April 11, 2022
Dopex Collateralization on VestaProduct
Dopex and Vesta are excited to announce a partnership. The partnership allows Users to collateralize DPX on Vesta and take a VST loan.
The initial parameters are as follows:
- 150% collateralization ratio.
- 170% collateralizarion ratio in the critical mode
- 1.25% mint fee
How to use Vesta?
To open a Vault, simply use a dedicated dapp frontend at vestafinance.xyz and the buttons that appear upon connecting your wallet. For more detailed instructions, please go to: https://docs.vestafinance.xyz/tutorials/lending-tutorials/opening-a-vault
But that’s not all - users can use their VST to create a stability pool that will purchase DPX at a discount from liquidated vaults. On top of that, the stability pool will issue DPX rewards to the stakers! You can read more about the stability pool here: https://docs.vestafinance.xyz/technical-overview/liquidation-and-the-stability-pool
What is more, here are a few example uses cases
“The Dopex bull”
This is an idea for users that want to accumulate more DPX by leveraging their current holdings.
The user can deposit their DPX to Vesta, mint VST and use the freshly minted stablecoin to buy more DPX. If the price of the token keeps going up, the users’ profits will increase significantly.
However, the user needs to remember about the risk of liquidation - as if the price goes down, they may lose their tokens posted as a collateral
“Cash for DPX”
This one is for long-term holders that don’t want to sell their DPX, because they hold the token long-term, but they need some short-term cash. Maybe they want to buy a Diamond Pepe NFT. Maybe they need to pay their taxes. Maybe they need to buy a birthday gift for their parents.
What can they do? They can post some of their DPX to Vesta and mint VST.
They can use VST as they wish, while they keep exposure to DPX price movements. Once they collect their cash back - they can repay the VST loan and release the collateral
“The Options Degen”
It’s for Dopex degens. It’s for a degen that wants to buy more options from SSOV or wants to buy more options from the OTC platform. It’s all-in risk.What if the user is 100% in DPX 100% and wants to keep the price exposure? Well, such a user can post DPX as collateral in Vesta and mint some VST. This VST can be used to buy more options. But the degen user needs to remember, it’s a high risk idea.
Be aware though, that all the strategies/usage ideas that utilize posting DPX and minting VST have one risk - the risk of liquidation. Vesta uses a concept of a Stability Pool, to backstop the liquidation cascades. Users can deposit their VST which waits until the DPX hits the liquidation price. Then, the VST from the Stability Pool buys the liquidated DPX automatically and at a discount. So any user that has stablecoins and is looking to buy discounted DPX whenever the price goes down, could convert their stablecoints to the Vesta stablecoin - the VST, deposit it to the Stability Pool and just patiently wait to receive the DPX from the impatient
If you have any other questions you can always hop onto our Discord and one of our team members or community can help you further: Discord.gg/dopex
Dopex is a decentralized options protocol that aims to maximize liquidity, minimize losses for option writers and maximize gains for option buyers — all in a passive manner.
Dopex uses option pools to allow anyone to earn a yield passively. Offering value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries. This is thanks to our own innovative and state-of-the-art option pricing model that replicates volatility smiles.
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Dopex reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
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