# Table of Contents - [Blog | Vesu Knowledge Hub](#blog-vesu-knowledge-hub) - [Vesu Is Live! | Vesu Knowledge Hub](#vesu-is-live-vesu-knowledge-hub) - [Welcome Vesu | Vesu Knowledge Hub](#welcome-vesu-vesu-knowledge-hub) - [Vesu Lending Hooks | Vesu Knowledge Hub](#vesu-lending-hooks-vesu-knowledge-hub) - [Vesu Protocol | Vesu Knowledge Hub](#vesu-protocol-vesu-knowledge-hub) - [Vesu UX Principles | Vesu Knowledge Hub](#vesu-ux-principles-vesu-knowledge-hub) - [Vesu Risk Framework | Vesu Knowledge Hub](#vesu-risk-framework-vesu-knowledge-hub) - [Vibing with Vesu | Vesu Knowledge Hub](#vibing-with-vesu-vesu-knowledge-hub) - [Hello SNIP-22 | Vesu Knowledge Hub](#hello-snip-22-vesu-knowledge-hub) - [Introducing Multiply! | Vesu Knowledge Hub](#introducing-multiply-vesu-knowledge-hub) - [BTCFi powered by Vesu V2 | Vesu Knowledge Hub](#btcfi-powered-by-vesu-v2-vesu-knowledge-hub) - [What & Why We Build | Vesu Knowledge Hub](#what-why-we-build-vesu-knowledge-hub) - [Markets Review Recap Since Launch | Vesu Knowledge Hub](#markets-review-recap-since-launch-vesu-knowledge-hub) - [Re7 Labs Comes to Starknet | Vesu Knowledge Hub](#re7-labs-comes-to-starknet-vesu-knowledge-hub) - [New Pools by Re7 Labs | Vesu Knowledge Hub](#new-pools-by-re7-labs-vesu-knowledge-hub) - [Pools Page Is Live! | Vesu Knowledge Hub](#pools-page-is-live-vesu-knowledge-hub) - [Oracle contract | Vesu Knowledge Hub](#oracle-contract-vesu-knowledge-hub) - [BTCfi on Vesu | Vesu Knowledge Hub](#btcfi-on-vesu-vesu-knowledge-hub) - [vToken contract | Vesu Knowledge Hub](#vtoken-contract-vesu-knowledge-hub) - [Re7 rUSDC Now Live | Vesu Knowledge Hub](#re7-rusdc-now-live-vesu-knowledge-hub) - [Alterscope Joins As New Curator | Vesu Knowledge Hub](#alterscope-joins-as-new-curator-vesu-knowledge-hub) - [Argent Unlocks Spending | Vesu Knowledge Hub](#argent-unlocks-spending-vesu-knowledge-hub) - [Celebrating 10 Months of Vesu | Vesu Knowledge Hub](#celebrating-10-months-of-vesu-vesu-knowledge-hub) - [The Billion Dollar Pizza | Vesu Knowledge Hub](#the-billion-dollar-pizza-vesu-knowledge-hub) - [Vesu Migration | Vesu Knowledge Hub](#vesu-migration-vesu-knowledge-hub) - [CarmineDAO Runes Live | Vesu Knowledge Hub](#carminedao-runes-live-vesu-knowledge-hub) - [Unlocking ETH | Vesu Knowledge Hub](#unlocking-eth-vesu-knowledge-hub) - [Unlocking STRK | Vesu Knowledge Hub](#unlocking-strk-vesu-knowledge-hub) - [Do more with your LBTC | Vesu Knowledge Hub](#do-more-with-your-lbtc-vesu-knowledge-hub) - [Curator Guide | Vesu Knowledge Hub](#curator-guide-vesu-knowledge-hub) - [Getting started as a pool curator | Vesu Knowledge Hub](#getting-started-as-a-pool-curator-vesu-knowledge-hub) - [How to claim fees as a pool curator | Vesu Knowledge Hub](#how-to-claim-fees-as-a-pool-curator-vesu-knowledge-hub) - [How to manage an existing pool | Vesu Knowledge Hub](#how-to-manage-an-existing-pool-vesu-knowledge-hub) - [How Vesu Vaults work | Vesu Knowledge Hub](#how-vesu-vaults-work-vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) - [How to register a pool for Hypernative monitoring | Vesu Knowledge Hub](#how-to-register-a-pool-for-hypernative-monitoring-vesu-knowledge-hub) - [How to create a new lending pool | Vesu Knowledge Hub](#how-to-create-a-new-lending-pool-vesu-knowledge-hub) - [Getting started as a vault curator | Vesu Knowledge Hub](#getting-started-as-a-vault-curator-vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) - [Tooling for Vesu Vaults | Vesu Knowledge Hub](#tooling-for-vesu-vaults-vesu-knowledge-hub) - [Manage Vaults with the Curator SDK | Vesu Knowledge Hub](#manage-vaults-with-the-curator-sdk-vesu-knowledge-hub) - [Security Council | Vesu Knowledge Hub](#security-council-vesu-knowledge-hub) - [Audits | Vesu Knowledge Hub](#audits-vesu-knowledge-hub) - [Bounty | Vesu Knowledge Hub](#bounty-vesu-knowledge-hub) - [Monitoring | Vesu Knowledge Hub](#monitoring-vesu-knowledge-hub) - [Unified Liquidity Incoming | Vesu Knowledge Hub](#unified-liquidity-incoming-vesu-knowledge-hub) - [Welcome to Vesu | Vesu Knowledge Hub](#welcome-to-vesu-vesu-knowledge-hub) - [The Vesu Leaderboard | Vesu Knowledge Hub](#the-vesu-leaderboard-vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) - [Security | Vesu Knowledge Hub](#security-vesu-knowledge-hub) - [Explore Vesu Vaults | Vesu Knowledge Hub](#explore-vesu-vaults-vesu-knowledge-hub) - [Explore Curators | Vesu Knowledge Hub](#explore-curators-vesu-knowledge-hub) - [Explore Vesu pools | Vesu Knowledge Hub](#explore-vesu-pools-vesu-knowledge-hub) - [Rewards on Vesu | Vesu Knowledge Hub](#rewards-on-vesu-vesu-knowledge-hub) - [Glossary | Vesu Knowledge Hub](#glossary-vesu-knowledge-hub) - [Getting Started | Vesu Knowledge Hub](#getting-started-vesu-knowledge-hub) - [Migrate Positions from V1 to V2 | Vesu Knowledge Hub](#migrate-positions-from-v1-to-v2-vesu-knowledge-hub) - [Vesu V2 Contract Addresses | Vesu Knowledge Hub](#vesu-v2-contract-addresses-vesu-knowledge-hub) - [The Vesu V1 Whitepaper | Vesu Knowledge Hub](#the-vesu-v1-whitepaper-vesu-knowledge-hub) - [Welcome to the Vesu V2 Developer Documentation | Vesu Knowledge Hub](#welcome-to-the-vesu-v2-developer-documentation-vesu-knowledge-hub) - [2024-12-03 Fee Accounting Disclosure | Vesu Knowledge Hub](#2024-12-03-fee-accounting-disclosure-vesu-knowledge-hub) - [2024-12-03 Share Inflation Protection Disclosure | Vesu Knowledge Hub](#2024-12-03-share-inflation-protection-disclosure-vesu-knowledge-hub) - [2024-06-07 Extension Trust Disclosure | Vesu Knowledge Hub](#2024-06-07-extension-trust-disclosure-vesu-knowledge-hub) - [Disclosures | Vesu Knowledge Hub](#disclosures-vesu-knowledge-hub) - [Liquidation Bot | Vesu Knowledge Hub](#liquidation-bot-vesu-knowledge-hub) - [2025-06-04 Rounding Convention Bug Disclosure | Vesu Knowledge Hub](#2025-06-04-rounding-convention-bug-disclosure-vesu-knowledge-hub) - [Programmatically liquidate positions | Vesu Knowledge Hub](#programmatically-liquidate-positions-vesu-knowledge-hub) - [Borrow and repay | Vesu Knowledge Hub](#borrow-and-repay-vesu-knowledge-hub) - [Singleton contract | Vesu Knowledge Hub](#singleton-contract-vesu-knowledge-hub) - [tBTC Vault & sUSN Live | Vesu Knowledge Hub](#tbtc-vault-susn-live-vesu-knowledge-hub) - [Supply and withdraw | Vesu Knowledge Hub](#supply-and-withdraw-vesu-knowledge-hub) - [PoolFactory contract | Vesu Knowledge Hub](#poolfactory-contract-vesu-knowledge-hub) - [Vesu Protocol Architecture | Vesu Knowledge Hub](#vesu-protocol-architecture-vesu-knowledge-hub) - [Welcome to the Vesu V1 Developer Documentation | Vesu Knowledge Hub](#welcome-to-the-vesu-v1-developer-documentation-vesu-knowledge-hub) - [V1 Contract Addresses | Vesu Knowledge Hub](#v1-contract-addresses-vesu-knowledge-hub) - [BTCFI mode | Vesu Knowledge Hub](#btcfi-mode-vesu-knowledge-hub) - [How to Borrow | Vesu Knowledge Hub](#how-to-borrow-vesu-knowledge-hub) - [How to Earn | Vesu Knowledge Hub](#how-to-earn-vesu-knowledge-hub) - [LITE mode | Vesu Knowledge Hub](#lite-mode-vesu-knowledge-hub) - [How to claim rewards | Vesu Knowledge Hub](#how-to-claim-rewards-vesu-knowledge-hub) - [Understand and manage risks of Vesu | Vesu Knowledge Hub](#understand-and-manage-risks-of-vesu-vesu-knowledge-hub) - [Managing your Positions | Vesu Knowledge Hub](#managing-your-positions-vesu-knowledge-hub) - [Migrate your Position | Vesu Knowledge Hub](#migrate-your-position-vesu-knowledge-hub) - [Vesu Vaults | Vesu Knowledge Hub](#vesu-vaults-vesu-knowledge-hub) - [How to Multiply | Vesu Knowledge Hub](#how-to-multiply-vesu-knowledge-hub) - [Vesu Protocol Architecture | Vesu Knowledge Hub](#vesu-protocol-architecture-vesu-knowledge-hub) - [New to Starknet? Start Here | Vesu Knowledge Hub](#new-to-starknet-start-here-vesu-knowledge-hub) - [How to migrate your wstETH | Vesu Knowledge Hub](#how-to-migrate-your-wsteth-vesu-knowledge-hub) - [vToken contract | Vesu Knowledge Hub](#vtoken-contract-vesu-knowledge-hub) - [User Guides | Vesu Knowledge Hub](#user-guides-vesu-knowledge-hub) - [Pool contract | Vesu Knowledge Hub](#pool-contract-vesu-knowledge-hub) - [One protocol, three modes | Vesu Knowledge Hub](#one-protocol-three-modes-vesu-knowledge-hub) - [Default Extension contract | Vesu Knowledge Hub](#default-extension-contract-vesu-knowledge-hub) - [Welcome Clearstar | Vesu Knowledge Hub](#welcome-clearstar-vesu-knowledge-hub) - [Re7 Pool Upgrade | Vesu Knowledge Hub](#re7-pool-upgrade-vesu-knowledge-hub) - [Welcome strkBTC | Vesu Knowledge Hub](#welcome-strkbtc-vesu-knowledge-hub) - [WBTC Vault Live | Vesu Knowledge Hub](#wbtc-vault-live-vesu-knowledge-hub) - [Tags | Vesu Knowledge Hub](#tags-vesu-knowledge-hub) - [2 posts tagged with "Research" | Vesu Knowledge Hub](#2-posts-tagged-with-research-vesu-knowledge-hub) - [2 posts tagged with "Unlocking Vesu" | Vesu Knowledge Hub](#2-posts-tagged-with-unlocking-vesu-vesu-knowledge-hub) - [29 posts tagged with "Announcement" | Vesu Knowledge Hub](#29-posts-tagged-with-announcement-vesu-knowledge-hub) - [Blog | Vesu Knowledge Hub](#blog-vesu-knowledge-hub) - [29 posts tagged with "Announcement" | Vesu Knowledge Hub](#29-posts-tagged-with-announcement-vesu-knowledge-hub) - [Blog | Vesu Knowledge Hub](#blog-vesu-knowledge-hub) - [Blog | Vesu Knowledge Hub](#blog-vesu-knowledge-hub) - [29 posts tagged with "Announcement" | Vesu Knowledge Hub](#29-posts-tagged-with-announcement-vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) - [Vesu Knowledge Hub](#vesu-knowledge-hub) --- # Blog | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog#__docusaurus_skipToContent_fallback) ![strkBTC now live](https://docs.vesu.xyz/assets/images/strkBTC_web-3ab6f30c02d40fd5e7fff650c2e3e933.png) A new kind of Bitcoin just landed on Starknet. strkBTC is now available on Vesu. Powered by the new STRK20 standard, strkBTC brings optional privacy to Bitcoin on Starknet. Re7 USDC Prime[​](https://docs.vesu.xyz/blog#re7-usdc-prime "Direct link to Re7 USDC Prime") --------------------------------------------------------------------------------------------- strkBTC is live in Re7 USDC Prime, curated by Re7 Labs. The pool keeps things simple with BTC collateral and native USDC: **Collateral** * strkBTC * WBTC **Borrow** * USDC BTCFi rewards[​](https://docs.vesu.xyz/blog#btcfi-rewards "Direct link to BTCFi rewards") ------------------------------------------------------------------------------------------ strkBTC deposits earn 2% APR in STRK rewards. USDC borrowing is also subsidized through the BTCFi program, bringing borrow rates down to around 2% APR. STRK rewards can be claimed every Friday, or any day after. Staked strkBTC[​](https://docs.vesu.xyz/blog#staked-strkbtc "Direct link to Staked strkBTC") --------------------------------------------------------------------------------------------- xstrkBTC, the liquid staked version of strkBTC by Endur, is also available on Vesu. It earns staking rewards while remaining usable as collateral. **Available pools and use case:** * Re7 USDC Core to borrow USDC * Re7 xBTC to increase exposure & yield via Multiply Security[​](https://docs.vesu.xyz/blog#security "Direct link to Security") --------------------------------------------------------------------------- All Vesu pools are isolated with their own liquidity and parameters. Onchain monitoring through Hypernative is active. If unusual activity is detected, affected pools are automatically paused. Vesu has undergone multiple independent audits and runs a live bug bounty program. Get started[​](https://docs.vesu.xyz/blog#get-started "Direct link to Get started") ------------------------------------------------------------------------------------ * [Deposit strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135) * Borrow [USDC against strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135/borrow?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Borrow [USDC against xstrkBTC](https://vesu.xyz/btcfi/markets/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88/borrow?collateralAssetAddress=0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Explore [Re7 USDC Prime](https://vesu.xyz/btcfi/markets?poolId=0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf) Got a question or want to receive weekly updates? Join the [Discord community](https://discord.com/invite/G9Gxgujj8T) . ![WBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-wbtc-vault-d7992e15163b96f050bea133d613f60b.png) Bitcoin yield on Starknet keeps growing. After the success of the first Noon vault, a new WBTC vault is now live. It brings an automated yield strategy to Bitcoin, without selling or manual position management. The Noon WBTC Vault[​](https://docs.vesu.xyz/blog#the-noon-wbtc-vault "Direct link to The Noon WBTC Vault") ------------------------------------------------------------------------------------------------------------ Deposit WBTC. The strategy takes it from there. Stablecoins are borrowed against the deposited Bitcoin and deployed into **sUSN**, Noon’s yield-bearing stablecoin. The position is managed automatically using conservative leverage and rules-based adjustments. All funds remain **non-custodial** and fully **transparent onchain**. The curator targets around **10% APY**. About Noon and sUSN[​](https://docs.vesu.xyz/blog#about-noon-and-susn "Direct link to About Noon and sUSN") ------------------------------------------------------------------------------------------------------------ Noon builds stablecoin yield strategies focused on sustainability and risk management. USN is backed 1:1 by a mix of USDT, USDC, and short-term U.S. Treasury Bills. Its staked version, sUSN, accrues yield natively in the token. Noon has been live for over a year with zero downtime and no security incidents. The protocol has been audited by firms including Halborn, Hashlock, and Quantstamp. As with any DeFi strategy, make sure you understand the risks and do your own research. Vesu Vaults[​](https://docs.vesu.xyz/blog#vesu-vaults "Direct link to Vesu Vaults") ------------------------------------------------------------------------------------ Vesu Vaults make advanced onchain strategies accessible without the usual complexity. Each vault runs a strict onchain mandate and is operated by an independent curator. Funds can only be used within clearly defined strategy boundaries, and performance is fully transparent onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/explore/vaults) . Get started[​](https://docs.vesu.xyz/blog#get-started "Direct link to Get started") ------------------------------------------------------------------------------------ You can now: * Deposit WBTC into the new [Noon WBTC Vault](https://vesu.xyz/btcfi/vaults/0x023ccbaf0f70e8dcb29520ab4ea12e2e916fb71204677321e91e525062279e35) * Explore more ways to use Bitcoin in [Vesu's BTCFi Mode](https://vesu.xyz/btcfi/) Let your capital do more than just sit. If you have any questions, feel free to reach out in Discord. We’re happy to help. ![Welcome Clearstar](https://docs.vesu.xyz/assets/images/clearstar-491a3a4fa4880f668f4ba5b3a50cb17c.png) We’re welcoming Clearstar Labs as a new pool curator on Vesu. Clearstar is launching their first pool on Vesu with sUSN and USDC, with plans to add more yield-bearing assets over time. ### Clearstar USDC Reactor[​](https://docs.vesu.xyz/blog#clearstar-usdc-reactor "Direct link to Clearstar USDC Reactor") The Clearstar USDC Reactor is built for yield-bearing collateral, starting with sUSN as the first supported asset. **Configuration at launch:** * Collateral: sUSN * Borrow: USDC * Debt cap: $2.5M More assets may be added to the pool over time. ### Who’s Clearstar?[​](https://docs.vesu.xyz/blog#whos-clearstar "Direct link to Who’s Clearstar?") Clearstar is an onchain risk curator active across major DeFi lending and vault platforms like Morpho and Euler. Their team combines TradFi and DeFi backgrounds, with a strong focus on risk, operations, and continuous monitoring. They focus on careful asset review, setting appropriate risk parameters, and continuously monitoring the markets they curate. ### About sUSN[​](https://docs.vesu.xyz/blog#about-susn "Direct link to About sUSN") sUSN is the yield-bearing version of USN, a USD-backed stablecoin from Noon Capital. Yield accrues directly into the token over time, increasing its value without additional actions. It can be used as collateral to borrow USDC or with Vesu’s Multiply feature to increase exposure to its built-in yield. ### Get started[​](https://docs.vesu.xyz/blog#get-started "Direct link to Get started") You can now use the Clearstar pool to: * [Deposit USDC](https://vesu.xyz/lite/markets?poolId=0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803) to earn yield * [Borrow USDC](https://vesu.xyz/lite/markets/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb/borrow?collateralAssetAddress=0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) against your sUSN * [Multiply sUSN](https://vesu.xyz/pro/multiply/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) with USDC Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . ![Re7 Pool Upgrade](https://docs.vesu.xyz/assets/images/Re7-pool-upgrade-52ba9f6e53301166677c844aba5f68fb.png) Re7 Labs, the main curator behind Vesu’s BTCFi pools, has moved their remaining legacy pools to V2. Any position that can be upgraded will now show a Migrate button in the Vesu UI, guiding you through a simple, one-click migration flow. ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-f53963cfe66fbbe8717df7ba8152f49c.png) TL;DR[​](https://docs.vesu.xyz/blog#tldr "Direct link to TL;DR") ----------------------------------------------------------------- * Re7 Labs’ remaining V1 pools are migrating to V2 * Migration is live and handled directly in the app * Funds remain safe throughout For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . New Re7 Pools[​](https://docs.vesu.xyz/blog#new-re7-pools "Direct link to New Re7 Pools") ------------------------------------------------------------------------------------------ | V1 pool | New V2 pool | | --- | --- | | Re7 xSTRK | Re7 STRK | | Re7 wstETH | Re7 ETH | | Re7 Starknet Ecosystem | Re7 Labs Starknet Ecosystem | #### Note on Re7 STRK[​](https://docs.vesu.xyz/blog#note-on-re7-strk "Direct link to Note on Re7 STRK") Previously, the Re7 xSTRK pool priced xSTRK using the STRK price, as this was the most reliable oracle available at the time of launch. The Re7 STRK pool now uses the xSTRK conversion rate price feed, so xSTRK positions will reflect their full underlying value in the new pool. Re7 USDC pool deprecation[​](https://docs.vesu.xyz/blog#re7-usdc-pool-deprecation "Direct link to Re7 USDC pool deprecation") ------------------------------------------------------------------------------------------------------------------------------ The Re7 USDC pool is being deprecated, with markets migrating to the relevant V2 pools. ![Re7 UDSC migration](https://docs.vesu.xyz/assets/images/Re7-USDC-8a8de5e79c6de63485ca7659be60ac33.png) BTCFi rewards for WBTC and USDC continue in the Re7 USDC Core pool. V2 going forward[​](https://docs.vesu.xyz/blog#v2-going-forward "Direct link to V2 going forward") --------------------------------------------------------------------------------------------------- With this upgrade, all liquidity is coming fully to V2. This allows: * Fewer markets and less fragmentation * A simpler, clearer UX * Full focus on V2 going forward * Improved smart contracts as the single standard V2 is now the foundation for all future improvements on Vesu. If you have any questions, feel free to reach out in Discord. We’re happy to help. ![Choose your mode](https://docs.vesu.xyz/assets/images/app-modes-1f8e9e799657d371bb4f268c000ea3b8.png) Vesu has grown a lot over the last year and one interface no longer fits everyone. More markets. More decisions. Now you choose how you use Vesu. Three modes. One protocol.[​](https://docs.vesu.xyz/blog#three-modes-one-protocol "Direct link to Three modes. One protocol.") ------------------------------------------------------------------------------------------------------------------------------- Vesu now offers three app modes, each designed around a different user intent. All modes run on the same smart contracts and the same risk model. Only the interface changes. LITE[​](https://docs.vesu.xyz/blog#lite "Direct link to LITE") --------------------------------------------------------------- LITE is the new default experience. It is designed to make the most common actions obvious and reduce unnecessary decision making. * Focused on the most common actions * Easier to scan and get started ![LITE Mode](https://docs.vesu.xyz/assets/images/lite-mode-9232ba01503724b7a5321e897b43313c.png) A simpler way to get started on Vesu. BTCFI[​](https://docs.vesu.xyz/blog#btcfi "Direct link to BTCFI") ------------------------------------------------------------------ BTCFI is a Bitcoin first experience. ![BTCFI Mode](https://docs.vesu.xyz/assets/images/btcfi-mode-ff88ae098db0b077d35d511a83269f32.png) Designed for users who want to use Bitcoin onchain without selling. Everything you see is centered around BTC, with no extra noise. PRO[​](https://docs.vesu.xyz/blog#pro "Direct link to PRO") ------------------------------------------------------------ PRO is the full power Vesu interface. This is exactly what existing users already know. * All markets with full detail * Multiply enabled PRO is designed for users who want full visibility and control. Switching modes[​](https://docs.vesu.xyz/blog#switching-modes "Direct link to Switching modes") ------------------------------------------------------------------------------------------------ Switch between LITE, BTCFI, and PRO at any time. Use the mode switch in the top right corner of the app. Or bookmark the link to the mode you prefer and use that directly. Under the hood, nothing changes. Same security. Same risk. Same contracts. Try it out[​](https://docs.vesu.xyz/blog#try-it-out "Direct link to Try it out") --------------------------------------------------------------------------------- This change is about focus, not limitation. **Explore now:** * A smoother entry for new users → [LITE](https://vesu.xyz/lite) * A clearer BTCFi path for Bitcoin holders → [BTCFI](https://vesu.xyz/btcfi) * Full control for power users → [PRO](https://vesu.xyz/pro) Same protocol. Different ways to use it. ![tBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-vault-b4f8037f15b9eccde012f6de3267821e.png) A new Bitcoin strategy is live on Vesu. The **Noon tBTC Vault** is built for Bitcoin holders looking for strong yield. Users deposit tBTC and earn yield through an automated, fully onchain setup that builds on sUSN yield and Vesu’s low borrow rates. We’re excited to welcome **Noon Vaults** as a new curator, expanding the range of Bitcoin strategies available on Starknet. The Noon tBTC Vault[​](https://docs.vesu.xyz/blog#the-noon-tbtc-vault "Direct link to The Noon tBTC Vault") ------------------------------------------------------------------------------------------------------------ The Noon tBTC Vault is designed for users who want to put their Bitcoin to work without selling it or actively managing positions. The setup combines BTC-backed borrowing with yield generated via sUSN, allowing returns to compound back into tBTC over time. Position management, rebalancing, and execution are fully abstracted away. The curator targets **~10% yield**. All funds remain non-custodial and fully transparent onchain. About Noon and sUSN[​](https://docs.vesu.xyz/blog#about-noon-and-susn "Direct link to About Noon and sUSN") ------------------------------------------------------------------------------------------------------------ Noon issues USN, a USD-backed stablecoin designed with a focus on sustainable yield, safety, and long-term use. Its staked version, sUSN, accrues yield directly within the token over time. With sUSN live on Vesu, users can use it as collateral, borrow against it, and combine it with Vesu’s vaults and Multiply to access more advanced onchain strategies. Vesu Vaults[​](https://docs.vesu.xyz/blog#vesu-vaults "Direct link to Vesu Vaults") ------------------------------------------------------------------------------------ Vesu Vaults are designed to make onchain yield more accessible by abstracting away complexity, while remaining fully non-custodial. Vaults follow strict, onchain strategy mandates and are operated by independent curators. Deposited funds can only be used as defined by the strategy, and performance is reported transparently onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/security/audits) . Get started[​](https://docs.vesu.xyz/blog#get-started "Direct link to Get started") ------------------------------------------------------------------------------------ You can now: * Deposit tBTC into the new [Noon tBTC Vault](https://vesu.xyz/vaults/0x04424dec8280f518b35be33139f44ef9fa0855b117f16cda2a30f1b64c27864a) * [Multiply sUSN](https://vesu.xyz/multiply/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) to increase your exposure & yield * [Borrow USDC against sUSN](https://vesu.xyz/borrow/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) Explore the new tBTC Vault and sUSN on Vesu and see what’s possible. ![Unified Liquidity](https://docs.vesu.xyz/assets/images/unified-liquidity-59f607b026a02613335ecab7195d31d8.png) In December, liquidity on Vesu will be unified. With native USDC arriving on Starknet, users will migrate their USDC positions into the improved V2 pools. This is the next step in the shift from V1 to V2, and a simple migration tool will handle the move for you. Update December 3[​](https://docs.vesu.xyz/blog#update-december-3 "Direct link to Update December 3") ------------------------------------------------------------------------------------------------------ Migration is now live on [vesu.xyz](https://vesu.xyz/) . Any position that can be upgraded will now show a Migrate button. For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-8d4ad6044c3f15525e01bda5446eca20.png) What you need to know[​](https://docs.vesu.xyz/blog#what-you-need-to-know "Direct link to What you need to know") ------------------------------------------------------------------------------------------------------------------ TL;DR * All USDC.e and V1 positions will move to native USDC and V2 pools * STRK rewards continue for native USDC * V1 pools will enter a limited mode * A 1-click migration will be available in the Vesu UI The current bridged USDC will be renamed USDC.e and native USDC will take over the USDC ticker across Starknet apps and explorers. Once migration begins, V1 pools will switch to limited mode. Existing positions can still be closed, but opening new positions or adding debt will no longer be possible. The pools will continue operating for now. The migration tool will support both steps: moving from USDC.e to native USDC and shifting V1 positions into the newer V2 pools. Open positions and affected markets will show a Migrate button in the UI. V2 as the new standard[​](https://docs.vesu.xyz/blog#v2-as-the-new-standard "Direct link to V2 as the new standard") --------------------------------------------------------------------------------------------------------------------- Vesu currently has 18 pools across V1 and V2, which makes it harder to find the right market and spreads liquidity across many smaller pools. Consolidating liquidity in the V2 pools reduces this fragmentation and creates a simpler setup. V2 pools run on improved smart contracts that have been audited by Zenith, ChainSecurity and OpenZeppelin. Their full reports are available in the [docs](https://docs.vesu.xyz/security/audits) . Each pool uses its own isolated contract, with less complexity and better gas efficiency. **Benefits for users:** * Less fragmentation: liquidity concentrated in stronger pools * Better UX: simpler to find the right markets * Future-proof: all new features and improvements will focus on V2 Strengths of native USDC[​](https://docs.vesu.xyz/blog#strengths-of-native-usdc "Direct link to Strengths of native USDC") --------------------------------------------------------------------------------------------------------------------------- Native USDC is issued directly by Circle and comes with clear benefits: * One unified, canonical USDC * Lower risk and fewer trust assumptions * Fully reserved and redeemable 1:1 * Faster, more reliable cross-chain transfers through CCTP * Opens the door for institutional players on Starknet It is the version exchanges, custodians and market makers prefer. Next steps[​](https://docs.vesu.xyz/blog#next-steps "Direct link to Next steps") --------------------------------------------------------------------------------- There’s nothing you need to do right now. Just keep an eye on our socials. We’ll post the exact go-live announcement on [X](https://x.com/vesuxyz) and [Discord](https://discord.gg/G9Gxgujj8T) once everything is ready. If you have any questions, now or during the migration, feel free to open a ticket in our [Discord](https://discord.gg/G9Gxgujj8T) . We’re here to help. ![Unlock LBTC](https://docs.vesu.xyz/assets/images/unlock-LBTC-a15d02aad282c1bf622e33d684c4c1c0.png) Bitcoin isn’t just a store of value anymore. It’s becoming the foundation for a new financial layer, one where BTC itself can earn, move, and work across chains. Lombard makes this possible with LBTC, a liquid, yield-bearing version of BTC that brings native Bitcoin yield into DeFi. And now on Vesu, LBTC goes even further. You can earn, borrow, or multiply your position directly on Starknet, the home of permissionless BTCFi. new here? Start here → [Starknet Wallets & Bridging](https://docs.vesu.xyz/user-guides/start) You’ll be ready in 2 minutes. Earn passive yield[​](https://docs.vesu.xyz/blog#earn-passive-yield "Direct link to Earn passive yield") --------------------------------------------------------------------------------------------------------- Earn >2% APR on your LBTC deposit. Two pools by Re7 Labs are currently available. ![LBTC-earn](https://docs.vesu.xyz/assets/images/LBTC-earn-338cd7197be1c4e40ca262e607b4d2a3.png) **Re7 xBTC** This pool is built to Multiply staked Bitcoin. Deposited LBTC earns BTCFi rewards and organic yield driven by user-demand from Multiply and Borrow. **Re7 USDC Core** The LBTC you deposit is not lent out, and can be withdrawn anytime. It earns BTCFi rewards while continuing to accrue staking rewards via Lombard. [Earn more yield with your LBTC.](https://vesu.xyz/earn?