Vigor for Dummies: Vol. 3

Vigor is Dedicated to reDeFine Decentralized Finance and Unleash the Massive Potential of DeFi.

What is Vigor?

Vigor is a decentralized automated Lending platform that allows you to Borrow, Lend, and Insure. It is powered by the EOS Blockchain.

The Vigor Protocol employs a two-token system, the fee-utility token VIG used for fees, rewards, & collateral, and the low volatility payment token VIGOR backed by a pool of EOS & VIG.

Low Volatility Payment Token

VIGOR: VIGOR is a crypto-backed low volatility payment token that utilizes the EOS blockchain. VIGOR is transparently protected by a pool of VIG tokens, and incentivizes users to deposit enough crypto collateral, so that even during stressed markets the price defeats volatility.

Max Supply: 100,000,000,000 VIGOR View full stats

Utility Token

VIG: VIG is a utility token used for fees, rewards, and collateral. It’s utility is to provide access to the system, to be used as a fee token, and to be used as a final reserve for system protection.

VIG Utility: Reward: Lenders and Savers receive VIG premiums. Reserve: Pool of VIG that supports the protocol during market shocks. Reputation: Borrowers with a good reputation get discounted rates.

Max Supply: 1,000,000,000 VIG View full stats Some tokens not in circulation

The Vigor Platform

Borrow: Lock up collateral to borrow VIGOR tokens or other cryptocurrencies, the borrower needs to lock in their crypto collateral and deposit the appropriate amount of VIG tokens.

  • Low Volatility Loan: Deposit crypto as collateral for taking out a VIGOR token loan. Pay loan premiums in VIG token.
  • Crypto Loan: Deposit VIGOR token as collateral for taking out a crypto loan. Pay loan premiums in VIG token.

Lend & Save: Get rewarded VIG tokens by locking your crypto in an insurance pool protecting loans or by locking up Vigor in a crypto savings account, it is an automated and secured process.

The vigor platform is decentralized, transparent and automated; all activities are on chain and displayed on users dashboard.

Staking in Vigor

Vigor does not have a staking feature, you can lend your VIG, VIGOR or EOS token to get rewards.

How it works

Lend & Savings

Become a Lender: Lenders are rewarded in VIG tokens for depositing Cryptos and VIGOR tokens into the insurance pool to insure the system against both upside and downside market stress events.

Lend & Savings: Lock VIGOR tokens and get rewarded a savings rate on your funds.

  • Lend it to others to borrow it
  • Make it available as backing for other loans

Get familiar with Vigor

At what point does the system issue VIGOR? VIGOR tokens are issued by the contract when a loan is taken. This happens when the borrowers lock up tokens as collateral. The tokens can either be EOS or a portfolio of crypto tokens supported by the system.

Can a borrower get their crypto back? Borrowers can get their crypto back by refunding their borrowings with VIGOR which is then retired.

What do I need in order to secure a “loan” in VIGOR? For a borrower to receive a VIGOR loan, the borrower needs to lock in their crypto collateral and deposit the appropriate amount of VIG tokens, calculated as a percentage of VIGOR to be used as premiums to insure the loan collateral. The system requires that your collateral contains some VIG so it can take premiums every period.

What happens when the value of my collateral falls below the amount I borrowed in VIGOR? When your collateral drops below the value of the loan issued, the loan will enter bailout. At this point the insurers take over and recapitalize the undercollateralized loan to ensure system health.

Bailout: Premiums are required to be denominated in VIG tokens and must be posted prior to drawing loans; insufficient maintenance of VIG balance triggers bail-out of the loan with the borrower retaining any excess collateral. Insurers are rewarded and incentivized with VIG.

How to avoid loan Bailout: To avoid loan bailout, keep adequate collateral and VIG tokens at all times.

Final Reserve: A cut of the VIG awarded to insurers are stored by the system as final reserves. VIG final reserves are used to rebalance the system if at any time the insurance pool is depleted.

Why the need for overcollaterization and a Final Reserve? There are three levels of backing for Low Volatility Loans. Borrowers over collateralized their loans protecting against normal volatility. Insurers post tokens as insurance assets which provide further backing against price jump risk. The final reserve provides a third layer of backing in case the insurance pool depletes, and is more formally described as the buffer that covers stress losses or model risk.

Vigor Protocol: The smart contracts that power Vigor.

How does the VIGOR protocol work? The VIGOR protocol is decentralized and open source, anyone has the ability to lock VIG, VIGOR or EOS tokens as collateral and issue VIGOR against it.

