Understanding Vector Finance
What is Vector Finance?
Vector Finance is a yield aggregator focused on increasing your returns in the DeFi space with multi-chain solutions and varied products. It is a decentralised finance protocol that draws its power from its community and constantly evolves with the ever-changing crypto landscape.
How does Vector Finance aggregate and maximise returns?
Vector enhances your returns by boosting your yield with a range of products, the mechanics of which will be explained below:
zJOE is a liquid staking product that collects sJOE returns in 15-day periods with LayerZero technology from multiple blockchains and distributes these returns to stakers in the following 15-day period. sJOE is the staked version of JOE, TraderJoe’s governance and revenue sharing token.
zJOE holders also own MOE tokens from MerchantMoe (who are owned by TraderJoe on the Mantle blockchain) through airdrops and various agreements and will soon receive a portion of the revenue generated on MerchantMoe. This will begin in the future when revenue sharing commences.
1 zJOE return = [sJOE return across all networks/number of zJOEs staked] + [(total MOE return)/number of zJOEs staked]-Protocol Fee-VTX Share
Vector Finance has formed a strategic partnership with Benqi, enabling users to maximise the potential of QI tokens. Here’s how our seamless integration works to benefit you:
Token Conversion and Yield Optimisation: You start by converting your QI tokens to xQI either directly on the Vector platform or using secondary markets. This process is simple and opens the door to the only yield potential for QI on Avalanche.
earning veQI: The converted QI tokens are then used to accumulate veQI within the Benqi ecosystem, which is essentially a non-voted form of QI. Having veQI provides great advantages within the Benqi platform, such as increased governance power, delegate power, and earning more rewards for our nodes from these delegations.
Increasing AVAX Delegation: With the veQI it obtains, Vector Finance leverages its increased voting power to strategically delegate AVAX to our nodes. The rewards distributed to xQI stakers come from these AVAX delegations.
Reward Distribution: AVAX deposited into our nodes generates rewards. These are then distributed to you, the xQI stakers, as a form of passive income. This is a way of ensuring that your investment continues to work for you.
VTX Emissions and Additional Benefits: As an xQI staker, you not only gain from sAVAX rewards, but also from VTX emissions. VTX is Vector’s native token and holding xQI entitles you to a share of these emissions, which can make a significant contribution to your ROI.
By interacting with our Benqi integration, you benefit from a sophisticated return generation mechanism.
Note: A minimal portion of these staking rewards is allocated to operational expenses and the continuous improvement of our infrastructure. This fee is vital to maintaining high performance services and ensuring the security of your assets.
Convert your PTP to xPTP, stake your xPTPs and receive PTP rewards to share in the performance fees that the protocol generates through Platypus Finance. (This is a very risky product due to the risks associated with Platypus, please do your research before investing).
The local governance token for Vector Finance. There are three main use cases:
VTX Lockers receive a portion of Vector’s protocol fees (~30% of all fees) Users can “lock” their VTX for at least 4 weeks. By locking VTX, users receive;
a) TraderJoe revenues (sJOE share, zJOE Returns from zJOE buybacks, MOE revenues and bribes)
b) Share of BenQI revenues,
c) Share of Platypus revenues,
d) Share of Balancer revenues,
e) Share of LP pool revenues,
f) Share of automatically compounded management fees,
VTX token holders can also add liquidity to the VTX-AVAX LP on TraderJoe to receive incentivised emissions.
Eventually Vector will establish decentralised governance where VTX emission weighting and bonus emissions will be determined by the community.
Returns generated by our integrated protocols can be claimed manually from these pools.
In these pools, the returns are compounded automatically when a user interacts with the contract (i.e. deposits or claims) or when a user calls the compound function in the ‘Compound’ tab.
Future
Later this year, we anticipate that we will be able to develop a new protocol integration for Vector once all innovations for the xQI programme are fully enabled.
Our website is also undergoing a redesign which will include user interface updates to increase transparency and reflect changes to the products and protocol in an effort to make it easier for users to understand the protocol. We actively encourage any suggestions from the community on what to add!
We will make sure we meet the expectations of our community and give our community what it deserves: The best, simple and effective experience on DeFi.
