As traditional finance takes a digital turn, digital currencies are growing exponentially. However, the volatility within the crypto is still a challenge for many, especially those looking to adopt digital currencies. This is where stablecoins have emerged as a critical catalyst for the growth of the ecosystem. Pegged to another asset or fiat currency, they enable users to avoid the volatility typically associated with cryptocurrencies while enjoying the benefits of both digital and fiat currencies.
As per CoinGecko, the current stablecoin market stands at over $137 billion, which is nearly 8% of the total digital currency market. The growth of the stablecoin market can be attributed to the growing adoption of digital currencies, accessibility to exchanges, and minimal volatility as compared to other currencies.
However, approximately 97% of the total stablecoin market is dominated by USD-based stablecoins, which reflects the global reliance on the USD as a reserve currency and its widespread use in international finance and trade. USD stablecoins such as Tether (USDT), USD Coin (USDC), First Digital USD (FUSD), and DAI take the top spots in USD stablecoins market capitalization, which is well over 133 billion.
Out of the remaining 2% market share for non-USD stablecoins, apart from commodities, EUR stablecoins represent the highest share of over 270 million and growing. This highlights a gap in the market demonstrating an over-reliance on USD-pegged stablecoins, even for users who are not residing in the North American region. The process becomes more complicated with additional fees incurred when converting to and from USD-based stablecoins into their native currency.
The availability of EUR stablecoins is particularly appealing in the European market, where businesses and consumers can leverage them for transactions, savings, and remittances without currency conversion fees. From projects raising investment to everyday users trading in their local currency, EUR-pegged stablecoins can ease out the process considerably. Moreover, retail investors and institutions can hedge against currency risk, especially for those based in the Eurozone.
A prominent name in the growing European stablecoin market is VEUR, a stablecoin referencing EUR supported by reserves and generated by VNX commodities. Apart from VEUR, VNX also generates VCHF stablecoins, referencing the Swiss Franc, and tokenized physical gold VNXAU, opening up a plethora of opportunities for both retail and corporate investors. While these tokens are being adopted across Europe for their accessibility, there exists a market for these tokens in DeFi.
This is where the VNX Community Hub comes in!
Exploring EUR & CHF Stablecoins By VNX Commodities
VNX is a European-licensed stablecoin generator behind the EUR & CHF stablecoins and the tokenized gold. These stablecoins are issued with adherence to regulatory compliances and strict standards for security, transparency, and anti-money laundering measures. While most stablecoin generators are licensed in the USA or Canada, the company currently holds multiple licenses from the Financial Market Authority (FMA) in Liechtenstein. It will also be in compliance with upcoming EU Markets in Crypto-Assets (MiCA) regulations.
Backed and supported by Woori Technology Investment, who is the largest investor in UpBit, 2be.le and other VCs, Avalanche, Stellar, Ripple, Polygon, Solana, ICP and Tezos, along with many others, VNX is the largest stablecoin issuer in Europe with licenses to generate two major European currencies. Moreover, apart from being secure and regulatory compliant, these assets are supported by real-world reserves, which have been critical in maintaining the stability and trust in VNX’s stablecoins.
Moving away from the high fees and dependence on a USD-based system, the VNX Euro and VNX CHF allow users to participate in the European blockchain and Web3 ecosystem without having to go through USD. This enables a seamless flow of assets and fiat currency without requiring additional conversion fees and transaction time.
The stablecoins have already received acclaim and adoption from both institutional and retail investors, with a presence across major exchanges and DeFi platforms such as Balancer, Orca, Curve and others. Users can add liquidity to pools and participate in other yield-generating opportunities and earn with their VNX stablecoins.
While the VNX Commodities generates the CHF & EUR stablecoins, the VNX Community Hub will make its DeFi adoption accessible and rewarding for users. This will be supplemented with the VNX token, the backbone of the VNX Ecosystem. Through the VNX token, the community members will decide how these tokens are used to borrow, lend, provide liquidity, offer rewards, and much more.
