Introduction — — — — — — The rapid evolution of DeFi (Decentralized Finance) has made room for another significant player in the realm of liquidity protocols — Augusta Finance. Functioning as a liquidity releasing protocol and governance nucleus, Augusta Finance exists within the Velodrome Finance ecosystem. The distinguishing feature of Augusta Finance lies in its ability to offer its users instant veVELO NFT-backed loans while also facilitating a smooth path to Velodrome Finance governance powers.

Diving into Velodrome Finance

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As a ve(3,3) DEX, Velodrome Finance operates on the Optimism network where it purposefully funnels liquidity from a diverse range of protocols utilizing the veVELO bribery mechanism. The veVELO exists in the form of NFTs, which can be transferred via Velodrome Finance’s official NFT Marketplace. This revolutionary approach allows holders of veVELO to earn income from an array of sources, such as bribe fees relating to veVELO, swap fees from the liquidity pool, and veVELO rebase. Currently reigning as the largest protocol within the Optimism ecosystem, Velodrome Finance’s governance power translates to controlling a considerable liquidity portion within the entire Optimism ecosystem.

The Augusta Advantage 

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The unique approach of Augusta Finance emerges to address two primary issues facing the world of DeFi.

Firstly, the Convex fork model that is traditionally used for releasing the liquidity of veTokens has certain limitations. Essentially, it results in liquidity receipts in the secondary market often facing significant price discounts, besides not generating any positive external returns. Coinciding with the release of Velodrome Finance V2, which enabled veTokens to be freely traded as NFTs, the outdated Convex model has given way to innovative solutions brought forth by Augusta Finance.

Secondly, Augusta Finance brought significant improvements in the prevailing NFT lending protocol that faces challenges due to the inherent nature of PFP NFTs. Traditional models like BendDAO’s and Blend’s P2P models face issues due to their lack of inherent interest-bearing properties. The introduction of veVELO NFTs within Augusta Finance directly addresses this issue, overhauling the entire NFTFi industry.

Augusta Finance’s Solutions

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Aiming to make itself the governance hub for Velodrome Finance, Augusta Finance has taken a different approach to the traditional Convex model. It instead implements an NFT collateral lending model, leveraging the interest-bearing and governance capabilities of veVELO NFTs.

Consider the following scenarios, which detail the user experience at Augusta Finance, featuring three different users — Alice, Bob, and Charlie.

Alice, who owns veVELO NFTs, can borrow ETH by providing her NFTs as collateral on the Augusta Protocol’s official website, following processes in place to assure a suitable loan-to-value ratio.

Bob, in possession of some ETH, can become a liquidity provider and earn rewards in the form of AuTokens, after depositing his ETH into the liquidity pool on the same platform.

Lastly, Charlie, who previously provided liquidity, can redeem his assets effortlessly using the redemption function on the Augusta protocol, given enough liquidity is available.

In Summary 

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Augusta Finance stands as a significant milestone in the evolving landscape of DeFi. It brings power to the individual by including them in governance, offers resilience to the market by introducing veVELO NFTs as collateral, and revolutionizes the Convex model with a more robust, future-ready solution. Augusta Finance therefore holds the potential to reshape the NFTFi industry, taking us one step closer to a truly decentralized financial future.

⛳️Airdrop:

https://zealy.io/c/augustafinancedefi/invite/XFfinz1el0kLjcypPba41

🌐 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