Vesta Finance
Crypto Overview
Purpose and Utility
Vesta Finance is a decentralized lending protocol built on Arbitrum that allows users to borrow VST (a stablecoin) using ETH and other supported assets as collateral. The VSTA token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and receive protocol revenue.
Business Model
The protocol generates revenue through liquidation fees and borrowing fees. Users who provide collateral can borrow VST up to a certain loan-to-value ratio. The protocol's main utility revolves around lending and borrowing, which is problematic from an Islamic finance perspective when not done as an act of charity.
Real-World Adoption
Vesta Finance has achieved notable adoption within the DeFi ecosystem on Arbitrum, with total value locked (TVL) consistently maintaining significant levels. The protocol has processed numerous lending transactions and maintains active governance participation.
Development Activity
The project maintains regular development activity with consistent updates to the protocol. The team actively manages the protocol parameters and implements community-proposed improvements through governance.
Token Distribution
VSTA tokens are distributed among protocol users, team members, and early investors. The token distribution includes vesting schedules for team allocations to ensure long-term alignment.
Crypto Impact
To assign a comfort level investing in Vesta Finance from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Vesta Finance.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.