Mechanics
Below we breakdown how Vector Finance works with Platypus Finance, Trader Joe, and Benqi to boost your DeFi yield.
Last updated
Below we breakdown how Vector Finance works with Platypus Finance, Trader Joe, and Benqi to boost your DeFi yield.
Last updated
On Vector, users are able to convert PTP to xPTP. Once converted, the protocol automatically stakes it on the Platypus platform. By staking this PTP, the platform accrues vePTP.
Accruing vePTP allows Vector to offer attractive stablecoin yields for depositors. The stablecoin yields on Vector will be higher than the base yields on Platypus, due to the vePTP balance that we will have accrued. Vector's platform, similar to Convex, will charge a 20% performance fee for all stablecoin yield generated. A majority of this performance fee is redirected back to xPTP holders, providing the xPTP token with significant value. The remaining performance fee will be redirected to users who lock VTX.
zJOE is a novel cross-chain liquid staking token specifically designed for JOE, the native token of Trader Joe's platform. It enables users to convert their JOE into zJOE using Vector, a service that simplifies the staking and bridging process. Staking zJOE on Vector allows users to earn USDC rewards, derived from the trading fees on Trader Joe, without the need to actively manage their assets across different blockchain networks.
The process of converting JOE to zJOE involves staking the JOE in the sJOE pool on Trader Joe, which in turn generates USDC rewards from the platform's trading volume. Vector's unique approach solves a significant challenge for users who traditionally had to navigate multiple pools on various chains like Arbitrum and Avalanche to optimize their annual percentage rate (APR) earnings. With zJOE, this complexity is removed, as Vector manages the assets, ensuring optimal yield through automated systems and Layer Zero technology. Additionally, the Vector team occasionally conducts buybacks of zJOE from the liquidity pool to maintain ratio stability. See Trader Joe and zJOEfor all the details!
Vector Finance has established a partnership with Benqi to enhance the value of QI tokens for users. This collaboration involves converting QI tokens to xQI on the Vector platform, providing exclusive yield opportunities on Avalanche. Once converted, these tokens are used within the Benqi ecosystem to accumulate veQI, a form of QI that offers increased governance power and additional rewards.
By staking in the xQI program, users can benefit from AVAX rewards as well as VTX emissions, the native token of Vector. This approach aims to significantly boost investment yields. The AVAX rewards are a result of staking on Vector's nodes and increased rewards due to our abundant veQI stockpile. Holding xQI entitles users to a share of these rewards.
To participate in the xQI program, users need to convert and stake their QI tokens via the Vector Finance website, using an Avalanche-enabled wallet. The conversion process is permanent, meaning the original QI tokens are indefinitely staked in the Benqi system. Vector Finance also provides liquidity for QI-xQI on Trader Joe to facilitate smoother transactions. However, it's important to consider that converting QI to xQI is a long-term commitment and that liquidity on Trader Joe may vary, influencing availability and exchange rates. See Benqi and xQIfor more info!
VTX is the governance token for the Vector protocol. VTX is used to help incentivize PTP conversion and liquidity providing. Check out the section to learn more about how these emissions occur.
