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Vires, from the Latin for power, is a liquidity protocol that facilitates lending and borrowing on the Waves blockchain. It is open-source and powered by smart contracts on the chain.
It lets users take over-collateralized (i.e, safer, to account for crypto’s volatility) loans so they can free up capital to invest elsewhere. Lenders earn interest from supplying capital, and from staked $VIRES tokens that are deposited. As $VIRES is a Waves blockchain token, it too can move freely within the Waves ecosystem.
Borrowing On Vires Users want to borrow crypto for a number of reasons, including freeing up capital for investment without losing exposure and using the loan to provide liquidity to other protocols in the hope of earning interest (yield-farming).
Borrowers can take loans in alternative assets that the ones they deposited as collateral. A user, for example, could deposit $WAVES or $BTC and get $USDN (the stablecoin of Neutrino, Waves’ largest asset-stabilisation protocol).
The current roster of currencies include native Waves tokens like $WAVES, $USDN, $EURN and $VIRES itself, as well as other tokens like $BTC, $ETH, $USDT and $USDC.
Supplying and Lending On Vires Of course, the crypto being lent out has to come from somewhere, and it comes from the suppliers. Vires offers APY that is significantly above the standard market rate - with 30% being offered, for example, for deposits of USDC.
It manages this due to the extremely low cost of transactions on the Waves blockchain and its use of common pools to ensure all assets deposited in the protocol are productively earning interest.
The higher the demand for an asset, the higher the APY will be. What’s more, this interest is compounding, and recalculated after the propagation of each new block, ensuring that suppliers are rewarded fairly. This auto-adjustment to shifting market demands make Vires a more efficient way of engaging with market forces.
Another interesting additional feature is that deposited assets which are native to the waves blockchain, like $USDN, will earn additional interest alongside the standard, as it is staked in the wider Waves ecosystem automatically.
This creates a double income stream for suppliers, which will be further augmented by upcoming governance distribution to those participating in the DAO.
Vires Governance, Staking, $gVIRES, and the Vires DAO Governance in the Vires ecosystem is still just beginning. Users who supply liquidity will be able to scoop up a large proportion of the voting rights. You are now able to stake $VIRES to earn $gVIRES, the token will allow participation in the Vires DAO, which has recently received its first revenue distribution.
This means that staking $VIRES not only gives you revenue in $VIRES itself, but any and all currencies on the ecosystem. The reward of staking $VIRES to earn a basket of currencies, including $BTC and $ETH, is a compelling one for those looking to put their capital to best use.
The Vires DAO will be able to make decisions over the protocol’s feature-set and future direction. For example, the Vires protocol takes a cut of the interest borrowers pay and distributes it to Vires holders, and that fee can then be set by the DAO in response to market conditions and the desire of the community.
Powering Up DeFi Vires Finance, despite being relatively green to the DeFi scene (launching only in October 2021, has already amassed over $1.5 billion in TVL on the platform, as suppliers are gaining a superb return on investment whilst also using Vires as a gateway to the rest of the Waves blockchain and the ecosystem around it. Borrowers, too, find the user UI and high transaction speed superior to more clogged, over-subscribed protocols you might find on Ethereum.
Vires has the opportunity, using Waves, to power up the DeFi lending market. The basket-crypto payments, low cost, dual-reward for suppliers and easy to use protocol UI means although it’s new to the DeFi party, it’s certainly causing quite a stir as it makes its entrance.
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