VIGOR is a DeFi platform in development on EOS, which seeks to demonstrate the potential of this blockchain by creating a complete decentralized finance platform, which gives options to users of EOS and other cryptocurrencies.
But what does VIGOR really do? Is this a real alternative to DeFi solutions within the world Ethereum and Bitcoin? Well, let's find out what this protocol has to offer and how it can change the DeFi landscape in the crypto world.
VIGOR, the DeFi world comes to EOS
VIGOR is a decentralized finance protocol that has the ability to use multiple collaterals to create a complete ecosystem of financial tools using the EOS blockchain. Said in this way, it sounds like VIGOR is many things, and it is, in reality it is many things at once.
First of all, VIGOR is a stablecoin o stable currency whose value is anchored to the US dollar. This currency has a collateralized operating model that reminds us of DAI de MakerDAO. This stable currency is the heart of the VIGOR protocol, since the rest of the financial functions that it offers to its users are built around it. Among these functions we can mention the ability to save, make staking and make collateralized loans in cryptocurrencies, where the EOS token is the main protagonist.
As you can see, the concepts behind VIGOR are the same that we see for example in DeFi platforms within Ethereum, however, the blockchain in this case is the one who makes the main difference. EOS is a blockchain with much greater scalability and ability to operate than Ethereum. In fact, Ethereum has a scalability close to 13 TPS (transactions per second) as we can see in the Etherscan.
However, EOS has surpassed this level by far. In fact, in EOS Network Monitor, we can see that the highest transaction record on the network was 3996 TPS. This is 300 times more powerful than Ethereum, in terms of transactions per second that can be processed by the network.
The same data can be seen in State of the DApps where, normally, the number of daily transactions on the EOS network far exceeds that of Ethereum, making it clear that EOS in this regard is clearly superior.
Given this huge difference in scalability, it is quite clear that EOS has an advantage, at least until the new version of Ethereum (Ethereum 2.0) come to light. However, VIGOR developers now seek to exploit this advantage by presenting this platform.
Origin of the project
The history of this project began in 2018, when it was released on whitepaper of VIGOR, in a collaborative work carried out by the Genesis Custodians of VIGOR and their DAC (Decentralized Autonomous Community or Decentralized Autonomous Community).
In said document the economic strategy, governance and functions of the VIGOR protocol were established. Since then, VIGOR began its development and it was on September 15, 2020, when the first complete version of this protocol finally came to light.
Back then, VIGOR has morphed into one of EOS's first DeFi platforms, and one of the most promising on this blockchain.
How does VIGOR work?
Now, as we have already mentioned, VIGOR is a protocol with multiple functions, which are controlled by the different smart contracts that are executed on the EOS blockchain. Said smart contracts in their entirety are written in C ++ language (a widely known and high-level general computing language), which control absolutely all the functions of VIGOR. You can review all the contracts of the platform from this website.
Among those functions are:
The DAC or Decentralized Autonomous Community, which governs the protocol, and which is made up of 21 custodians who are chosen from among the genesis custodians and the users chosen by the community.
A system of oracles that is responsible for interconnecting the real world and the markets within it, with the services within the VIGOR protocol.
The VIGOR protocol itself with all its lending, staking and other protocol functions.
These are the three fundamental parts of the current VIGOR platform and the objective of their work is simple: to create a loan and staking system that revolves around VIGOR stablecoin and EOS.
VIGOR Stablecoin, the economic heart of the protocol
At the center of VIGOR's operation is its stablecoin VIGOR and the native token VIG. The objective behind the creation of this stablecoin and this token is multiple:
Create a decentralized stablecoin that allows EOS users to be attracted to invest in the platform in exchange for a percentage of profits obtained from the protocol's loans. These earnings are given to the user using VIG Tokens.
Create a stable financial system that reduces the risk of volatility in the loan systems applied by VIGOR.
Along with all this, the VIGOR stablecoin is designed to meet the following characteristics:
Over-guaranteed. The price stability of the VIGOR stablecoin depends on the overcollateral used in its generation. The collateralization ratio is adaptable thanks to the system of oracles integrated into the protocol, which seeks to offer the best possible collateralization ratio to prevent the volatility of the crypto market from negatively affecting the stability of the stablecoin.
