Most people know Crypto.com as an exchange and wallet app that competes with Kraken and Coinbase with a lot of big ads. These include ads with Matt Damon, a Super Bowl halftime show with Lebron James, and the naming rights to the old Staples Center.
Most people know Crypto.com as an exchange and wallet app that competes with Kraken and Coinbase with a lot of big ads. These include ads with Matt Damon, a Super Bowl halftime show with Lebron James, and the naming rights to the old Staples Center.
However, the Singapore-based company has been doing a lot more since it launched Cronos, an EVM-compatible blockchain that is part of the DeFi ecosystem. Since it went live in November, the ecosystem has grown to $2.3 billion in TVL.
The VVS protocol is the chain’s largest project, accounting for 59% of its total TVL as of Feb. 15. It is already the seventh largest DEX in terms of TVL, after only Trader Joe’s and barely ahead of Osmosis.
VVS Finance – What is it?
VVS Finance is a DEX that offers all of the standard DeFi features, including swaps, liquidity pools, and staking.
Very, Very Simple Finance is the name of the platform’s main goal. This makes it clear what the platform is all about. This is accomplished through gamification and an intuitive user interface.
Footprint recommends that you look at a lot of the things they say to look for when assessing the health of a crypto project:
VVS Finance’s market cap jumped from $20 million to $170 million in the first few months after it was launched. It has mostly followed the general market trend since then.
VVS Finance’s trading volume has stayed between 5% and 20% of its market value for the most part.
Price action: The protocol’s token VVS is roughly as volatile as one could anticipate from a fresh DEX and chain, but without any suspicious pumps.
So why has the first AMM on Cronos, which is a possible candidate to be the next SushiSwap or PancakeSwap, just generated so much controversy?
The Tokenomics of VVS Finance Are Suspect
VVS has a total circulating supply of 2.2 trillion and a total supply of more than 36 trillion, which will expand to 100 trillion over the next ten years as a result of its emission program.
To provide context, here are the circulating supply data for the top DEX tokens (rounded to a million).
- 127,000,000 SushiSwap SUSHI
- 632 million UNIs Uniswap
- Swap of Pancakes: 268,000,000 CAKE
- 7 million Balancer BAL
VVS Finance’s tokenomics model is unique in that it is the only major DEX token that is so inflationary (notice that CAKE does not have a hard cap but does have deflationary features to keep the supply under control).
However, does VVS’s astronomical token supply have any bearing on its long-term viability?
While 100 trillion is a large number, other tokens, including Ethereum, have much larger, or even infinite, supply sizes.
As previously stated, the overall supply of CAKE is infinite.
Thus, the overall supply is not the primary criteria for determining the quality, benefits, or drawbacks of a project. What matters is how they are distributed—which business model they will follow. If there is an excess of supply but insufficient demand (e.g., through staking or burning), the token’s price and inherent worth will suffer.
If VVS Finance can maintain its leadership position within the Cronos ecosystem and Cronos continues to grow, the project—which is organically linked to the potential of Crypto.com—could be a solid investment.
Footprint Analytics – What Is It?
Footprint Analytics is a one-stop shop for visualizing and analyzing blockchain data. It cleans and integrates on-chain data, allowing users with varying levels of competence to rapidly begin exploring tokens, projects, and protocols. With over a thousand dashboard designs and a simple drag-and-drop interface, anyone can quickly create bespoke charts. With Footprint, you can access blockchain data and make more informed investment decisions.
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