This is a continuation article from our previous research on VVS Finance. Today, we look at what the $VVS token is, and whether it is a good investment. We also review the safety of VVS Finance. Lastly, we look at how to convert the $VVS token to USD.
What Is the $VVS token?
$VVS is the governance token of VVS Finance. Moreover, it has multiple other uses within the VVS ecosystem. $VVS tokens are used for:
- Reward tokens. You earn $VVS tokens for providing liquidity in Crystal Farms.
- Staking. You can stake $VVS for a healthy return. These can be compounded in the Glitter Mines.
- Boosting rewards. By staking $VVS for $xVVS, you also earn boosted rates within the crystal farms.
- Access to Initial Gem Offerings (IGOs). You can use $VVS tokens to access newly-launched tokens in VVS’s IGOs. You will also need $VVS to buy said tokens.
Indeed, if you’re a user of VVS Finance, you would find the $VVS token very beneficial. This brings us to our next question.
Is $VVS Token a Good Investment?
Well, if you’re a Cronos chain user, it’s a good idea to have your funds on VVS Finance. But, would it be a good idea to invest in $VVS tokens?
First, let’s look at their basic tokenomics. For this, we visit their Coingecko page. From here, we can see that $VVS tokens have $100 trillion in maximum supply and $27.5 trillion circulating supply.
Now, this means that there are still 72.5 trillion $VVS tokens that are yet to be released. This indicates that $VVS tokens are inflationary. In turn, this may not bode well for price action. Secondly, let’s look at the performance of the Cronos chain. This matters because VVS Finance only operates within Cronos. Take a look at the screenshot below.
If you look at Cronos’ Total Value Locked (TVL) chart, it has not performed well since April 2021. As of now, it has fallen ~78% from its All-Time High (ATH) of 3.21 billion. Use this information to monitor for potential interest in $VVS tokens. In other words, $VVS tokens could be a good investment if the Cronos chain gains interest amongst retail Defi users. However, that is not the case so far.
You can also keep tabs on Cronos’s chain by following their Twitter account. At Altcoinbuzz, we also keep track of recent Cronos updates. For instance, we recently researched Cronos’ latest roadmap as well.
But until then, my advice would be to “farm” the $VVS tokens instead of buying them. To do so, you can use the VVS Finance dApp. Deposit your assets on their Crystal Farms. Then, harvest your $VVS rewards and stake them for a healthy return!
But, you may be asking: “Is VVS Finance safe to use?”. Or “What if I get rugged? Will I lose all my money?”.
Is VVS Finance Safe to Use?
In today’s DeFi world, nothing is 100% safe. Currently, smart contract failures, rugpulls, and hacks are still prevalent. However, what we can do is do our own due diligence. At the very least, we can reduce our exposure to losses by placing our funds in safer dApps. In my opinion, VVS Finance is moderately safe to use. Why do I say that?
- Firstly, VVS Finance has been audited by Slowmist, a reputable security team. With their smart contracts audited, VVS Finance is less likely to get exploited or hacked. For further reading, you can refer to their audit report.
- Secondly, VVS Finance has been audited by Rugdoc. Rugdoc is an independent security team that audits crypto projects and dApps. Rugdoc has assigned a “Medium Risk” rating to VVS Finance.
From the above 2 sources, some issues were brought to VVS Finance’s notice. Some of these were rectified. Although there are some other risks, it is still alright to deposit some, but not all, funds within VVS. Remember: Always manage your risk accordingly.
How to Convert $VVS Tokens to USD?
Let’s say you’ve made a good trade on $VVS. You’re now looking to sell some $VVS to fiat USD. If you’re curious on how to do so, below are some steps you could follow:
- Method #1 – Using Crypto.com or MEXC. With Centralized Exchanges (CEXs) like these, you could:
- Sell your $VVS tokens into $USDT. You can do this using their spot trading function. The screenshot below reflects the $VVS/$USDT trading pair for Crypto.com.
- Then, you can follow the guide for converting $USDT to fiat USD on Crypto.com. Note that based on where you’re located in the world, the method of conversion would differ.
- Method #2 – Using VVS Finance’s Bling Swap. With a DEX like VVS Finance, you can’t really convert $VVS to fiat. You’d need to use a CEX like Crypto.com as well.
- First, convert your $VVS into $USDT. Ensure that you double-check $VVS’s token contract on Coingecko first. For easy reference, the contract address is 0x2d03bece6747adc00e1a131bba1469c15fd11e03. Then, input the contract into VVS’s token input field. Do the same for the $USDT stablecoin (Cronos chain).
- Now, you should have got your $USDT tokens in your Metamask wallet, as well as some $CRO for gas. Now, withdraw the $USDT into Crypto.com. Be sure to select the Cronos chain as a deposit address! Refer to the screenshot below. From there on, you then need to convert your $USDT to USD fiat using the same guide from Method #1.
⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ ALTCOIN BUZZ – BINANCE – GET UP TO $600* ON SIGN UP
Sign up using the links below on Binance Exchange and get the following benefits
- Earn a $100 Spot Trading Bonus
- Get a 20% trading fee discount for life!
- Get $200 worth of 2 months of Altcoin Buzz Access PRO Membership (50+ Trading Signals, Hidden Gems) and unlock up to $500 more in prizes
*Terms & Conditions Apply
Disclosure: Altcoin Buzz may receive a commission, at no extra cost to you, if you click through our links and make a purchase from one of our partners.