Introduction
Stablecoins and synthetic assets are a noble problem to solve. The key problem is a matter of liquidity and sensing the correct purchasing power of assets at all times. In addition, the use of incentives can ensure the maximum uptake of the system and the fast bootstrapping of capital especially via Protocol Owned Liquidity. Existing stablecoins and synthetic asset designs fall short because they are reliant on Price Oracles that are not liquidity sensitive, vulnerable to manipulation, and do not properly incentivise the makers of liquidity.
VADER is a new form of liquidity protocol that seeks to be self-serving. It uses its own liquidity and awareness of asset purchasing power to support the creation of a collateralized stablecoin. It also is capable of using liquidity units as collateral for synthetic assets, of which it will always have guaranteed redemption liquidity for. It has a fair and transparent incentive strategy to maximise the depth of liquidity pools and adoption of synthetic assets.
Last modified 2mo ago
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