Interview - Cardano DeFi #010: VyFinance

Original Placement:

Today’s guest on the Cardano DeFi column is a decentralized exchange and software provider building a decentralized finance (DeFi) protocol within the Cardano ecosystem: VyFinance.

The previous guest was one of the post popular DEXes on Cardano, first to introduce many innovative features.

This column is where I invite Decentralized Finance (DeFi) projects to introduce themselves and share their vision, allowing me to connect with and learn about the Cardano DeFi ecosystem.

Hey, glad to have you here. Please introduce your team, where are you from, what are your backgrounds?

Steven WardCEO — has worked in Markets for 7 years. Starting as a HedgefundTrader, he traded in STIRs (Short Term Interest Rates). Moving into brokerage and analytics after a few years on the trading floor, Steven has worked in all aspects of trading, from market operations, client management, analytics, through to back-end process management within the Australian regulatory framework. Steven brings these years of experience to the project as the driving creative force behind VyFinance.

To meet the rest of the team check out our Docs and team page.

What is VyFinance and what makes you stand out among the many other DeFi protocols out there?

VyFinance is a decentralized exchange and software provider building a decentralized finance (DeFi) protocol within the Cardano ecosystem. Our DeFi protocol aims to address the issue of deflationary token action usually associated with DEX within the Crypto space. As well as building a DEX, VyFinance has been one of the principal software innovators in the Cardano ecosystem. Thus far we have been instrumental in creating first time applications such as governance, a functional onn-chain lottery design, NFT staking and multi-currency token staking. These developments have allowed VyFinance to be a pioneer and stand out amongst the layer one protocols building within Cardano.

Unique to the Cardano ecosystem, the VyFinance BAR redistributes funds earned by the platform. For example, a percentage of all the fees generated by the DEX buys xVYFi back off the market generating upwards pressure to our token and holders.

Learn more:

In addition to the BAR, VyFinance has released (for the first time in Crypto) stakeless LP tokens. This means users who add liquidity to our DEX can farm without the need of staking the LP tokens, eliminating unnecessary transactions.

Learn more:

Can you give an overview of the VyFi tokenomics? How did you distribute your token and what earning opportunities are there?

Total Supply/Fully Diluted Market Cap: 450 million

In the beginning there will be a large supply that will enable Yield Farming for an extended period of time. Around 85% of the token supply will be locked to yield farms. Around 8% of the supply will be locked to our Treasury (Controlled by the governance token). The team will receive a 2.5% share of supply, and this will be vested over a period of 4 years. Our expected market cap at launch will be between 0.5% and 1.5% of supply (depending on how well our ICO performs). This would give us a market cap between 2.25–6.75 million tokens on launch. Any amount that is left from this 1.5% after ICO will be locked equally between farms and the treasury.

It is worth noting that this will be with the Cardano token decimal count of 6. This is opposed to the typical 8 seen in most Cryptocurrencies.


Since ownership of the token is the only way to stake at the VyFi Bar, there is an inbuilt distributive income from holding the token. As a percentage of all fees/investment earnings on the site will be used to purchase the tokens on a weekly basis, the price will inflate with use of the platform. The liquidity provision pay-out ratio for the yield farms will decrease with time, also creating a reduced supply as time passes. Furthermore, the combined income from the Auto-Harvester will be distributed as VYFI, creating a continuous upward pressure on our token from the liquidity aggregator.

How does VYFI enter circulation?

Through the yield farms. VYFI will be circulating with every block — at a decreasing rate until all 450 million have entered circulation.

Around 0.15% of total supply will be awarded through marketing, pre-ICO, ICO and airdrops. VYFI will also be obtainable through lending against the margin.

Distributive Token

VYFI can be staked at the Bar so users can share in the profits of the entire ecosystem. This incentivizes yield-farmers to hold the coin, as they gain access to income through doing so. Access to pools for other tokens across the Cardano ecosystem further incentivizes users to hold our token.

Learn more:

What does the future hold? Can you share any upcoming milestones in your roadmap?

One of our priorities is implementing our NFTs as a farming boosting mechanism. We can’t give a specific date, but rest assured it is high on our priorities, and more information will be shared soon.

We want to push the boundaries as to what is possible on Cardano DeFi. With our incredibly innovative team, we expect to be releasing the first iteration of our Auto-Harvester by September. Auto-Harvester V1 The first phase of our auto-harvester will include set strategies that will allow users to deposit a single currency, to access multiple liquidity pools simultaneously. The auto-harvester will aggregate the rewards, and allow users to manage risk across multiple liquidity pools through one instrument.

Top priorities for UI on the DEX

As successful as the launch was, there are UI additions coming to further enhance the user experience on our DEX. This includes, but not limited to:

  • Charting added to our trading pairs
  • Trade history added to our trading pairs
  • Current limited orders on trading pairs
  • More detailed breakdown of L2-LP contents
  • Adjusting BAR ownership to include xVyFi held in liquidity
  • Light mode

Amazing. Any closing remarks? Where can people learn more about VyFinance?

Thank you for allowing us this opportunity to share our project with your readers. We are very excited to bring more features and products to the community, and are thrilled by the reaction to the launch that we have received. We can’t wait to grow Cardano DeFi and bring many new tools to the Cardano community.

Disclaimer: The opinions and views of the people interviewed are their own and do not necessarily reflect those of the Cardano Foundation or IOG. Moreover, this content is for educational purposes, it doesn’t constitute financial advice.