A Roadmap for Becoming the DeFi Hub on Avalanche
In less than a year, Vector has achieved an amazing number of accomplishments:
- #1 PTP staker & vePTP owner
- #1 JOE staker & veJOE owner
- Bull market peak of nearly $700M TVL
- Real yield established, earning users millions in revenue
- Numerous protocol updates including smart contract innovation and UI/UX quality of life improvements
But we’re not resting on our laurels! Whether bear or bull market, Vector is building. With that in mind it’s time to update our roadmap.
Becoming the DeFi Hub on Avalanche
Over the next several months you will continue to see Vector build out our protocol, seeking to be *the* DeFi hub on Avalanche, and bring value back to our VTX lockers.
We’ll pursue that goal on three different fronts:
- Become more independent: expand our strategies to be less reliant on other protocols
- Continue building on top Trader Joe and Platypus and their ve-token models
- Research other ve-tokens or similar mechanics to add on to Vector
Part of becoming *the* DeFi hub on Avalanche means expanding beyond our initial ve-token model (don’t worry, we’re still gonna be accruing PTP, JOE, and possibly other tokens in the future). In the very near term we will introduce autocompounding pools on Vector.
We’ll start by allowing users to autocompound Vector’s pools. Once live, users will be able to choose whether they deposit in a manual pool or in an autocompounding pool. In these autocompounding pools, we will continuously take the rewards, swap them for the same assets that users deposited, and then compound them back into the original deposit. These type of “set and forget” pools will mean more flexibility for our users, stickier TVL, and a new source of management fees going to the locked VTX pool.
Speaking of locked VTX — when we go live with autocompounding our Platypus and Trader Joe pools we will also introduce an autocompounding pool for locked VTX! Users will be able to lock VTX and automatically have their rewards compounded. Further, the delegated pool will be baked into this autocompound pool, and delegate rewards will be autocompounded as well. The true definition of “set and forget” in an ever-changing market.
Finally, having built out the framework for autocompounding our own pools, we’d be foolish not to expand that to other pools on Avalanche! Branching out to other pools on Avalanche for autocompounding will expand our reach beyond the ve-token model we started with, and solidify our position as the DeFi hub on Avalanche. We’ll start with some of the most popular pools by TVL and then continue to expand those strategies over time. All of this means even more real yield and fees for VTX.
Advanced, automated strategies
Eventually, you’ll see us start to build out more advanced and automated strategies on Avalanche. These strategies will vary by mechanism but will utilize the best protocols to maximize rewards for users. These will require more research and complexity, but often can be higher rewarding. Much of the inspiration from these strategies comes from Yearn Finance — effectively, leveraging various protocols or whatever is hot in the market. These strategies often require frequent auto-balancing or position management and thus are not possible for the average user. This is where smart contracts come into play and some serious yield can happen!
Liquidity Book Vaults
Trader Joe recently released a game-changing addition to their DEX — liquidity book. The second they started hinting at LB, we were interested. Now that it has been released, the team has been working on gathering data to figure out how we can offer automated strategies for our users. We want to ensure we have a crisp product before releasing to our users, since position management is not a simple feature. We are starting by looking at stablecoin vaults and then will look at volatile asset vaults thereafter.
We’re proud to partner with an awesome team like Trader Joe, who has continued to ship new, innovative products. We look forward to building on top of Liquidity Book and helping our users seamlessly take part as well.
veJOE and Vector
We’re excited about the upcoming changes to veJOE on Trader Joe. Once this new iteration of veJOE is live, almost all JOE emissions will be going towards veJOE. This JOE will be allocated towards supporting Avalanche protocols that need liquidity for their tokens. veJOE will have a governance system in place, where veJOE holders can vote on which new farms are opened and how much JOE rewards get allocated to those farms.
With almost a super majority of veJOE on Avalanche, Vector is sure to become a central DeFi hub for these ecosystem projects looking for liquidity. We will build a bribe marketplace on top of JOE — where protocols can achieve governance results via Vector versus having to accumulate their own veJOE. That means more rewards for our zJOE stakers and VTX lockers. Bribe szn is coming to Trader Joe and we are ready for it.
Platypus Bribes and USP
Vector continues to build on top of Platypus Finance and has been accruing PTP like no other. As the top owner of vePTP and top staker of PTP, we benefit greatly by developments on Platypus. We recently built out our “Delegated Voting” pool, where locked VTX holders can automatically earn extra APR right now just for voting (and that doesn’t even include the APR for locking). We’ll continue to work with our Platypus partners to boost those bribes, rewards on Platypus, and the use of the protocol.
We’re very excited about recent announcements around Platypus Finance’s own stablecoin, USP. Vector will be able to leverage USP by minting against our user’s deposits, and we’re in the midst of researching the best way to bring value using that new feature. Imagine the possibilities of being able to earn on Vector with boosted yield AND mint against your LP deposit using it as collateral. USP is an innovative product which maximizes capital efficiency. We are excited to see it come to market and for the future of Platypus.
Aggregating new protocols
Last, but certainly not least! We’ll continue to aggregate blue-chip tokens on Avalanche that will benefit our users. We are actively monitoring the market and have identified at least one new protocol we expect to start accruing soon. Doing so will bring additional revenue sources to Vector and benefit the DeFi ecosystem on Avalanche.
Excited about our roadmap? We are! Vector Finance continues to build and be *the* DeFi hub on Avalanche. Join in using the links below.