In this post, we are going to look at how the main platform in the Cronos network, VVS Finance, works.
VVS Finance is currently the platform with the most invested capital within the Cronos network, and we will cover everything you can do on this DEX, and those aspects that stand out the most.
With the huge growth of the Cronos network, VVS Finance has managed to raise over $1 billion (US) in LTV or total value locked up on its platform.
What is VVS Finance
VVS Finance – the easiest DeFi platform for everyone.
VVS is designed to be the easiest DeFi platform for users to exchange tokens, get high returns and, above all, have fun.
It is a decentralised Exchange, being a fork of Uniswap, like many other DEX we find on other networks, such as pancakeswap, quickswap, pangolin and many others.
At the moment, we find VVS Finance and MM Finance as the main DEX on the Cronos network, with a fairly even TVL and usage. This time, we will focus on what VVS Finance offers and what strengths it has had to become the most capitalised platform in Cronos at the moment.
In trade we find the main part of any DEX, where we can exchange our cryptocurrencies for others, in a decentralised way. The operation is simple, and the same as any DEX such as uniswap or pancakeswap.
Here, in trade we will go to swap, and we will indicate the cryptocurrencies we want to exchange. For example, CRO for ETH. At the top we will select CRO, and under ETH in you receive. In the middle you will see % to indicate the amount, very useful if you want to indicate a specific % and not have to calculate it. With the amount indicated, you will see under Price the exchange rate of one cryptocurrency for another, and further down the minimum you will receive. The impact of the price, which is usually 1% or less, if it is very high try to exchange a lower amount or another cryptocurrency, as it will affect the total amount you receive in tokens. And finally, the commission you pay for making the transaction, which is very very low.
If you click on the cryptocurrency, you can search for the cryptocurrency you want to exchange if you can’t find it. If you can’t find it, it is possible that it is not yet available on this network or on this DEX.
With the amount indicated and all the information seen, click on swap, confirm the transaction in your wallet and that’s it. You will now have the new token. And you can exchange it for another one whenever you want.
Liquidity and Flash LP
Here, we find the part where you can create LP Tokens to use them on farm and generate an annual % with them. Always keep in mind that you have to indicate the same proportion of cryptocurrencies of the LP in a 50% of each one. For example with CRO and USDC, you must indicate the same amount of CRO and USDC to create the LP, which is equivalent. Click on add liquidity, indicate the two cryptocurrencies with the same amount, and click on add liquidity, confirm in your wallet and that’s it.
You will be able to undo the LP and receive the cryptocurrencies from that LP at any time. When you create the LP, you can select to remove it, and once done, you can see it in removal orders and removed, where you can withdraw the two cryptocurrencies of that LP Token.
An easier way to create an LP can be found in Flash LP. Here, it allows you to create an LP directly by exchanging any cryptocurrency in your wallet. To avoid having to make multiple transactions, the platform does it for you. Instead of if you have CROs, and you want to create the CRO-USDC LP, having to first exchange the CROs for USDC and then create the LP, here, in from token you can select the cryptocurrency you want to exchange, in our example CRO, and below in to LP, select the LP you want to create. Once selected, you only need to indicate the amount, confirm all the information that you will see below the LP, where you will see the amount of each cryptocurrency of the LP you are exchanging, and click on add liquidity, confirm in your wallet and that’s it.
This way you will already have the LP created in a much simpler way and spend less on gas fee by making fewer transactions.
In earn and farms we find the part where we can earn an annual % with our cryptocurrencies. In farms, we find all the LP tokens that we have just seen how they are created.
You will be able to see in APR the annual % that each LP Token generates at the moment, and it even has a calculator of the possible earnings if the annual % is maintained. As a reward for creating and depositing the LP Token, you will receive the native token of the VVS platform as a reward.
So the annual % you see, you will receive in the VVS token. To use it, you must first click on enable contract and confirm in your wallet. Once you have done this, you will see the stake option, and indicate the amount of LP tokens you want to deposit to get the annual %. Enter the amount, click on stake and confirm in your wallet to start receiving rewards.
Once deposited, you will be able to see how the number of VVS goes up, and by clicking on harvest you will be able to withdraw the amount of VVS you have generated so far.
It is worth mentioning that the annual % tends to vary, so do not see it as what you will generate during the whole year. In addition, receiving the annual % in the token of the platform, VVS, makes it a very inflationary token and has a tendency to fall in price. So you will have to sell it every so often to prevent it from falling in price and the annual % you are actually getting is much less. You can search for the VVS cryptocurrency, and look at the graph to see that it tends to fall in price.
Mines and xVV
In mines, you will see the farming of a single token, in this case VVS or xVVS. Here, you can deposit VVS to get more VVS in the auto VVS or manual VVS pools, or even deposit VVS and receive another token as a reward, such as TUSD.
Also, you will see pools that say stake xVVS and in earn the cryptocurrency you will receive for placing your xVVS in that pool. And there is usually a wide variety to choose from and get other tokens.
To get xVVS, we will go to earn in the third stake, xVVS. Here, we can deposit our VVVS as staking, and we will receive xVVS. The xVVS token appreciates in value with respect to VVS, so we are getting a return with the token in our wallet. You can see in last 7 days apr the profitability that the VVS staking is giving here. To stake your VVS, click on enable, confirm in your wallet and you will be able to indicate the amount and click on stake VVS to receive xVVS.
With xVVS you can deposit them in vault, above next to stake. Here, you lock your xVVS for a certain period of time in exchange for a higher annual %. Or you can use the xVVS in pools as we have seen before and get rewarded with other cryptocurrencies with good annual %.
Finally, let’s look at the IGO section. Here, we will be able to contribute wCRO, which is wrapped CRO and has the same CRO value to new projects that are launched before they are publicly available for exchange.
It is a way to access new projects and get tokens for a very low price if the project is successful after launch. You will be able to see in IGO lastest the last launch they have done, and you will be able to see in max wcro token enctry, the maximum you are allowed to place for each user.
There are usually two types of pools in the launches, one that has a limit per user, and another that does not have a limit and you can deposit as much CRO as you want. Once you have seen the total, it is distributed in relation to the amount you have deposited. You can see in funds to raise the maximum amount of tokens in that pool, and in total committed the amount that has been deposited in total. This, if you divide it you can see the amount of tokens you will receive. And the amount of CRO that is not used, you are going to get back.
If for example there are 1 million funds to raise, and 2 million in total committed, and you have deposited $1,000 in Cro, you will only receive $500 of the token and the other $500 in CRO will be returned to you.
Once completed, you will be able to claim your tokens back from the project, as well as the amount of unused CRO.
I hope this has helped you to understand in more detail how the main Cronos DEX works. Remember, if you don’t have an account with binance, you can create one just below.