VTD Introduces Multi-Pool Liquidity
Our next innovation, which we are announcing here and now, relates to liquidity pools.
Currently VTD is paired to DSD, a decision that has thus far proven effective for initial bootstrapping (we’re currently sitting north of $15 million in market cap). Our next step is the introduction of Multi-Pool Liquidity (MPL), something that, again, adds to the variability of VTD.
Multiple pools of VTD-paired liquidity allow participants to provide liquidity and farm VTDs in the paired cryptocurrency that users prefer HODLing in order to minimize their potential for impermanent loss. MPL also benefits DAO bonders or VTD hodlers by bringing less slippage on exit (no need to convert through an extra crypto and suffer the additional transaction fee + slippage loss). This of course also allows new participants to ape in at the lowest cost.
VTD will introduce one new pool at a time, along with an increased LP reward ratio for each new pool. The first liquidity pair to be added will be VTD-ETH with the LP/DAO reward ratio set at 40%/60%. The 40% LP rewards, meanwhile, will be distributed to the VTD-ETH and VTD-DSD pools based on their share of the total liquidity provided between each pool. This means that each new pool will need to compete with legacy pools for their fair share of rewards — again increased complexity that equates to more opportunities. Bonding to the DAO in this scenario is akin to participating in the growth of the total liquidity across all VTD pools.
Following the ETH pool, VTD intends to add USDC, wBTC, USDT and possibly more! Over time, with these features and more coming soon, Variable Time Dollar will be the HIGHEST YIELDING algorithmic stable coin with the DEEPEST total liquidity. The end result? Finally achieving enough market cap to, eventually, become the stable permissionless asset DeFi needs.
This upgrade is only part 1 of some of the exciting features we have in planned for VTD. Stay tuned next week for part 2!