Vesta is a layer 2-first lending protocol that allows users to obtain maximum liquidity against their collateral without paying interest.
Vesta is natively Layer 2 and is deployed on Arbitrum.
How Vesta works
- Stablecoin: users can deposit collateral to mint VST (Vesta Stable) - a USD-pegged stablecoin.
- Multi-collateral: users can deposit collateral (ETH/renBTC etc.) to mint VST. More types of collateral is said to come soon.
- Low collateralization ratio: a user's collateral vault is required to be collateralized at a minimum collateralization ratio much lower than that from the competition (e.g. 110% for ETH, 110% for renBTC, and 175% for gOHM).
- Immediately redeemable: VST holders can redeem their VST stablecoins for the underlying collateral at any time. The redemption mechanism along with algorithmically adjusted fees guarantee a minimum stablecoin value of 1 USD.
- Community-oriented tokenomics: 50%+ of the governance token (VSTA) supply will be given to the community.
- Governable: parameters in the system, such as minting fees, liquidation fees, and liquidation incentives will be modifiable by governance.