Research Summary
The report discusses VaultCraft, a decentralized finance (DeFi) protocol that allows users to build their own yield strategies across any blockchain in just two clicks. The platform uses smart vaults for yield optimization and offers two modes for building vaults: easy and dev. VaultCraft, a rebrand from Popcorn DAO, uses its native token, VCX, for liquidity incentives and governance.
Key Takeaways
VaultCraft’s User-Friendly DeFi Strategy Building
- Democratizing DeFi Strategy Creation: VaultCraft allows any user to build their own DeFi strategy across any blockchain with just two clicks. Users can choose an asset and protocol, set vault fees, and enter their wallet information. This simplifies the process of depositing crypto, optimizing yield for any asset on any Ethereum Virtual Machine (EVM) chain, and customizing yield strategies.
- Smart Vaults for Yield Optimization: VaultCraft’s smart vaults are non-custodial, multi-strategy, auto-rebalancing vaults with a built-in zap feature. This feature allows users to zap any asset into any vault, such as USDC into USDT or DAI into ETH, further enhancing yield optimization.
VaultCraft’s Tokenomics
- VCX Token for Liquidity Incentives: VaultCraft’s native token, VCX, is used for liquidity incentives. Holders of the $POP token from VaultCraft’s previous incarnation as Popcorn DAO can convert their tokens to VCX at a 1:10 ratio.
- veVCX for Governance: VaultCraft uses vote-escrowed VCX (veVCX), based on Curve’s veCRV, for voting on governance proposals and gauge weights. VCX holders must lock their tokens in an 80VCX-20WETH Balancer LP token to obtain veVCX voting power, aligning incentives between liquidity providers and VCX holders.
- oVCX as a Call Option: oVCX is a call option token for VCX that lets its holder purchase VCX at a discount to the market price. oVCX does not expire, allowing the protocol to accumulate more cash reserves while giving loyal VCX holders the option to buy VCX at a discount in the future.
8020 Balancer Model
- Providing Liquidity for Governance: The 8020 Balancer model requires users to provide liquidity into the 20WETH-80VCX Balancer pool to receive veVCX, VaultCraft’s liquidity governance token. Initially, 20% WETH and 80% VCX will be paired in the Balancer pool, and users adding liquidity to this pool will receive veVCX in return.
VaultCraft’s Potential
- Optimizing Yields with Ease: VaultCraft presents an innovative opportunity to optimize yields by building customizable vault strategies with ease. While the project is still new, the possibilities seem endless for both the platform capabilities and user yields.
Actionable Insights
- Exploring VaultCraft’s User-Friendly DeFi Strategy Building: Investors and DeFi enthusiasts may want to explore VaultCraft’s user-friendly approach to building DeFi strategies. The platform’s easy and dev modes for building vaults could democratize yield optimization in the DeFi space.
- Understanding VaultCraft’s Tokenomics: It could be beneficial to understand VaultCraft’s tokenomics, including the roles of VCX, veVCX, and oVCX. These tokens play crucial roles in liquidity incentives, governance, and providing options for purchasing VCX at a discount.
- Considering the 8020 Balancer Model: Users may want to consider the implications of the 8020 Balancer model, which requires providing liquidity into the 20WETH-80VCX Balancer pool to receive veVCX. This model aligns incentives between liquidity providers and VCX holders.
- Monitoring VaultCraft’s Development: Given VaultCraft’s potential to optimize yields with ease, it could be worthwhile to monitor the platform’s development and its impact on the DeFi space.
