The Vechain ecosystem is one that is built upon having an asset, VET, and accruing interest on it, THOR. Unfortunately there currently exists a gap to easily bridge a user’s accrued THOR and reinvest it back into VET. Masternodes also add a beneficial bonus to users that can afford them, however these are typically out of reach for your everyday user. These are the challenges that VePool seeks to overcome.

VePool is a one-stop decentralised staking service that automatically converts your generated THOR back into VET. The application allows users to deposit their VET into the pool, accrue compound interest by automatically converting their THOR directly back into VET against market value, and allows them to withdraw their stake at any time. Furthermore, the pool introduces the possibility for the user to receive the bonus THOR generation once the pool reaches one of the masternode thresholds.

Main Features

Automatic conversion of THOR to VET at current market price

Bonus THOR generation if pool reaches the node thresholds

Fee-less

Most importantly, you are always in control of your assets!

Having deployed VePool on the Vechain Blockchain, the smarts of the contract live within the public domain. The unique design of the contract means that only the user that deposited into the contract can withdraw their stake. Meaning no bad actors can ever touch your VET (not even us!)

How it works

User deposits VET User’s stake is calculated THOR is generated and can be converted* User can withdraw stake at any time, including their interest earned

*the conversion is initially manually, but will be scheduled to occur weekly in the Beta release

Asset Control

Every time you deposit, your stake of the pool is (re)calculated. The unique way that this occurs, allows for continuous deposits and withdrawals while correctly remembering your stake throughout your journey with the platform. This means that the you are free to withdraw or deposit more VET at any time, without worrying about their stake in the system being affected.

The deposit screen showing your current share in the pool and average VTHOR generation per day

Furthermore, as the service is completely decentralised within a contract on the Vechain ecosystem, not even we can access your funds. Only you, and you alone, can touch your funds.

Automatic Conversion

The automatic conversion from THOR into VET is what makes VePool a special application. It allows the everyday user to have their THOR automatically reinvested for them back into VET. This allows for an easy and highly trustable way for them to accrue compound interest.

Example showing the conversion rate for the currently accrued VTHOR

VePool works by utilising the atomic swap mechanism available on the Vexchange (vexchange.io), allowing for fast, automatic conversion at competitive market values for the user. Therefore ensuring that they always get the best price for their THOR and not having to worry about any sort of conversion fee.

At the moment, conversion is manually kicked off through the VePool portal. Due to time constraints, we couldn’t fit the automatic conversion into the Alpha release before the Vechain Developer Program ended. Development on this should be complete in the coming weeks which will push VePool into a Beta version!

Fee-less

VePool is, and always will be, a free service. There are no fees for using the service. The automatic conversion is done using the THOR within the contract, meaning the small gas fee is shared by everyone within the pool. As the gas fee is spread across the whole pool, it means that it is completely negligible for the everyday user! VePool will always remain a non-for-profit application that stands only to benefit the user.

Where from here?

Automatic Conversion

This is currently the alpha version of VePool with many important features planned for the future. The main issue that currently exists is that the automatic conversion requires a user to click a button through the application to convert the pool’s THOR and deposit it back in VET. Anyone can perform this action, however it does require one person from the pool to spend their own THOR (we will perform this action on a weekly basis). Leading into the Beta phase, we will implement a complete version of the automatic conversion — one that does require manual intervention through the VePool portal.

Staking

Further refinements to the protocol will include the introduction of staking period to prevent people from abusing the conversion system. There currently exists a caveat where bad players can deposit into the contract just before the conversion takes place and try to claim the earnings for the week. This means that they did not actually contribute to the generation of THOR in that particular week. The initial implementation would most likely be a staking period of a week, which means that they would have contributed to the THOR generation of the pool. Going further, there will be a tiered staking mechanism which means that the longer a user has deposited into the pool, the more interest they will earn on their investment.

Multi-Party Payment Protocol

Along with automatic conversion and changes to the protocol, MPP will be implemented to utilise the VTHOR that exists within the contract to also pay for the conversion. This will bring the application to a more independent state, evolving to a stage where it is completely self-sustaining and not requiring any external third party. Leading VePool to become a fully decentralised application.

Final Thoughts

It is through this approachable nature of Vechain that this application is possible. Without the hard work and dedication of the team, it wouldn’t be possible to have created this system or others in such an exciting ecosystem. We would like to thank them for their new Connex system, which means that this application compatible with both Sync and Comet, making it more accessible for the everyday user.

It is our hope that VePool can be the stepping stone to allow users to easily handle their finances and feel safe with their assets within the Vechain ecosystem.

Website