The Binance Smart Chain (BSC) is quickly gaining momentum in the Decentralized Finance (DeFi) space. It proved itself to be worthy of the new projects that have been popping up on the blockchain. And in doing so, it has paved the way for many more projects to find themselves placing their roots on the BSC.
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BSC is attracting quite a lot of innovative projects and is nurturing them. An increasing number of developers are flocking from the Ethereum blockchain to the BSC due to the fact that BSC provides a better environment for new projects to grow.
It is one such innovative project on the BSC that we are going to talk about today—Wault Finance. As always, I’ve listed down everything that you would find in the article. And as always, I would recommend beginners go through the entire article and let those who know about Wault Finance skip to the topics of their choosing.
- What is Wault Finance?
- What is WAULT?
- What is WAULTx?
- What is WSwap?
- How Does Liquidity Mining Work on Wault Finance?
- How Do Staking Pools Work on Wault Finance?
- How Do Vaults and Yield Optimization Work on Wault Finance?
- What is WEX?
- What is WOLD?
With that out of the way, let’s jump right into what Wault Finance is all about!
What is Wault Finance?
Wault Finance is one of the latest decentralized finance hubs coming up on the Binance Smart Chain. The platform intends to connect all of the main use-cases in the entire DeFi space under one hood. And it aims to keep its ecosystem as simple as possible.
The creators of Wault Finance strongly believe that the benefits of the DeFi space should be more accessible. They intend for these benefits to reach out to the masses in an intuitive way. A way that avoids all of the expensive fees that cut through your profits.
A way devoid of the confusing interfaces that make DeFi platforms difficult for those using these platforms for the first time. And to be honest, the complexity is amongst the leading causes that prevent people from flocking to the universe of blockchain. Wault Finance also aims to centrally control the decision-making on many of the current platforms.
It is with these goals in mind that the Wault Finance platform was created. The protocol developed by the team behind Wault Finance has a huge number of unique features. These unique features are expected to amplify the amount of wealth accumulation that the users can execute on the platform.
Being in the DeFi space, the Wault Finance platform has open and decentralized governance. What this means for you as a user is that – you would have the ability to vote on all aspects of the development path that the protocol takes in the future. In other words, your decisions shape the future of the protocol.
Developers have the option to take on roles that allow them to take more important roles on the platform. As a developer, you are always welcome to work on the platform’s open-source code and contribute to its development.
What is WAULT?
WAULT is the former governance token used on Wault Finance. It allowed holders to vote on the direction protocols would take in the future. These decisions could be as simple as the addition of a new feature or as complex as changing the entire governance system.
The WAULT token has now been migrated to become WAULTx.
Let’s talk about that!
What is WAULTx?
One of the major roadblocks preventing the listing of WAULT on centralized exchanges had been the transactions tax. Despite many of the biggest centralized exchanges wanting to list WAULT, having their users pay the tax would not be in the best interest of the exchanges and their users.
Now, that was a big deal because getting WAULT listed on centralized exchanges would’ve helped it grow in a lot many ways. To start with, getting listed on centralized exchanges helps in raising the token price. Then there’s the whole aspect of it stimulating the ecosystem and giving the token holders better rewards.
But the thing is, turning off the inactivity fee and transactions tax isn’t simple at all. In fact, there’s only one way to remove both of these. And that is with the help of token migration = which is what the Wault Finance team did.
So, WAULTx is basically the new governance token of Wault Finance. To promote the use of WAULTx, the platform has decided to make the token redeemable at a ratio of 1000:1 against the WAULT token. So, for every WAULT token you have, you will receive 1000 WAULTx tokens.
Moreover, WAULTx does not have any burn rate or transaction tax. It is intended to be a simple governance token having its total supply capped at 1 billion.
So if you’re looking forward to converting your WAULT tokens into WAULTx tokens, you might want to do it before 3 PM UTC, June 23rd, 2021. That’s when the conversion window ends. Beyond that, you’re probably going to be on your own with those tokens.
What is WSwap?
WSwap is one of the newer additions to the Wault Finance platform. It is a decentralized exchange built to help users trade on the Wault platform.
WEX, the foundational token of WSwap, is the token decided to be used for governing the AMM. For participating in all the utility integrations in the future, it is WEX that is going to be used.
The trading fee is set to be at 0.2 percent. Out of that, 0.18 percent is given to the liquidity providers, while the process of daily buyback and burning of WEX tokens gets 0.02 percent. This has been done to ensure that a deflationary pressure always remains thus pushing the prices up all the time.
A thing to note here is that the WAULTx token will still remain the core governance token controlling the overarching protocol. It will continue to provide utility to the platform through the unique fee structure it has.