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Borrow stablecoins at top rates[​](https://docs.vesu.xyz/blog#borrow-stablecoins-at-top-rates "Direct link to Borrow stablecoins at top rates") ------------------------------------------------------------------------------------------------------------------------------------------------ Use your LBTC as collateral to borrow USDC within the Re7 USDC Core pool. It’s the easiest way to unlock liquidity without selling your Bitcoin. ![LBTC-borrow-USDC](https://docs.vesu.xyz/assets/images/LBTC-borrow-USDC-c8e650a529e4030cc842621351e6cda2.png) Your borrowed USDC stays flexible. Use it to farm additional yield on Vesu, buy more Bitcoin, or spend it with the Ready Card. [Borrow USDC against your LBTC.](https://vesu.xyz/borrow?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Multiply your Bitcoin[​](https://docs.vesu.xyz/blog#multiply-your-bitcoin "Direct link to Multiply your Bitcoin") ------------------------------------------------------------------------------------------------------------------ LBTC is already staked Bitcoin, earning yield while staying liquid. But on Starknet, you can take it one level deeper. Stake LBTC via Endur to mint **xLBTC**. It keeps earning staking rewards within the token, around 5% APY. Now, Vesu lets you use that yield-bearing BTC as collateral to multiply your exposure, boosting yield up to 30% APY. ![xLBTC-multiply.png](https://docs.vesu.xyz/assets/images/xLBTC-multiply-0c651faaf71bd3f97e0cca257589e18c.png) The Re7 xBTC pool is designed to multiply staked Bitcoin. Users can supply xLBTC to increase exposure and staking rewards. Available to multiply are LBTC, tBTC, SolvBTC, and WBTC. The correlated setup helps smooth volatility and improve stability for positions. [Multiply staked LBTC (xLBTC) for higher exposure & yield.](https://vesu.xyz/multiply?collateralAssets=0x07dd3c80de9fcc5545f0cb83678826819c79619ed7992cc06ff81fc67cd2efe0) Make more with your Bitcoin[​](https://docs.vesu.xyz/blog#make-more-with-your-bitcoin "Direct link to Make more with your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------------ Vesu turns LBTC into productive collateral. Earn consistent yield, access stable liquidity at top rates, or multiply your exposure. Vesu is built for those who want their Bitcoin to do more: to stay self-custodial, secure, and earning while remaining entirely onchain. Security is non-negotiable when it comes to Bitcoin. Vesu’s smart contracts have been [audited by multiple independent firms](https://docs.vesu.xyz/security/audits) , and there is a [$100K Immunefi bug bounty](https://docs.vesu.xyz/security/bounties) . Additionally, if the main interface is ever unavailable, users can still access their positions through Vesu’s [lite frontend](https://lite.vesu.xyz/) . It’s time to put your LBTC to work with Vesu. ![Vesu V2](https://docs.vesu.xyz/assets/images/VesuV2-b69e043611b6965c2843ef4dde69af47.png) **Vesu V2 is live! Just in time for the BTCFi Season on Starknet.** To kick things off, the Starknet Foundation is allocating **100M STRK** in rewards to anyone who brings their Bitcoin onchain and puts it to work. Vesu V2 makes that easier than ever. With a fully redesigned frontend, smarter contracts, and new curated pools by Re7Labs, Vesu is the main lending market powering BTCFi from day one. Borrow against Bitcoin, earn yield and more. All without giving up custody. Do More With Your Bitcoin[​](https://docs.vesu.xyz/blog#do-more-with-your-bitcoin "Direct link to Do More With Your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------ Bitcoin is great, but using it has been tough. Until now, choices were limited: sell and lose exposure, trust a centralized lender, or pay high borrow rates. BTCFi on Starknet changes that. For the first time, you can access cheap liquidity. Without selling or giving up self-custody. ![borrow-usdc.png](https://docs.vesu.xyz/assets/images/borrow-usdc-0304992047cefd9cf5c080bb913aa375.png) **Example**: Deposit **LBTC** into the new **Re7 USDC Core** pool to borrow **USDC**. Your borrow costs get subsidized by STRK rewards. Use the extra liquidity as you like, deploy it into yield strategies, or spend with the Ready Card. Supply BTC to Earn[​](https://docs.vesu.xyz/blog#supply-btc-to-earn "Direct link to Supply BTC to Earn") --------------------------------------------------------------------------------------------------------- Supplying Bitcoin earns BTCFi rewards and interest from borrowers. The new **Re7 xBTC** pool pairs staked Bitcoin with their native assets and creates strong borrow demand as users boost exposure and yield with Vesu’s Multiply feature. This leads to a healthy organic yield on top. ![earn.png](https://docs.vesu.xyz/assets/images/earn-04e3b3ce6e8f2e4bb74ffc334899e791.png) **Looking for something even simpler?** Vesu V2 introduces Vaults. A new strategy layer that automates yield on autopilot. At launch, we’re kicking things off with Bitcoin Vaults curated by 0D. Deposit BTC once. It gets supplied into Vesu, borrows stablecoins, and allocates them into 0D institutional-grade yield strategies. No micromanaging, no more chasing APRs. Multiply your staked Bitcoin[​](https://docs.vesu.xyz/blog#multiply-your-staked-bitcoin "Direct link to Multiply your staked Bitcoin") --------------------------------------------------------------------------------------------------------------------------------------- Stake your Bitcoin on Starknet through Endur.fi to earn STRK staking rewards. For example, stake tBTC to receive xtBTC in return. Multiply the xtBTC against tBTC, increasing your exposure and boosting your yield. Because the assets are expected to move closely together, this strategy carries lower liquidation risk while still stacking staking rewards. Claim and Supported Assets[​](https://docs.vesu.xyz/blog#claim-and-supported-assets "Direct link to Claim and Supported Assets") --------------------------------------------------------------------------------------------------------------------------------- Rewards are based on real usage. Borrowing earns rewards according to interest paid. Supplying BTC also qualifies, provided it’s non-recursive. They’re distributed weekly and become claimable every Friday (or anytime after that). **The following assets are eligible for BTCFi rewards:** Lending: wBTC, tBTC, LBTC, SolvBTC Borrowing: USDC, USDT, CASH More assets and ways to earn will be added as BTCFi Season continues. Vesu V2: Making DeFi simpler[​](https://docs.vesu.xyz/blog#vesu-v2-making-defi-simpler "Direct link to Vesu V2: Making DeFi simpler") -------------------------------------------------------------------------------------------------------------------------------------- Vesu V2 takes everything learned from V1 and builds an even stronger foundation for DeFi on Starknet. * **Modern UX:** A clean, fast interface makes it easier to find the right opportunity * **Simplified Contracts:** Each pool now runs on its own isolated contract, improving security, reducing complexity, and lowering gas costs * **Vaults:** simply deposit to the vault to enjoy complex yield strategies on autopilot, enforced fully on-chain * **Security first:** Multiple audits; $100K Immunefi bug bounty and new features like onchain monitoring by Hypernative. ![Position and market view](https://docs.vesu.xyz/assets/images/wBTCUSDC-4bc556a11848196ff7c6377ca510d3fd.png) Vesu V2 strengthens UX and security while unlocking support for new assets and strategies. It is the liquidity hub for BTCFi on Starknet. The Big Picture[​](https://docs.vesu.xyz/blog#the-big-picture "Direct link to The Big Picture") ------------------------------------------------------------------------------------------------ BTCFi isn’t just a rewards program. It's Bitcoin’s next chapter. Capital comes in through staking, Vesu makes it productive, and users borrow, lend, and spend. This approach rewards real activity, not idle deposits that leave when incentives end. Vesu becomes the bank for your Bitcoin, with liquidity ready to use anywhere. ### Explore Vesu V2 now:[​](https://docs.vesu.xyz/blog#explore-vesu-v2-now "Direct link to Explore Vesu V2 now:") * [Deposit tBTC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x04daa17763b286d1e59b97c283c0b8c949994c361e426a28f743c67bdfe9a32f/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) into the Re7 USDC Core pool. * [Borrow USDC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) against your LBTC. * [Multiply xsBTC](https://vesu.xyz/multiply/0x03a8416bf20d036df5b1cf3447630a2e1cb04685f6b0c3a70ed7fb1473548ecf/0x0580f3dc564a7b82f21d40d404b3842d490ae7205e6ac07b1b7af2b4a5183dc9/0x0593e034dda23eea82d2ba9a30960ed42cf4a01502cc2351dc9b9881f9931a68) with solvBTC. * Explore the new Bitcoin [Vaults](https://vesu.xyz/vaults) . * Learn more about V2 in our [docs](https://docs.vesu.xyz/) . ![Earn with ETH](https://docs.vesu.xyz/assets/images/earn-with-ETH-d6b0f2babb1d311a975ddb5b0cb91695.png) Ethereum just turned 10. A full decade of innovation, billions secured, and zero downtime. If you believe in ETH for the long run, ask yourself: Is your ETH working for you? This post breaks down 3 simple ways to earn more ETH. Not by flipping tokens, but with real yield. Let’s start with the basics. Level 1: Simple lending[​](https://docs.vesu.xyz/blog#level-1-simple-lending "Direct link to Level 1: Simple lending") ----------------------------------------------------------------------------------------------------------------------- **Basic yield, zero stress** If you want passive yield with minimal setup: supply ETH or wstETH to a Vesu pool. You earn lending yield and DeFi Spring rewards. wstETH also earns staking rewards on top. Current rates are around 4%, and go higher when markets heat up. **Risk:** Like all lending platforms, there are smart contract, oracle, and pool config risks. Vesu reduces these with [audits](https://docs.vesu.xyz/security/security-basics) and known curators. Level 2: Lending & Borrowing[​](https://docs.vesu.xyz/blog#level-2-lending--borrowing "Direct link to Level 2: Lending & Borrowing") ------------------------------------------------------------------------------------------------------------------------------------- **Double the yield** Deposit ETH or wstETH, then borrow stablecoins like USDC or USDT. ![Borrow USDC with your ETH collateral](https://docs.vesu.xyz/assets/images/borrow-usdc-3bf29387c5ea76ac6b9dfd2cadd1d678.png) You can then deposit those stables into another Vesu pool to earn some extra yield. ![Earn with your USDC](https://docs.vesu.xyz/assets/images/usdc-yield-87f861693f376f6f25045b9f61b239dd.png) Right now, you earn around 4% on your ETH, and 5–6% on the borrowed USDC. Your ETH keeps earning, while the borrowed stables generate yield on top. **Risk:** Same as Level 1, plus exposure to ETH price drops. If ETH falls too much, your position can be liquidated. Start with low borrow amounts and monitor your loan-to-value ratio. Level 3: Multiply it[​](https://docs.vesu.xyz/blog#level-3-multiply-it "Direct link to Level 3: Multiply it") -------------------------------------------------------------------------------------------------------------- **More exposure, more yield** Multiply lets you increase your exposure to Ethereum. You supply wstETH, borrow ETH, and use it to buy more wstETH. All in one transaction. ![Multiply your wstETH](https://docs.vesu.xyz/assets/images/multiply-wstETH-e4dbaec2b7663fd54a619353f1b7a2a6.png) Current examples show around 10% APY with a 3x multiplier. You can pick your own level, but higher yield comes with more risk. **Risk:** ETH and wstETH prices are correlated, but extreme market stress can break that link. If prices decouple too much, your position could be at risk of liquidation. Learn more about Multiply in our [Docs](https://docs.vesu.xyz/users/multiply-risks) and choose a multiplier that fits your risk tolerance. Make your ETH work[​](https://docs.vesu.xyz/blog#make-your-eth-work "Direct link to Make your ETH work") --------------------------------------------------------------------------------------------------------- **Three levels, one goal: earn more ETH** Whether you’re lending, borrowing, or multiplying, Vesu's got you. Explore the strategies, choose what fits, and grow your stack. Got questions or feedback? Come hang in [Discord](https://discord.gg/g9ahVeyp) . Check out the [Docs](https://docs.vesu.xyz/users) if you want to dig deeper. Ethereum isn’t slowing down. Neither should your yield. --- # Vesu Is Live! | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/the-future-of-lending-777b6f28a39e04d164c96e334a035ccc.jpeg) ### Vesu is Officially Live on Starknet![​](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#vesu-is-officially-live-on-starknet "Direct link to Vesu is Officially Live on Starknet!") We are thrilled to announce that Vesu is now live on Starknet, offering the best lending experience in town. Earn, borrow and build on Vesu with ease of use and peace of mind! ### What is Vesu?[​](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#what-is-vesu "Direct link to What is Vesu?") Vesu is a fully open and permissionless lending protocol allowing anyone to earn, build and create new lending markets. Here's what sets Vesu apart: 1️⃣ Free Markets: Vesu enables anyone to create lending markets without governance restrictions, fostering a truly free market 2️⃣ Simplicity: Vesu provides an intuitive user interface bringing web2 like UX to DeFi 3️⃣ Transparency: Vesu highlights all relevant information including fees, effective APYs and risk so users can make informed decisions 4️⃣ Security: Vesu prioritizes security with audits by [Chain Security](https://x.com/chain_security) and [Cairo Security Clan](https://x.com/cairoaudit) , a public codebase and an [Immunefi](https://x.com/immunefi) bug bounty ### What's next?[​](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#whats-next "Direct link to What's next?") 🖥️ Pool creation & admin dashboard ➿ Multiply position feature 📊 Advanced risk dashboard ### Get Started[​](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#get-started "Direct link to Get Started") Dive into Vesu today with our tutorials, and start earning yield and $STRK rewards. Explore the future of lending on Starknet! For more details, visit [vesu.xyz](https://vesu.xyz/) or the [docs](https://docs.vesu.xyz/) . * [Vesu is Officially Live on Starknet!](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#vesu-is-officially-live-on-starknet) * [What is Vesu?](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#what-is-vesu) * [What's next?](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#whats-next) * [Get Started](https://docs.vesu.xyz/blog/2024-07-10-vesu-is-live#get-started) --- # Welcome Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-03-06-welcome#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) DeFi’s Beginnings and Constant Evolution[​](https://docs.vesu.xyz/blog/2024-03-06-welcome#defis-beginnings-and-constant-evolution "Direct link to DeFi’s Beginnings and Constant Evolution") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- In the ever-evolving landscape of DeFi, the paradigms of traditional financial services continue to be fundamentally challenged and redefined. Arguably, DeFi’s biggest and earliest widespread breakthroughs were the decentralized exchange (DEX) and on-chain borrowing and lending platforms. The evolution of the DeFi lending space has been marked by significant milestones, beginning with the launch of ETHLend in 2017. ETHLend introduced a peer-to-peer lending model on the blockchain, eliminating intermediaries and using ether as collateral, making lending more accessible and efficient. Aave and Compound expanded on ETHLend's foundation, introducing liquidity pools and features like over-collateralization and flash loans, which revolutionized DeFi lending by offering more efficiency and composability. The pooled liquidity model further simplified the lending and borrowing process, ensuring security and ease of access for users. Compound is also known for its governance model which was one of the first to emphasize a decentralized decision-making process, as well as bringing the idea of “yield farming” mainstream. The DeFi lending space continued to evolve with the introduction of adaptive interest rate models, oracle-less designs, and permissionless pool creation. The latter has been pushed by platforms like Morpho and represents the latest advancement in DeFi lending. It allows for the creation of new lending pools by anyone without a central governance unit deciding on supported assets and other risk parameters. Lending protocols have become essential to any DeFi ecosystem and have continually rolled out efficiency advancements over the years. In today’s protocols, features like pooled liquidity, flash loans, and risk-mitigation techniques are commonplace. On the other hand, one can see two distinct design approaches with respect to how risk parameters are managed. DeFi Lending Market’s Two Primary Designs[​](https://docs.vesu.xyz/blog/2024-03-06-welcome#defi-lending-markets-two-primary-designs "Direct link to DeFi Lending Market’s Two Primary Designs") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Despite the multitude of parameters that can be tweaked in constructing different on-chain lending protocol designs, one element that cleanly segregates the market into two distinct camps is how the protocol ultimately handles risk management. The two competing approaches can be described as: * **Central governance**: risk management is controlled by a central governance unit, generally a DAO, where parameters often are voted on, rolled out, and managed in a top-down manner (ex: Aave, Compound) * **Free markets** (ungoverned): Protocols that actively repel and eschew central governance due to the attack vectors they enable and instead simply rely on smart contracts to adjust risk parameters and the free market (the users) to handle their own risk management (ex: Morpho Blue) ![Central Governance vs Free Markets](https://docs.vesu.xyz/assets/images/governance-vs-free-markets-fc3f56c479b5b3fe01ad3d282764c9ca.png) ### Central Governance Model[​](https://docs.vesu.xyz/blog/2024-03-06-welcome#central-governance-model "Direct link to Central Governance Model") The DAO-driven model relies on smart contracts for custody and general market mechanisms, yet also reintroduces central intermediaries to manage risk parameters. This hybrid model has allowed early lending platforms to create a moat of liquidity and users, yet it is also prone to shortcomings highlighting the challenge of scaling in a semi-decentralized context. The arguments for a centrally governed model are that it enables the DAO to elect specialists to monitor on-chain activities and risk parameters that normal community members either will not or are incapable of doing. Protocols that have adopted this model typically defer to the specialist to adjust their risk parameters, ex: Loan-to-Value (LTV) ratios, as the market dictates. This approach not only aids in maintaining a unified liquidity pool but also ensures a “hands-off” experience for users who entrust the specialist with risk management on their deposits. In scenarios where the market environment deteriorates, it falls upon the specialist and the DAO to modify the protocol's parameters to better align with the changing conditions. Despite its advantages, the central governance model of risk management is not without its shortcomings. DAOs, while pioneering in the DeFi space, are not immune to the operational, cyber and human risks that plague traditional organizations. Additionally, smart contract powered governance systems are vulnerable to the same design and technical flaws as the lending protocol itself as witnessed by past exploits resulting in losses of hundreds of millions USD. Furthermore, the politics within DAOs often mirror those of traditional entities, challenging the notion of neutrality and creating barriers to entry for newcomers. This political dynamic, coupled with governance bottlenecks, can significantly hinder the DAO's ability to make efficient capital allocation decisions, thereby limiting market scalability. ### Free Markets Model[​](https://docs.vesu.xyz/blog/2024-03-06-welcome#free-markets-model "Direct link to Free Markets Model") The current alternative to the central governance model can be described as a hands-off, free-market approach to handling risk. The exploration of free market principles within the lending protocol landscape introduces a dynamic where lenders are empowered to navigate their own risk/reward pathways, essentially allowing market forces to dictate the equilibrium of risk parameters. This model hinges on the belief that free markets are better at allocating capital than any form of central governance and that only neutral, aka un-governed, technology empowers truly free markets. Lenders and borrowers, under this regime, are granted the autonomy to select their liquidity pools based on personal risk tolerance or create new pools if the existing ones are not compliant with their tolerance. As one would expect, this creates a diverse array of lending and borrowing scenarios, catering to the varied needs of users. At the protocol level, the absence of overarching governance simplifies the foundational codebase, making it more robust and secure. This design philosophy aims to streamline the core functions of the protocol, relegating complexity to use case specific peripheral modules. However, the free market approach is not without its challenges. One significant issue is the fragmentation of liquidity, which can undermine capital efficiency. Isolated pools, while offering tailored risk/reward profiles, may struggle to achieve the same level of market penetration as their monolithic counterparts, primarily due to the need for continuous rebalancing across pools in order to optimize both borrowing cost and income from supplying assets. The requirement for borrowers to provide non-yielding collateral in many isolated markets exacerbates this issue, contrasting with monolithic models where assets can serve dual purposes—acting as collateral while still earning yield. The limitation on capital efficiency from the user perspective cannot be overstated, as users are more likely to make their decisions based on easy-to-comprehend KPIs rather than the nuanced trade-offs involving pooled vs. isolated liquidity. Introducing Vesu[​](https://docs.vesu.xyz/blog/2024-03-06-welcome#introducing-vesu "Direct link to Introducing Vesu") ---------------------------------------------------------------------------------------------------------------------- Vesu, DeFi’s latest progression in the on-chain lending space, is a pioneering platform designed to facilitate fully permissionless, over-collateralized lending agreements. With its ambitious design, Vesu