[Company Watch] Vesper, Simplicity is Beauty

Simplicity is Beauty

The design of Vesper is simple. Unlike Yearn’s complex ecosystem, Vesper offers users to deposit and earn, and nothing else. Its returns of live pools are listed on the front page of its website and the founders do not tweet much.

Strategies — Traditional but with Some Innovations

As an aggregator, Vesper has modules that allows it to interact with different platforms. Currently, according to its Gitbook page, “Each Vesper Grow strategy represents some combination of interactions across various DeFi platforms. This includes, but is not limited to: MakerDAO, Aave, Compound, and Yearn. “ Also in a medium article, Vesper explains that, “Our vWBTC front pool has interfaced with two different strategies: Maker-DAI-Aave and direct-to-Aave, swapping when one strategy outpaces the one currently in place.” That suggests Vesper either directly deposits users’ funds into Aave or pledge them in MakerDao for DAI and then deposit DAI into Aave.

Revenue and Valuation

Taking the current TVL and the average yield of each pool, it’s estimated that Vesper will earn generate $28m in yields. 15% performance fees on these yields will be $4.2m in revenue to the protocol.

Rewards and Incentives

Based on the above screenshot, Vesper is buying back 1,770 VSP per day. For a 30-day month, this will be 53,100 VSP. This is far less than the current emmision of VSP of 294,266 (150,000 pool rewards and LP rewards of 144,266 per month), even Vesper had finished the aggressive VSP rewards in the first opening month.

Conclusion

We have earlier commented that there will be more competitors of Yearn coming out. Vesper is a project by a credible team, with similar strategies, but simpler UI. Its token VSP are highly inflationary now like Curve, and whether its value will hold, depends largely on whether its business level will grow.

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