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At the heart of VaultFi's strategy is the Vault system, a revolutionary solution designed to sustainably generate high Annual Percentage Yield (APY) for the community.
Recognizing the challenges faced by previous DeFi projects, we have developed a clear roadmap that introduces several diversified sources of yield, aimed at resilience and sustainability.
This strategy is implemented in 3 key phases.
In this initial phase, VaultFi will focus on a flywheel similar to previous DeFi protocols, with a tax revenue system applied to each sale transaction to reward holders. The taxation system funds the treasury, which produces yield for stakers.
Unlike typical cryptocurrencies that resemble zero-sum games, VaultFi's model ensures the VaultFi treasury grows by collecting a 9% tax from all sell volume.
This mechanism guarantees revenue for the Treasury - regardless of market fluctuations.
In turn, the Treasury is then able to build the APY, along with being able to contribute to various marketing activities to increase brand recognition and attract more holders.
The impact of this model is evident as a cycle of price increases followed by stabilizations, where each 'reset' establishes a higher value baseline due to fewer tokens in circulation.
This sustainable approach prevents the "death spirals" seen in weaker DeFi projects.
If trading slows, the residual APY incentivizes new buying and staking activities, reinvigorating the cycle.
VaultFi leverages these dynamics to maintain momentum.
However, unlike many protocols that solely depended - and still depend - on their sell tax to generate their revenue and APY, VaultFi goes 2 steps further.
As VaultFi's foundation becomes more robust, we will expand into a wider range of opportunities to generate yield and build the APY.
Phase 2 includes integrating revenue-generating projects from CoinRock Ventures, our cutting-edge Web3 incubator and accelerator, into our portfolio.
Incorporating CoinRock projects into the VaultFi Vault is similar to adding new revenue-producing assets to a bank.
These additions are strategically designed to boost the VaultFi APY by diversifying and enriching our sources of yield.
This approach is designed to help maintain a sustainable APY without relying solely on revenue from sell taxes.
By incorporating CoinRock's revenue-generating projects, VaultFi aims to broaden its asset base and simultaneously enhance the strength and sustainability of its APY returns.
Building on the successful diversification in Phase 2, Phase 3 of VaultFi's roadmap aims to further enhance the sustainability of its APY, even in the face of market fluctuations.
During this 3rd phase, VaultFi will explore and acquire stakes in projects outside of the CoinRock ecosystem, broadening its yield-generating APY strategies to include a variety of external opportunities and additional revenue-producing assets.
Users will be able to choose from multiple VaultFi Vaults, each offering yields tied to different digital assets, projects and narratives, thus expanding their exposure options.
This expansion is designed to create a more robust financial model, capable of handling market volatility - a challenge that many DeFi protocols struggle with.
Additionally, Phase 3 marks a significant shift in how decisions are made at Vault Finance, with the creation of a decentralized autonomous organization (DAO).
This move towards decentralized governance allows our community to play a direct role in guiding the project. By engaging our users in the decision-making process, we aim to maintain a transparent, democratic system that is well-aligned with the interests and needs of our stakeholders.
