We propose an upgradeable Vether pool that will support the VETH token along with ETH, USDC, and DAI, as those are the most popular collateral assets on Ethereum.
Vether is designed to be a store-of-value with properties of strict scarcity, unforgeable costliness and a fixed emission schedule. Vether mimics characteristics of Bitcoin, where miners compete to expend capital to acquire newly-minted coins and chase ever-decreasing margins. Instead of expending capital, Vether participants compete to purchase it by destroying capital on-chain. As a result, all units of Vether are acquired at-cost and by anyone. This mechanism is called Proof-of-Value.
Vether is auctioned off daily, and every 244 Days (1 Era) a halving of the emissions occurs until all 1,000,000 VETH are distributed. Users burn ETH to acquire a share of the daily emissions of VETH or can purchase VETH on the open market.
Era 1 (244 days) – 2,048 VETH emitted daily
Era 2 (244 days) – 1,024 VETH emitted daily
Era 3 (244 days) – 512 VETH emitted daily etc
VETH is also used as a fair distribution method for token launches. The upcoming launch of the highly anticipated Vader Protocol is using VETH as its primary distribution method. Holders of VETH can burn VETH tokens in return for VADER tokens at a ratio of 1 VETH: 1000 VADER
Contracts and links:
VETH ERC-20 contract: 0x4ba6ddd7b89ed838fed25d208d4f644106e34279
Vether app: https://www.vetherasset.app/
Initial pool parameters:
Close Factor: 50%
Liquidation Incentive: 8%
VETH Collateral Factor / Reserve Factor: 50% / 40%
ETH Collateral Factor / Reserve Factor: 60% / 20%
USDC Collateral Factor / Reserve Factor: 60% / 20%
DAI Collateral Factor / Reserve Factor: 60% / 20%
Vether is a project that has much utility as previously discussed from token launches to store of value and further than that, the success of Vether can have a significant price impact on the ETH token through its burning mechanism.
There has been significant demand within the Vether community for venues to borrow against VETH and bring it to its full potential as a store of value. It is anticipated that with each halving that occurs the value proposition should strengthen for the protocol.
Price risk is the most significant consideration in integrating VETH as a collateral type. During the early stage there has been some volatility early in the project but has since found a stable price range. The upcoming launch of Vader protocol will bring much more users to the VETH token.