Vesta Finance

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.