Presenting Augusta Finance: An Enriched Era of Lending and Governance Supported by NFTs

Emerging in the fast-paced world of Decentralized Finance (DeFi), Augusta Finance positions itself as a game-changer in the field of liquidity protocols. Augusta Finance, embedded within the Velodrome Finance ecosystem, embodies both, a liquidity unlocker and a core of governance. What sets Augusta Finance apart is its innovation to grant immediate veVELO NFT-supported loans to users, also proposing a direct route to acquire governance powers in Velodrome Finance.

Understanding Velodrome Finance:

A ve(3,3) DEX by nature, Velodrome Finance operates via the Optimism network. It strategically routes liquidity sourced from an array of protocols through the veVELO bribery mechanism. The veVELO, embodied as NFTs, can be transferred through the official NFT Marketplace by Velodrome Finance. The groundbreaking operational model enables veVELO holders to generate revenue from multiple streams, including veVELO’s bribe fees, swap fees from the liquidity pool, and veVELO rebase. Velodrome Finance's substantial governance power accounts for a substantial chunk of liquidity in the total Optimism ecosystem, marking its stature as the largest protocol.

The Augusta Edge:

Augusta Finance pioneers a distinct approach that addresses two key issues in the DeFi sector.

The former issue arises from the traditional Convex fork model commonly used to unlock liquidity of veTokens. This mechanism has its drawbacks, leading to liquidity receipts in secondary markets encountering substantial price reductions and generating no profitable external returns. With the launch of Velodrome Finance V2 that facilitated free trade of veTokens as NFTs, Augusta Finance replaces the obsolete Convex method with its innovative solutions.

The latter issue relates to challenges in the prevailing NFT lending protocol, inherent to the nature of PFP NFTs. Traditional structures, like those in BendDAO’s and Blend’s P2P models, have an inherent lack of interest-bearing properties. Here, Augusta Finance steps in with its introduction of veVELO NFTs, revamping the entire NFTFi industry.

Solutions Proposed by Augusta Finance:

With an ambition of becoming the governance center for Velodrome Finance, Augusta Finance discards the traditional Convex model. Instead, it adopts an NFT collateral lending model capitalizing on the interest-yielding and governance features of veVELO NFTs.

To illustrate how the user experience looks at Augusta Finance, consider the following scenarios featuring three individuals, Alice, Bob, and Charlie.

Alice, a possessor of veVELO NFTs, can secure an ETH loan by using her NFTs as collateral on the Augusta Protocol's official website, adhering to procedures defined to maintain an appropriate loan-to-value ratio.

Bob, having some ETH, can enter the role of a liquidity provider, obtaining AuToken rewards after he put his ETH into the liquidity pool on the same platform.

Lastly, Charlie, a previous liquidity provider, can leverage the redemption function to effortlessly retrieve his assets through the Augusta protocol, provided there's ample liquidity available.

In Conclusion:

Serving as a critical turning point in the DeFi landscape, Augusta Finance empowers individuals by bringing them into governance, provides market stability by proposing veVELO NFTs as collateral, and reimagine the Convex model with a future-ready, more robust solution. Surely, Augusta Finance is set to leave its mark on the NFTFi sector, pushing us further towards a truly decentralized financial era.

🌐 Website: https://www.augusta.finance/

🐦 Twitter: https://twitter.com/Augusta_finance

👾 Discord: https://discord.com/invite/augustafi

📗 Docs: https://augusta-finance.gitbook.io/augusta-finance/about/introducing-augusta