Vector Finance is a protocol that works in conjunction with Trader Joe and Platypus Finance. Vector allows users to earn higher returns on their stablecoin or JOE LP deposits even if they do not own any JOE or PTP.
Vector can achieve this by aggregating JOE and PTP from users who opt to convert their PTP or JOE on their platform. Vector thereby unlocks utility for the JOE and PTP tokens: users who convert their PTP into xPTP or their JOE into zJOE earn a share of the protocol’s yield. Platypus and Trader Joe benefit from increased capital efficiency and a more varied user base due to this system.
VTX (Vector’s governance token) earns 30% of Vector’s earnings and unlocks the much-desired voting power from JOE or PTP holders who may not be as interested in governance. Stakers of xPTP and zJOE, depositors of JOE LP and stablecoin, and liquidity providers for VTX coins all receive VTX rewards.
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Benefits of Vector
Vector offers traders various benefits. They include;
Yield & Utility
Platypus and Trader Joe token holders can earn a large yield on their PTP or JOE holdings through Vector Finance. This converts PTP and JOE into useful assets through the platform’s issued tokens “xPTP” and “zJOE.”
Currently, the primary utility for both JOE and PTP is that they unlock enhanced payouts for staking on the Trader Joe or Platypus platforms. Holders who stake their PTP on Platypus or their JOE on Trader JOE will eventually acquire the “vote escrowed” form of the token after a certain period. The proportion of vePTP and veJOE a user possesses determines the user’s staking incentives on each platform.
On the Platypus platform, vePTP votes on governance initiatives such as asset listings. veJOE is utilized for governance as well as vote polling on Trader Joe.
Neither Trader Joe nor Platypus requires you to lock up your PTP or JOE to collect their ve-token. However, the user benefits from leaving either of the tokens staked for as long as feasible because it accumulates over time. When a user withdraws any amount of JOE or PTP, their ve-balance is reset to 0.
Which issues are addressed by Vector?
Platypus and Trader Joe users benefit from Vector’s increased capital efficiency.
Platypus Finance
Vector makes use of Platypus’s distinct tokenomics to benefit various kinds of clients. Currently, the best approach to engage with Platypus is to stake an equal quantity of PTP and stablecoins. Vector allows users from either party to make profits.
Users can stake PTP through Vector’s minted token, xPTP, in exchange for a piece of Vector’s protocol revenue and additional VTX tokens. Stablecoin holders may stake their stablecoins on Vector and get higher returns without worrying about staking PTP for vePTP. This is achievable through the vePTP Vector, which accumulates through PTP staking and minting forever.
Trader Joe
Similarly, Vector uses Trader Joe’s veJOE staking to benefit JOE holders and JOE LP token depositors. Users can stake their JOE as veJOE on Vector to gain a percentage of the protocol’s revenue and more VTX tokens. Depositors of JOE LP tokens can use Vector’s veJOE to earn higher rates on their deposits without investing JOE for veJOE.
Mechanics
Below is an outline of how Vector Finance collaborates with Platypus Finance and Trader Joe to increase users’ decentralized finance (DeFi) yield.
Platypus Finance
Obtain vePTP
Users on Vector can convert PTP to xPTP. The protocol stakes it on the Platypus platform immediately after conversion. The platform gains vePTP by staking this PTP.
Increase stablecoin yields
Acquiring vePTP enables Vector to provide depositors with significant stablecoin returns. The stablecoin yields on Vector will be greater than the base yields on Platypus due to the vePTP balance that we will have accumulated. Vector’s platform will impose a performance fee of 20% on any stablecoin income earned. Most of this performance fee (60%) will be routed back to xPTP holders, delivering considerable value to the xPTP token. Users who lock VTX will receive the remaining performance fee.
Get even more rewards with VTX
The Vector protocol’s governance token is VTX. VTX will be used for stablecoin staking, PTP conversion, and liquidity provision.
Trader Joe
Obtain veJOE
Users on Vector can convert JOE to zJOE. After conversion, the system automatically takes it into the Trader Joe veJOE pool. The platform gains veJOE by staking this JOE.
Increase your Trader Joe’s deposits
Acquiring veJOE enables Vector to provide attractive boosted yields to Trader Joe LP depositors. T the yields on Vector will be greater than the basic yields on Trader Joe due to the accumulated veJOE balance. The platform charges a 20% performance fee for every yield earned by these increased Trader Joe Pools, similar to the Platypus Finance program.
A higher portion of this performance fee (60%) will be routed back to zJOE holders, delivering considerable value to the zJOE token. Users who lock VTX will receive the remaining part of the performance charge.
Get even more rewards with VTX
The Vector protocol’s governance token is VTX. VTX will aid in stablecoin staking, PTP conversion, and liquidity provisioning.
Understanding VTX
Vector Finance’s native governance token is VTX. It has three key applications:
VTX Lockers are paid a percentage of Vector’s protocol fees (30% of total payments). Users can “freeze” their VTX for a minimum of four weeks. By locking VTX, users receive a portion of protocol fees and Platypus voting rights based on Vector’s accumulated vePTP balance. Voting gets users even more rewards through incentives like bribes.
To earn incentivized emissions, VTX token holders can supply VTX-AVAX LP at Trader Joe.
Vector will eventually include decentralized governance, with the community determining VTX emission weighting and bonus emissions.
Vector for PTP Holders
- Convert PTP to xPTP.
- Stake xPTP to receive a portion of the VTX platform’s performance fees.
- Earn PTP and VTX incentives.
Vector for Stablecoin Depositors
- Deposit stablecoins.
- Benefit from increased yields due to Vector’s accumulated vePTP balance.
- Earn PTP and VTX incentives.
Vector for Liquidity Providers
- Trader Joe’s provides liquidity for PTP-xPTP and/or AVAX-VTX.
- Use the platform to stake the LP tokens.
- Receive VTX prizes and stake them for a portion of the protocol’s earnings.
Advantages of using Vector
1. Vector allows stablecoin depositors to receive increased PTP returns without having to stake PTP.
2. PTP holders can generate a yield from converting to and staking xPTP and obtaining income from VTX emissions and protocol fees.
3. Vector users benefit from high flexibility. They can generate a high vePTP balance by accumulating PTP and never selling it. This is extremely beneficial for earning higher returns and allowing participants to join the platform and leave as they like. They won’t have to worry about resetting their vePTP balance.
4. Vector unlocks the value from vePTP voting power. Most users are uninterested in engaging in governance. Still, major institutions, DAOs, and whales are interested in voting and will likely be prepared to pay for the votes. This results in enormous value for the VTX token.
Conclusion
Vector Finance is currently priced at $0.11, with an all-time high of $1.60 which is the highest price paid for Vector Finance since its launch. As of the time of writing, Vector Finance’s market cap stands at $1.76 Billion. Such a large market capitalization indicates that the market highly appreciates the asset.
