DeFi trading is “Very, Very Simple” for Everyone!
VVS Finance pledges to support making DeFi available to billions of people worldwide, including the typical Joe. Thus, VVS (very very simple) Finance got its moniker.
The site takes pride in being a one-stop shop where customers can easily swap tokens and earn large rewards. It is a natively developed decentralized exchange (DEX) on the Cronos chain that makes use of automated market-making (AMM). VVS Finance does more, though, as it aspires to be your go-to entry point into the decentralized finance movement.
What is VVS finance?
As an AMM DEX, VVS Finance makes trading possible without the use of order books or middlemen. It implements a smart contract that makes use of the assets and liquidity offered by liquidity providers. Its average daily trading volume as of July 2022 is $7 million.
The platform's main goal is to make it simple for users to trade tokens and receive rewards "while having fun." In order to make DeFi easily accessible to even those customers with little or no prior exposure to blockchain and cryptocurrencies, VVS Finance does highlight the "fun" component. It seeks to provide a distinctive user experience that appeals to users of all expertise and experience levels through gamification and an intuitive UI.
You might recognize Crypto as a wallet and exchange that has been spending a lot of money on marketing with high-profile commercials that include celebrities like LeBron James and Matt Damon, among others.
Unbeknownst to many, it is also the organization that created Cronos, a blockchain that is EVM-compatible and renowned for its fast speeds and low fees. Cronos quickly rose to prominence in the DeFi market following its launch in November 2021, with $4 billion in total value locked (TVL) by April 2022. At the time, VVS Finance contributed over 60% of the TVL.
Even now, when the TVL in Cronos has drastically decreased to just over $1.25 billion due to the prolonged bad market, VVS Finance still makes up more than half of that total.
How VVS works
VVS Finance places a strong emphasis on tested and verified procedures. Additionally, it provides a quite lucrative creative program supported by the native asset of the project, the VVS Finance token ($VVS).
Liquidity pools are available on the DEX, and each pool consists of two tokens. Tokens are added to the pool by liquidity providers, and then traded amongst by traders.
The methodology is based on a formula producing a consistent product. To clarify, after a swap is carried out, the sum of the quantities of both tokens in a pool stays the same. Additionally, the price slippage from the swap may differ according on the total number and distribution of tokens in the pool.
$VVS Tokenomics
The utility, governance, and incentive tokens for the platform are represented by the Cronos Chain (CRC20) token. It can also be used to pay transaction costs for programs created using the Cronos Chain.
The emission model, which the VVS Finance team uses to create the currency, calls for 50 trillion tokens to be created in the first year, with that number halving each year following that. In this way, the second year will see the introduction of a total of (50 2) 25 trillion tokens, followed by (25 2) 12.5 trillion tokens, and so on.
Is VVS reliable?
To start with, there are certain issues with VVS Finance's tokenomics. More over 21 trillion VVS tokens are already in circulation; during the course of the next ten years, the 100 trillion total supply will be reached.
Other prominent DEX tokens, in contrast, have a far smaller amount of tokens in circulation. For instance, SushiSwap has a circulation of little more than 127 million. The equivalent number for the PancakeSwap token is little more than 268 million.
Therefore, $VVS appears to be the only significant DEX token that is (relatively) inflationary to this extent. However, it does have a maximum total supply of 100 trillion (which, although having some deflationary features, CAKE, for example, does not have).
The price and market value of the VVS token have remained largely steady, even now, at what may be the apex of the current bear market. The volume of daily trading is also respectable.
All things considered, it is probably reasonable to state that $VVS can be noted as a potentially profitable investment in the medium to long term if VVS Finance can maintain its leadership position in the Cronos ecosystem and if Cronos continues to increase in adoption and activity.
