How VuFi Works
As we wait for banks and other financial services providers to integrate digital assets, VuFi brings cryptocurrency adoption one step closer to the mainstream. We achieve this by transforming the crypto markets into a more desirable, affordable and accessible financial avenue.
VuFi is designed to introduce more stability to the highly volatile world of digital assets by tracking the dollar inflation rate as the target price. Backed with collateral tokens, it provides crypto traders a safe avenue for investing. Moreover, the VuFi stable coin is completely decentralized and works within a token-governed protocol. It does not sway according to the whims and fancies of any person or group of persons, as is the case with centralized stable coins.
The VuFi stable coin is different from other stable coins such as USDT and USDC. Those coins are centralized and operated by individuals or organizations. VuFi follows Bitcoin's governance model where the development team remains anonymous to remain free from regulatory pressures and promote fair play.
Thus, the protocol is designed to be token-governed. It is entirely controlled by the token holders who have voting rights. There is absolutely nothing that can happen on this platform without a vote, be it changes to the smart contract or fund allocations. In addition to its completely decentralized structure, there are a few other protocol- specific traits that make the VuFi stable coin unique.
VuFi builds on the DNA of cryptocurrencies and their underlying blockchain technology. This innovation-driven project is backed by a strong technical infrastructure, which delivers key improvements, and a proven development strategy that creates real intrinsic value.
VuFi is one of the few projects that does not pre-mine the coin, which means there is a fair launch. In other words, there are no perks for any group — be it the founders, contributors, employees, or initial traders. The concept of pre-mining is a pre-listing technique used by private companies.
Usually, companies about to launch their Initial Public Offering, give away stocks to the management, founding team, or to a class of employees either for free or at a discounted price. This concept was aped by many stable coin developers, who used the pre-mined coins to reward themselves and others in the founding team. As large pre-mines dilute the outstanding stock of the tokens, VuFi developers consider it best if avoided.
Even the best stable coins offer only a limited period for the redemption of tokens, which is never a good deal for those who provide stability to the blockchain. Therefore, VuFi does not set an expiry time frame for token redemption. This could change in the future if the token owners vote for it.
Inflation resistant
VuFi's price target is designed to keep the holder protected from inflation and maintain token purchasing power. Smart contracts tracking Consumer Price Index of Dollar that measures the cost of the market basket in current time, this make VuFi a unique stablecoin.
NFT lending protocol
Vufi is a unique way of borrowing and lending NFTs.
Automated protocol
The Vufi algorithm automates price stabilization, minters who provide liquidity gives the opportunity to receive rewards from either side of the price target without paying gas fee
Multi chains
The ultimate goal is to be on ERC20, Polygon and Avalanche, Solana.
Last modified 1yr ago