What do you need help with?
Is there an MVP?▾
At what point does the system issue VIGOR?▾
VIGOR tokens are issued by the contract when a loan is taken. This happens when the borrowers lock up tokens as collateral. The tokens can either be EOS or a portfolio of crypto tokens supported by the system.
Can a borrower get their crypto back?▾
Borrowers can get their crypto back by refunding their borrowings with VIGOR which is then retired.
What do I need in order to secure a "loan" in VIGOR?▾
For a borrower to receive a VIGOR loan, the borrower needs to lock in their crypto collateral and deposit the appropriate amount of VIG tokens, calculated as a percentage of VIGOR to be used as premiums to insure the loan collateral. The system requires that your collateral contains some VIG so it can take premiums every period.
What happens when the value of my collateral falls below the amount I borrowed in VIGOR?▾
When your collateral drops below the value of the loan issued, the loan will enter bailout. At this point the insurers take over and recapitalize the undercollateralized loan to ensure system health.
Am I only allowed to lock my EOS as collateral or can I also add other assets in my portfolio?▾
The system will allow for a portfolio to work as collateral backing a single loan.
What additional crypto can I include in my portfolio as collateral?▾
Many EOS native tokens, chosen by users. In order to guarantee system health, custodians have multisig permissions to add and remove collateral types.
How does the VIGOR protocol work?▾
The VIGOR protocol is decentralized and open source, anyone has the ability to lock EOS tokens as collateral and issue VIGOR against it.
Is there a VIGOR testnet?▾
The MVP is here: app.vigor.ai
What is the maximum supply of VIG?▾
1,000,000,000 VIG tokens. VIG circulating supply will always be less than that as some of the VIG awarded to by Insurers is held in the Final Reserve.
What are the use cases for VIGOR?▾
Incentive: Be rewarded by using EOS as the insurance backing VIGOR Leveraging: use up to 10x leverage by taking secured VIGOR loans followed by selling it for EOS Hedging: reduce exposure to price volatility by taking secured VIGOR loans followed by hodling VIGOR Payments: send VIGOR to anyone on the EOS blockchain with no fees
What is VIG?▾
The governance and fee-utility token is called VIG. It’s utility is to provide access to the system, to be used as a fee token, and to be used as a final reserve.
What triggers a bailout?▾
Premiums are required to be denominated in VIG tokens and must be posted prior to drawing loans; insufficient maintenance of VIG balance triggers bail-out of the loan with borrower retaining any excess collateral. Insurers are rewarded and incentivized with VIG.
What is the Final Reserve?▾
The system stores a cut of VIG awarded to insurers as final reserves. VIG final reserves are used to rebalance the system if at any time the insurance pool is depleted.
What is the cost to use VIGOR?▾
The cost of the insurance adjusts based on how risky the system is relative to a target; this is market price discovery without the need for trading or an order book. The risk model considers levels of overcollateralization, debt and insurance assets. It is fully on-chain and mimicks standards for classical insurance; we call this on-chain risk and compliance.
Why the need for overcollaterization and a Final Reserve?▾
There are three levels of backing for stablecoin loans. Borrowers over collateralized their loans protecting against normal volatility. Insurers post tokens as insurance assets which provide further backing against price jump risk. The final reserve provides a third layer of backing in case the insurance pool depletes, and is more formally described as the buffer that covers stress losses or model risk.
How is my collateral secured?▾
VIGOR has 21 custodians, voted on by the community, which control multi-sig permissions to 3rd party-audited smart contracts.
How does the VIGOR price defeat volatility?▾
VIGOR should trade near $1 because users have incentive to stake enough crypto collateral so that even during stressed markets there would likely be at least $1 worth of collateral to back each VIGOR. The contract continuously stress tests the system and autonomously updates the insurance premiums. If solvency is below target premiums rise to attract more insurance collateral and slow further borrowing. When users make/take loans it is a credit/debit to the system risk budget. With confidence that the system has sufficient collateral so that it is adequately capitalized to survive stressed market conditions, traders can soft arbitrage by taking loans or unwinding loans to their advantage if the market price of VIGOR departs from $1.
How are liquidation penalties distributed?▾
VIGOR doesn’t charge liquidation penalties. When your loan is liquidated due to a low collateral ratio, many other protocols will also hit you with a liquidation penalty. Some of these are as high as 20%. VIGOR doesn’t charge ANY additional fees that are commonly seen on other protocols (ie administration fees, stability fees etc).
Why build VIGOR with other low-volatility tokens on the market?▾
VIGOR is designed from the ground up using time tested financial modeling. The VIGOR protocol actively evaluates system level risk and continually adjusts to reduce that risk. Other tokens use simple overcollateralization techniques to try to limit risk but do not actively evaluate and manage it. These other systems, in general, rely on secondary auction markets to sell off bad debt in case of a Black Swan event. VIGOR’s loan debt is automatically transferred to the insurance pool (then the final reserve) without relying on secondary markets to sell the bad debt to regain solvency.
How does VIGOR compare to other projects?▾
Why use the EOS blockchain?▾
There are many reasons that VIGOR has decided to build on EOSIO technology. Without going into great detail we can sum it up by mentioning a few features that EOSIO offers. These include: Speed: 0.5 Second block times ensure quick access to funds when necessary. This is a critical component for any financial platform. Security: EOSIO is built with advanced account permission capabilities. There are endless combinations of multisig and custom permissions available on EOSIO that enable the full range of user needs while providing unprecedented security. Battle tested code base- C++ smart contracts. Using a C++ code base allows developers to reference previously tested code from a plethora of code repositories. Feeless: Resources are renewable and projects have the ability to cover user resources to allow their users to transact for free on their platform. Ability to upgrade operating code: Continued improvements/critical updates can be made to code with little to no impact on operating platforms. Interoperability: EOSIO is built with chain interoperability in mind. Many EOSIO chains already exist and there are secondary solutions (Dapp Network) that provide the opportunity to offer our services to more users, across multiple blockchains.
Why do I need to create VIGOR if I can buy it on the secondary market?▾
Taking out a VIGOR loan allows you to maintain exposure to the crypto market (ie maintain ownership of your EOS) while providing you with some liquidity. You can leverage your crypto holdings by taking out a VIGOR loan and purchasing additional crypto with it. Additionally, you can take out a crypto loan (ie posting VIGOR to get EOS) and sell it on secondary markets to be able to go short.
Is the smart contract code publicly available?▾
Yes, please visit our repository
Who’s on the team?▾
The top 21 by vote are elected daily as custodian and are responsible for building the VIGOR protocol according to the whitepaper and securing the multisig.