Vires
Vires is a money market protocol that allows permissionless borrowing and lending of crypto assets on the Waves blockchain.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: VIRES
- Tags: Lending
- TVL: $8.1M (Rank #172)
- TVL Ranking by Lending: #35
- Blockchain: Waves
- Chain TVL
- Waves: $8.11M
- Code not reviewed by any experienced auditors
- Anonymous team reduces transparency
- No documented protocol hacks since launch
- Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
- Top 5% by total value locked reduces risk
- Core contracts can be upgraded with just an EOA wallet
- No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
- Several critical governance issues documented
- Moderate voting power concentration
- No death spiral concerns
- No controls in place to prevent oracle price manipulation
- Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
- Solid controls in place to prevent risky borrowing
- Basic mechanisms in place to incentivize liquidations
- Basic method to accrue protocol reserves
How Vires works
Vires consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Aave borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Vires are driven by market supply and demand. To facilitate this activity, Vires issues vTokens to lenders that reflect accruing interest on the underlying token.
How Vires makes money
Vires collects a portion of the borrower's interest as protocol revenue. This value can vary for different markets and is configurable through governance. Vires also charges a reserve factor that allocates a share of borrowers' fees to the protocol to ensure adequate liquidity is always available. Each supported asset has a reserve factor that determines how much goes into the reserve.
How you make money on Vires
You earn lending fees on Vires by depositing your idle crypto assets to be used by borrowers looking for leverage. Vires also offers additional protocol incentives in its native VIRES token to bootstrap demand. You can also lock VIRES (gVIRES) to earn a share of the protocol's revenue. Every block, VIRES lockers receive a share of the revenue proportional to their gVIRES.