looks to combine the best aspects of both worlds: a liquidity monolith with permissionless, multi-asset lending compartments aka lending pools. Risk is isolated across lending pools and governance delegated to these pools individually. Vesu thus implements the free markets approach in that no central governance exists and lending pools can be created permissionlessly. Through its modular lending pool design, Vesu allows for a large degree of flexibility in terms of expressing different lending arrangements including a strict two asset design and more capital efficient multi-asset pools as known e.g. from Aave. ![Vesu Modular Lending Markets](https://docs.vesu.xyz/assets/images/vesu-modular-lending-markets-12735edf22c63b275379b64b4ce7b55b.png) Moreover, one of Vesu’s biggest differentiators is the concept of extensions akin to Uniswap v4 hooks, empowering developers to create entirely new lending experiences. This flexibility positions Vesu not only as a lending protocol but also as a foundational platform for the development of new lending protocols. Additionally, because it is permissionless and there is no central governance adding friction and politics, Vesu offers a truly neutral technology for “free market competition” amongst lending markets. At its core, Vesu addresses the limitations of existing protocols while introducing innovative features that cater to the needs of a broad spectrum of users. Its modular, permissionless, and scalable architecture, coupled with a focus on simplicity and security, positions Vesu as a cornerstone of the next generation of DeFi lending platforms. * [DeFi’s Beginnings and Constant Evolution](https://docs.vesu.xyz/blog/2024-03-06-welcome#defis-beginnings-and-constant-evolution) * [DeFi Lending Market’s Two Primary Designs](https://docs.vesu.xyz/blog/2024-03-06-welcome#defi-lending-markets-two-primary-designs) * [Central Governance Model](https://docs.vesu.xyz/blog/2024-03-06-welcome#central-governance-model) * [Free Markets Model](https://docs.vesu.xyz/blog/2024-03-06-welcome#free-markets-model) * [Introducing Vesu](https://docs.vesu.xyz/blog/2024-03-06-welcome#introducing-vesu) --- # Vesu Lending Hooks | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#intro "Direct link to Intro") ------------------------------------------------------------------------------------------------ Vesu is a fully permissionless lending protocol and is reshaping how lenders, borrowers, and developers envision the future of onchain lending. At its essence, Vesu is engineered to overcome the challenges faced by traditional protocols, providing a neutral, efficient, and secure platform for global and borderless lending markets. At the heart of Vesu’s approach is: * a governance-free model ensuring efficiency and global access, * permissionless, risk-isolating lending pools, * efficient, market-driven rates, and * Uni v4-inspired lending hooks for unparalleled optionality. Read more about Vesu's foundational concepts in our [previous article](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . This article will focus on this last bullet point around “lending hooks,” explaining what they are, how they’re implemented into Vesu’s design, and what ramifications this revolutionary approach may have on users as it looks to change the standards for onchain lending. Vesu Lending Hooks[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#vesu-lending-hooks "Direct link to Vesu Lending Hooks") --------------------------------------------------------------------------------------------------------------------------------------- One of Vesu’s biggest differentiators in the lending space is the concept of programmable extensions and lending hooks. Extensions are separate programs that can be created and implemented for individual pools. These programs are invoked via “lending hooks.” Hooks, a term popularized by [Uniswap v4](https://docs.uniswap.org/contracts/v4/overview) , are code segments triggered during various stages within the extension/liquidity pool. These programmable features empower developers to use their creativity to launch entirely new lending experiences using the same battle-tested platform to settle lending transactions. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal for all crypto users. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) In the case of Vesu, hooks integrate into each specific pool through distinct triggers initiated by user actions. Specifically, Vesu offers the following hooks * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_transfer\_position * after\_transfer\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for the extensions to implement customized logic and functionalities, ranging from interest rate calculations to position modifications and liquidations. At launch, Vesu will provide pools with a “baseline” setting, entitled the “factory extension.” This factory extension is created by the Vesu team and audited together with the Vesu protocol. Below, we review the features encoded in the factory extension and their implications for a lending pool and its users. Factory Extension[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#factory-extension "Direct link to Factory Extension") ------------------------------------------------------------------------------------------------------------------------------------ ### Adaptive Interest Rates[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates "Direct link to Adaptive Interest Rates") Interest rates serve as a pivotal mechanism in lending markets, facilitating the alignment of supply and demand for specific assets. The primary aim of a lending market is to enable the efficient discovery of an equilibrium rate through the interplay of supply and demand. This is especially true for Vesu’s “free market” approach to lending pools. Consequently, the design of an interest rate model is fundamental to the architecture of any lending market. Because of that, a diverse array of interest rate models have been explored, with most relying on a governance mechanism to fine-tune the interest rate parameters to changing market conditions. This is inefficient and problematic as it adds centralization vectors in the protocol design instead of allowing markets to arrive at an equilibrium. Vesu removes reliance on governance processes for rate adjustments or the fine-tuning of rate model parameters. Instead, the factory extension adopts an autonomous, adaptive interest rate model. This model is composed of two principal components: a utilization-based interest rate curve and a controller mechanism designed to modify the interest rate curve in reaction to market imbalances. While adaptive models represent a relatively new DeFi frontier, the chosen controller design has been in use in [Fraxlend markets](https://docs.frax.finance/fraxlend/fraxlend-overview) and has offered robust, market-driven rates across a variety of market regimes. The factory extension's specific controller design is predicated on a half-life growth (decay) rate. The model's curve controller dynamically adjusts the maximum interest rate and the target rate based on the time-weighted deviation of current utilization from the target utilization. The applicable interest rate is then determined from this adjusted curve, taking into account the present utilization level. This mechanism underscores the model's capacity to adapt to changing market conditions, thereby ensuring the lending market's responsiveness and resilience. ![Vesu Adaptive Interest Rates](https://docs.vesu.xyz/assets/images/vesu-adaptive-interest-rates-a6aac756c762d2460cf130d1cedafe32.png) This model marks a significant shift towards fully automated, real-time interest rate adjustments, addressing market imbalances without human intervention. Beyond that, this governance-less approach epitomizes simplicity, favoring straightforward, proven strategies over complex, untested alternatives. By automatically adjusting the interest rate curve based on the utilization rate's deviation from a predetermined target, the model ensures adaptability and responsiveness to market dynamics, a critical feature illustrated in the provided diagram. ### Autonomous Oracle[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#autonomous-oracle "Direct link to Autonomous Oracle") The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. This solvency check, for most lending protocols, is conducted using oracles, external data feeds that supply real-time price data. Similarly, the factory extension, through the “price” hook, uses the [Pragma oracle](https://www.pragma.build/) solution to inform the protocol about position solvency. Pragma is Starknet’s leading oracle solution and secures over $250M at the time of writing this article. Pragma distinguishes itself by offering a more decentralized and transparent design by pushing individual data points directly onchain allowing for the onchain aggregation through smart contracts. It thereby allows for the use of a variety of powerful aggregation methods, such as the median, TWAP or volatility. Furthermore, Pragma provides a richer set of contextual data—such as the number of active data providers and the timestamp of the latest data point—that enhances the reliability of the price feeds. This transparency and depth of data empower the Vesu factory extension to perform advanced sanity checks and implement oracle fail-safes, thus elevating the platform's resilience to inaccuracies or manipulations in price feeds. The factory extension utilizes this rich data set in two pivotal ways. Firstly, it computes a robust oracle price using the Median aggregator, ensuring that outlier data points do not skew valuations. Secondly, it leverages contextual data to construct an oracle trust score, which evaluates the reliability of price feeds based on the diversity of data sources and the timeliness of data. This score is instrumental in determining whether prices are trustworthy or if the lending pool should be paused to protect against potential risks stemming from stale or manipulated data. ### Liquidation Strategy[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#liquidation-strategy "Direct link to Liquidation Strategy") The management of insolvent positions through liquidation is a delicate balancing act in DeFi protocols between optimizing for lender and borrower protections. The strategy's design is notably pragmatic, allowing liquidators to purchase all or part of an insolvent position's collateral at a discount. This discount serves as an incentive for liquidators to participate in the process, facilitating the rapid recovery of debts and minimizing the probability for a shortfall affecting lenders in the market. By enabling partial liquidations, the Vesu factory extension addresses the challenge of liquidating large positions in markets where collateral or debt assets may have limited liquidity. This methodical approach ensures that insolvent positions can be gradually resolved, preventing sudden market shifts that could arise from the forced liquidation of large positions. ![Vesu Liquidation](https://docs.vesu.xyz/assets/images/vesu-liquidation-57687a724370685a45cde12f7bef4373.png) The liquidation strategy further allows a liquidator to receive collateral shares instead of assets. Thereby, the factory extension enables liquidations to function properly in the scenario where collateral assets are not available. While unlikely, this is possible in markets where the rehypothecation of collateral assets, as liquidity for borrowers of the same asset, is enabled. ### Bad Debt Redistribution[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#bad-debt-redistribution "Direct link to Bad Debt Redistribution") The liquidation strategy serves as the protocol’s main safeguard against a shortfall, or bad debt, incurred by lenders. While the strategy’s design focuses on safety for market participants, and in particular lenders, the possibility of bad debt events cannot be fully eliminated. In fact, the likelihood of such events is largely driven by the risk parameters of individual lending pools which for permissionless markets, like Vesu, is outside of the protocol’s control. The factory extension thus implements an effective strategy for the redistribution of “bad debt.” If/when liquidations fail to cover the outstanding debt fully, this strategy employs a method of “socializing the loss,” a tactic found in many DeFi applications to mitigate liquidity run risks. This approach involves spreading the accumulated shortfall across the pool's liquidity suppliers, allocating losses in proportion to their share in the pool. This immediate redistribution of losses ensures that any shortfall is promptly reflected in each supplier's claim on the remaining assets, thus reducing the risk of panic withdrawals and preserving the pool's overall stability. In essence, the factory extension's liquidation and bad debt redistribution strategies adhere to the principle of preferring simplicity over complexity, offering prudent measures designed to maintain liquidity and confidence within the lending pool ecosystem. By enabling manageable liquidation processes and equitable loss distribution, these mechanisms safeguard against the systemic risks posed by insolvent positions and potential liquidity crises, notably in a fully autonomous manner without requiring any form of external intervention. ### Pause Mode[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#pause-mode "Direct link to Pause Mode") This extension implements an autonomous Pause Mode mitigating potential financial risks and preventing liquidity crises, commonly referred to as a "bank run." The mechanism's primary objectives are to limit the accumulation of losses within a pool and to avert race conditions that can lead to such panics. Central to this approach is the concept of measuring pool health through aggregate solvency, analogous to individual positions within the pool, and oracle liveness. The extension autonomously initiates a pause and, if necessary, a shutdown of a lending pool upon detecting an unhealthy state among any of its lending pairs. ![Vesu Pool Pause](https://docs.vesu.xyz/assets/images/vesu-pool-pause-0690f92e0b0bbda142e8f6fb895f4ca6.png) Upon entering an unhealthy state, the pool transitions into a "pause" mode, during which interactions that could potentially worsen its financial health are restricted. Instead, activities that contribute to improving solvency - such as collateral deposits or debt repayments - are encouraged. This phase aims to allow the pool an opportunity to return to solvency within a specified recovery period. Failing to achieve solvency within this timeframe results in the pool entering a shutdown mode, which precludes the possibility of recovery. Instead, the shutdown mode enables an orderly withdrawal of deposited assets for pool participants. In essence, this shutdown mechanism provides a systematic approach to winding down insolvent lending pools within immutable protocols, prioritizing the recovery of solvency where possible and facilitating an organized asset redemption process in cases where recovery is unattainable. Conclusion[​](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#conclusion "Direct link to Conclusion") --------------------------------------------------------------------------------------------------------------- Through its unique governance-free model, permissionless lending pools, and the implementation of versatile lending hooks inspired by Uniswap v4, Vesu provides a neutral, efficient, and secure lending environment that addresses the dynamic needs of lenders, borrowers, and developers. The factory extension's adaptive interest rate model, reliable oracle design, and effective liquidation strategy underscore its commitment to optimizing user experience and market stability. Moreover, the bad debt redistribution and pause mode features reflect Vesu's proactive approach to managing financial risks and ensuring the protocol's resilience. As Vesu continues to evolve and its lending hook implementations further diversify, it stands poised to redefine the standards of onchain lending, offering a blueprint for future innovations in the DeFi space. * [Intro](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#intro) * [Vesu Lending Hooks](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#vesu-lending-hooks) * [Factory Extension](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#factory-extension) * [Adaptive Interest Rates](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) * [Autonomous Oracle](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#autonomous-oracle) * [Liquidation Strategy](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#liquidation-strategy) * [Bad Debt Redistribution](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#bad-debt-redistribution) * [Pause Mode](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#pause-mode) * [Conclusion](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#conclusion) --- # Vesu Protocol | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Introduction[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#introduction "Direct link to Introduction") ---------------------------------------------------------------------------------------------------------------- Vesu is the latest innovation in DeFi’s lending sector, enabling fully permissionless, over-collateralized lending markets that combine the strengths of both pooled and isolated liquidity systems. It integrates Aave-inspired lending pools to enhance efficiency, alongside the provision for permissionless pool creation, thereby removing the governance overhead found in existing lending markets and maximizing decentralization. At its core, Vesu delivers an experience reminiscent of Aave, offering users access to aggregated liquidity in lending markets. This framework facilitates the lending and borrowing of designated assets under specific conditions. However, Vesu diverges from Aave in its unwavering commitment to unpermissioned, truly neutral protocols. By adopting this stance, Vesu allows the “free markets” to coordinate around capital allocation instead of a central governance unit. But beyond the “free markets” approach, Vesu also offers numerous technical advantages to provide users with the best user experience and rates. Let’s take a look at a few of these features. Lending Pool Design[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#lending-pool-design "Direct link to Lending Pool Design") ------------------------------------------------------------------------------------------------------------------------------------- Much like market leader Aave, Vesu is designed to support maximal liquidity pooling and capital efficiency. However, other than Aave, Vesu is a modular protocol and supports permissionless pool creation. While all liquidity is managed in a monolith, risk is isolated between pools. To better understand the benefits of such a design, let’s first back up and understand the different, specific elements that come together to form a lending protocol, such as a position, a lending pair, and a lending pool. The deposits and debts of the Vesu protocol are tracked by “positions”. A single position keeps track of the collateral assets supplied and debt assets borrowed by the position owner in a specific lending pair. Unlike platforms like Aave, which utilize a global account model to track interactions within a pool, Vesu allows users to maintain distinct positions for each lending pair, facilitating precise oversight of individual pairs. This design enables the enforcement of pair-specific loan-to-value (LTV) ratios, directly addressing the unique risk profiles associated with each lending pair. Opting for simplicity, Vesu's approach further reduces implementation complexity and increases security. ![Vesu Lending Pair](https://docs.vesu.xyz/assets/images/vesu-lending-pair-ce974a766ad3ee126ed3ce01cad01d7f.png) A lending pair constitutes a one-way lending agreement, enabling participants to deposit a designated collateral asset (e.g., WETH) in exchange for borrowing a specific debt asset (e.g., USDC). In Vesu, this process is governed by a predetermined loan-to-value (LTV) ratio, underpinned by liquidation protocols to enforce compliance. Due to the permissionless nature of Vesu’s pools, lending pairs are configurable during the creation of a new lending pool. Expanding from the foundation laid by lending pairs, lending pools facilitate more elaborate lending configurations through the amalgamation of multiple lending pairs. This arrangement allows for the pooling of assets, thus serving as collective liquidity for all constituent lending pairs within a pool. This design principle not only enhances capital efficiency but also maintains liquidity isolation across different lending pools, effectively segmenting risk (more on this later). Illustrating the versatility of lending pools: * Pool A exemplifies the simplest form of a lending pool configuration, comprising a single lending pair. This arrangement allows for the borrowing of USDC against WETH collateral, adhering to a maximum loan-to-value ratio of 80%. * Pool B introduces a bi-directional configuration, where collateral assets are interchangeable with debt assets. This mirrors the traditional financial practice of rehypothecation, wherein collateral assets are reused to augment capital efficiency. However, this practice inherently introduces additional risks through the creation of collateral chains. While Vesu lending pools do not inherently offer borrowers the option to opt out of their collateral being rehypothecated, the utilization of uni-directional lending pairs provides a nuanced level of control over the activation of collateral rehypothecation at the pool level. * Pool C unveils a configuration that accommodates the borrowing of USDC with various collateral assets. Each lending pair within this pool prescribes a specific, collateral-dependent maximum loan-to-value ratio crucial for balancing capital efficiency against the safety nets provided by liquidation protocols. ![Vesu Lending Pool](https://docs.vesu.xyz/assets/images/vesu-lending-pool-18380e863c44752a09010e6c03c3fda4.png) Risk Isolation[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#risk-isolation "Direct link to Risk Isolation") ---------------------------------------------------------------------------------------------------------------------- Isolated pools represent discrete lending environments that cater to a specific assortment of assets. This approach is notably different from a unified cross-collateral pool where any asset might be borrowed against another. While isolated pools do not eliminate risk, they do confine it to the individual pool instead of the protocol's entire total value locked (TVL). In this design, each pool has its own liquidity and risks, separate and apart from the other pools in the Vesu ecosystem. This mechanism acts as a form of risk containment for assets deemed as higher risk. Moreover, the advent of isolated pools allows for the introduction of a broader range of assets and the adoption of more daring operational parameters. “Bad debt” occurs within a lending pool when the liquidation process fails to cover the total outstanding debt when selling the collateral tied to a position. This scenario is akin to traditional bank runs, where even the mere anticipation of bad debt, irrespective of its actual presence, can trigger a rush to withdraw the remaining liquidity from a pool. A proven strategy to counteract the risk of such liquidity crises involves the communal absorption of any developing shortfall among the liquidity providers of the pool. Vesu takes a similar approach. Consequently, any emerging shortfall is apportioned among the liquidity providers according to their share of the liquidity pool and executed within the same transaction that sees the shortfall arise. This method of immediate “bad debt” absorption stops a potential “bank run” scenario. Price Oracle[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#price-oracle "Direct link to Price Oracle") ---------------------------------------------------------------------------------------------------------------- The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. Traditionally, this solvency check is conducted using external data feeds known as oracles, which supply real-time price data. Recognized for their efficiency, oracles are central to most lending protocol designs. However, alternative methodologies exist that utilize internal mechanisms for price discovery. Within this framework, Vesu positions itself by outsourcing the oracle functionality to the extensions (more on that below) associated with each lending pool. This delegation of oracle price feeds to the extension allows pool designs to continuously innovate on the oracle solution. Lending Hooks[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#lending-hooks "Direct link to Lending Hooks") ------------------------------------------------------------------------------------------------------------------- The introduction of "lending hooks" by Vesu represents a significant stride toward flexibility and innovation. Lending hooks operate much in the same way than Uniswap v4 hooks with triggers after certain actions. These hooks are essentially separate programs that are invoked at various stages of user interaction with the lending protocol. Specifically, Vesu offers the following lending hooks: * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for user-defined custom logic and functionalities, ranging from oracle price feeds to interest rate calculations, position modifications and liquidations. