Introducing VuFi: An Elastic Supply Stablecoin
We’re proud to present VuFi to the cryptocurrency community. We’ve worked hard to bring decentralized stablecoin to stabilize the current cryptocurrency market.
Our unique approach will make VuFi the best option for token holders to hedge their portfolios against the modern market’s volatility.
Keep reading to learn more about the VuFi coin!
What is VuFi?
VuFi is a hybrid algorithmic elastic supply stablecoin. Its goal is to help crypto investors rely on a stablecoin that equates to the dollar’s value. Furthermore, its value accounts for the dollar’s inflation rate.
The coin’s collateral is USDC, which provides additional stability to VuFi. That means that the holder’s value in coins will always remain stable, no matter how volatile the fiat or the crypto market is at that moment.
On top of that, using VuFi simplifies exchanging one cryptocurrency to another, as there are no fees as with fiat currencies. It’s the perfect fiat currency alternative. But there’s more to the whole protocol.
Let’s go over some reasons that make VuFi special.
Proudly Decentralized
The primary reason cryptocurrencies became popular is because they are decentralized. Control over the currency system is in the hands of the currency holders or miners. It varies from one currency to another.
The point is that there’s no central authority that controls the currency.
On the other side of the spectrum, there are plenty of centralized cryptocurrencies. That means a specific authority is running the system. That includes some stablecoins. For example, both USDT and USDC are centralized.
As the higher authority controls the system, there’s always the possibility of blocking transactions from a particular address.
When a company is controlling a currency, it’s also subject to legislation. When legal changes related to cryptocurrency are made, a company has to comply. Therefore, opening up the potential for unfavorable changes to the whole system.
VuFi is entirely decentralized, and the whole team behind it is anonymous. We, therefore, are not subject to any legislation and other types of outside influences. That’s one of the things that differentiates us from other projects.
The governance of the coin belongs to those who own the tokens. A transparent voting system allows holders to vote for future changes.
Stability at VuFi’s Core
As we want to see VuFi thrive, our whole listing story begins without any pre-mining. It’s an effective way to ensure stability from the start.
There’s no limitation when it comes to token redemption. However, as VuFi is decentralized, that might change in the future if owners vote on it.
We guarantee the stability of VuFi in three different ways.
1. Elasticity
Our efficient algorithm runs VuFi hourly cycles. Once a cycle is complete, the supply changes to keep the value of the coin stable. It can either expand, contract, or remain unchanged.
If supply expands, new coins are minted, and if supply contracts, the coins are burned. All hourly changes are calculated through the time-weighted average method.
2. Coupon Mechanism
Once a cycle finishes, the coupon ratio changes. The process occurs at the end of the cycle, and it’s essential for those who opted to bond. Everything happens in the wallet and is automatic. No action is needed on behalf of the token holder.
Through the whole process, token holders save up on the gas fees, which adds to the stability of the coin’s value.
3. Collateralized
Last but not least, VuFi is a collateralized coin. What does this mean? Its value is also tied to USDC. There’s a variable collateral ratio depending on the price shifts.
For example, if VuFi trades for $1.2, the ratio is 1.21:1. But also, if it’s $0.8, the ratio is 0.8:1.
With that in mind, VuFi coins have collateral, which provides an additional layer of stability. You can find more details in our white paper.
Security
One of our goals was to make VuFi outstandingly secure. Like all the other corners of the internet, we’re well aware that crypto also has certain security risks.
With the rising number of cybercriminals, there are plenty of those with experience abusing advanced security flaws. While some of the attacks are on the user’s side, there are system-level security holes abused by cybercriminals only a couple of years ago.
VuFi successfully prevents security breaches such as reentrancy attacks, oracle manipulation, and logic errors. Here’s a closer look.
1. Reentrancy Attacks
In essence, this attack corrupts smart contracts. That occurs when a smart contract comes with a bug. The exploit allows the creation of external smart contracts that manipulate the already existing one’s core functions.
Our advanced tools are specifically designed to detect such bugs and immediately fix them. That keeps VuFi free from reentrancy attacks.
2. Oracle Manipulation
Not all of the data is processed on the blockchain. Some off-blockchain data is processed and connected to the blockchain. The data feed is considered the oracle. It was manipulated in the past, causing many issues for the crypto space.
However, with the development of Chainlink, which VuFi relies on, the oracle is now wholly secure and tamper-resistant.
3. Logic Errors
The code on the blockchain can contain various input-output errors. These logic errors are abused by cybercriminals, who manipulate them to their benefit.
The VuFi team pen-tests the blockchain code. We do this thoroughly to ensure that every line of code is error-free. That approach keeps VuFi more secure.
As you can tell, we’ve focused on creating a secure system that keeps the token holders from any security breach on the system’s side.
Reach Out
If you’re eager to learn more, feel free to join our community over at:
Use these channels to ask questions about the VuFi coin and find more details about the VuFi protocol.
