In the world of Decentralized Finance (DeFi), the Binance Smart Chain (BSC) is gaining more popularity and proved itself to be a platform that’s worthy for new projects to spring up. As a result, it has opened the door for numerous projects to establish their roots on the BSC. Indeed, since the BSC can be able to provide a better environment for new projects to thrive, there’s an increasing number of developers who are shifting from Ethereum blockchain to the BSC.
In today’s article, we are going to talk about Wault Finance, which is one of the innovative projects on the BSC.
What is Wault Finance?
Wault Finance is the most recent decentralized finance hub that links all of the DeFi use-cases in one simple ecosystem. In a nutshell, they aim to become an all-in-one DeFi platform.
The founders of Wault Finance think that the advantages of the DeFi space should be more widely available. They want these benefits to be accessible to the general public in a natural way, which avoids the expensive fees, confusing interfaces, and centralized decision-making.
So, with these goals in mind, they created a protocol that includes two tokens – WAULTx and WEX – as well as some unique features like WaultSwap (AMM), Wault Launchpad (new project presales), Wault Locker (liquidity locks for new or established projects), Wault Farms (staking and farming), and many other fantastic services. They think that these offerings will increase the users’ trust and wealth accumulation.
Furthermore, Wault Finance supports open and decentralized governance, thus, they must be a member of the community. As a result, holders of WAULTx tokens will be able to vote on and decide on all aspects of the protocol’s future growth route. Developers are also welcome to contribute to their open-source code on GitHub.
What is WAULT?
WAULT was Wault Finance’s previous governance token, which gave holders the ability to vote on the future direction of protocols. These decisions might be as basic as adding a new feature or as complicated as completely overhauling the governing system.
The WAULT token has now been rebranded as WAULTx.
What is WAULTx?
The transactions tax has been one of the primary impediments to WAULT’s listing on centralized exchanges. Despite the fact that many of the largest centralized exchanges want to list WAULT, making their customers pay for the fee is not in their best interests as well as their users. That was significant since listing WAULT on centralized exchanges would have aided its growth in a variety of ways. To begin with, becoming listed on centralized exchanges can raise the price of a coin. Also, it can boost the ecosystem and provide higher benefits to token holders. However, disabling the inactivity fee and transaction tax isn’t easy. In reality, there is only one method to get rid of them both, which is the aid of token migration that the Wault Finance team took use of.
WAULTx is essentially Wault Finance’s new governance token. The network has chosen to make WAULTx redeemable at a 1000:1 ratio against the WAULT token in order to encourage users to utilize it. As a result, you will receive 1000 WAULTx tokens for every WAULT token you own.
Furthermore, WAULTx has no transaction tax or burn rate. It’s designed to be a simple governance token, with a total quantity of 1 billion coins. If you wish to change your WAULT tokens to WAULTx tokens, you need to do so by June 23rd, 2021, at 3 p.m. UTC.
What is WSwap?
WaultSwap is Wault’s Automated Market Maker (AMM), developed to bring even more liquidity into the protocol. WEX, the main farming token, also serves as the reward token (1,500 new WEX are emitted per block).
The trading fee is fixed at 0.2. The liquidity providers receive 0.18%, while 0.02% is allocated for the process of daily buyback and burning of WEX tokens. This was done to keep a deflationary pressure on the market, causing prices to rise all the time.
It’s worth noting that the WAULTx token will continue to be the overarching protocol’s core governance token. It will continue to provide value to the platform thanks to its unique cost structure.
How Does Liquidity Mining Work on Wault Finance?
Liquidity mining on Wault Finance operates in a similar way as to all DeFi platforms. All you have to do is supply liquidity to one or more trading pools, and you’ll receive token rewards and fees in return.
For the first few months, you will be allowed to mine WAULTx tokens to ensure a fair distribution and to reward the platform’s early supporters.
At the beginning, you used to earn 1 prize each block. The prize has been halved every 10 days since then. The WAULTx / BNB liquidity pool and the WAULTx Staking Pools are pools that the platform currently has.
The WAULTx / BNB liquidity pool is where the majority of the rewards are found, and this is what we’ll discuss here. However, there is a lot of money to be made in the WAULTx Staking Pools. And we’ll talk about that afterwards.
The protocol charges 1.8% in fees and taxes for every transaction that takes place on the platform. The money is then given to liquidity miners.
The platform guarantees that liquidity miners are compensated even after the whole quantity of 1 billion WAULTx tokens has been distributed through this incentive system.
To know how to buy, sell, add liquidity, and farm on Wault, check out this video from Wault Finance
How Do Staking Pools Work on Wault Finance?
Similar to liquidity mining, staking on Wault Finance operates in much the same manner as it does on any other DeFi platform. You place your WAULTx tokens in and wait before receiving them back with the prizes.
The Liquidity Mining Contract also provides a significant return when you stake WAULTx. That isn’t all, though. In fact, you earn 0.7% of each transaction’s taxes and fees as well.
Now, let’s talk how rewards from the Liquidity Mining Contract are distributed.
The incentives will be smaller for individuals who do not plan to lock up the tokens for a certain length of time. The Liquidity Mining Contract would reward such users with 10% of the earnings. A pool called “No Lockup Pool” receives all of their tokens.
You also have the option of locking your tokens in the 1 Week Lockup Pool if you’re more ready to take risks. This would pay you 30% of the Liquidity Mining Contract’s earnings in exchange for locking up your tokens for a week.
If you’re certain you have enough spare cash to take larger risks, you can put your tokens in the 1 Month Lockup Pool, which would offer you 60% of the Liquidity Mining Contract’s earnings, but your tokens would be locked up for a month.
How Do Vaults and Yield Optimization Work on Wault Finance?
Vaults are where you may deposit funds on the Wault Finance platform. These funds are subsequently utilized by the platform to invest in (and profit from) attractive DeFi market possibilities.
The Vaults operate as automated yield generators by moving funds between different strategies, which enables them to calculate the best possible return on investment, which is subsequently passed on to the user. As an investor, you benefit not just in terms of yield, but also in terms of time and expenses saved.
You would be able to suggest a Vault Strategy regardless of whether you own WAULTx tokens or not. You must, however, be a WAULTx holder to have a word in the proposal and to vote on it. You can’t approve or disapprove of the approach without it. If the application is approved, the pool will be accessible for depositing within the following 24 hours.
You would be allocated a wallet as the inventor of the Vault strategy, and you would get a share of the Vault’s revenues if your plan was accepted.
The earnings from your Vault is automatically handed out in three sets for every $50,000 it generates. Specifically, 8% of profits are sent to the Strategy Creator Wallet.
The biggest one, 90%, are utilized to purchase WAULTx. The resultant WAULTx is subsequently distributed to the Vault’s depositors in proportion to their investment in the strategy. The token is subjected to consisten buying pressure as a result of such buybacks, which raises the price further.
It remains unclear if Wault Finance will be able to achieve the goals it has set for itself or not, the time that has gone proves that the platform is performing effectively.
The level of community support is also rather strong (as evidenced by the launch), which offers reason for optimism about the project.
With that being said, to know if Wault Finance is successful or not, time will tell.