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Minting stablecoins (coming soon)
The VNX Platform returns the gold standard with the collateralised and capital-efficient stablecoin protocol that allows users to mint stablecoins backed by VNX Gold. The exchange rate of stablecoins can be pegged to EUR, GBP, etc. VNX stablecoins offer interest-free liquidity at the fingertips of our users.
Our users can swap collateral – VNX Gold against stable assets – and conversely swap stable assets against VNX Gold at oracle value (1:1), with no slippage and small transaction fees. To insure the protocol against the volatility of the VNX Gold used to back stablecoins, VNX created a way to transfer the volatility to actors of traditional financial market willing to get leverage on gold. Each time the protocol receives a new portion of collateral, it sells futures on a centralised exchange.
Due to the liquidity of gold futures on traditional financial markets, the protocol remains perfectly collateralised. Convertibility can always be maintained regardless of the variations of collateral price, creating a market between people willing to get stability and people willing to get volatility, while securing the volatility of the collateral brought by people who want stability.
Stablecoins are minted with a 0% interest rate – the VNX Platform charges a small fee to mint and burn stablecoins instead of highly variable interest rates.
Stablecoins can be used for settlements or invested.
Every time a stablecoin loses peg to the rate of the equivalent fiat currency, the protocol opens the possibility for minting or burning stablecoins with reduced fees. For example, if a stablecoin, the rate of which is pegged to one Euro, trades at a higher value than one Euro, then the protocol allows users to use their VNX Gold as collateral and mint more stablecoins with reduced fees. Therefore, the user can mint coins for one Euro and immediately sell at a higher price, receiving an arbitrage profit and supporting the peg of the stablecoins 1:1 to fiat currency. And if a stablecoin is traded at a cheaper rate than the exchange rate of the fiat currency, the protocol will open the possibility to burn coins with reduced fees. Then the user will be able to buy stablecoins from the market more cheaply, maintaining a 1:1 peg, and get collateral at a nominal price.
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