Vesta Finance enables users to borrow against their crypto-assets without selling them. Vesta Finance's primary stablecoin, VST, is a collateralized stablecoin, meaning there is more than $1 worth of assets for each unit of VST. This over-collateralization ensures the stability and reliability of VST compared to under-collateralized stablecoins.
Vesta Finance supports multiple collateral types, allowing users to deposit assets like ETH and wstETH to mint VST. The protocol operates with a low collateralization ratio, providing more borrowing power compared to competitors. Vesta also features a dynamic interest rate that adjusts based on VST's peg. The protocol mobilizes deposited collateral to earn native yield, enhancing the efficiency of asset use. Governance of the system is community-oriented, with over 60% of the governance token (VSTA) held in the community treasury for protocol growth. Key parameters like minting fees and liquidation incentives are modifiable by governance, ensuring adaptability and responsiveness to community needs. Vesta's deployment on Arbitrum offers reduced costs while maintaining decentralization.