Vesper is a platform of DeFi products designed for ease-of-use, longevity, and scale. It is a comprehensive ecosystem governed by the VSP token.
What are Vesper Grow Pools? Vesper Grow Pools are algorithmic DeFi lending strategies. They pool capital from a group of users and deploy it to generate interest across various DeFi protocols. Accrued interest is used to buy back the pool's deposit asset (which may be ETH, BTC, USDC, or something else), and award it as interest to participants.
How do I interact with Grow Pools? All you have to do is choose the pool you are interested in and deposit your asset. One transaction, and the pool does the rest. Similarly, you can withdraw your funds and claim your interest with one transaction.
What Grow Pools are available today? As of the launch there are three pools: ETH, BTC, and USDC. We will frequently offer trial pools to the community before they go prime-time on the Vesper website.
Has the code been audited?
Yes. The code has undergone two independent audits by Coinspect and Certik. See the Audits and Due Diligence section for more details.
What is the benefit to depositing my funds in an Grow Pool? Grow Pools deploy your assets into DeFi lending strategies. You can choose a pool based on your risk tolerance and desired token. This reduces a process that typically comprises more than a dozen fee-extracting transactions, hours of research, and constant monitoring down to a one-time deposit and withdrawal. Additionally, Grow pool participants farm VSP tokens, further rewarding users with even greater passive returns, catalyzing participation, and forming the basis for progressively decentralized governance.
What happens to my funds after I deposit them in a Grow pool?
Deposits are pooled and deployed through the strategy outlined by the particular Grow pool. See the Strategies page for more information on what that strategy may look like.
Is there any risk associated with Vesper Grow pools?
Grow pools that interface with loans are at risk in the event of a so-called black swan event, such as when a pool asset sees a flash crash in a short amount of time. In this event, the pool's outstanding debt position may become under-collateralized, leaving the lender insolvent, and the pooled funds may be hit with a liquidation fee, which could translate into a loss to the participant.
Each token supported offers a pool that pursues conservative and aggressive strategies. Conservative pools use higher collateralization ratios and are therefore less vulnerable to such a risk – but not completely immune.
Additionally, Grow pool strategies are only as safe as the platforms they interact with. Medium-risk pools only interact with blue-chip DeFi protocols like Maker, Aave, and Compound, but high-risk pools may interface with newer and less established alternatives.
What are the fees?
There is a 2% universal fee which is taken from yield earned. See more information on the universal fee.
Where do the fees go?
The platform fee and withdrawal fee are both taken in the form of pool shares, and delivered to the Treasury Box. They continue to earn yield as any pool share would, until they are converted to VSP tokens by selling them on the open market via an AMM like Uniswap or SushiSwap. These VSP go to the vVSP pool to be distributed to vVSP holders.
What is the VSP token?
VSP is the governance token that serves as the basis for the Vesper ecosystem. VSP holders can vote on proposals, and additionally deposit their tokens to passively accumulate more VSP.
How do I earn VSP tokens?
There are three ways to earn VSP tokens:
- Participating in Vesper pools. Each pool is assigned an amount of VSP tokens that are distributed to participants proportionate to size of stake. Initial Grow pools are incentivized for three months after launch.
- Providing liquidity. Liquidity Providers to the VSP-ETH Uniswap pair are incentivized with VSP similarly to the Grow pools. The trading pair is incentivized for one year after launch.
- Staking your VSP. Users can deposit their tokens to the VSP treasury pool. A small percentage of withdrawals are allocated to the treasury box, and those funds are used to buy back VSP and award to pool depositors.
How will I receive my VSP tokens?
VSP tokens are 'dripped' to pool participants, and held by the smart contract until they broadcast a transaction to exit the pool, whereupon the VSP is delivered to their address.
What is the vVSP Pool?
The vVSP pool is a revenue-sharing mechanism. It rewards VSP holders with additional VSP when they deposit their tokens in it.
Just like the other pools, where you deposit ETH to get vETH, or USDC to get vUSDC, you can stake VSP and you will get vVSP, a tokenized share of the vVSP pool.
After withdrawal and yield fees are collected in the pool (ETH, BTC, USDC, etc.), they go to the Treasury Box and are used to buy back VSP on Uniswap. Of this VSP, 5% goes to the project's founders, and the rest is delivered to vVSP pool participants as yield on their deposit.
Who makes decisions about what happens with Vesper?
Initially, the founding team will govern the project. This is a hard decision to make, but seeing how other tokens have had widespread difficulties with community governance on Day One, the safest route seems to be keeping Vesper under our wing immediately after launch. As the Vesper ecosystem matures, governance will soon be turned completely over to the community. See the Decentralization Plan and Roadmap page to learn more.
Who governs the Treasury Box?
Just like other Vesper pools, the Treasury Box has an algorithmically-enforced strategy. At launch, the multisig signers from the Vesper team have jurisdiction to make changes to the treasury strategy. As Vesper transitions to community governance, changes to the strategy are proposed and deployed in the same manner as any of the Vesper pools.
Can I propose new products or strategies to be added to Vesper?
New products and strategies can be proposed by any holder with 1% of the issued vVSP supply. You can hold these VSP tokens yourself, have other VSP holders delegate tokens to table your proposal, or a combination of both.
On day 1, before any meaningful portion of the supply has been issued, proposals will be initiated by the Vesper team. We are eager to transition to community governance, at which point VSP community members will be able to create a formal proposal for a new strategy, product, or change to the ecosystem. The sky's the limit to how many assets and strategies can be deployed, and we are excited to see what the community comes up with.
How do I vote? All vVSP tokens are eligible to vote. Users can acquire vVSP tokens by staking their VSP in the vVSP Vault. All Vesper Improvement Proposals (VIPs) that are backed by 1% of the total vVSP supply will be voted upon by the the community of vVSP holders. You can learn more about the voting process in the Voting and Participation section.