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) Flash Loans[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#flash-loans "Direct link to Flash Loans") ------------------------------------------------------------------------------------------------------------- One of DeFi’s most innovative “unlocks” that separate it from TradFi has been the creation and evolution of flash loans. Flash loans, by design, are unsecured loans that must be repaid within the same transaction or the transaction is reverted. Vesu's particular integration of flash loans into its protocol allows flash loan users to access its protocol-wide liquidity rather than being confined to the liquidity available within individual pools. This access to global liquidity enables a plethora of advanced financial strategies, such as more efficient liquidations and sophisticated position rebalancing, that is not possible on other lending protocols. Another unique aspect of flash loans on Vesu is that users can utilize them without facing any fees. This fee-less approach underpins Vesu’s commitment to fostering an open and inclusive financial ecosystem. Conclusion[​](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- Vesu aims to set a new standard in the DeFi lending space by offering a unique amalgamation of pooled and isolated liquidity systems to create a modular, efficient, and fully decentralized lending protocol. Drawing inspiration from the current market leaders, Vesu enhances user experiences by facilitating access to aggregated liquidity and permitting permissionless pool creation. Its modular pool design and the incorporation of strict risk isolation coupled with Uniswap v4-style hooks offer a flexible and secure environment for users to freely create and experience a new wave of lending markets. By championing the principles of permissionless innovation and free-market capital allocation, Vesu not only addresses existing challenges within DeFi lending but also paves the way for a more inclusive, secure, and user-centric future in decentralized finance. * [Introduction](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#introduction) * [Lending Pool Design](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#lending-pool-design) * [Risk Isolation](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#risk-isolation) * [Price Oracle](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#price-oracle) * [Lending Hooks](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#lending-hooks) * [Flash Loans](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#flash-loans) * [Conclusion](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol#conclusion) --- # Vesu UX Principles | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#intro "Direct link to Intro") ------------------------------------------------------------------------------------------------ The evolution of blockchain technology from its niche presence to a mainstream technology underscores a critical need: enhancing user experience (UX) to meet the standards of conventional digital platforms. This requirement is even more pronounced in the decentralized finance (DeFi) sector, where current interfaces often present usability challenges and expose users to significant financial risks. Vesu aims to offer a superior UX comparable to that of FinTech apps while leveraging the power of DeFi technology “under the hood”. To achieve this goal, Vesu has partnered with [Argent](https://argent.xyz/) , the leading Wallet on Starknet and Web3 UX champion. ![Magic Meme](https://docs.vesu.xyz/assets/images/magic-meme-302e4cb4bcc8fa4a54bc2b1196b26a86.png "Magic Meme") DeFi UX Challenges[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#defi-ux-challenges "Direct link to DeFi UX Challenges") --------------------------------------------------------------------------------------------------------------------------------------- The blockchain ecosystem traditionally demands a high degree of technical understanding from its users. Engaging with blockchain technologies involves navigating complex cryptographic processes and managing transparent yet intricate transactions, which can render DeFi apps practically unusable and deter novice users. The following presents a (incomplete) list of key UX challenges in DeFi apps: * **Self-custody** requires users to securely store (and backup) their private keys in order to not lose access to their assets. This can be both a feature and a bug if users lack the appropriate tools e.g. for key recovery (hint to Web3 wallets). * **Transaction fees** pose a significant barrier to interact with DeFi apps. The fact that each interaction with an app can be very costly and has to be paid in a blockchain’s native token makes it currently impossible for DeFi to scale. * **Token spend approvals** are required for most interactions. Oftentimes DeFi apps require explicit approval transactions making the use less convenient and more expensive. Furthermore, unused approvals pose a significant security risk for users as evidenced by billions of USD hacked over the past years. * **Transaction decoding**, in Web3 wallets, is required for users to understand the result of a signed transaction. This poses a significant risk of "blind signing," where users approve transactions presented as indecipherable hashes and thus mislead users into approving unintended actions potentially leading to "wallet drains." * **Wallet Compatibility**: User deposits in DeFi apps are often tracked with internal positions. However, these positions are not represented using standard interfaces and thus are not compatible with Web3 wallets. As a result, wallets are not able to show a user’s positions across DeFi apps requiring users to connect to the individual apps. * **Transparency on risks and fees** is mostly insufficient, meaning that users are unable to make informed decisions. As a result, users are at risk of incurring unexpected losses or costs when interacting with a DeFi app. Clearly, these challenges are not solved by a single player but require careful orchestration across different layers in the DeFi stack such as wallets, protocols and apps. Argent Wallet has been a driving force in improving Web3 UX with innovations like “account abstraction,” “social recovery” and an early L2 roadmap. Vesu too strives to be at the forefront of DeFi UX. Together with Argent we have therefore identified a number of UX principles that will benefit Vesu users with a seamless and secure lending experience. Vesu UX Principles[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#vesu-ux-principles "Direct link to Vesu UX Principles") --------------------------------------------------------------------------------------------------------------------------------------- ### 1\. Minimize gas fees[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#1-minimize-gas-fees "Direct link to 1. Minimize gas fees") We built Vesu on Starknet because it offers the best “decentralization - security - scalability” (aka the blockchain trilemma) tradeoff. Starknet boasts the lowest transaction fees across L2s (see comparison below), and its roadmap offers a clear path towards unlocking more scaling improvements. ![L2 Tx Fee Comparison](https://docs.vesu.xyz/assets/images/l2-tx-fee-comparison-6b20ba1a03c8e95c9051867afa4da34f.png "L2 Tx Fee Comparison") _Source: [GrowThePie](https://fees.growthepie.xyz/) _ This means that Vesu users don’t have to worry about spending more on transactions than earning on deposits. ### 2\. Transaction Bundling[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#2-transaction-bundling "Direct link to 2. Transaction Bundling") On Vesu multiple actions are always bundled in a single transaction using Starknet’s native multicall protocol. For example, token spend approvals are always bundled with the actual position action on Vesu. ![Vesu Approval Revokes](https://docs.vesu.xyz/assets/images/vesu-tx-bundling-c901b7079d13ac541de5bc3169b32578.png "Vesu Approval Revokes") With Starknet's native account abstraction and multicall features, this in fact results in minimal overhead and results in a seamless UX. As a result, Vesu users are never required to sign, and pay for, multiple transactions even if an interaction requires multiple steps. ### 3\. Revoke Spend Approvals[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#3-revoke-spend-approvals "Direct link to 3. Revoke Spend Approvals") A key UX principle is automatically revoking unused token spend approvals when a user exits the app. Therefore, users are either asked to approve only a known amount of tokens spent, or an approval reset is appended to the transaction. This proactive measure ensures that malicious bugs or attackers do not create openings for potential fund drainage, safeguarding users' assets more effectively than many other protocols. ### 4\. Tokenized Deposits[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#4-tokenized-deposits "Direct link to 4. Tokenized Deposits") Vesu pools, through the [factory extension](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#factory-extension) , issue a yield-bearing token, called the **vToken**, reflecting the deposited assets and the accumulated interest. This token implements the ERC4626 interfaces, a “tokenized vaults” standard that extends the ERC20 token standard and has found widespread use in the Ethereum ecosystem. Apart from the ERC20 transfer-related and metadata interfaces, this standard also enables convenience around wallet integration and overall UX improvements. ![Vesu vToken](https://docs.vesu.xyz/assets/images/vToken-2badd6ee76336f73d646de0b579cc9c3.png "Vesu vToken") In order to unlock similar improvements and security across Starknet’s DeFi ecosystem we have created a Starknet Improvement Proposal (SNIP) which can be found [here](https://github.com/starknet-io/SNIPs/pull/85) . ### 5\. Transparency[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#5-transparency "Direct link to 5. Transparency") Vesu values clarity and transparency in user interactions, especially regarding the critical aspects of risks, rewards, and fees associated with lending and borrowing activities. This commitment is summarized by the following principles: * **Show effective APYs** and borrow cost, instead of current (irrelevant) numbers * **Continuous risk assessment** and mitigation (read more [here](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework) ) * **Full fee transparency** means Vesu users have visibility on all fees ![Vesu APY Transparency](https://docs.vesu.xyz/assets/images/vesu-fee-transparency-fb29716abbdf812962607f2aedbafb97.png "Vesu APY Transparency") By presenting this information user-friendly and intuitively, Vesu ensures that users are fully informed and can make decisions with a clear understanding of potential outcomes. ### 6\. Optimistic Position Updates[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#6-optimistic-position-updates "Direct link to 6. Optimistic Position Updates") Vesu leverages optimistic position updates to enhance the UX and create a seamless user journey. This means that users see their position updates immediately, without waiting for the transaction to finalize on the blockchain. This real-time feedback eliminates the latency typically associated with the underlying blockchain transactions. If a transaction fails, these updates are automatically reverted, ensuring the information users see is always accurate and up to date. This innovative feature improves general usability, bringing Vesu one step closer to the looks and feels of a FinTech app. Conclusion[​](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#conclusion "Direct link to Conclusion") --------------------------------------------------------------------------------------------------------------- The evolution of blockchain technology, particularly in the DeFi sector, demands an emphasis on user experience to drive wider adoption and improve security. Vesu mitigates the complexities and risks traditionally associated with blockchain and DeFi interactions by leveraging Starknet’s low transaction fees and unique capabilities, and systematically bundling user transactions. This approach not only simplifies the onboarding and transaction processes for users but also establishes a new standard for transparency and user engagement in the DeFi landscape. As the Starknet ecosystem continues to evolve, platforms like Vesu are crucial in bridging the gap between cutting-edge DeFi technology and the usability standards expected by everyday users. * [Intro](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#intro) * [DeFi UX Challenges](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#defi-ux-challenges) * [Vesu UX Principles](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#vesu-ux-principles) * [1\. Minimize gas fees](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#1-minimize-gas-fees) * [2\. Transaction Bundling](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#2-transaction-bundling) * [3\. Revoke Spend Approvals](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#3-revoke-spend-approvals) * [4\. Tokenized Deposits](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#4-tokenized-deposits) * [5\. Transparency](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#5-transparency) * [6\. Optimistic Position Updates](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#6-optimistic-position-updates) * [Conclusion](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles#conclusion) --- # Vesu Risk Framework | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#intro "Direct link to Intro") ------------------------------------------------------------------------------------------------- Vesu democratizes access to financial infrastructure, enabling anyone to lend, borrow, and create new lending markets. This "free markets" approach places risk management squarely in the hands of users, underscoring the importance of transparency and informed decision-making. Technological vulnerabilities, counterparty risk, and market volatility are among the key concerns. Vesu thus equips users with a comprehensive _Risk Framework_ creating a transparent and safe environment for lenders, borrowers alike. This article delves into the intricacies of Vesu's Risk Framework and the methodologies employed to assess and communicate risks, empowering users to safely navigate this new open and permissionless world. Main Idea Behind the Risk Framework[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#main-idea-behind-the-risk-framework "Direct link to Main Idea Behind the Risk Framework") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- "There is no free lunch" is a key principle of finance hinting to the fact that financial opportunities generally come with a risk for investors. This also applies to DeFi and may even be amplified by the open and permissionless nature of these new markets. ![N0 Free Lunch](https://docs.vesu.xyz/assets/images/no-free-lunch-bd6d8eecc5fa7427d329a506b1c148da.jpg) _Source: [https://mises.org/mises-wire/why-there-no-free-lunch](https://mises.org/mises-wire/why-there-no-free-lunch) _ The inherent risks within DeFi lending markets are multifaceted, encompassing smart contract vulnerabilities, dependencies on external price oracles, market volatility and liquidity issues, and counterparty concerns, among others. These elements underscore the pressing need for a comprehensive risk framework capable of addressing the unique characteristics of DeFi protocols. Such a framework would not only facilitate the accurate measurement of risk for a specific lending pool but also transparently and intuitively communicate these risks to users. In doing so, it could significantly improve user's decision making and diminish barriers to entry for new users. A successful risk assessment methodology for lending markets must be adaptive, reflecting the highly dynamic essence of the sector. It should provide a structured approach to identifying and quantifying risks, incorporating both quantitative and qualitative analysis to offer a holistic view of the exposed risk levels within a lending pool. Moreover, this framework must evolve in tandem with the innovation of new lending models and the DeFi ecosystem itself, accommodating new risks as they arise. Vesu’s risk framework is a step in that direction, offering a comprehensive methodology for evaluating and conveying the risks associated with depositing assets into a specific market, through an intuitive risk rating. This framework empowers lenders and borrowers to assess lending markets accurately, identify those that align with their risk profiles, and make informed decisions regarding their asset allocations. Developers can leverage the risk framework to make informed decisions when creating new lending markets or building extensions, ensuring the longevity and sustainability of the protocol. Methodology[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#methodology "Direct link to Methodology") ------------------------------------------------------------------------------------------------------------------- Our methodology builds on the general risk concept that suggests that `risk = likelihood x impact`. It focuses on a single risk impact metric: `impact := "loss of funds"`. Risk assessment thus relates to the estimation of a risk event's likelihood. ![Vesu Risk Framework](https://docs.vesu.xyz/assets/images/vesu-risk-framework-aa783930fc978e9033154b7366b3429c.png) The risk methodology involves a continuous process resulting in a) identification of relevant risk events, b) risk rating, c) communication of risks, and d) mitigation measures. ### a) Risk Identification[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#a-risk-identification "Direct link to a) Risk Identification") This step involves compiling a list of risk events related to a lending market and resulting in the aforementioned impact: "loss of user funds". Risk events can stem from the design, implementation, or configuration of a lending market or the respective asset and includes technical, economic, and counterparty risks. The main risk events, or categories respectively, identified in Vesu’s model are: * **Pool Risk**: Pool risk includes the technical risks innate in smart contract code, including potential flaws in the framework or execution of the pool or its extension's logic. Additionally, counterparty risk in a pool can arise from central points of control within the pool's operational structure and the management procedures surrounding them. * **Asset Risk**: This event deals with the risks tied to the specific asset being deposited into a pool. It covers the potential for flaws within the smart contract, as well as depeg risk. Furthermore, counterparty risks are highlighted, stemming from centralized control points within the token's framework, its dependencies, and the governance mechanisms that oversee these aspects. * **Oracle Risk**: Decentralized lending mechanisms, such as Vesu's pool model, are susceptible to targeted economic attacks, particularly through price oracle manipulation. Malevolent actors may exploit the oracles by artificially inflating the prices of certain tokens. Such maneuvers involve the use of less liquid tokens to distort their value, subsequently leveraging this inflated valuation to maximize borrowings. This practice burdens the protocol with unsustainable debt, highlighting the critical need for robust security measures and vigilant monitoring of oracle activities to deter manipulation. * **Market Risk**: The DeFi sector is no stranger to the whims of market volatility, which poses a substantial risk to participants. Sharp declines in the value of collateral can precipitate situations where collateral ratios plummet to 100% or lower, triggering liquidation cascades. Similarly, market liquidity is another driver of market risk effectively defining a market's ability to absorb liquidations. If not properly accounted for, these factors can result in failed liquidations leading to _bad debt_ and losses incurred by lenders in a market. * **Collateral Risk**: This parameter highlights how risks can transfer across different assets via a sequence of collateralized positions or collateral chains. Even if the primary asset appears secure, it might absorb the risks associated with the assets used as its collateral, or the collateral asset's collateral. Collateral chains thus serve as an important risk translation mechanism that can only be mitigated by isolating collateral from liquidity assets in a pool. ### b) Risk Rating[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#b-risk-rating "Direct link to b) Risk Rating") Remember, `risk = likelihood x impact`. This step concerns allocating a risk rating to the identified risk events. This rating relies on estimating a risk event's likelihood, or how likely the event is to occur. For some risk events, the likelihood can be expressed as a statistical probability of occurrence within a given time period. However, in most cases, a qualitative approach is necessary due to a lack of data. Our risk rating methodology uses a qualitative likelihood score consisting of four likelihood levels as shown in the table below. | Likelihood | Description | | --- | --- | | Neutral ⬜ | Impossible for the risk event to occur | | Low 🟩 | Risk event is unlikely to occur | | Medium 🟨 | Risk event is unexpected but possible to occur | | High 🟥 | Risk event is expected or unable to assess likelihood | Applied to each of the identified risk events, these scores result in a multidimensional _Risk Scorecard_ providing full risk transparency on Vesu markets. We further aggregate these scores into a **holistic rating** reflecting the likelihood for any of the risk events to occur in a certain market. This holistic risk rating caputures the **worst score across all events**. Consequently, a Vesu market's overarching risk rating mirrors the worst-case risk across all events. ### c) Risk Declaration[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#c-risk-declaration "Direct link to c) Risk Declaration") Risk declarations form the third step in our methodology. The objective of this step is to communicate risks in a transparent and intuitive way towards users and other stakeholders. For this purpose, the results of the risk assessment are published in a dedicated section in the Vesu docs and are thus accessible to anyone. Furthermore, the risk scorecards and holistic rating (see Screenshot below) for each market are available in the Vesu app for full transparency. ![Vesu Risk Scorecard](https://docs.vesu.xyz/assets/images/ether-risk-scorecard-0b93e1decb8c72ecb8382d176e425064.png) Users and the community thus have full visibility on the identified risks allowing everyone to make informed decisions when interacting with Vesu markets. ### d) Risk Mitigation[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#d-risk-mitigation "Direct link to d) Risk Mitigation") Vesu is a fully open and permissionless protocol allowing anyone to create new lending markets. The absence of protocol governance means that only the creator can control the risk exposed by a lending market. Risk mitigation thus has to be implemented on different levels as shown in the following table. | Level | Owner | Mitigation Strategy | | --- | --- | --- | | Protocol | Market creator | Configure markets targeting appropriate risk rating | | Frontend | Frontend provider | Curate list of markets with acceptable risk rating | | User | User | Deposit in markets with acceptable risk rating | As a frontend provider, we play an important role in facilitating access to the Vesu protocol in a secure and risk-aware manner. The Vesu frontend will thus curate the list of lending markets exposing only markets with a well understood risk profile. That said, since a frontend is only an optional access point, users may still chose to access non-listed markets directly, bypassing the Vesu frontend. Conclusion[​](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------------- The Vesu protocol is a fully open and permissionless lending protocol that empowers users to lend, borrow, and create new lending markets without restrictions. As with any lending platform, Vesu users face inherent risks. To address this, the Vesu Risk Framework introduces a risk assessment method inspired by established risk management best practices. At the heart of this methodology is a comprehensive risk rating system, designed to evaluate and convey the various risks associated with each lending market. Using this rating system, risks are transparently and intuitively communicated to users and the community, thereby facilitating well-informed decision-making. * [Intro](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#intro) * [Main Idea Behind the Risk Framework](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#main-idea-behind-the-risk-framework) * [Methodology](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#methodology) * [a) Risk Identification](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#a-risk-identification) * [b) Risk Rating](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#b-risk-rating) * [c) Risk Declaration](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#c-risk-declaration) * [d) Risk Mitigation](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#d-risk-mitigation) * [Conclusion](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework#conclusion) --- # Vibing with Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#__docusaurus_skipToContent_fallback) ![Vibe with Vesu](https://docs.vesu.xyz/assets/images/zero-to-top3-b05c2609eed2828896956b59d1be8939.png) Reflecting on 2024 Milestones and What’s Next[​](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#reflecting-on-2024-milestones-and-whats-next "Direct link to Reflecting on 2024 Milestones and What’s Next") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- As we step into 2025, we’re proud to share how far we’ve come. In just six months, Vesu has risen to **3rd in TVL among all Starknet projects!** ![Vesu Protocol Rankings](https://docs.vesu.xyz/assets/images/top3light-68c908fd9a27fb5056d8b8c1b1071381.png) _Protocol Rankings by DeFiLlama (01/14/25)_ This milestone reflects the incredible support and trust from our growing community. Let’s take a moment to celebrate the key achievements of 2024 together. Key Milestones of 2024[​](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#key-milestones-of-2024 "Direct link to Key Milestones of 2024") --------------------------------------------------------------------------------------------------------------------------------------------- **Launch Day:** July 10, 2024 – the day it all began! 🥳 **Multiply:** The first feature launched on Vesu—and a Starknet-first! A game-changer for users looking to amplify exposure to their favorite assets. **Pools Page Launch:** Create fully customizable pools and unlock fresh, exciting lending markets. Your pool, your rules. **Re7 Labs as Curator:** Big news for Vesu and Starknet—Re7 Labs, a leading DeFi risk expert, became our first curator. Their xSTRK and sSTRK pools opened up exciting new earning opportunities. **Stake & Earn:** Why complicate things? With Vesu, earning 20% APY with your STRK is a breeze. Staking rewards and DeFi Spring rewards come together in one single step. Stake & earn [now](https://vesu.xyz/stake-and-earn) . 