Another important point of the VIGOR stablecoin is that its collateral is protected against volatility events. In this way, it is about maintaining a good balance between debts, insurance and loans within the system. Even in extreme cases, the stablecoin has two points of protection. The first is expressed in VIG tokens that can be used to cover losses. This first system is fed by a part of the fees and rewards generated by the users within the platform. The second point of protection is expressed in VIGOR stablecoin, and it is a final reserve group that would act in the most extreme cases of losses within the protocol.
Generating VIGOR stablecoin
Now, to generate VIGOR stablecoin you just have to go to the DApp of VIGOR, and lock balance in EOS, VIG or USDT to obtain the amount of VIGOR you are looking for, adjusted of course to the collateralization ratios, commissions and rewards.
In the same way, you can transform your VIGOR holdings into any of the mentioned tokens, or you can even block them, to obtain rewards for your participation in the platform.
To interact with the DApp you must have a compatible EOS wallet, which in this case is Scatter and Anchor, and whose operation is very similar to that of Ethereum's Web3 wallets (such as Metamask, for example).
VIG Token, the platform's native token
The other important part in VIGOR's economic token model is its native token, VIG. This token serves multiple purposes, among them the following can be highlighted:
It is a token used for the governance of the protocol, as well as for the payment of fees and rewards that users obtain within the platform.
In addition, VIG serves as a reserve asset within the protocol. In this way, a VIG rate cut is permanently sent to a reserve that backs the VIGOR stablecoin as an insurer of last resort.
As VIG is a deflationary issuance token, its revaluation is sought over time, helping to sustain the platform. The total issuance of VIG tokens is a total of one billion tokens, and they will be issued according to the use parameters of the VIGOR platform.
On the other hand, this project is structured under the model of a decentralized autonomous community (DAC). This allows them to have the possibility to establish or provide good governance. In fact, it is the elected custodians who manage the multi-signature access to update the contract code and are the ones who will make the critical operational decisions. It should be noted that the governance token used within the system is called VIG and its purpose is to provide access to the system. This token can also be used as a token for the payment of interest and as a final reserve.
Taking the aforementioned into consideration, VIGOR's platform is governed as a DAC launched on the EOS mainnet and has up to twenty-one custodians from that community who control multi-signature permissions for smart contracts. The development of it is executed through the joint work of many people for free through the decentralized autonomous community (DAC), it is building this stable currency platform making significant contributions day after day.
Consequently, the construction of the project is a decentralized autonomous community that develops, supports and maintains the VIGOR protocol of free and fully decentralized open source and smart contracts (Smart Contracts). It is important to note that anyone can join it and participate in VIG to become a candidate; currently out of more than 100 applicants, 21 custodians are chosen daily to provide fully decentralized guidance in development and other support or maintenance functions on the platform.
How much do you know, cryptonuta?
Is VIGOR's governance really decentralized?
The governance of VIGOR depends on the DAC, so despite the fact that its creators have a certain level of privileges within the system, the final opinion is given by its DAC, and therefore, it depends on a group of people chosen by a system. that decentralizes governance among the VIGOR user community.
VIGOR is a project that is just being born and even so it has attracted a lot of attention within the EOS community. Certainly, it is a project that lacks a lot of evolution, especially when compared to projects already known as MakerDAO's DAI, AAVE or Compound, all of them running on Ethereum.
So what is the value of VIGOR in this reality? Well, start to diversify DeFi bets in the crypto world looking to offer a good user experience and much lower commissions (and even free) by using the EOS blockchain instead of Ethereum.
EOS has always been a highly talked about project with a very active community eager for DApps. Not for nothing they usually have the second record of active users in DApps, only behind Ethereum and for very little. Given this reality and a capitalization of 2 billion dollars, VIGOR's commitment to achieve phenomena such as the “Ethereum Boom DeFi” on EOS, is clearly something that should be taken into account, especially if there is an interest in the world. DeFi.