On May 15th, the VyFinance DEX embarked on its journey into the Cardano mainnet, bringing with it a groundbreaking wave of non-custodial yield farming. Central to this innovative ecosystem is the Vyfi Token, a digital asset that plays a pivotal role in the VyFinance ecosystem. In this comprehensive overview, we will delve into the fundamental aspects of VyFi, from its tokenomics to its multifaceted utility functions.

VyFi Tokenomics and Distribution

Vyfi stands as the cornerstone of the VyFinance ecosystem, as well as the governance token of the VyFi DAO. Currently, there are 18.06 million VyFi tokens in circulation, comprising 4.0% of the total supply. These tokens adhere to an emissions schedule spanning 21 years.

VyFi currently has a market cap of $3,876,175, and a diluted market cap of
$96,602,249, placing it at spot #22 in the top 50 tokens on Cardano. The number of VyFi holders has surged by 13.87% over the last 30 days, boasting 13.64K holders at the time of writing. VyFi has a median holder balance of 1.50 VyFi and an average holder age of 245.81 days, highlighting the commitment of early adopters who have been holding the token long term.

VyFi staking has witnessed a rise in popularity in the months leading up to the VyFinance DEX launch. Currently, 3,362,160 VyFi tokens find themselves securely staked within VyFinance Vaults, distributed among 662 addresses. This constitutes a mere 1% decrease from the 3,396,887 VyFi tokens staked on December 28th, 2022, and this trend is rapidly approaching twice the number of staking addresses. The minor dip in staked tokens may be attributed to users venturing into Yield Farming, coinciding with the introduction of the VyFinance DEX.

The top 5 addresses staking VyFi collectively hold a commanding 1,141,334 tokens, surpassing 6% of the circulating supply. These five addresses boast an average staking duration of 5 months, with the lengthiest staking commitment spanning 9 months and the shortest reaching a month.

Liquidity

Currently, the Vyfi token has 3.46 million ADA in liquidity across 5 centralized exchanges, with a 24-hour trading volume of 77.38K ADA. The lion’s share of this liquidity resides within the VyFinance DEX, accounting for a whopping 89.18% of the total liquidity. Minswap follows suit with 5.73% of the token’s liquidity, while Muesliswap secures the third position with 3.73% of the total liquidity. Prior to the VyFinance DEX launch, Minswap held the distinction of being the leading DEX for VyFi liquidity.

VyFi Utility

VyFi powers the VyFinance ecosystem with Multfacted utility, we’ll now delve into the details:

Governance

Holders of the VyFi token wield the power of decentralized on-chain governance within the VyFinance Platform. This empowerment enables them to actively shape the future of VyFinance through critical decisions pertaining to parameter adjustments, upgrades, token listings, partnerships, and more. Voting influence is commensurate with the number of tokens held. Notably, the first governance vote focused on altering VyFi emissions, with an impressive 56% of votes favoring an extension of the VyFi emission timeline to 21 years. This extension serves to mitigate token inflation, thereby promoting price stability.

BAR Rewards

VyFi holders can stake their tokens in the VyFinance BAR, a redistributive mechanism that shares profits garnered from various facets of the VyFinance Ecosystem. This includes fees generated by the DEX, BAR, Vaults, and Lottery. Participation entails staking VyFi tokens to acquire xVYFI, a unit of proportional ownership over the VyFi holdings within the BAR.

Lottery

The VyFinance lottery offers ecosystem participants an enticing opportunity to secure lottery tickets using Vyfi tokens. These tickets serve as entries into a lottery prize pool, where winners are determined based on transaction hash values. Each lottery round possesses a predetermined draw date, with winners emerging from the transaction hash of the first post-round block. The lottery adds an element of excitement and chance to the VyFinance experience.

Vault Staking

VyFi token holders can opt for vault staking, a feature that empowers them to stake tokens for the potential acquisition of more VyFi tokens or alternative Cardano native tokens such as Encoins (ENCS). Presently, the VyFi staking vault yields a compelling annual percentage rate (APR) of slightly over 8%, allowing users to harness their idle tokens and counteract token inflation effectively.

Conclusion

The VyFi token is at the heart of the VyFinance ecosystem, facilitating governance, BAR rewards, lottery participation, and vault staking. With a transparent tokenomics model and a vibrant community of stakeholders, VyFi represents a vital component of the evolving Cardano DeFi landscape. As it continues to mature and evolve, VyFi promises to contribute significantly to the broader decentralized finance ecosystem on the Cardano blockchain.

You can visit the VyFinance website at the following link: https://app.vyfi.io/