👉 Dive into our [2024 recap on X](https://x.com/vesuxyz/status/1871496693293744317) for more exciting highlights and milestones! Looking Ahead[​](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#looking-ahead "Direct link to Looking Ahead") ------------------------------------------------------------------------------------------------------------------ 2025 is set to be a big year for Vesu, with a sharp focus on seamless UX, innovation, and security. Here’s what’s on the horizon: **🌸 DeFi Spring Campaign Continues** The rewards program has been extended until all 90M STRK are distributed. **🤖 DeFAI** From simple rule-based automations to AI agents, we’re unlocking smarter ways to manage pools and positions. **🌍 Expanding Ecosystem** Welcoming new curators, liquidity providers, and partnerships within Starknet and the EVM ecosystem. **⚡ DeFi for Bitcoin** Bridging Bitcoin into Starknet-powered DeFi—unlocking fresh opportunities for BTC holders. Starknet’s tech is ready to scale with lower fees and faster transactions, creating the perfect environment for DeFi innovation—and Vesu is ready to lead the way. Thank You![​](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#thank-you "Direct link to Thank You!") -------------------------------------------------------------------------------------------------------- Your feedback and engagement have made everything we’ve achieved possible. Together, we’re shaping the future of DeFi on Starknet. Stay connected for the latest updates: * Follow us on **[X](https://twitter.com/vesuxyz) ** * Join the community on **[Discord](https://discord.com/invite/G9Gxgujj8T) ** * [Reflecting on 2024 Milestones and What’s Next](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#reflecting-on-2024-milestones-and-whats-next) * [Key Milestones of 2024](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#key-milestones-of-2024) * [Looking Ahead](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#looking-ahead) * [Thank You!](https://docs.vesu.xyz/blog/2025-01-15-zero-to-top3#thank-you) --- # Hello SNIP-22 | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/snip-22_banner-938159dcadd378eb7aca1de6e70ecd40.png) ### Announcing SNIP-22: Tokenized Vaults on Starknet[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#announcing-snip-22-tokenized-vaults-on-starknet "Direct link to Announcing SNIP-22: Tokenized Vaults on Starknet") Starknet is continuously evolving to support the diverse needs of DeFi applications and Vesu is at the forefront of these developments. Today we are happy to announce that the **Tokenized Vaults** Starknet Improvement Proposal, [SNIP-22](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) , authored by the Vesu team, has been merged to the official repository of Starknet standards. This proposal aims to extend the existing fungible token standard, SNIP-2, by incorporating new functionalities for tokenized yield-bearing vaults, unlocking efficiency, security and better experience for Starknet developers and users. ### What is SNIP-22?[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#what-is-snip-22 "Direct link to What is SNIP-22?") SNIP-22 introduces a standardized framework for creating tokenized, yield-bearing vaults on Starknet. These vaults represent shares of an underlying asset, allowing users to perform various operations such as deposit, withdrawal, and converting between shares and asset balances. Other than _rebasing_ tokens, like stETH or Aave's aETH, aUSDC, etc., SNIP-22 tokenized vaults accumulate yield through a growing conversion rate between vault shares and the underlying asset allowing holders to redeem their shares for an increasing amount of the asset. The proposal is heavily inspired by Ethereum's [EIP-4626](https://eips.ethereum.org/EIPS/eip-4626) , which has found wide adoption in the Ethereum ecosystem. ![SNIP-22](https://docs.vesu.xyz/assets/images/snip-22_concept-3a1d05fba9a798a40898bc2d4b8183a2.png "Tokenized Vault (SNIP-22)") ### Motivation and Benefits[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#motivation-and-benefits "Direct link to Motivation and Benefits") Tokenized vaults are a fundamental component of many DeFi applications, including lending markets, yield aggregators, and interest-bearing tokens. However, the current implementations often expose diverse and non-standardized interfaces, leading to increased integration effort and potential security risks. SNIP-22 addresses these challenges by proposing a standard API for tokenized vaults that would: 1. **Foster composability**: Composability is achieved by well-defined, open interfaces and SNIP-22 has the potential to unlock similar innovation and growth than what SNIP-2 (or ERC-20) has brought for standard fungible tokens. 2. **Lower Integration Efforts**: With a standardized interface, developers of DeFi protocols, aggregators, and wallets can more easily integrate tokenized vaults, thereby reducing development time and costs. 3. **Enhance Security**: Standardization requires less custom code for integrations and adapters and thereby lowers the likelihood of introducing security vulnerabilities. 4. **Improve User Experience (UX)**: A consistent approach across different vaults ensures a smoother experience for end-users holding vault shares in their wallet or interacting with various DeFi applications. ### Key Specifications[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#key-specifications "Direct link to Key Specifications") Here are some of the essential aspects of SNIP-22: * **SNIP-2 Compatibility**: All tokenized vaults must implement the SNIP-2 standard. This ensures that existing infrastructure and tools that already support SNIP-2 can seamlessly integrate with tokenized vaults. * **Vault Metadata**: SNIP-22 requires vaults to expose a number of metadata including the optional SNIP-2 metadata and the address of the vault's underlying (`asset`). * **Asset and Shares Management**: The standard defines a comprehensive set of functions for the retrievel of basic vault data (`total_assets` and `total_supply`) and the management of shares and assets (`deposit`, `withdraw`, `mint` and `redeem`). * **Conversion and Preview**: Tokenized vaults must further provide functions for the conversion between shares and assets (`convert_to_shares` and `convert_to_assets`) and simulation or preview of interactions (`preview_deposit`, `preview_mint`, etc.). The following diagram gives an overview of the standard. ![SNIP-22 API](https://docs.vesu.xyz/assets/images/snip-22_api-1f52c99078e1234f3631b10fa6d0b49f.png) ### Security Considerations[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#security-considerations "Direct link to Security Considerations") While SNIP-22 provides a robust framework for creating and managing tokenized vaults, it is essential to note that the standard itself does not govern the safety of the underlying assets or the associated yield-generating strategies. It further does not ensure safety of certain implementations of the tokenized vault standard. Therefore, developers and users must carefully evaluate the specific implementations and the yield strategies to ensure consistency and security. ### Reference Implementation[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#reference-implementation "Direct link to Reference Implementation") Vesu's _vTokens_ are the first tokenized vaults on Starknet to implement the SNIP-22 standard. Our vToken implementation is audited by ChainSecurity and CairoSecurityClan and can be found [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/v_token.cairo) . While certain functions are specific to our use case, we hope that the implementation can serve other teams as a reference and unlock more innovation across Starknet's growing DeFi ecosystem. ### What's Next[​](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#whats-next "Direct link to What's Next") The inclusion of SNIP-22 in Starknet's official standards repository marks the first step in growing the awareness and adoption of the tokenized vault standard on Starknet. An important next step is to provide a neutral and secure reference implementation for the tokenized vault standard. Similar to the `ERC4626.sol` extension in their Solidity library, we will advocate for a SNIP-22 extension in OpenZeppelin's cairo-contracts library. Furthermore, the [4626 Alliance](https://erc4626.info/) has done an outstanding job at creating awareness and pushing adoption of the tokenized vault standard on Ethereum and EVM chains. Their webiste and repository of existing vaults is a great place draw inspiration for battle tested vault architectures and new use cases. For Starknet it can serve as a great place to showcase our implementations and growing DeFi ecosystem. Finally, we invite everyone to provide feedback and join the conversation on the [Starknet Community Forum](https://community.starknet.io/t/snip-22-tokenized-vaults/114457) . Happy building! * [Announcing SNIP-22: Tokenized Vaults on Starknet](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#announcing-snip-22-tokenized-vaults-on-starknet) * [What is SNIP-22?](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#what-is-snip-22) * [Motivation and Benefits](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#motivation-and-benefits) * [Key Specifications](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#key-specifications) * [Security Considerations](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#security-considerations) * [Reference Implementation](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#reference-implementation) * [What's Next](https://docs.vesu.xyz/blog/2024-09-12-hello-snip-22#whats-next) --- # Introducing Multiply! | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#__docusaurus_skipToContent_fallback) ![Announcement: New Feature called Multiply](https://docs.vesu.xyz/assets/images/new-feature-multiply-046379b39d4a70af28979804bdfde588.png) ### Introducing Flashloan-Powered Multiply Feature![​](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#introducing-flashloan-powered-multiply-feature "Direct link to Introducing Flashloan-Powered Multiply Feature!") We are thrilled to announce the launch of our brand-new **Multiply** feature, designed to supercharge your lending experience and optimize your DeFi strategies! ### What is Multiply?[​](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#what-is-multiply "Direct link to What is Multiply?") Our innovative feature lets you instantly borrow assets using Ekubo flashloans with no fees at all. This enables you to enter an increased position in your favorite Vesu market without needing to fully own the deposited assets. With Multiply, you can enhance your yield farming or arbitrage strategies quickly and securely. ### Why Use Flashloan-Powered Multiply?[​](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#why-use-flashloan-powered-multiply "Direct link to Why Use Flashloan-Powered Multiply?") * **Multiply Exposure:** Maximize your exposure to your favorite crypto assets. * **Multiply Earnings:** Take advantage of higher APY to boost profits. * **Multiply Efficiency:** Flashloans allow you to start with minimal initial capital. As always on Vesu, Multiply comes with a single-click, full-transparency and security-first UX. ### How to Get Started?[​](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#how-to-get-started "Direct link to How to Get Started?") 1. Head over to [Vesu.xyz](https://vesu.xyz/) and connect your wallet. 2. Navigate to the "Multiply" tab on the app. 3. Choose your preferred assets and multiplier. 4. Review the position and risk information and let our flashloan engine handle the rest! **Happy multiplying! 🚀** Stay tuned for more updates and tutorials on how to make the most of this powerful new tool. If you have any questions, feedback, or just want to connect with our community, we’d love to see you in our Discord: [Join here!](https://discord.com/invite/G9Gxgujj8T) To learn more about Vesu and our newest feature [visit our Docs](https://docs.vesu.xyz/) ! #### Disclaimer[​](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#disclaimer "Direct link to Disclaimer") Vesu is a fully permissionless lending protocol, allowing users to lend, borrow, and create new markets autonomously. This decentralized system puts risk management directly in the hands of users, who are responsible for their own strategies. Please ensure you thoroughly inform yourself of the risks before using the platform. * [Introducing Flashloan-Powered Multiply Feature!](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#introducing-flashloan-powered-multiply-feature) * [What is Multiply?](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#what-is-multiply) * [Why Use Flashloan-Powered Multiply?](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#why-use-flashloan-powered-multiply) * [How to Get Started?](https://docs.vesu.xyz/blog/2024-09-25-introducing-multiply#how-to-get-started) --- # BTCFi powered by Vesu V2 | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#__docusaurus_skipToContent_fallback) ![Vesu V2](https://docs.vesu.xyz/assets/images/VesuV2-b69e043611b6965c2843ef4dde69af47.png) **Vesu V2 is live! Just in time for the BTCFi Season on Starknet.** To kick things off, the Starknet Foundation is allocating **100M STRK** in rewards to anyone who brings their Bitcoin onchain and puts it to work. Vesu V2 makes that easier than ever. With a fully redesigned frontend, smarter contracts, and new curated pools by Re7Labs, Vesu is the main lending market powering BTCFi from day one. Borrow against Bitcoin, earn yield and more. All without giving up custody. Do More With Your Bitcoin[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#do-more-with-your-bitcoin "Direct link to Do More With Your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------------------------------------ Bitcoin is great, but using it has been tough. Until now, choices were limited: sell and lose exposure, trust a centralized lender, or pay high borrow rates. BTCFi on Starknet changes that. For the first time, you can access cheap liquidity. Without selling or giving up self-custody. ![borrow-usdc.png](https://docs.vesu.xyz/assets/images/borrow-usdc-0304992047cefd9cf5c080bb913aa375.png) **Example**: Deposit **LBTC** into the new **Re7 USDC Core** pool to borrow **USDC**. Your borrow costs get subsidized by STRK rewards. Use the extra liquidity as you like, deploy it into yield strategies, or spend with the Ready Card. Supply BTC to Earn[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#supply-btc-to-earn "Direct link to Supply BTC to Earn") --------------------------------------------------------------------------------------------------------------------------------------- Supplying Bitcoin earns BTCFi rewards and interest from borrowers. The new **Re7 xBTC** pool pairs staked Bitcoin with their native assets and creates strong borrow demand as users boost exposure and yield with Vesu’s Multiply feature. This leads to a healthy organic yield on top. ![earn.png](https://docs.vesu.xyz/assets/images/earn-04e3b3ce6e8f2e4bb74ffc334899e791.png) **Looking for something even simpler?** Vesu V2 introduces Vaults. A new strategy layer that automates yield on autopilot. At launch, we’re kicking things off with Bitcoin Vaults curated by 0D. Deposit BTC once. It gets supplied into Vesu, borrows stablecoins, and allocates them into 0D institutional-grade yield strategies. No micromanaging, no more chasing APRs. Multiply your staked Bitcoin[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#multiply-your-staked-bitcoin "Direct link to Multiply your staked Bitcoin") --------------------------------------------------------------------------------------------------------------------------------------------------------------------- Stake your Bitcoin on Starknet through Endur.fi to earn STRK staking rewards. For example, stake tBTC to receive xtBTC in return. Multiply the xtBTC against tBTC, increasing your exposure and boosting your yield. Because the assets are expected to move closely together, this strategy carries lower liquidation risk while still stacking staking rewards. Claim and Supported Assets[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#claim-and-supported-assets "Direct link to Claim and Supported Assets") --------------------------------------------------------------------------------------------------------------------------------------------------------------- Rewards are based on real usage. Borrowing earns rewards according to interest paid. Supplying BTC also qualifies, provided it’s non-recursive. They’re distributed weekly and become claimable every Friday (or anytime after that). **The following assets are eligible for BTCFi rewards:** Lending: wBTC, tBTC, LBTC, SolvBTC Borrowing: USDC, USDT, CASH More assets and ways to earn will be added as BTCFi Season continues. Vesu V2: Making DeFi simpler[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#vesu-v2-making-defi-simpler "Direct link to Vesu V2: Making DeFi simpler") -------------------------------------------------------------------------------------------------------------------------------------------------------------------- Vesu V2 takes everything learned from V1 and builds an even stronger foundation for DeFi on Starknet. * **Modern UX:** A clean, fast interface makes it easier to find the right opportunity * **Simplified Contracts:** Each pool now runs on its own isolated contract, improving security, reducing complexity, and lowering gas costs * **Vaults:** simply deposit to the vault to enjoy complex yield strategies on autopilot, enforced fully on-chain * **Security first:** Multiple audits; $100K Immunefi bug bounty and new features like onchain monitoring by Hypernative. ![Position and market view](https://docs.vesu.xyz/assets/images/wBTCUSDC-4bc556a11848196ff7c6377ca510d3fd.png) Vesu V2 strengthens UX and security while unlocking support for new assets and strategies. It is the liquidity hub for BTCFi on Starknet. The Big Picture[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#the-big-picture "Direct link to The Big Picture") ------------------------------------------------------------------------------------------------------------------------------ BTCFi isn’t just a rewards program. It's Bitcoin’s next chapter. Capital comes in through staking, Vesu makes it productive, and users borrow, lend, and spend. This approach rewards real activity, not idle deposits that leave when incentives end. Vesu becomes the bank for your Bitcoin, with liquidity ready to use anywhere. ### Explore Vesu V2 now:[​](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#explore-vesu-v2-now "Direct link to Explore Vesu V2 now:") * [Deposit tBTC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x04daa17763b286d1e59b97c283c0b8c949994c361e426a28f743c67bdfe9a32f/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) into the Re7 USDC Core pool. * [Borrow USDC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) against your LBTC. * [Multiply xsBTC](https://vesu.xyz/multiply/0x03a8416bf20d036df5b1cf3447630a2e1cb04685f6b0c3a70ed7fb1473548ecf/0x0580f3dc564a7b82f21d40d404b3842d490ae7205e6ac07b1b7af2b4a5183dc9/0x0593e034dda23eea82d2ba9a30960ed42cf4a01502cc2351dc9b9881f9931a68) with solvBTC. * Explore the new Bitcoin [Vaults](https://vesu.xyz/vaults) . * Learn more about V2 in our [docs](https://docs.vesu.xyz/) . * [Do More With Your Bitcoin](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#do-more-with-your-bitcoin) * [Supply BTC to Earn](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#supply-btc-to-earn) * [Multiply your staked Bitcoin](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#multiply-your-staked-bitcoin) * [Claim and Supported Assets](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#claim-and-supported-assets) * [Vesu V2: Making DeFi simpler](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#vesu-v2-making-defi-simpler) * [The Big Picture](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#the-big-picture) * [Explore Vesu V2 now:](https://docs.vesu.xyz/blog/2025-10-01-Vesu-v2-BTCFi-live#explore-vesu-v2-now) --- # What & Why We Build | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#__docusaurus_skipToContent_fallback) ![About Vesu: What & Why We Build](https://docs.vesu.xyz/assets/images/about-vesu-791418c188a502453c6fb4cd69e9f553.png) note In this post, we’ll walk you through what sets Vesu apart, our purpose, and the key features we’re bringing to life. DeFi is transforming the future of finance, with the Total Value Locked (TVL) reaching $177 billion in 2023 (Source: DefiLlama). But compared to the trillions of dollars in Assets under Management (AUM) within traditional finance, there’s still vast room for DeFi to grow. Vesu is here to drive that expansion with a platform that is **secure, user-friendly, and built for innovation**. Our Purpose[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#our-purpose "Direct link to Our Purpose") ---------------------------------------------------------------------------------------------------------- We are building a secure lending platform that opens decentralized finance to everyone. Lenders and borrowers gain access to optimal market conditions, backed by a user experience that rivals leading FinTech platforms. Vesu's robust infrastructure and developer tools are driving the evolution of DeFi. We empower developers to innovate, create new features, and seamlessly integrate with other platforms. What We Offer[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#what-we-offer "Direct link to What We Offer") ---------------------------------------------------------------------------------------------------------------- Vesu allows users to: * Supply: Earn passive income by supplying your crypto assets. * Borrow: Access capital without the need for intermediaries. * Build with us: Create your own markets. Innovate and build on top of Vesu’s infrastructure. Why choose Vesu?[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#why-choose-vesu "Direct link to Why choose Vesu?") ------------------------------------------------------------------------------------------------------------------------ Here’s what makes Vesu different and how we aim to improve DeFi: * **User Experience**: Vesu delivers a FinTech-like experience with the security of Ethereum, using Starknet features like multicalls to make DeFi accessible and user-friendly. With our direct integration into the Argent smart wallet for example, users are able to earn yield directly within the wallet. Learn more about our [UX principles](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles) . ![Integration in Argent Invest](https://docs.vesu.xyz/assets/images/argent-integration-c5c8bba5adf2ad165d86b5851561691d.png) * **Better Rates**: Vesu’s rates are set by a dynamic interest rate model that automatically adjusts based on real-time demand, ensuring fair and efficient rates without the need for slow, manual governance. This approach allows the market to naturally balance supply and demand, so users always get the best possible borrowing conditions. * **Better Risk Control**: All lending pools have separate risks that don’t affect other pools. Within a pool, depositors share risk only with others in the same pool. Each lending pair within a pool has a specific maximal loan-to-value (LTV) ratio, set by the pool creator, which is critical for enabling both capital efficiency and liquidation safety. * **Innovation**: By creating a flexible and open infrastructure we enable continuous development and innovation, allowing both our team and external developers to build on top of Vesu’s platform. Examples of this include features like Multiply and the upcoming Automations. * **Create New Market**: Anyone can create new markets tailored to their preferences, including custom settings like loan-to-value (LTV) ratios, interest rate models, or oracle choices, among others. * **Security**: Keeping user funds safe is the highest priority. We have [multiple audits](https://docs.vesu.xyz/security/audits) and a [$100,000 Immunefi bug bounty](https://immunefi.com/bug-bounty/vesu/information/) . The Vesu team is publicly known, with strong security practices. We take these and many more steps to keep Vesu safe and secure. Next Steps[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#next-steps "Direct link to Next Steps") ------------------------------------------------------------------------------------------------------- ### Multiply Improvements & Automation Features[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#multiply-improvements--automation-features "Direct link to Multiply Improvements & Automation Features") We are continuously refining the Multiply feature based on feedback from our community. Our goal is to make managing your positions even easier and more secure. Upcoming improvements will include automation features designed to help users maintain for example a healthy Loan-to-Value (LTV) ratio, reducing the risk of liquidation. ### Custom Pool Creation[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#custom-pool-creation "Direct link to Custom Pool Creation") While it’s already possible to create new markets on Vesu, we are working on a Custom Pools page with an intuitive interface. This new frontend will make it easy for anyone to create and manage their own lending pools. An exclusive preview screenshot is available below. ![Preview of new Pools Page](https://docs.vesu.xyz/assets/images/pools-page-small-4197eef4091529eabe1bf580d118123a.png) ### Vesu API[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#vesu-api "Direct link to Vesu API") We are expanding our API to ensure smooth integration with other platforms and wallets. This will enhance the user experience by adding features like notifications for borrowers when their positions are at risk. Conclusion[​](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#conclusion "Direct link to Conclusion") ------------------------------------------------------------------------------------------------------- In a rapidly evolving DeFi landscape, Vesu stands out as the most aligned lending market on Starknet, built with a focus on decentralization, security, and user empowerment. By embracing core crypto values like permissionless innovation and transparency, Vesu gives users full control over their assets. Whether you’re looking to earn yield, access liquidity, or create new custom markets, Vesu is the platform for you. We’re always looking to improve and innovate. Your feedback, ideas, or collaboration could help shape the future of Vesu. Join us, share your thoughts, and let’s build the future of finance