How Does Liquidity Mining Work on Wault Finance?
The way liquidity mining works on Wault Finance is pretty much the same way it works on all DeFi platforms. All you need to do is provide liquidity to one or more trading pools and in return for that, you get token rewards and fees.
To achieve fair distribution and to reward the early supporters of the platform, for the first few months, you would be able to mine WAULTx tokens.
Initially, the reward you used to get per block was 1. Every ten days post that, the reward has been halving. As of now, the platform has two sets of pools: the WAULTx / BNB liquidity pool, and the WAULTx Staking Pools.
The WAULTx / BNB liquidity pool is where most of the rewards lie (80% to be precise), and that is what we’re going to talk about here. That said, there is a lot to be earned in the WAULTx Staking Pools as well. And we’ll discuss that later.
For every transaction happening on the platform, the protocol charges 1.8% in fees and taxes. This is then redistributed to liquidity miners.
Through this reward structure, the platform ensures that liquidity miners are rewarded even after the total supply of 1 billion WAULTx tokens enter circulation.
How Do Staking Pools Work on Wault Finance?
Staking on Wault Finance works pretty much the same way as it does on any other platform in the DeFi space. You put in your WAULTx tokens and wait for some time before you take them back along with the rewards.
When you stake WAULTx, you get a substantial yield from the Liquidity Mining Contract. But that isn’t all. In fact, you get 0.7% of the taxes and fees from each transaction as well.
In addition to immunity to impermanent loss, as a staker, you would also see the upside of the token’s price the most.
Let us now talk about the way the rewards from the Liquidity Mining Contract are spread.
For those who don’t intend to lock the tokens up for a limited period of time, the rewards would be on the lower side. Such users would get 10% of the rewards from the Liquidity Mining Contract. All of their tokens go to the No Lockup Pool.
If you’re someone a bit more willing to take risks, you have the option to lock your tokens in the 1 Week Lockup Pool. This would give you 30% of the rewards from the Liquidity Mining Contract but would lock up your tokens for a week.
If you’re really sure that you have spare money to take bigger risks, you have the option to lock your tokens in the 1 Month Lockup Pool. This would give you 60% of the rewards from the Liquidity Mining Contract but would lock up your tokens for an entire month.
How Do Vaults and Yield Optimization Work on Wault Finance?
On the Wault Finance platform, Vaults are where you can deposit funds. These funds are then used by the platform to invest in (and capitalize on) profitable opportunities present in the DeFi market.
By shifting capital between different strategies, the Vaults act as automated yield generators. This helps them generate an optimal return which is then given to the user for their investment. As an investor, you don’t just profit in terms of yield but also by saving time and fees.
Regardless of whether you hold WAULTx tokens or not, you would have the ability to propose a Vault Strategy. However, to have a say on the proposal and to cast a vote on it, you need to be a WAULTx holder. Without that, you can’t approve or disapprove of the strategy. If the proposal ends up being successful, its pool would be made available for deposit within the next 24 hours.
As the creator of the Vault strategy, you would be assigned a wallet to receive some percentage of the Vault’s earnings – provided your strategy is approved.
For every $50,000 your Vault earns, the profit is automatically sent off in three sets.
To start with, 8% of the profits are sent to the Strategy Creator Wallet.
The biggest chunk, 90% of the profits are used to buy WAULTx. The resulting WAULTx is then sent to the Vault’s depositors according to the amount of money they invested in the strategy. Such buybacks create a consistent buying pressure on the token. This elevates its price further.
The remaining 2% of the profits are sent to a developer wallet for use on further marketing and development.
What is WEX?
Wault Exchange (or WEX) is an Automated Market Maker exchange that developers of Wault Finance are planning to launch in the third quarter of this year.
The exchange would help bring in more liquidity into the protocol. It would in turn create more profitable opportunities for yield optimization as well as to create synergies with the other initiatives launched by the team.
What is WOLD?
The team behind Wault Finance intends to launch a Lending Platform in the fourth quarter of this year. To serve as future collateral for that and Wault’s Yield Optimization platform, the team came up with a USD-pegged stablecoin called WOLD (according to the roadmap, team will launch in quarter 2) .
WOLD is an elastic supply token that uses a rebasing mechanism to control supply. The way it works is that new tokens are burned or minted as the price shifts. By doing so, it is ensured that the price is always pegged to the USD.
Before You Go…
While it is a bit too early to say if Wault Finance would be able to hit the milestones it promises, enough time has passed to know that the platform is doing well.
The community support is pretty high (as can be seen from the launch) and that sure gives hope.
That said, how Wault Finance performs is something time will tell.