Vesper Crypto Explained
Vesper Finance (VSP) is a platform for easy-to-use DeFi products that offers a set-and-forget experience to make your assets work harder for you. Last year, Coinmetro opened the VSP/USD pair for trading. This article will briefly look at Vesper crypto. For a more in-depth explanation of what Vesper Finance is, don’t miss Introduction to Vesper Finance.
VSP as the Ecosystem’s Growth Engine
The Vesper token (VSP) is the core economic engine that facilitates the building and expansion of the Vesper platform’s capabilities and its community. The token incentivizes participation, facilitates governance, as well as catalyzes user contribution.
Vesper Finance’s initial policy is to keep the supply at 10 million tokens. To explain further, 3,600,000 VSP tokens of the total supply will be held in a community vault to create a continuous cycle of bootstrapping new products with VSP incentives. In turn, this will benefit the VSP token, which generates funds to bootstrap even more products.
The figure below provides a better overview of the Vesper crypto token supply dynamics.
How Do I Earn the VSP Token?
The Vesper crypto token can be earned by participating in Vesper Grow Pools, providing liquidity, or staking VSP.
That said, each Vesper Grow pool has a certain amount of VSP tokens. The tokens assigned to a pool are distributed to participants proportionate to the size of their stake in the pool.
Moreover, users can deposit their tokens to the VSP treasury pool.
In addition, the VSP/ETH market pairs liquidity providers can earn VSP rewards by staking their tokens into the corresponding Vesper liquidity pool.