together! * Follow us on X: [https://x.com/vesuxyz](https://x.com/vesuxyz) * Join our Discord: [https://discord.com/invite/G9Gxgujj8T](https://discord.com/invite/G9Gxgujj8T) * [Our Purpose](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#our-purpose) * [What We Offer](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#what-we-offer) * [Why choose Vesu?](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#why-choose-vesu) * [Next Steps](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#next-steps) * [Multiply Improvements & Automation Features](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#multiply-improvements--automation-features) * [Custom Pool Creation](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#custom-pool-creation) * [Vesu API](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#vesu-api) * [Conclusion](https://docs.vesu.xyz/blog/2024-11-02-about-vesu#conclusion) --- # Markets Review Recap Since Launch | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#__docusaurus_skipToContent_fallback) ![Market Review](https://docs.vesu.xyz/assets/images/Market_review1-766f5c0b68d7e171c09260a273ad6971.png) Summary[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#summary "Direct link to Summary") --------------------------------------------------------------------------------------------------- Vesu has been live for over four months and has grown to the fourth-largest DeFi protocol on Starknet. Time for a recap! In this blog post, we will review the past four months of lending and borrowing activity on Vesu markets and the performance of the autonomous lending pools. info For a refresher on Vesu's autonomous lending pools refer to this [blog post](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . Market Overview[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#market-overview "Direct link to Market Overview") --------------------------------------------------------------------------------------------------------------------------- We start with an overview of the Vesu lending markets. Figure 1 below shows the evolution of the total value locked (TVL), total borrowed amount and average utilization on Vesu markets during the past four months. We find that both TVL and total borrowed amount have grown consistently over the observed period arriving at about $22M TVL and $4.5M borrowed at the time of writing this post (note the primary y-axis scale of 10^7). Similarly, the average utilization across all markets has more than doubled from about 10% to around 24% at the same time. This indicates that the liquidity on Vesu is increasingly being used by borrowers on Starknet establishing Vesu as an important component of the Starknet DeFi ecosystem. ![Vesu 4-Months Market Overview](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_total-27c24cf33dc0482cf72d5118ecd99803.png "Vesu 4-Months Market Overview") _Figure 1: Evolution of liquidity, borrowings and average utilization on Vesu since launch._ Market Breakdown[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#market-breakdown "Direct link to Market Breakdown") ------------------------------------------------------------------------------------------------------------------------------ Next, we highlight the breakdown of Vesu markets in terms of their contribution to the overall TVL. Figure 2 gives the percentage breakdown across the six initial markets _ETH_, _STRK_, _USDC_, _USDT_, _WBTC_, _wstETH_. The first observation is that the overall TVL on Vesu is mostly driven by the _ETH_, _STRK_ and _USDC_ markets. These three markets combined account for more than 90% of the overall Vesu TVL at the time of writing this post. The figure further shows that the _ETH_ market share has continuously grown since launch and is currently at over 50%. Over the same period the market share of _STRK_ has decreased significantly. To one part, these observations are driven by the market prices of the respective assets. However, they also reflect a consistent net inflow of _ETH_ into Vesu. ![Vesu 4-Months TVL Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_tvl_breakdown-600327d42b84cde4f7e399f0b4202b07.png "Vesu 4-Months TVL Breakdown") _Figure 2: Breakdown of TVL in Vesu markets since launch._ Similarly, let us also review the borrowing activity for the Vesu markets. Figure 3 shows the breakdown of borrowing activity, in USD, per the different markets. The figure shows that borrowing is highly concentrated around the _USDC_ market which peaked at more than 80% of total amount borrowed in September and currently accounts for around 60% of the outstanding debt. We further find that in recent weeks borrowing activity in _ETH_ and _wstETH_ has increased and, combined, currently represent some 25% of the total debt. On the other hand, both _STRK_ and _WBTC_ have not seen a lot of borrow demand which may be explained by a generally optimistic outlook on the respective markets and thus no interest in entering "short" positions. ![Vesu 4-Months Borrowing Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_borrowing_breakdown-6e619fc688949e6bf132dfa476f2b1b7.png "Vesu 4-Months Borrowing Breakdown") _Figure 3: Breakdown of borrow activity in Vesu markets since launch._ In the following sections, we take a closer look at the individual markets. ETH Market Insights[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#eth-market-insights "Direct link to ETH Market Insights") --------------------------------------------------------------------------------------------------------------------------------------- Ethereum is the biggest Vesu market in terms of supplied liquidity. At the same time, we have seen that the borrow activity on the _ETH_ market is limited (it accounts for "only" about 15% of the overall debt outstanding). This is confirmed by Figure 3 which shows the _ETH_ utilization over time in orange (right y-axis) and the market's interest rate in blue (left y-axis). We find that the _ETH_ utilization remained consistently in the lower single-digit range throughout most of the observed period. This can be explained by the generally optimistic outlook on Ethereum over the past months with users unwilling to "short" the asset (which entering a borrow position in ETH effectively results in). ![Vesu 4-Months ETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_ETH-528743883d5564f744f2c38ad0170f08.png "Vesu 4-Months ETH-Market Insights") _Figure 4: Utilization and borrow rates in the ETH market since launch._ Furthermore, the _ETH_ market's borrow rate is indicated with a blue line and scale on the primary y-axis (left side). This blue line is hidden under the orange line for utilization for almost the entire observation period. This is due to the fact that utilization has been below the market's target utilization (which is 80%) throughout the period. Hence, the interest rate curve has not been adjusted by the _Curve Controller_ and the borrow rate has only "moved" on the linear range of the curve below target utilization. This relationship resulted in the _ETH_ borrow rate stay at very low levels close to the curve's 0%-utilization rate of 0.1%. info If you need a refresher on Vesu's adaptive interest rate model please refer to this [blog post](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . USDC Market Insights[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#usdc-market-insights "Direct link to USDC Market Insights") ------------------------------------------------------------------------------------------------------------------------------------------ Turning to the _USDC_ market we find a completely different picture as shown in Figure 5. Shortly after launch (in July 2024) utilization on the USDC market reached a level of more than 90% reflecting the strong demand for USDC as a borrow asset. With utilization consistently above the market's target utilization of 80%, the _Curve Controller_ shifts the interest rate curve upwards at an increasing rate during the last week of August until the interest rate reaches a level of more than 12% by the end of August. At this point, the market's interest rate seems attractive enough for LPs to supply more USDC (and borrowers repay debt) thereby reducing the utilization again. As utilization falls below the market's target utilization, the _Curve Controller_ too starts to shift the curve downwards. ![Vesu 4-Months USDC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDC-008783918a1cd2c6c4638048779c3a40.png "Vesu 4-Months USDC-Market Insights") _Figure 5: Utilization and borrow rates in the USDC market since launch._ Similarly, in the second half of the observation period, utilization on the _USDC_ market has picked up again reaching a level of 80% and above by the end of September. Throughout the remaining period utilization fluctuates around some 85% utilization. In instances, where utilization exceeds the target of 80%, the _Curve Controller_ shifts the curve resulting in a slow but steady upward trend. By the end of the observation period interest rate reaches a level of more than 6% with a utilization at about its target of 80%. These insights highlight the important role of Vesu's adaptive interest rate model in allowing the market participants to coordinate around the optimal use and allocation of capital. Note that in "traditional" DeFi lending markets, which do not make use of an adaptive interest rate model, "operators" manually update parameters in ad-hoc market interventions in order for the participants to find an equilibrium. This does not only result in less efficient markets but also introduces operational risks. More Insights[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#more-insights "Direct link to More Insights") --------------------------------------------------------------------------------------------------------------------- We here briefly discuss more insights gathered from the _USDT_ (Figure 6), _wstETH_ (Figure 7), _WBTC_ (Figure 8), and _STRK_ (Figure 9) markets. In both the _USDT_ and _wstETH_ markets we can find consistenlty high utilization resulting in regular _Curve Controller_ activity and shifting of the interest rate curve. In response, utilization generally adjusts downwards reflecting market corrections in terms of net liquidity inflows or repayment of outstanding debt. ![Vesu 4-Months USDT-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDT-73c717e7827722d43d74338be6a5bbcb.png "Vesu 4-Months USDT-Market Insights") _Figure 6: Utilization and borrow rates in the USDT market since launch._ ![Vesu 4-Months wstETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_wstETH-d6c72abbaef84d85cfd2779f02c55098.png "Vesu 4-Months wstETH-Market Insights") _Figure 7: Utilization and borrow rates in the wstETH market since launch._ On the other hand, the _WBTC_ and _STARK_ markets highlight low utilization over the observation period indicating low borrowing demand. The interest rates on these markets are thus characterized by a perfectly synchronous relationship with the utilization due to fact that the _Curve Controller_ does not actively adjust rates. ![Vesu 4-Months WBTC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_WBTC-67178e7055e3843f6a96b05243902a11.png "Vesu 4-Months WBTC-Market Insights") _Figure 8: Utilization and borrow rates in the WBTC market since launch._ ![Vesu 4-Months STRK-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_STRK-71d260c7d14df6dc972144a6c1e70e69.png "Vesu 4-Months STRK-Market Insights") _Figure 9: Utilization and borrow rates in the STRK market since launch._ Conclusion[​](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#conclusion "Direct link to Conclusion") ------------------------------------------------------------------------------------------------------------ Vesu proudly reflects on four months of steady growth and progress. In this blog post, we reviewed the performance of Vesu markets over the past months. Both lending and borrowing activity have consistently grown, with the average utilization reaching around 24% in November. Both lending and borrowing activity varies greatly between the different markets with _USDC_, _ETH_ and _wstETH_ being the most demanded borrow assets in terms of the outstanding debt. Utilization on certain markets has reached over 90% over sustained time periods. This has resulted in frequent adjustments of the interest rate curve through Vesu's autonomous _Curve Controller_. This blog post has provided important insights into the dynamics of Vesu markets. The data presented validates that Vesu's adaptive interest rate model is capable of autonomously balance supply and demand of liquidity on Vesu markets allowing the participants to efficiently and safely coordinate around the optimal allocation of capital on Starknet. * [Summary](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#summary) * [Market Overview](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#market-overview) * [Market Breakdown](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#market-breakdown) * [ETH Market Insights](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#eth-market-insights) * [USDC Market Insights](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#usdc-market-insights) * [More Insights](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#more-insights) * [Conclusion](https://docs.vesu.xyz/blog/2024-11-18-4-months-review#conclusion) --- # Re7 Labs Comes to Starknet | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#__docusaurus_skipToContent_fallback) ![Welcome Re7 Labs](https://docs.vesu.xyz/assets/images/welcome-re7-551103f8e154765c28118737d7a20058.png) **Next Level DeFi with Re7 Labs**[​](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#next-level-defi-with-re7-labs "Direct link to next-level-defi-with-re7-labs") --------------------------------------------------------------------------------------------------------------------------------------------------------------------- We’re thrilled to welcome **[Re7 Labs](https://x.com/Re7Capital) ** to the Starknet ecosystem! As a leading risk curator, they are known for their expertise in crypto yield strategies and DeFi. Re7 Labs is recognized as one of the top vault curators, having played a key role in driving TVL to $3B on Morpho. Joining Vesu as the first pool curator thus signifies a major step for the entire Starknet ecosystem. This collaboration will allow Vesu and Starknet to expand to new use cases and further drive adoption and growth. ### **Introducing The New Pools**[​](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#introducing-the-new-pools "Direct link to introducing-the-new-pools") Right in time for the launch of STRK staking and the new liquid staking token (LST), Re7 will create three new pools on Vesu: * **Re7 STRK/xSTRK** Collateral Assets: xSTRK Borrow: STRK * **Re7 STRK/sSTRK** Collateral Assets: sSTRK Borrow: STRK * **Re7 USDC** Collateral Assets: ETH, wstETH, wBTC, STRK Borrow: USDC With these pools, Re7 Labs and Vesu are unlocking new use cases for the LST from Endur.fi and Nimbora. By adding liquidity and enabling innovative DeFi strategies on a neutral platform, we’re laying the foundation for a successful launch of STRK LSTs and fostering a healthy STRK staking ecosystem. At Vesu, providing permissionless and secure access to liquidity has always been central to our mission. We’re thrilled to take this next step alongside our incredible partners! ### **What’s Next?**[​](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#whats-next "Direct link to whats-next") The new pools are currently finalized and launched publicly together with Vesu’s new pools page in the coming days. At this point, everyone will be able to further support Starknet’s staking and LST landscape as well as to create new lending pools on Vesu. If you’re interested in creating a lending pool for your community, we’re here to help! Stay tuned for more updates as we continue to grow the DeFi landscape on Starknet. **Links** **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) * [**Next Level DeFi with Re7 Labs**](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#next-level-defi-with-re7-labs) * [**Introducing The New Pools**](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#introducing-the-new-pools) * [**What’s Next?**](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7#whats-next) --- # New Pools by Re7 Labs | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#__docusaurus_skipToContent_fallback) ![New Pools by Re7 Labs](https://docs.vesu.xyz/assets/images/re7-new-pools-blog-890a7061998a667109ff88a11a94effb.png) Big update! Two new pools, curated by Re7 Labs, are now live—offering fresh opportunities for earning, borrowing, and optimizing capital efficiency. And there’s more—DeFi Spring rewards for wstETH start today, Feb 6, 2025, giving an extra boost to yield opportunities in one of the pools! Re7 Labs, known for their expertise as a leading risk curator, first launched their curated pools on Vesu in November. Learn more in our previous [Blog post](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7/) . Now, let’s take a closer look at what these new pools offer. Re7 Starknet Ecosystem Pool[​](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#re7-starknet-ecosystem-pool "Direct link to Re7 Starknet Ecosystem Pool") ---------------------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** EKUBO, STRK **Borrow:** USDC This is the first pool on Vesu where EKUBO can be used as collateral—a long-requested feature. It introduces a new way for EKUBO holders to access liquidity. To ensure a controlled launch, Re7 Labs has set an initial debt cap of 9,000 USDC for the EKUBO-USDC pair and 2M USDC for the STRK-USDC pair. The curator can adjust this pool as needed—raising the debt cap or adding more tokens from the Starknet ecosystem, ensuring it remains aligned with market needs and long-term stability. Re7 wstETH Pool[​](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#re7-wsteth-pool "Direct link to Re7 wstETH Pool") ---------------------------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** ETH The pool is designed to maximize wstETH exposure with Vesu’s Multiply feature, allowing users to boost yield by capturing both staking rewards and the DeFi Spring rewards starting today. info While strongly correlated, ETH and wstETH prices (and the Pragma price feeds) can deviate in particular in a stressed market environment. Users are responsible for ensuring enough buffer in their position to account for price differences between the two tokens on Starknet. The Strengths of Vesu’s Infrastructure[​](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#the-strengths-of-vesus-infrastructure "Direct link to The Strengths of Vesu’s Infrastructure") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Both pools leverage Vesu’s fully customizable lending architecture, allowing the curator to design pools that adapt to evolving market needs. Debt caps can be adjusted based on demand to keep the pools balanced and secure. The parameters of each pool can be accessed via the [Pools page](https://vesu.xyz/pools) . Since Vesu’s pools are isolated, risks stay within each pool without affecting others. This keeps borrowing and lending safer, even as more assets are added. Discover the New Pools[​](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#discover-the-new-pools "Direct link to Discover the New Pools") ------------------------------------------------------------------------------------------------------------------------------------------------- * [Borrow USDC against EKUBO](https://vesu.xyz/borrow?form=true&poolId=3163948199181372152800322058764275087686391083665033264234338943786798617741&collateralAddress=0x075afe6402ad5a5c20dd25e10ec3b3986acaa647b77e4ae24b0cbc9a54a27a87) and unlock liquidity without selling. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2535243615249328221060622268479728814680175138265908305094759253778126318519&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost exposure & maximize rewards. Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . * [Re7 Starknet Ecosystem Pool](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#re7-starknet-ecosystem-pool) * [Re7 wstETH Pool](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#re7-wsteth-pool) * [The Strengths of Vesu’s Infrastructure](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#the-strengths-of-vesus-infrastructure) * [Discover the New Pools](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7#discover-the-new-pools) --- # Pools Page Is Live! | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#__docusaurus_skipToContent_fallback) ![New: Vesu Pools Page](https://docs.vesu.xyz/assets/images/pools-page-header-1c01ddea3870c36c01d19d9cd0ea63ad.png) The New Pools Page Is Here: A New Chapter for Vesu![​](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#the-new-pools-page-is-here-a-new-chapter-for-vesu "Direct link to The New Pools Page Is Here: A New Chapter for Vesu!") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **The wait is over: Vesu's new Pools Page is live! This update empowers anyone to create custom lending pools, unlocking exciting opportunities for creators, curators, and users alike.** ### What’s New?[​](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#whats-new "Direct link to What’s New?") The Pools Page makes it easier than ever to create and manage lending pools. Anyone can now launch new markets, no technical expertise or approval from others required. You’re in control! Customize your pool to align with your vision and goals. Choose to make your pool immutable or if you want to enable pool emergency procedures, giving borrowers and lenders extra trust in its stability & security. Prefer flexibility? Curate your pool as it grows, adjusting settings to adapt to evolving needs. ![New Pool Creation UI](https://docs.vesu.xyz/assets/images/create-brother-pool-770c16256fd944954efaec2fc21b7cde.png) _The new pool creation UI._ ### Why Create Your Own Pool?[​](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#why-create-your-own-pool "Direct link to Why Create Your Own Pool?") As the only neutral lending protocol on Starknet, Vesu is the ultimate launchpad for its thriving ecosystem. Here’s what you can achieve: * **Add Utility to Your Token**: Enable your community to earn yield or use your token as collateral. * **Innovate and Experiment**: Launch markets for untapped assets, tailor liquidations or oracles, and fine-tune risk strategies. * **Fuel Ecosystem Growth**: Attract users, capital, and innovative use cases to push DeFi forward on Starknet. Whether you're a community builder, an innovator, or simply looking to create a market for a token, the new pools page provides everything you need to bring your ideas to life. note Creating a new pool is simple, but finding the right parameters to attract demand from both lenders and borrowers can be challenging. We’re here to help! Contact us via [Discord](https://discord.com/invite/G9Gxgujj8T) for support with your new pool. ### What’s in It for Users?[​](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#whats-in-it-for-users "Direct link to What’s in It for Users?") This update is a game-changer for Vesu users, unlocking exciting opportunities: * **More Liquidity**: New pools mean new opportunities for earning and borrowing. * **New Strategies**: Increase your STRK exposure with Vesu's Multiply feature. * **Exciting Collaborations:** Re7 Labs and other upcoming curators bring innovation and expertise to the ecosystem. We’re committed to pushing DeFi on Starknet to the next level. With innovative products, expert curators, and growing integrations, this is just the beginning! Discover all the new markets on [vesu.xyz/markets](https://vesu.xyz/markets) note Vesu is fully permissionless, allowing anyone to create a pool. Before participating, take the time to review the parameters and understand the associated risks. A detailed guide to help you get started will be available soon. ### Get Started Today[​](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#get-started-today "Direct link to Get Started Today") Ready to dive in? **For Creators:** Build your own pool and bring your vision to life. Start with our [Onboarding Docs](https://docs.vesu.xyz/curators/onboarding) . **For Users:** Explore the new pools already launched by Re7 Labs on the updated [Markets page](https://vesu.xyz/markets) . Got questions or ideas for a pool? Let us know in [Discord](https://discord.com/invite/G9Gxgujj8T) . 