VIGOR TG Working Groups: Visit https://vigor.ai/ for details

How does the VIGOR price defeat volatility? VIGOR should be valued externally with a low volatility quotation, because users have incentive to stake enough crypto collateral so that even during stressed volatility periods there would be at least a minimum amount of collateral to protect each VIGOR’s value. The contract continuously stress tests the system and autonomously updates the insurance premiums. If solvency is below target premiums rise to attract more insurance collateral and slow further borrowing. When users make/take loans it is a credit/debit to the system risk budget. With confidence that the system has sufficient collateral so that it is adequately capitalized to survive high volatility conditions, traders can soft arbitrage by taking loans or unwinding loans to their advantage if the value of VIGOR departs from its baseline.

How are liquidation penalties distributed? VIGOR doesn’t charge liquidation penalties. When your loan is liquidated due to a low collateral ratio, many other protocols will also hit you with a liquidation penalty. Some of these are as high as 20%. VIGOR doesn’t charge ANY additional fees that are commonly seen on other protocols (ie administration fees, stability fees etc).

How is my collateral secured? VIGOR has 21 custodians, voted on by the community, which control multi-sig permissions to 3rd party-audited smart contracts.

How does VIGOR compare to other projects? See the Comparison Table here: https://vigor.ai/#compareDefi

Vigor Reputation System:

Reputation is built by:

  • Having more debt than others over time
  • Having more in the lending/insurance/savings than others over time

Vigor Miners: vigorlending (Vigor Protocol Account/Contract) is powered by miners, every second of the day miners execute transactions to get the VIG.

Vigor Stats Dashboard: Data is monitored and collected from the vigor platform, and displayed on Vigor stats dashboard. Get full stats: http://stats.vigor.ai/

Learn More about Vigor: https://vigor.ai/faq

The Vigor DAC (Decentralized Autonomous Community)

Vigor DAC: Vigor is a DAC (Decentralized Autonomous Community) of 21 Custodians and 150+ Candidates. The 21 Custodians are elected from the Candidate list based on the number of votes.

Vigor Candidate: Vigor Candidates help to build vigor and add value to the vigor platform. All candidates help out with best efforts, and receive votes based on input. Candidates get daily pay in the tokens.

Vigor Custodian: Higher voted candidates are called custodians, currently there are 21 custodians and they are elected daily and are responsible for completing tasks ranging from building out the core Vigor Platform features, to marketing, legal solutions, and multisig control of the entire system.

Voting: Currently candidates can vote for up to 21 custodian candidates at a time. They vote who they think will bring value to the DAC.

Registering as a candidate: Registering as a candidate in the DAC is open to the community, being a candidate comes with responsibilities as outlined in the vigor constitution, before registering as a candidate, it is advised that you understand and can meet the responsibilities of being a candidate.

New Vigor DAC Candidates are always welcome, being a candidate/custodian means you wish to help vigor build and want to add value to the vigor platform. Going above being a user of the vigor platform.

If you want to be a candidate, you need to fill out a profile on http://dac.vigor.ai/ highlight your skillset, upload a pic, and ask a custodian to submit a proposal for you. If you are just a member you simply sign the constitution.

Upload a Profile PIC using this link: https://imgbb.com/

You can join the DAC on: http://dac.vigor.ai/

DeFi May Be the Greatest Opportunity in Crypto, join Vigor to lay a new foundation on top of which all DeFi Platforms will be built.

Learn More: https://vigor.ai/faq

Visit: https://vigor.ai/

Telegram: https://t.me/vigorprotocol

Twitter: https://twitter.com/vigorprotocol

Instagram: https://instagram.com/vigorprotocol

Discussions App: https://discussions.app/tag/vigor

Vigor for Dummies — (Third Edition)

MORE: Vigor for Dummies — First Edition | Vigor for Dummies — Second Edition

Authored by Explorer

Photo Credit:Jimmy D, Ömer

References: Vigor Protocol Account / Contract

Disclaimer: The VIGOR Protocol is not a Financial or Payment Service of any kind and in any Jurisdiction. The VIGOR Protocol and Smart Contract does not accept as collateral or insurance or work at all with security tokens of any kind and with fiat or asset backed stablecoins, whether global or limited in scope. The VIGOR protocol does not allow, process or facilitate in any way user-to-user transfer of any token or other assets or values, nor third party payments of any kind.

The Vigor DAC and its Members and Custodians do not own or control the VIGOR Protocol, but simply contribute in its development, maintenance and security in a fully decentralized way.

An independent, public no-profit association incorporated in Singapore and composed of VIGOR Protocol developers and enthusiasts and Vigor DAC members and Custodians, denominated VIGOR DAC LTD., oversees that the core principles of the DAC, the Protocol and the Whitepaper are respected and ensures complete decentralization and independence is always safekept and maintained.

The VIGOR DAC (https://www.vigor.ai/) is a low volatility cryptocurrency protocol running on EOSIO. The future of DeFi is here.