VyFi (Vy Finance)
Multiple investment avenues in one platform. Offering an investment managing AI “neural net” for beginners, and total investment control for advanced users.
The VyFi platform expects it will take them two years to get all of the elements of their ecosystem up and running. Once it is all operational governance is going to be handed over to holders of the VyFi token who can use them to vote on proposed changes to the system. Users can also submit proposals to the platform for voting. The elements of the Vy Finance platform are as follows:
Utilizing an automated market maker, AMM, functionality to facilitate token swaps, the DEX is the principle method for releasing the platform’s native token, VyFi, into circulation. Users stake to the DEX to provide liquidity and receive their rewards in VyFi.
Users stake their ADA to the Vault. The funds in the Vault are then used as liquidity in both VyFi’s DEX and outside markets. Users can also stake special VyFi NFTs and earn rewards for doing so. Rewards are paid to stakers in VyFi tokens. Strategic partnerships with other Cardano Native Token releases are in the pipeline to help increase liquidity and provide greater liquid exposure in these markets for those who stake their ADA with VyFi’s Yield Farming element of the protocol.
The auto-harvester is supported by the “knowledge” from the neural net and manages trades in the International Markets unitized hedge fund. The auto harvester will also manage the funds of those who prefer to leave the management of their investment to the platform.
This is a proprietary-trading firm, i.e. a private hedge fund, run by one of the creators of VyFi, into which the auto-harvester is going to be integrated and is the principle money making element. When funds are deposited into this fund from the FIAT side they are used to provide the depositor with exposure to both the benefits and risks associated with investing in cryptocurrencies. Users of this fund receive “units” of the fund representing their deposits.
In order to operate this fund the owner needs to obtain licensing to operate as an accredited investment firm in Australia, by obtaining an Australian Financial Services License, AFSL. This is going to be the last thing undertaken after the build out of the platform.
The VyFi BAR is staked to with VyFi tokens. It receives various percentages of profits from across the protocol namely:
- 0.05% of DEX trades
- 15% of International Markets (auto-harvester) profits
- 15% of yield farm profits
Users who stake their VyFi tokens to the bar receive xVyFi tokens which represent their share of the VyFi BAR. This is described as an “ownership share of fees generated by the business” by one of the creators and the value of these tokens will increase over time as the value of the BAR increases because of the above inputs.
The fee structure for this ecosystem is highly intricate and difficult to explain with just words. As such this is not going to be attempted here and it is recommended that the reader reference the diagrams in the whitepaper to get a full grasp of fee distribution.
What can be said is that a proportion of the fees and profits from the various elements of the protocol are put into the BAR where they are used to reward those that have invested in the BAR.
Once users have staked their ADA to the platform they gain access to VyFi’s Learning Management System, LMS. Through this users can learn about the risks of the crypto market, particularly the DeFi sector, and educate themselves on the risks of trading in crypto.
Further down the line VyFi are looking to connect cross-chain bridges to their protocol to further diversify how the system operates.