USDV is the first collateral-backed stablecoin on Velas Blockchain. USDV is pegged to the US Dollar and maintains a price of $1. The USDV stablecoin is created by VeleroDAO, a fork of MakerDAO, VeleroDAO is the leading infrastructure project on Velas.
Users can generate USDV using Velas’ native token, $VLX and $WAG, the native token of WagyuSwap, Velas’ first decentralized exchange. Additionally, users will be able to mint USDV with additional Velas tokens as collateral.
VeleroDAO gives users the ability to hold onto their assets while still investing in new and upcoming projects.
The process is quite simple and is summarized below:
- Deposit your collateral ($VLX or $WAG) into the Velero Smart Contract, thus creating a Collateralized Debt Position (CDP)
- Users will then be able to withdraw VeleroDAO’s stablecoin, USDV. It’s important to note that users will have to give additional collateral in case of price fluctuation.
- In order to get your collateral back, users must pay back the USDV to unlock either their $VLX or $WAG.
- Any fees on the Velas Network are paid in VLX and are added to the loaned amount.
Advantages of creating a Velero Vault
- Users can acquire USDV without having to sell any of their assets. Which you can buy back at a later time.
- Saving your funds to implement trading strategies onto WagyuSwap.
Examples include: Giving $WAG as collateral in return for USDV, which you can then buy more WAG and stake to earn other tokens.
Additionally, users can mint USDV using Velas assets and then add liquidity in VLX/VDGT and earn WAG, thus hedging their VLX assets.
- Suppose the price of USDV is >$1 on DEX. In that case, you’re able to mint more using collateral to then sell on WagyuSwap and receive tokens that generate more USDV in return.
Learn more about VeleroDAO and their Governance token, VDGT at https://www.velero.finance/.
For more information about WagyuSwap and the Velas blockchain, check out their official links below.