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Waultfinance launches it's commerce-backed Stablecoin WUSD - How it could help stabilize WEX price

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Written by   15
1 month ago

If you're one who loves experiments, then wex could be worthy of a trail by only 40% trust, based on my judgments

New Stablecoin - What's the BIG IDEA?

Stablecoins play an important role in the crypto industry, while generally, crypto assets serve as financial support through economic breakdowns and major inflations, Stablecoins do twice the job by hedging against volatile market seasons. There are numerous Stablecoins with different reserve options, but the question remains as which is much preferable?

Firstly,

"Wault Finance is a decentralized finance hub that connects all of the primary DeFi use-cases within one simple ecosystem, on the Binance Smart Chain and Polygon network. In short, an all-in-one DeFi Platform!"

A few of Wault Finance projects includes; WaultSwap (AMM), Wault Launchpad (new project presales), Wault Locker (liquidity locks for new or established projects) and Wault Farms (staking and farming). The protocol currently runs 4 tokens; WAULTx, WEX, WEXpoly, and WUSD, all serving different purposes. WAULTx serves as a governance token, through it, holders can influence the project's decision making as a community. Wault launched in early 2021, so it's still a pretty fresh project that needs careful research before investing.

Wault runs a unique structure of low fees, buyback and burning mechanism, which particularly influences more of the price actions of WAULTx, it's governance token, than WEX, its WaultSwap farming token.

There's quite the stress on its low fee protocol, it supposedly charges only 0.20%, of which 0.14% of it goes to the Liquidity Providers (LP). The remaining 0.06% is used to buy WEX and burn it everyday. This motive kinda just brings back the chargers into the holders pocket, as though a buy back and burn everyday could help maintain or increase WEX price value. However, with an audit carried out by Certik on its WUSD launch, there are certain factors creating worries as to if they'd be an adequate USDT balance to back the project.


Source

WAULTx token holders also benefit from the Wault philosophy. There is a 0.20% lock fee for external projects that lock their liquidity in Wault Locker, which is used to buyback WAULTx. Wault has a strategic partnership with Eleven.Finance, allowing WaultSwap users to auto-compound their assets with half of Eleven’s performance fees being used to buyback and burn WAULTxreference.

From all above, Wault.finance seems really dedicated to giving more of, if not all the project's yields back to the investors, too good to be true? With every fee charged being used to buy back and burn, value returns to investors pockets, but what do Wault.finance actually stand to benefit from running a team profit less project?

Same process follows its Stablecoin launch.

Within the DeFi space, Wault Finance has demonstrated its revolutionary nature by developing multiple innovative products. The protocol is one of the fastest growing projects in the DeFi sector, providing users a variety of yield farming and staking opportunities.

Wault intends to expand its ecosystem with the development of its stablecoin WUSD. WUSD is a next-generation stablecoin that uses an innovative model to ensure that it holds its peg to the dollar and is designed to provide use-cases for holders.

WUSD is different from other Fiat backed Stablecoins, it originally isn't backed by Fiat as reported. WUSD is backed by crypto-assets within the protocol. Apparently, WUSD is backed by USDT and WEX at a ratio of 9:1. 90% of WUSD is collateralized by USDT deposits and the remaining 10% by WEX. In much more simplified terms, say 10,000 USDT is deposited to purchase WUSD, 9,000 USDT is moved by the smart contract to WUSD’s Treasury, the outstanding 1,000 USDT is used to buy back WEX tokens. These two tokens are then held in the Treasury, the protocol is also reported to deploy a portion (percentage not disclosed) of that to generate yields and reinforce the Treasury.

This is expected to build a much stable asset while it's 10% buyback is influencing WEX price, then furthermore, it's deployed process to create more yields for the Treasury is added value to the ecosystem. However, Certik audit has also raised an issue concerning certain team accounts centralized nature, not entirely criticising the project, however, putting up an advice to the team on using a much more secure network for master accounts keys, as though a possible attack would give full control over the chain, express route to withdraw most, if not all funds from the protocol. Currently speaking, WUSD is trading at $0.9889346 on WaultSwap, a protocol with a $260,155,608 in total locked value(TLV)

DYOR

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Written by   15
1 month ago
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