In summary, VNX Commodities is the licensed stablecoin generator, while the independent and community-driven VNX Community Hub decides how the VNX stablecoin markets should develop
Introducing the VNX Community Hub
While users can currently stake their VNX stablecoins and tokenized gold across platforms to generate suitable returns, the VNX Community Hub will let them boost it exponentially for up to 120% returns.
At its core, the VNX Community Hub is a platform to facilitate the DeFi adoption of the VNX Commodities’ stablecoins by generating unique yield generating and boosting opportunities. The community application will include liquidity pools, vaults, and many other opportunities for users. The hub will be completely independent and will be run by the community that can vote on key protocol decisions within the hub itself.
At the helm of the community hub is the upcoming VNX token, which will be launched through a Liquidity Bootstrapping Pool (LBP). The VNX token will be the foundation of the VNX Community Hub, which can be bought, sold, traded, staked, and so much more. To unlock the potential of the VNX token, it can be staked, which will give the users veVNX tokens (voting escrow VNX tokens). The veVNX token cannot be transferred and is not traded on the markets, but its holder receives voting power to manage key protocol decisions and boost their yield returns significantly when providing liquidity in the community pools and vaults.
Here’s how the VNX Community Hub’s tokens will enable comprehensive DeFi utilities for the VNX stablecoins.
Therefore, you can stake VNX to earn veVNX and contribute your VNX stablecoins along with VNX tokens in liquidity pools for up to 120% returns. Here’s a simple representation of how you can make the most of your VNX token & other assets, and participate in key protocol decisions.
Apart from impressive yield-generating opportunities, the VNX token also comes with community-centric tokenomics. Out of a total supply of 300 million, 70% or 210 million tokens will be used for incentivizing liquidity programs. Moreover, 5% or 15 million tokens will be added to the project treasury, which is fully controlled by the community. Users will vote and decide how the treasury is distributed. Here’s more about the tokenomics and vesting period for the VNX token.
VNX Token LBP at Fjord Foundry
We are excited to announce that the VNX token’s fair launch will be held soon on the Fjord Foundry platform.
The VNX token will be launched via a Liquidity Bootstrapping Pool (LBP), which enables fair and transparent token distribution. With the LBP, investors get a fair and equitable distribution, enabling them to discover the fair market value of the tokens. Simply put, the LBP limits bots and whales from hoarding tokens at lower prices and dumping them once the price rises. In most cases, the price of the token starts off high and gradually decreases and/or increases as per the buying pressure from the LBP participants.
The VNX Community Hub believes that the LBP launch will ensure a fair launch of the much-awaited VNX token, allowing anyone to invest, no matter how big or small. We know that the hub has awesome community members and the LBP gives everyone a similar chance to be a part of this fair launch. Moreover, the LBP will be held on the Fjord Foundry platform, which is one of the leading community-based LBP platforms. With high-tier partnerships and an impressive track record of helping hundreds of projects raise millions of dollars, it was a no-brainer to choose Fjord Foundry as the preferred launch partner.
To participate in the LBP, all you need is to set up a wallet (like Metamask), fund it with the amount you wish to spend, and voila! You are ready to go. Here’s a step-by-step guide on how you can participate in the VNX token LBP.
Be A Part Of The VNX Community
In conclusion, the VNX token opens up endless and impressive yield-generating opportunities for users. The VNX token stakers not only get a staking yield but can also boost their yield using the veVNX token and get voting power to define the key areas of protocol development and shaping the DeFi future of the stablecoins offered by VNX Commodities.
These stablecoins have already received massive adoption powered by a pool of partners such as Orca, Balancer, Xave, Jarvis, KyberSwap, XT, LBANK, and many others. The VNX Community Hub takes a step ahead and enables users to deposit their stablecoins into liquidity pools and boost their yield with veVNX tokens to generate spectacular APRs and decide how the community moves forward. Choose how the pools are rewarded, and which pools are added to the mix and vote on other protocol decisions.
All this can be done with the VNX token, which is up for grabs only from the LBP fair launch. Register for the upcoming VNX LBP for more details.
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Author: Abhishek Purushotham
