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vCASH

What is vCASH?

vCASH is our new kind of index coin introduced by MonoX, it is the glue that holds the protocol together. vCASH is an index token of all the assets listed on our protocol. Our protocol solves the capital inefficiencies of liquidity pool pairs by grouping deposited tokens into a virtual pair with the vCASH. This allows us to offer single token pools whereby the user only needs to deposit one token to the pool instead of two. vCASH is backed by all the assets in MonoX pools that have a positive vCASH balance.
When a user first deposits liquidity to create a new pool, they set a starting price for the asset. This means that every asset in MonoX pools expresses their value in vCASH. Therefore trading works by forming a similar pricing curve to Uniswap except while they use the ratio between two tokens, we have a starting price and a would be price.

Pricing

If a user sells from the starting price the asset depreciates in value, if someone buys from the starting price the asset appreciates in value. As such, we use starting price and would be price instead of the ratio between Token A and Token B in the xy=k constant product formula. Our pricing algorithm is based on Uniswap’s model found here. However in this calculation vCASH supply is equal to infinity and is the second token in the formula.

vCASH and Monoswap Equations

The equations for vCASH and Monoswap are as follows:
Monoswap Equations

How To Get vCASH

Users can swap any ERC token directly to vCASH.
When users withdraw liquidity, they will receive vCASH (as well as their liqudiity) if there is a positive vCASH balance in the pool.

How is vCASH Backed?

The pair is virtual. vCASH is a real token that is an index of all the other assets in our pool. vCASH is technically backed by all the assets in the pool. However, it’s more accurate to say that it is backed by the sell function because when a user sells into vCASH it mints the physical token. In essence, vCASH is backed by the liquidity itself, not the assets. vCASH is only backed when there is a positive vCASH balance in the pool. Trustless listing pools cannot go below 0 for vCASH balance.

Can I use vCASH?

Yes, you can mint vCASH by trading directly into it.

Last modified 1mo ago