🔗 **Links** * **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) * **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) * **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) * [The New Pools Page Is Here: A New Chapter for Vesu!](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#the-new-pools-page-is-here-a-new-chapter-for-vesu) * [What’s New?](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#whats-new) * [Why Create Your Own Pool?](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#why-create-your-own-pool) * [What’s in It for Users?](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#whats-in-it-for-users) * [Get Started Today](https://docs.vesu.xyz/blog/2024-12-05-pools-page-live#get-started-today) --- # Oracle contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/core/oracle#__docusaurus_skipToContent_fallback) On this page The `Oracle` contract serves as an adapter between a `Pool` instance and a third-party oracle provider such as Pragma or ChainLink. The oracle fetches the raw price for an asset from the oracle provider and validates this price according to the following criteria: * number of price sources used to compute the price * price staleness * non-zero price info These criteria are based on the Pragma oracle provider feeds and may change as other providers are supported in the future. The oracle then returns the raw price with a price validity flag (true, false) to the `Pool` contract which then either consumes the price or pauses the pool. Data Types[​](https://docs.vesu.xyz/developers/core/oracle#data-types "Direct link to Data Types") --------------------------------------------------------------------------------------------------- Vesu V2 defines a number of data types, called `struct` in Cairo, that are reused across the different components. We here discuss the main types related to the `Pool` contract. ### OracleConfig[​](https://docs.vesu.xyz/developers/core/oracle#oracleconfig "Direct link to OracleConfig") The `OracleConfig` type contains all parameters relevant to the configuration of a specific asset's price feed. pub struct OracleConfig { pub pragma_key: felt252, pub timeout: u64, // [seconds] pub number_of_sources: u32, // [0, 255] pub start_time_offset: u64, // [seconds] pub time_window: u64, // [seconds] pub aggregation_mode: AggregationMode,} ### AssetPrice[​](https://docs.vesu.xyz/developers/core/oracle#assetprice "Direct link to AssetPrice") info Note that the `AssetPrice` is always returned in 18-decimals precision irrespective of the decimals used for the feed by the oracle provider. The `AssetPrice` type expresses a specific asset price, as returned by the respective oracle provider, and its validity flag, which is derived by the `Oracle` itself based on the price's metadata. pub struct AssetPrice { pub value: u256, pub is_valid: bool,} Storage[​](https://docs.vesu.xyz/developers/core/oracle#storage "Direct link to Storage") ------------------------------------------------------------------------------------------ We here show the full storage of the `Oracle` contract with inline docs. struct Storage { #[substorage(v0)] ownable: OwnableComponent::Storage, // The address of the pragma oracle contract pragma_oracle: ContractAddress, // The address of the pragma summary contract pragma_summary: ContractAddress, // asset -> oracle configuration oracle_configs: Map, // The owner of the pool curator: ContractAddress, // The pending curator pending_curator: ContractAddress,} Price Function[​](https://docs.vesu.xyz/developers/core/oracle#price-function "Direct link to Price Function") --------------------------------------------------------------------------------------------------------------- warning Make sure that all configured price feeds return an `AssetPrice` that is denominated in the same base asset, e.g. USD, or you risk inconsistent valuation of Vesu positions and unintended liquidations or bad debt as a result. The `price` function is called by the `Pool` contract upon every user interaction with a pool to compute the value of a position's collateral and debt. /// Returns the current price for an asset and the validity status of the price./// The price can be invalid if price is too old (stale) or if the number of price sources is too low./// # Arguments/// * `asset` - address of the asset/// # Returns/// * `AssetPrice` - latest price of the asset and its validityfn price(self: @ContractState, asset: ContractAddress) -> AssetPrice Owner Functions[​](https://docs.vesu.xyz/developers/core/oracle#owner-functions "Direct link to Owner Functions") ------------------------------------------------------------------------------------------------------------------ info Note that only the owner of the `Oracle` has permission to use the below functions. ### Add a new Asset Feed[​](https://docs.vesu.xyz/developers/core/oracle#add-a-new-asset-feed "Direct link to Add a new Asset Feed") To add a new asset price feed, use the `add_asset` function: /// Sets oracle config for an asset/// # Arguments/// * `asset` - address of the asset/// * `oracle_config` - oracle configurationfn add_asset(ref self: ContractState, asset: ContractAddress, oracle_config: OracleConfig) ### Change Oracle Parameter[​](https://docs.vesu.xyz/developers/core/oracle#change-oracle-parameter "Direct link to Change Oracle Parameter") To change a specific parameter for an asset's price feed, use the `set_oracle_parameter` function: /// Sets a parameter for a given oracle configuration of an asset/// # Arguments/// * `asset` - address of the asset/// * `parameter` - parameter name/// * `value` - value of the parameterfn set_oracle_parameter(ref self: ContractState, asset: ContractAddress, parameter: felt252, value: felt252) Note, the following parameters can be changed: * `pragma_key` * `timeout` * `number_of_sources` * `start_time_offset` * `time_window` * \`aggregation\_mode\`\` * [Data Types](https://docs.vesu.xyz/developers/core/oracle#data-types) * [OracleConfig](https://docs.vesu.xyz/developers/core/oracle#oracleconfig) * [AssetPrice](https://docs.vesu.xyz/developers/core/oracle#assetprice) * [Storage](https://docs.vesu.xyz/developers/core/oracle#storage) * [Price Function](https://docs.vesu.xyz/developers/core/oracle#price-function) * [Owner Functions](https://docs.vesu.xyz/developers/core/oracle#owner-functions) * [Add a new Asset Feed](https://docs.vesu.xyz/developers/core/oracle#add-a-new-asset-feed) * [Change Oracle Parameter](https://docs.vesu.xyz/developers/core/oracle#change-oracle-parameter) --- # BTCfi on Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#__docusaurus_skipToContent_fallback) ![Welcome BTCfi to Vesu](https://docs.vesu.xyz/assets/images/unlock-bitcoin-on-vesu-a3d56ead0bd84efce2ccfce7aa33d29b.png) Bitcoin is the most secure and decentralized asset, yet most BTC sits idle or locked in centralized platforms. Starknet changes that by introducing scalable, trustless, and programmable Bitcoin finance. Secured by STARK proofs. It’s time for Bitcoin to go beyond HODLing. Welcome to BTCfi. What Vesu Has to Offer[​](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#what-vesu-has-to-offer "Direct link to What Vesu Has to Offer") --------------------------------------------------------------------------------------------------------------------------------------------------------- Bitcoin’s liquidity is trapped—held on exchanges, locked in custodial solutions, or simply collecting digital dust. The problem? No native DeFi, high fees, and security risks. **With Starknet scaling Bitcoin, Vesu enables Bitcoiners to:** * Earn yield on BTC by putting your Bitcoin to work while HODLing. * Borrow with BTC to access liquidity without selling. * Multiply BTC to increase exposure and maximize yield. **All while benefiting from:** * Low fees, keeping more of your BTC instead of losing it to transaction costs. * A frictionless experience\*\* thanks to smart wallets like [Ready](https://www.ready.co/) . * Full self-custody, eliminating reliance on centralized entities or third parties. * Proven security\*\* with every line of Vesu’s smart contract code audited. What This Means for Starknet & Vesu[​](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#what-this-means-for-starknet--vesu "Direct link to What This Means for Starknet & Vesu") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Bringing Bitcoin to Starknet is the next logical step: * Bitcoin’s market cap dwarfs existing DeFi TVL. Unlocking BTC liquidity brings new users, strengthens network effects, and expands DeFi on Starknet. * More liquidity strengthens lending markets.\*\* Better rates, deeper composability, and new integrations follow. * New Bitcoin-native DeFi primitives are possible. Vesu has the infrastructure ready. * STARK proofs provide the security Bitcoin needs. BTC moves on-chain without intermediaries. Both Starknet and Vesu offer scalable, trustless finance, powered by math and cryptography. Together, we bring native BTCfi to Bitcoiners. What’s Next? The Future of BTCfi[​](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#whats-next-the-future-of-btcfi "Direct link to What’s Next? The Future of BTCfi") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Scaling **native BTCfi** is a long-term roadmap, with **OP\_CAT** as a key upgrade to enable smart contract functionality on Bitcoin. But we don’t wait for OP\_CAT. In the meantime, we’re bringing Bitcoiners into BTCfi by: * Bootstrapping BTC liquidity through bridged BTC, restaked BTC, and BTC derivatives. * Enabling BTC lending strategies tailored specifically for Bitcoiners. * Maintaining strong security on Vesu to give Bitcoiners peace of mind when using BTCfi. **This isn’t just an experiment. The future of BTCfi starts now.** * [What Vesu Has to Offer](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#what-vesu-has-to-offer) * [What This Means for Starknet & Vesu](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#what-this-means-for-starknet--vesu) * [What’s Next? The Future of BTCfi](https://docs.vesu.xyz/blog/2025-03-11-bitcoin-lending-starknet#whats-next-the-future-of-btcfi) --- # vToken contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/core/vtoken#__docusaurus_skipToContent_fallback) On this page The Vesu `v_token` is a simple vault that offers a conveninent way for lenders to supply assets in an underlying Vesu pool. The `v_token` follows the ERC-4626 interface and hence is compatible with wallets, strategy vaults and other apps on Starknet. We here discuss the implementation details of the `v_token`, you can find more information on how to deposit and withdraw with `v_token` [here](https://docs.vesu.xyz/developers/interact/supply-withdraw) . Basics[​](https://docs.vesu.xyz/developers/core/vtoken#basics "Direct link to Basics") --------------------------------------------------------------------------------------- ### ERC-4626 standard[​](https://docs.vesu.xyz/developers/core/vtoken#erc-4626-standard "Direct link to ERC-4626 standard") The `v_token` implementation follows the ERC-4626 standard and hence exposes the same standard functions. You can find more information on the ERC-4626 standard, adapted for Starknet, on Starknet's SNIP forum [here](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) . ### v\_token - Pool relationship[​](https://docs.vesu.xyz/developers/core/vtoken#v_token---pool-relationship "Direct link to v_token - Pool relationship") A Vesu `v_token` always corresponds to a single underlying asset and `Pool`. All deposits in a `v_token` are instantly supplied as liquidity in the underlying `Pool` and earn interest and rewards as regular deposits in the `Pool`. ### v\_token shares - collateral\_shares relationship[​](https://docs.vesu.xyz/developers/core/vtoken#v_token-shares---collateral_shares-relationship "Direct link to v_token shares - collateral_shares relationship") `v_token` shares correspond 1:1 to `collateral_shares` of the underlying asset and pool. In other words, 1 `v_token` share is always redeemable for the exact same amount of underlying assets than 1 `collateral_share`. ### v\_token creation[​](https://docs.vesu.xyz/developers/core/vtoken#v_token-creation "Direct link to v_token creation") info You can verify the address of a `v_token` for the underlying asset and pool (and vice-versa) with the `v_token_for_asset` and `asset_for_v_token` functions on the `PoolFactory` (read more [here](https://docs.vesu.xyz/developers/core/pool-factory) ). When a new `Pool` is created, the corresponding `v_token`s are also deployed in the `PoolFactory` contract. As a result, "official" `v_token`s exist for all factory created `Pool`s. ### Trust assumption[​](https://docs.vesu.xyz/developers/core/vtoken#trust-assumption "Direct link to Trust assumption") The `v_token` operates fully autonomous with deposits & withdraws processed atomically with the user's interactions. As a result, the `v_token` does not have a _Manager_ or _Owner_ role and does not add any additional trust assumptions compared to other deposits in a Vesu `Pool`. User functions[​](https://docs.vesu.xyz/developers/core/vtoken#user-functions "Direct link to User functions") --------------------------------------------------------------------------------------------------------------- We here highlight the main user functions, you can find more details (and ERC-4626 functions) in the `v_token` source code and the ERC-4626 SNIP [here](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) . ### Asset management[​](https://docs.vesu.xyz/developers/core/vtoken#asset-management "Direct link to Asset management") The `v_token` exposes a number of basic functions related to the management of the underlying assets and Vesu `Pool`: /// Returns the address of the pool associated with the vToken/// # Returns/// * address of the poolfn pool_contract(self: @ContractState) -> ContractAddress /// Returns the address of the underlying asset of the vToken/// # Returns/// * address of the assetfn asset(self: @ContractState) -> ContractAddress /// Returns the total amount of underlying assets deposited via the vToken/// # Returns/// * total amount of assets [asset scale]fn total_assets(self: @ContractState) -> u256 /// Converts an amount of assets to the equivalent amount of vToken shares/// # Arguments/// * `assets` - amount of assets to convert [asset scale]/// # Returns/// * amount of vToken shares [SCALE]fn convert_to_shares(self: @ContractState, assets: u256) -> u256 /// Converts an amount of vToken shares to the equivalent amount of assets/// # Arguments/// * `shares` - amount of vToken shares to convert [SCALE]/// # Returns/// * amount of assets [asset scale]fn convert_to_assets(self: @ContractState, shares: u256) -> u256 ### Deposit & withdraw[​](https://docs.vesu.xyz/developers/core/vtoken#deposit--withdraw "Direct link to Deposit & withdraw") info The `v_token` maintains a single lending position in the underlying `Pool` through which user deposits & withdraws are atomically managed. To deposit assets in the `v_token`, use the `deposit` function: /// Deposits assets into the pool and mints vTokens (shares) to the receiver/// # Arguments/// * `assets` - amount of assets to deposit [asset scale]/// * `receiver` - address to receive the vToken shares/// # Returns/// * amount of vToken shares minted [SCALE]fn deposit(ref self: ContractState, assets: u256, receiver: ContractAddress) -> u256 To withdraw assets from the `v_token`, use the `withdraw` function: /// Withdraws assets from the pool and burns vTokens (shares) from the owner of the vTokens/// # Arguments/// * `assets` - amount of assets to withdraw [asset scale]/// * `receiver` - address to receive the withdrawn assets/// * `owner` - address of the owner of the vToken shares/// # Returns/// * amount of vTokens (shares) burned [SCALE]fn withdraw(ref self: ContractState, assets: u256, receiver: ContractAddress, owner: ContractAddress) -> u256 * [Basics](https://docs.vesu.xyz/developers/core/vtoken#basics) * [ERC-4626 standard](https://docs.vesu.xyz/developers/core/vtoken#erc-4626-standard) * [v\_token - Pool relationship](https://docs.vesu.xyz/developers/core/vtoken#v_token---pool-relationship) * [v\_token shares - collateral\_shares relationship](https://docs.vesu.xyz/developers/core/vtoken#v_token-shares---collateral_shares-relationship) * [v\_token creation](https://docs.vesu.xyz/developers/core/vtoken#v_token-creation) * [Trust assumption](https://docs.vesu.xyz/developers/core/vtoken#trust-assumption) * [User functions](https://docs.vesu.xyz/developers/core/vtoken#user-functions) * [Asset management](https://docs.vesu.xyz/developers/core/vtoken#asset-management) * [Deposit & withdraw](https://docs.vesu.xyz/developers/core/vtoken#deposit--withdraw) --- # Re7 rUSDC Now Live | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-03-21-welcome-rusdc#__docusaurus_skipToContent_fallback) ![Welcome rUSDC on Starknet](https://docs.vesu.xyz/assets/images/rUSDC-on-Starknet-d9c868512c4c99b079527c146f0f1c38.png) Starknet is growing—more assets, more players, more opportunities. rUSDC, a stablecoin by Relend Network, has now a new home in the Re7 rUSDC pool on Vesu. Curated by Re7 Labs and seeded with $15m from Relend Network, this pool expands borrowing and lending opportunities while making capital more efficient. Let’s take a look at what this new pool brings. Re7 rUSDC Pool[​](https://docs.vesu.xyz/blog/2025-03-21-welcome-rusdc#re7-rusdc-pool "Direct link to Re7 rUSDC Pool") ---------------------------------------------------------------------------------------------------------------------- **Borrow:** rUSDC **Collateral:** ETH, wstETH, WBTC, USDC, STRK, xSTRK This pool lets users borrow rUSDC against key assets. Users can keep assets like wstETH or xSTRK working while unlocking fresh liquidity to use as they like. To bootstrap the new pool, Re7 Labs has set debt caps to manage liquidity and risk, ensuring a secure launch with room to scale. The initial limit is 500k rUSDC per asset (100k rUSDC for WBTC), with potential adjustments as the pool grows. All parameters of the new pool can be accessed via the [Pools page](https://vesu.xyz/pools) . info rUSDC is a CDP-based stablecoin issued by Relend Network. It is backed by USDC and lending market collateral, designed to provide scalable and stable liquidity across L2s. rUSDC can be redeemed 1:1 for USDC on Ethereum mainnet. Learn more in the [Relend Docs](https://docs.relend.network/) . Discover the New Pools & the Curator[​](https://docs.vesu.xyz/blog/2025-03-21-welcome-rusdc#discover-the-new-pools--the-curator "Direct link to Discover the New Pools & the Curator") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- With the new pool you can now: * [Supply wstETH and borrow rUSDC against it.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) * [Supply xSTRK as collateral and borrow rUSDC.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) Learn more about Re7 Labs and their previously launched pools: * [Re7 Labs Comes to Starknet](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7) * [New Pools by Re7 Labs](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7) Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . * [Re7 rUSDC Pool](https://docs.vesu.xyz/blog/2025-03-21-welcome-rusdc#re7-rusdc-pool) * [Discover the New Pools & the Curator](https://docs.vesu.xyz/blog/2025-03-21-welcome-rusdc#discover-the-new-pools--the-curator) --- # Alterscope Joins As New Curator | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#__docusaurus_skipToContent_fallback) ![New Curator on Vesu](https://docs.vesu.xyz/assets/images/AlterscopeXvesu-3f5d3a2ab61493158ab4891e5ae20eac.png) We’re thrilled to welcome Alterscope as a new curator on Vesu! Alterscope is known for its expertise in risk management and data-driven analytics, shaping secure and efficient DeFi markets. Now, they’re bringing their experience to Starknet with a set of new curated pools—introducing new assets and expanding opportunities for DeFi users. Let’s check them out! Alterscope CASH Pool[​](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-cash-pool "Direct link to Alterscope CASH Pool") ------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** ETH, STRK, USDC, USDT, WBTC **Borrow:** CASH This pool introduces the CASH stablecoin to Vesu, unlocking a new way to borrow against key assets. Users can keep assets like ETH or USDC working while unlocking fresh liquidity in CASH to use as they like. info CASH is an overcollateralized stablecoin issued by Opus. Learn more in the [Opus Docs](https://docs.opus.money/) . Alterscope wstETH Pool[​](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-wsteth-pool "Direct link to Alterscope wstETH Pool") ------------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** STRK, ETH, WBTC, USDC, USDT This pool lets wstETH holders borrow assets or multiply their exposure—all while still earning staking rewards and DeFi Spring incentives. Alterscope xSTRK Pool[​](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-xstrk-pool "Direct link to Alterscope xSTRK Pool") ---------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** xSTRK **Borrow:** STRK, ETH, WBTC, USDC, USDT This pool enables borrowing against Endur’s xSTRK, a liquid staking token for STRK. Depositors receive staking and DeFi Spring rewards while being able to borrow other key assets. Alterscope Cornerstone Pool[​](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-cornerstone-pool "Direct link to Alterscope Cornerstone Pool") ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** STRK, ETH, WBTC, USDC, USDT **Borrow:** STRK, ETH, WBTC, USDC, USDT A broader lending market for multiple assets, designed for diverse borrowing and lending strategies. Optimized loan-to-value (LTV) and utilization settings make this pool highly capital-efficient. note The same asset provided as collateral cannot be borrowed, ensuring stability and minimizing risk. Discover the New Pools[​](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#discover-the-new-pools "Direct link to Discover the New Pools") ------------------------------------------------------------------------------------------------------------------------------------------------------- Alterscope’s curated pools offer new ways to optimize your assets—unlock liquidity, multiply exposure, or maximize staking rewards. Here are a few: * [Borrow CASH against USDC](https://vesu.xyz/borrow?form=true&poolId=3496574735728882918499284446337009546448797063742922299223215375275805529443&collateralAddress=0x53c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8&debtAddress=0x498edfaf50ca5855666a700c25dd629d577eb9afccdf3b5977aec79aee55ada) to access liquidity while earning with your USDC. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2612229586214495842527551768232431476062656055007024497123940017576986139174&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost your ETH exposure. * [Deposit xSTRK to borrow fresh liquidity](https://vesu.xyz/borrow?form=true&poolId=1129317009595740662798266590704690378283717359139782594834794341553978002262&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a) while receiving staking & STRK rewards for xSTRK. note These pools are new and may need more liquidity to become fully active. If borrowing or multiplying isn’t available yet, start by depositing to help bootstrap liquidity. All parameters of the new pools can be accessed via the [Pools page](https://vesu.xyz/pools) . Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . * [Alterscope CASH Pool](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-cash-pool) * [Alterscope wstETH Pool](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-wsteth-pool) * [Alterscope xSTRK Pool](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-xstrk-pool) * [Alterscope Cornerstone Pool](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#alterscope-cornerstone-pool) * [Discover the New Pools](https://docs.vesu.xyz/blog/2025-03-05-alterscope-new-curator#discover-the-new-pools) --- # Argent Unlocks Spending | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#__docusaurus_skipToContent_fallback) ![Welcome Argent Metal](https://docs.vesu.xyz/assets/images/Argent_card_v2-64d1ee096c07cdbdb0bbffb226ee696c.png) Update June 24, 2025 Argent has rebranded to **Ready**, with a renewed mission to bring crypto to the mainstream. Read more in their [announcement](https://www.ready.co/blog/argent-is-now-ready) . Argent has just launched **Argent Metal**, a self-custodial crypto card that makes spending USDC effortless anywhere Mastercard is accepted. Unlike other crypto cards that require preloading or custodial accounts, Argent Metal lets users **spend directly from their wallet** while maintaining full ownership of their assets. ### Why Argent Metal?[​](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#why-argent-metal "Direct link to Why Argent Metal?") * No FX fees (1 USD = 1 USDC) * Earn cashback rewards. Up to $1,800 in the first year. * Exclusive perks and benefits. * Full self-custody. Funds stay in your control until spent. Argent Metal isn’t just powerful, it looks good too. Choose your 16g metal card in Gold or Platinum. ![Argent Card now available!](https://docs.vesu.xyz/assets/images/Card-press-02_blog-401d4e13d8856f9d5a21b3405f38ee94.png) Power to DeFi with Vesu[​](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#power-to-defi-with-vesu "Direct link to Power to DeFi with Vesu") ------------------------------------------------------------------------------------------------------------------------------------------------------- Argent Metal gives you full control over your assets. With Vesu, you can take it even further and access true financial freedom: * Earn yield on your idle USDC. Let your assets work for you. * Borrow USDC against your holdings (ETH, BTC, etc.) to access liquidity without selling. * Compound cashback rewards to maximize returns. Easily accessible via [vesu.xyz](https://vesu.xyz/) or directly in the Argent Wallet’s Invest tab, delivering a true Web2-like experience. ![Vesu integration into Argent Invest](https://docs.vesu.xyz/assets/images/argent_invest_blog-0f6c770da4d0b3cdf284aae065ede64f.png) Get Started[​](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#get-started "Direct link to Get Started") ------------------------------------------------------------------------------------------------------------------- * **Sign up for Argent Metal**: [argent.xyz/metal-card](https://www.argent.xyz/metal-card) * **Explore Vesu for top borrowing and yield opportunities**: [vesu.xyz/markets](https://vesu.xyz/markets) The way you spend crypto just changed. Keep control, keep earning, and unlock true financial freedom. * [Why Argent Metal?](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#why-argent-metal) * [Power to DeFi with Vesu](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#power-to-defi-with-vesu) * [Get Started](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch#get-started) --- # Celebrating 10 Months of Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#__docusaurus_skipToContent_fallback) ![Vesu 10-Month Anniversary](https://docs.vesu.xyz/assets/images/10months-1de194d6b315b8aae919f383e32bbfa4.png) We are thrilled to celebrate the 10-month anniversary of Vesu and its initial Genesis pool. Over the past ten months, Vesu has grown to become Starknet's largest lending market. The Genesis pool, the first and largest lending pool, stands as a testament to our commitment to innovation, user experience, and security. ### A Journey of Growth and Innovation[​](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#a-journey-of-growth-and-innovation "Direct link to A Journey of Growth and Innovation") Since its inception, Vesu has operated autonomously, governed solely by math and code, without reliance on third-party interventions. This approach aligns perfectly with Starknet's ZKP-powered technology, ensuring a trustless and efficient lending environment. On that journey, we have achieved significant milestones including the following; 🏆 Grow to the largest lending market on Starknet 🛡️ Onboard best-in-class pool curators like Re7 Labs 👛 Native wallet integration with Argent and Braavos ✨ Enable new products like Braavos' Bitcoin Earn ✅ Securely navigate various market crashes We invite everyone to track and verify Vesu's progress for which we have built an extensive Dune dashboard that you can find [here](https://dune.com/vesu/vesu) . ![TVL by assets](https://docs.vesu.xyz/assets/images/Vesu-tvl-by-asset-106b7382733bb9816b954ae5d708f067.png) _Vesu TVL breakdown by asset, as shown on Dune._ ### Evolving with the Ecosystem[​](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#evolving-with-the-ecosystem "Direct link to Evolving with the Ecosystem") As the Starknet ecosystem matures, we recognize the need to make few adjustments to the Genesis pool configuration, the first in its 10-months existence. These updates aim at reflecting the increased liquidity, availability of proven liquidation bots, and overall confidence in Vesu's robust design: 1. **Minimal Loan Amounts**: Reduce the minimal loan amounts in the Genesis pool to $10, making lending more accessible to a broader range of users. 