VIGOR PROTOCOL Enjoy the Rewards !

5 min readJul 3, 2020

The Vigor Protocol employs a two-token system:

VIGOR

A low volatility payment token, backed by a pool of EOS & VIG tokens. VIGOR tokens are issued by the contract when a loan is taken. This happens when the borrowers lock up tokens as collateral.

Max Supply 100,000,000,000 VIGOR

Contract : vigortoken11

Trade : https://newdex.io/trade/eosio.token-eos-vigor

VIG

A utility token used for fees, rewards, and collateral. The VIG token provides access to the system and is used as a fee token. VIG tokens in dacholding11 are under msig control of the DAC and not in circulation. Also, VIG tokens that go to finalreserve are there indefinitely unless there’s a beyond modeling metric basis black swan event causing them to be used as the final layer protection.

Max Supply 1,000,000,000 VIG

Contract : vig111111111

Trade : https://newdex.io/trade/vig111111111-vig-eos

What is VIGOR Protocol ?

Vigor Protocol is a platform with the goal to reDeFine decentralized finance ( DeFi ). The Vigor Protocol was launched in June 2020 on the EOS mainnet. The launch entails 4 phases to ensure security of the platform before going completely live to public:

Phase 1 : Jungle testnet

Phase 2: Custodians test

Phase 3: Candidates test

Phase 4: Public launch

Why I decided to use it?

Personally I’m very happy with the app.vigor.ai account, as it has provided good rewards.

The following features are what most appeal to me:

It is fully on-chain and follows regulatory standards for insurance businesses. Displayed on users dashboard.

The system is stress tested to find the solvency capital requirements necessary to survive a black swan event.

The protocol has four levels of backing for low volatility loans: borrowers collateral , lending pool , the final reserve and savings.

Savings allow users to park VIGOR tokens and get rewarded a ‘savings rate’ on your funds. The savings rate is based off of how many others are participating in the savings pool.

Borrow on VIGOR allows users to open loans at 111% collateral ratio CR, and bailout is triggered at 100%, however unlike other platforms there are no fees attached to liquidations. Because Liquidated loans are automatically shared by all participants in the lending pool, bailouts occur. Some reasons users may want to borrow are to expand your options, to invest, to increase the diversification of your portfolio, to short the market if your bearish on EOS, to deposit VIGOR as collateral, and to borrow EOS.

Lend or deposit crypto into a lending pool and get VIG rewards. There’s no lock up period but again, there is a total daily outbound transfer limit of $ 1000 worth of tokens. The lending rate is based on solvency of the system. When participating in the lending pool, users are providing the second layer to back loans. If a user’s loan becomes undercollateralized (<100%) then they are bailed out. This means a portion of their debt and a portion of their collateral is distributed to all lenders.

EOSRex enables users to borrow and lend EOSIO resources (e.g., CPU and Bandwidth/NET). This single application has become the largest platform based on the total collateral value, with more than 90 million EOS being locked. In VIGOR, users that deposit EOS into the lending pool, also get REX in addition to lending and voter proxy rewards.

A users Reputation score comes from calculations based on three consecutive months of usage. It’s a moving average, so a real user can take a vacation for a long time, as the reputation of a user drops very slowly. Your reputation score reflects how much VIG you have paid (As a Borrower) or been rewarded (As a Lender). You are then ranked against all other users of the Vigor platform on a Percentile ranking from 0–100. The max discount rate is 25%, so if you are the top account with a reputation score of 100 you will get 1.00x25=25% discount.

The Final Reserve stores a cut of VIG awarded to lenders as a layer of system protection. VIG final reserves are used to rebalance the system if at any time the lending pool is depleted. It’s the 3rd layer of protection used to back loans.