VVS is a decentralized exchange protocol native to the Cronos chain, allowing permissionless trades and liquidity provision (to earn trading fees).
VVS is an automated market maker (AMM) like PancakeSwap that launched in 2021 on the Cronos blockchain. AMMs rely on liquidity pools rather than traditional order books to execute decentralized trades. The liquidity pools are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. On VVS, users can earn additional yield by staking their LP tokens to farm for the protocol's native VVS token.
Biswap charges a 0.3% fee on all trades within a liquidity pool. Of this amount, 0.2% is paid to LPs as a reward for providing liquidity and 0.1% is sent to the protocol treasury. The treasury funds are used to cover the team's operating expenses. Following the launch of VVS staking (xVVS), 0.08% of the 0.1% sent to treasury will be used to buyback VVS and distributed proportionally to xVVS holders.
You can provide liquidity on VVS to earn 0.2% trading fees on VVS. You can also stake VVS on the platform (xVVS) to earn additional rewards paid in VVS. The protocol constantly earns 0.08% of all trading fees to be used to buyback and distribute to xVVS holders.