
- #Fiat-backed
- #Cryptocurrency-backed
- #Seigniorage #stablecoins
(2/25)
$VALUE
- #Fiat-backed
- #Cryptocurrency-backed
- #Seigniorage #stablecoins
(2/25)
$VALUE
Fiat-backed stablecoins: Such as $USDT or $USDC, fiat-backed #stablecoins are based on the value of the backing currency and are held by a centralized third party entity.
For this reason, this kind of stablecoin involves a central party risk.
(3/25)
$VALUE
Cryptocurrency-backed stablecoins:Issued with cryptocurrencies as collateral, the crypto asset used to back this type of stablecoins is done on the blockchain, using smart contracts in a more decentralized fashion (e.g. $DAI & $MKR).
(4/25)
$VALUE
Seigniorage stablecoins: Are not backed & utilize algorithms to control the stablecoin’s money supply, similar to a central bank's approach to printing and destroying currency (e.g. $AMPL & $BASE).
(5/25)
$VALUE
@valuedefi's vTokens: 
Cross-chain tokens using seigniorage, in a transparent, programmatic, decentralized manner with a brand new concept of "dynamic epochs" offering great incentives for Liquidity Providers (LPs).
Introducing $vUSD, $vBTC & $vDOT 
(6/25)
$VALUE
vUSD The ultimate goal is to have 1 $vUSD close to $1 as possible.
To improve this price stability, 4 innovative mechanisms has been introduced:
1. 80−20 $vUSD/ $WETH liquidity pool
2. Dynamic expansion
3. Dynamic epoch length
4. New Coupons design
(7/25)
80−20 $vUSD/ $WETH liquidity pool: The price of 1 vUSD will be determined by the rate of vUSD/WETH at the vUSD/WETH pools.
With the higher weight being that of the pegged asset, it requires less capital of the asset weighted at 20% to maintain the price peg.
(8/25)
Then, $vUSD will use @chainlink as oracle solution to
determine the price of $ETH/ $USD to calculate the rate of vUSD in USD.
This approach offers novel solution for mitigating flash loan attacks & removes the need of obtaining the price of a centralized asset.
(9/25)
determine the price of $ETH/ $USD to calculate the rate of vUSD in USD.
This approach offers novel solution for mitigating flash loan attacks & removes the need of obtaining the price of a centralized asset.
(9/25)
Dynamic expansion: When $vUSD > $1, the protocol is in expansion and vUSD tokens will be minted to:
- the Reserve Fund contract,
- vUSD Liquidity Providers (LPs) in the vUSD/ $WETH pools - LPs on ValueLiquid Farm-as-a-Service ( #FaaS).
(10/25)
$VALUE
When $vUSD < $1, the protocol is in contraction & to
return to its $1 peg, the supply of vUSD can be reduced
through the Reserve Fund supply & vUSD Coupons.
(11/25)
$VALUE
return to its $1 peg, the supply of vUSD can be reduced
through the Reserve Fund supply & vUSD Coupons.
(11/25)
$VALUE
Coupons are the backup plan when the ability to buy $vUSD on the market for less than $1 is not enough to restore the peg by itself.
If the price gets stuck below $1 for an extended number of epochs, a method is needed to further incentivize movement back to the peg:
(12/25)
If the price gets stuck below $1 for an extended number of epochs, a method is needed to further incentivize movement back to the peg:
(12/25)
Coupons incentivize token holders to voluntarily burn their $vUSD by offering them coupons redeemablefor future vUSD.
For buyers, these coupons are priced at a discount so that they are rewarded for taking the risk. (13/25)
$VALUE
No new $vUSD will be distributed until the debt is paid off in full.
When the vUSD price goes above peg, any new supply created pays off the Reserve Fund debt first before anything is distributed to token holders.
(14/25)
$VALUE
When the vUSD price goes above peg, any new supply created pays off the Reserve Fund debt first before anything is distributed to token holders.
(14/25)
$VALUE
vUSD Incentives 
In case the protocol has no debt, the expansion will be split as follow:- 5% of minted vUSD in expansion goes to a Reserve Fund, which automatically sells vUSD at a threshold to keep the vUSD price on-peg.
(15/25)
$VALUE
- 35% of the minted vUSD in expansion will go to vUSD LPs of 80/20 vUSD/WETH pool.
- 50% will go to vUSD LPs of 98/2 vUSD/WETH pool.
- 10% of minted vUSD in an expansion epoch will be used for incentiving $VALUE users to provide liquidity (Value Vaults/ FaaS liquidity pools)
- 50% will go to vUSD LPs of 98/2 vUSD/WETH pool.
- 10% of minted vUSD in an expansion epoch will be used for incentiving $VALUE users to provide liquidity (Value Vaults/ FaaS liquidity pools)
Otherwise, in case the protocol has debt, the expansion will be split to:- 5% of minted vUSD in expansion goes to a Reserve Fund
- 15% of the minted vUSD in expansion will go to vUSD LPs of 80/20 vUSD/WETH pool
- 10% will go to vUSD LPs of 98/2 vUSD/WETH pool.
(17/25)
- 5% of minted vUSD will be used for incentiving $VALUE users.
- 65% will be used to redeem for $vUSD coupons.
(18/25)
$VALUE
- 65% will be used to redeem for $vUSD coupons.
(18/25)
$VALUE
Usecase - $VALUE Lending protocolAll vTokens ( $vUSD, $vBTC, $vDOT) will be able to be used within @value_defi's recently announced elastic decentralized #lending protocol.
All vUSD governance functionality will be delegated to VALUE holders.
(19/25)
vUSD airdrop: 
If you haven't claimed your 100 $vUSD yet, follow this link to find out how: https://bit.ly/35SQ7gi .
To be eligible you must have a total trading volume greater than 50 $VALUE equivalent until Dec-31-2020 11:59:57 PM +UTC.(20/25)
Supply & distribution 
$vUSD currently has a supply of 1.709 millions vUSD.
Current vUSD users will have the ability to migrate their old vUSD to new vUSD using the migration contract.
The deadline for the migration is 30-June-2021.
(21/25)
$VALUE
vBTC First #seigniorage #synthetic $BTC on @ethereum and @Polkadot; an alternative BTC without a centralized approach like $WBTC or $renBTC.
$vBTC incentives & mechanisms are similar to vUSD. (22/25)
$VALUE
vDOT$vDOT is another experiment to move Polkadot tokens onto the $ETH network in a decentralized manner.
This shows @value_defi’s commitment to develop a cross-chain solution for the Polkadot network.
$vDOT incentives & mechanisms are similar to vUSD. (23/25)
$VALUE
@value_defi team is committed to working with the @Polkadot & @Moonbeam teams to port over the vTokens concept to the Polkadot/ @kusamanetwork Parachain.
As the first proof of concept, #vTokens will be ported to the MoonBeam parachain to demonstrate its capabilities.
(24/25)
As the first proof of concept, #vTokens will be ported to the MoonBeam parachain to demonstrate its capabilities.
(24/25)
Other ecosystems are evaluated to extend those cross-chain capabilities.
If you want to go deeper into the subject, please find the whitepaper at https://bit.ly/35TWtfB
Got questions? Shoot!
(25/25)
$VALUE
If you want to go deeper into the subject, please find the whitepaper at https://bit.ly/35TWtfB Got questions? Shoot! (25/25)
$VALUE