2. **Liquidation Loan-to-Value (LLTV)**: Increase the LLTV ratios on certain lending pairs where Starknet liquidity has increased to improve capital efficiency. Find the details in this [sheet](https://docs.google.com/spreadsheets/d/1C9FzJscdDvfEa1Vf1Yzqp_NHswezpQFTBJE5S52DmOc/edit?gid=1410152640#gid=1410152640) . 3. **Interest Rate Curve**: Increase rate halving to 5 days (reduce the autonomous curve adjustment speed) and the minimal 100%-utilization rate to 5% improving market efficiency and UX for both lenders and borrowers. Read more on Vesu's adaptive curve design [here](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . ### What You Need to Do[​](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#what-you-need-to-do "Direct link to What You Need to Do") No action is required from your side. These updates do not have an immediate impact on your existing positions in Vesu's Genesis pool. However, you may observe elevated market activity as users take advantage of the new configurations such as the lower loan amount requirements or increased LLTVs, resulting in a change in Supply and Borrow APRs. With these conservative changes, the Genesis pool stays the core of lending on Starknet. Trusted for its stability and liquidity, the pool is now ready to support the next 10 months of growth. If you have any questions, please reach out on the Vesu [Discord](https://discord.gg/G9Gxgujj8T) or [Telegram](https://t.me/VesuChat) . ### Stay Tuned[​](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#stay-tuned "Direct link to Stay Tuned") It has been an incredible first 10-months on this journey and that is mostly thanks to the trust our users and partners put into Vesu. We are even more excited for the next months as we continue to push the boundaries of DeFi and build a future where BTC becomes a productive asset you can earn with, use in DeFi and build on. 🧡 * [A Journey of Growth and Innovation](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#a-journey-of-growth-and-innovation) * [Evolving with the Ecosystem](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#evolving-with-the-ecosystem) * [What You Need to Do](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#what-you-need-to-do) * [Stay Tuned](https://docs.vesu.xyz/blog/2025-05-14-10-month-anniversary#stay-tuned) --- # The Billion Dollar Pizza | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-05-22-bitcoin-pizza-day-btcfi#__docusaurus_skipToContent_fallback) ![Happy Bitcoin Pizza Day](https://docs.vesu.xyz/assets/images/pizza-day-saylor-btcfi-71b6866c166f7531ecdda12953c0da8f.png) **The most expensive pizza ever. And the best case for BTCfi.** You already know the story. In 2010, Laszlo paid 10,000 BTC for two pizzas. One supreme, one cheese. It was the first time anyone bought something physical with Bitcoin. Back then, those 10k BTC were worth about $41. Today? Over $1 billion. It’s crypto history. And if you ask Saylor? The takeaway is simple: **"Never sell your Bitcoin."** ![Saylor Tweet](https://docs.vesu.xyz/assets/images/never-sell-453b2bceb2bba03c47d0835c995be29c.png) Because what if Laszlo had borrowed instead? He could’ve kept the BTC, borrowed a few dollars for lunch, and still had a billion-dollar bag years later. That’s what BTCfi is here for. ![Borrow in Vesu Genesis Pool](https://docs.vesu.xyz/assets/images/borrow-against-btc-d94b8bf5d3723067f71ebf93a30e49c3.png) Bitcoin began as an experiment. A wild idea shared in forums and mined on laptops. Then it became digital gold. Now it’s time to actually use it. Borrow against it. Earn with it. That’s BTCfi. ### BTCfi is live on Starknet[​](https://docs.vesu.xyz/blog/2025-05-22-bitcoin-pizza-day-btcfi#btcfi-is-live-on-starknet "Direct link to BTCfi is live on Starknet") Here’s what you can already do today: * [Earn 6% APY on your Bitcoin](https://vesu.xyz/lend?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac) * [Borrow USDC at just 0.5% APR against your Bitcoin](https://vesu.xyz/borrow?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) * [Borrow USDC & spend it with your Argent Card](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch/) More opportunities incoming soon. Stay tuned! **This Bitcoin Pizza Day, maybe just borrow for the pizza.** * [BTCfi is live on Starknet](https://docs.vesu.xyz/blog/2025-05-22-bitcoin-pizza-day-btcfi#btcfi-is-live-on-starknet) --- # Vesu Migration | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-05-28-vesu-migration#__docusaurus_skipToContent_fallback) ![Vesu Migration](https://docs.vesu.xyz/assets/images/migration_success-e7dfabb1ea80d213d981b6cc7fa6e10a.png) **Vesu has successfully completed a planned migration to address a security related disclosure and strengthen the protocol's long-term security.** What this means for you[​](https://docs.vesu.xyz/blog/2025-05-28-vesu-migration#what-this-means-for-you "Direct link to What this means for you") -------------------------------------------------------------------------------------------------------------------------------------------------- All funds are safe and positions continue to work as expected, earn interest and DeFi Spring rewards. Update June 9, 2025 Your Earn position will now be automatically migrated the next time you interact with it, such as modifying or withdrawing the position. Your wallet will show an additional Multicall for the vToken migration. Nothing changes in value: your old vTokens are just converted to the new version. Why we migrated[​](https://docs.vesu.xyz/blog/2025-05-28-vesu-migration#why-we-migrated "Direct link to Why we migrated") -------------------------------------------------------------------------------------------------------------------------- As protocols grow, so does the complexity of maintaining and securing them. This migration addresses a bug responsibly disclosed through Immunefi and resolved in close collaboration with Chainsecurity, our curators, and wallet partners. User funds are safe, and the fix is now fully implemented through this migration. Vesu continues to operate normally. Thanks to Chainsecurity, Immunefi, and our partners across the Starknet ecosystem for making this transition seamless. Questions? Reach us anytime on [Discord](https://discord.gg/8QeGhHch) . * [What this means for you](https://docs.vesu.xyz/blog/2025-05-28-vesu-migration#what-this-means-for-you) * [Why we migrated](https://docs.vesu.xyz/blog/2025-05-28-vesu-migration#why-we-migrated) --- # CarmineDAO Runes Live | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#__docusaurus_skipToContent_fallback) ![CarmineDAO Runes pool](https://docs.vesu.xyz/assets/images/CarmineDAO-runes-125cfa0769683d0ead60b6a3e4a72df6.png) New Curator and Asset[​](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#new-curator-and-asset "Direct link to New Curator and Asset") ---------------------------------------------------------------------------------------------------------------------------------------------- We’re excited to welcome CarmineDAO as a new curator on Vesu. From Carmine Finance to RemusDEX, they’ve helped shape Starknet DeFi from the start. Now, they bring that experience to Vesu by curating the first lending market for DOG, one of the first Bitcoin Runes on Starknet. More may follow. CarmineDAO Runes Pool[​](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#carminedao-runes-pool "Direct link to CarmineDAO Runes Pool") ---------------------------------------------------------------------------------------------------------------------------------------------- **Collateral**: DOG, ETH, STRK, USDC, WBTC **Borrow**: DOG, ETH, STRK, USDC, WBTC All assets can be used as collateral or borrowed against one another. Whether you’re holding DOG or ETH, WBTC or STRK, you can now unlock liquidity or build custom cross-asset strategies. Collateral remains isolated to your position. No rehypothecation. About the Curator[​](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#about-the-curator "Direct link to About the Curator") ---------------------------------------------------------------------------------------------------------------------------------- CarmineDAO is a long-standing builder on Starknet. After launching Carmine Finance, they’ve continued to grow the ecosystem with community-led initiatives. One of those is RemusDEX, a fully on-chain Central Limit Order Book (CLOB) DEX built by a small team from within the CarmineDAO community. RemusDEX uses a CLOB model, enabling traders to place limit and market orders with full transparency and control. DOG is the first Bitcoin Rune traded on RemusDEX and is now supported on Vesu through this new lending pool. Explore the Pool[​](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#explore-the-pool "Direct link to Explore the Pool") ------------------------------------------------------------------------------------------------------------------------------- The CarmineDAO Runes pool is live. You can: * [Supply DOG to the new pool](https://vesu.xyz/lend?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * [Use WBTC as collateral to borrow DOG](https://vesu.xyz/borrow?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * Learn more in the [risk report](https://docs.vesu.xyz/curators/risk-reports/2681185522664180117929158590481443496806090795357786716961716864181408932939/dog) . All pool parameters are available via the [Pools page](https://vesu.xyz/pools) . Questions? Join us on [Discord](https://discord.gg/BV9JrFfG) . * [New Curator and Asset](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#new-curator-and-asset) * [CarmineDAO Runes Pool](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#carminedao-runes-pool) * [About the Curator](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#about-the-curator) * [Explore the Pool](https://docs.vesu.xyz/blog/2025-06-05-carminedao-runes#explore-the-pool) --- # Unlocking ETH | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#__docusaurus_skipToContent_fallback) ![Earn with ETH](https://docs.vesu.xyz/assets/images/earn-with-ETH-d6b0f2babb1d311a975ddb5b0cb91695.png) Ethereum just turned 10. A full decade of innovation, billions secured, and zero downtime. If you believe in ETH for the long run, ask yourself: Is your ETH working for you? This post breaks down 3 simple ways to earn more ETH. Not by flipping tokens, but with real yield. Let’s start with the basics. Level 1: Simple lending[​](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-1-simple-lending "Direct link to Level 1: Simple lending") ------------------------------------------------------------------------------------------------------------------------------------------------ **Basic yield, zero stress** If you want passive yield with minimal setup: supply ETH or wstETH to a Vesu pool. You earn lending yield and DeFi Spring rewards. wstETH also earns staking rewards on top. Current rates are around 4%, and go higher when markets heat up. **Risk:** Like all lending platforms, there are smart contract, oracle, and pool config risks. Vesu reduces these with [audits](https://docs.vesu.xyz/security/security-basics) and known curators. Level 2: Lending & Borrowing[​](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-2-lending--borrowing "Direct link to Level 2: Lending & Borrowing") -------------------------------------------------------------------------------------------------------------------------------------------------------------- **Double the yield** Deposit ETH or wstETH, then borrow stablecoins like USDC or USDT. ![Borrow USDC with your ETH collateral](https://docs.vesu.xyz/assets/images/borrow-usdc-3bf29387c5ea76ac6b9dfd2cadd1d678.png) You can then deposit those stables into another Vesu pool to earn some extra yield. ![Earn with your USDC](https://docs.vesu.xyz/assets/images/usdc-yield-87f861693f376f6f25045b9f61b239dd.png) Right now, you earn around 4% on your ETH, and 5–6% on the borrowed USDC. Your ETH keeps earning, while the borrowed stables generate yield on top. **Risk:** Same as Level 1, plus exposure to ETH price drops. If ETH falls too much, your position can be liquidated. Start with low borrow amounts and monitor your loan-to-value ratio. Level 3: Multiply it[​](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-3-multiply-it "Direct link to Level 3: Multiply it") --------------------------------------------------------------------------------------------------------------------------------------- **More exposure, more yield** Multiply lets you increase your exposure to Ethereum. You supply wstETH, borrow ETH, and use it to buy more wstETH. All in one transaction. ![Multiply your wstETH](https://docs.vesu.xyz/assets/images/multiply-wstETH-e4dbaec2b7663fd54a619353f1b7a2a6.png) Current examples show around 10% APY with a 3x multiplier. You can pick your own level, but higher yield comes with more risk. **Risk:** ETH and wstETH prices are correlated, but extreme market stress can break that link. If prices decouple too much, your position could be at risk of liquidation. Learn more about Multiply in our [Docs](https://docs.vesu.xyz/users/multiply-risks) and choose a multiplier that fits your risk tolerance. Make your ETH work[​](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#make-your-eth-work "Direct link to Make your ETH work") ---------------------------------------------------------------------------------------------------------------------------------- **Three levels, one goal: earn more ETH** Whether you’re lending, borrowing, or multiplying, Vesu's got you. Explore the strategies, choose what fits, and grow your stack. Got questions or feedback? Come hang in [Discord](https://discord.gg/g9ahVeyp) . Check out the [Docs](https://docs.vesu.xyz/users) if you want to dig deeper. Ethereum isn’t slowing down. Neither should your yield. * [Level 1: Simple lending](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-1-simple-lending) * [Level 2: Lending & Borrowing](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-2-lending--borrowing) * [Level 3: Multiply it](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#level-3-multiply-it) * [Make your ETH work](https://docs.vesu.xyz/blog/2025-07-31-earn-with-ETH#make-your-eth-work) --- # Unlocking STRK | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#__docusaurus_skipToContent_fallback) ![Earn with STRK](https://docs.vesu.xyz/assets/images/STRK-unlocking-vesu-99238d1c99e7b4d14f3cdd82b2492f60.png) STRK is everywhere on Starknet: held in wallets, staked & supplied in DeFi. But are you using it in the way that fits you best? This post kicks off **Unlocking Vesu**, a new series that dives into strategies on Vesu. No advice, no hand-holding. Just straightforward takes on yield, risk, and what to watch for. Today’s focus is STRK. We present three levels of yield for you. This is your starting point to earn. Level 1: Simple lending[​](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-1-simple-lending "Direct link to Level 1: Simple lending") ------------------------------------------------------------------------------------------------------------------------------------------------- **Plug and earn** If you want passive yield with minimal setup: Supply STRK directly to a Vesu pool. You earn lending yield and DeFi Spring rewards. | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Genesis | 4.5% | most liquid pool on Vesu, best to borrow other assets | | Re7 xSTRK | 8.4% | high borrowing demand from Multiply | **Risk:** Like any DeFi lending platform, there are risks around smart contracts, oracles, and pool settings. Vesu reduces these with full audits and curators that are known teams in the Starknet ecosystem. Level 2: Extra rewards with xSTRK[​](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-2-extra-rewards-with-xstrk "Direct link to Level 2: Extra rewards with xSTRK") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Liquid Stake and supply** You want to earn more while staying relatively low risk. Stake STRK via [Endur](https://endur.fi/) to mint xSTRK, then supply it to Vesu. If you want to deposit into the Re7 xSTRK pool you can also use the shortcut via [Stake & Earn](https://vesu.xyz/stake-and-earn) . **What you earn:** * Lending yield * DeFi Spring incentives * Staking rewards via Endur * Endur Points (learn more [here](https://x.com/vesuxyz/status/1932796193085563379) ) | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Re7 xSTRK | 11.6% | biggest xSTRK pool, STRK available to borrow | | Re7 rUSDC | 11.6% | use xSTRK as collateral to borrow rUSDC | tip With **[Stake & Earn](https://vesu.xyz/stake-and-earn) **, you can deposit STRK and supply xSTRK to the Re7 pool in one smooth transaction. **Risk:** Additional risks from liquid staking provider (Endur). Level 3: Max xSTRK exposure[​](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-3-max-xstrk-exposure "Direct link to Level 3: Max xSTRK exposure") ------------------------------------------------------------------------------------------------------------------------------------------------------------- **Full send** You want to increase exposure and farm harder. It works like this: Supply xSTRK as collateral → borrow STRK → convert to xSTRK → repeat. But don't worry, Vesu's [Multiply](https://vesu.xyz/multiply) feature does all of this for you in one click. Learn how it works in our [Docs](https://docs.vesu.xyz/users/multiply-basics) . ![Multiply xSTRK](https://docs.vesu.xyz/assets/images/xstrk-multiply-dc66b4d5ae0fcf4a16f53d7c852e9276.png) | **Pool** | **Notes** | | --- | --- | | Re7 xSTRK | Uses the same oracle for STRK and xSTRK. Strong correlation, but not risk-free | **What you earn:** * Boosted staking yield * Boosted Endur Points * Boosted DeFi Spring rewards * Higher organic yield from increased position size **Risk:** If xSTRK depegs from STRK, you can be liquidated. Oracle settings reduces this risk, but it’s not zero. TL;DR[​](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#tldr "Direct link to TL;DR") ------------------------------------------------------------------------------------------- | **Level** | **What you supply** | **What you earn** | **Main risk** | **Pools** | | --- | --- | --- | --- | --- | | 1 | STRK | Organic yield, DeFi Spring rewards | Smart contracts, pool utilization | Genesis, Re7 xSTRK | | 2 | xSTRK | Level 1 + staking rewards, Endur Points | Endur protocol risk | Re7 xSTRK, Re7 rUSDC | | 3 | xSTRK (Multiply) | All of Level 2, multiplied with STRK | Liquidation, xSTRK depeg | Re7 xSTRK | **Which level fits your style?** We’re always curious how people are using Vesu. Drop feedback or questions in [Discord](https://discord.gg/g9ahVeyp) . Or tell us what you’d like to see next in Unlocking Vesu. * [Level 1: Simple lending](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-1-simple-lending) * [Level 2: Extra rewards with xSTRK](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-2-extra-rewards-with-xstrk) * [Level 3: Max xSTRK exposure](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#level-3-max-xstrk-exposure) * [TL;DR](https://docs.vesu.xyz/blog/2025-06-13-earn-with-STRK#tldr) --- # Do more with your LBTC | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#__docusaurus_skipToContent_fallback) ![Unlock LBTC](https://docs.vesu.xyz/assets/images/unlock-LBTC-a15d02aad282c1bf622e33d684c4c1c0.png) Bitcoin isn’t just a store of value anymore. It’s becoming the foundation for a new financial layer, one where BTC itself can earn, move, and work across chains. Lombard makes this possible with LBTC, a liquid, yield-bearing version of BTC that brings native Bitcoin yield into DeFi. And now on Vesu, LBTC goes even further. You can earn, borrow, or multiply your position directly on Starknet, the home of permissionless BTCFi. new here? Start here → [Starknet Wallets & Bridging](https://docs.vesu.xyz/user-guides/start) You’ll be ready in 2 minutes. Earn passive yield[​](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#earn-passive-yield "Direct link to Earn passive yield") -------------------------------------------------------------------------------------------------------------------------------- Earn >2% APR on your LBTC deposit. Two pools by Re7 Labs are currently available. ![LBTC-earn](https://docs.vesu.xyz/assets/images/LBTC-earn-338cd7197be1c4e40ca262e607b4d2a3.png) **Re7 xBTC** This pool is built to Multiply staked Bitcoin. Deposited LBTC earns BTCFi rewards and organic yield driven by user-demand from Multiply and Borrow. **Re7 USDC Core** The LBTC you deposit is not lent out, and can be withdrawn anytime. It earns BTCFi rewards while continuing to accrue staking rewards via Lombard. [Earn more yield with your LBTC.](https://vesu.xyz/earn?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Borrow stablecoins at top rates[​](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#borrow-stablecoins-at-top-rates "Direct link to Borrow stablecoins at top rates") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Use your LBTC as collateral to borrow USDC within the Re7 USDC Core pool. It’s the easiest way to unlock liquidity without selling your Bitcoin. ![LBTC-borrow-USDC](https://docs.vesu.xyz/assets/images/LBTC-borrow-USDC-c8e650a529e4030cc842621351e6cda2.png) Your borrowed USDC stays flexible. Use it to farm additional yield on Vesu, buy more Bitcoin, or spend it with the Ready Card. [Borrow USDC against your LBTC.](https://vesu.xyz/borrow?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Multiply your Bitcoin[​](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#multiply-your-bitcoin "Direct link to Multiply your Bitcoin") ----------------------------------------------------------------------------------------------------------------------------------------- LBTC is already staked Bitcoin, earning yield while staying liquid. But on Starknet, you can take it one level deeper. Stake LBTC via Endur to mint **xLBTC**. It keeps earning staking rewards within the token, around 5% APY. Now, Vesu lets you use that yield-bearing BTC as collateral to multiply your exposure, boosting yield up to 30% APY. ![xLBTC-multiply.png](https://docs.vesu.xyz/assets/images/xLBTC-multiply-0c651faaf71bd3f97e0cca257589e18c.png) The Re7 xBTC pool is designed to multiply staked Bitcoin. Users can supply xLBTC to increase exposure and staking rewards. Available to multiply are LBTC, tBTC, SolvBTC, and WBTC. The correlated setup helps smooth volatility and improve stability for positions. [Multiply staked LBTC (xLBTC) for higher exposure & yield.](https://vesu.xyz/multiply?collateralAssets=0x07dd3c80de9fcc5545f0cb83678826819c79619ed7992cc06ff81fc67cd2efe0) Make more with your Bitcoin[​](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#make-more-with-your-bitcoin "Direct link to Make more with your Bitcoin") ----------------------------------------------------------------------------------------------------------------------------------------------------------- Vesu turns LBTC into productive collateral. Earn consistent yield, access stable liquidity at top rates, or multiply your exposure. Vesu is built for those who want their Bitcoin to do more: to stay self-custodial, secure, and earning while remaining entirely onchain. Security is non-negotiable when it comes to Bitcoin. Vesu’s smart contracts have been [audited by multiple independent firms](https://docs.vesu.xyz/security/audits) , and there is a [$100K Immunefi bug bounty](https://docs.vesu.xyz/security/bounties) . Additionally, if the main interface is ever unavailable, users can still access their positions through Vesu’s [lite frontend](https://lite.vesu.xyz/) . It’s time to put your LBTC to work with Vesu. * [Earn passive yield](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#earn-passive-yield) * [Borrow stablecoins at top rates](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#borrow-stablecoins-at-top-rates) * [Multiply your Bitcoin](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#multiply-your-bitcoin) * [Make more with your Bitcoin](https://docs.vesu.xyz/blog/2025-10-29-unlock-LBTC#make-more-with-your-bitcoin) --- # Curator Guide | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/#__docusaurus_skipToContent_fallback) Welcome to the Vesu Curator guide. Curators play a key role in the Vesu lending protocol and the modern DeFi industry. Here you will find all information you need to get started as a curator on Vesu. * Follow the [Pool Curator](https://docs.vesu.xyz/curators/pools/) guide to learn all about curating Vesu lending pools. * Follow the [Vault Curator](https://docs.vesu.xyz/curators/vaults/) guide to learn all about curating Vesu vaults. --- # Getting started as a pool curator | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/pools/#__docusaurus_skipToContent_fallback) Vesu allows third-party _Pool Curators_ to create and manage new lending pools. This guide builds the starting point for new Pool Curators and contains all information needed for a smooth onboarding experience. --- # How to claim fees as a pool curator | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/pools/claim-fees#__docusaurus_skipToContent_fallback) info This guide will be added shortly. --- # How to manage an existing pool | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/pools/manage-pool#__docusaurus_skipToContent_fallback) If you are the Curator of a Vesu pool, that is not immutable, you can update the configuration e.g. of interest rate parameters as market conditions change. In order to update the configuration of an existing pool, follow the steps below: 1. Head over to the Vesu Pools [page](https://vesu.xyz/pools) . 2. Connect your Starknet wallet. The pools you have the Curator role for will be highlighted. 3. Select the pool you want to update to open the pool configuration wizard. 4. Use the wizard to navigate to the parameter(s) that you want to update and update the values. 5. Once completed, confirm and execute the “Update Pool” transaction. --- # How Vesu Vaults work | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/vaults/basics#__docusaurus_skipToContent_fallback) On this page Vesu Vaults are built from the ground up to to serve as an open protocol for professional curators to launch and manage flexible yield strategies with enterprise-grade security and minimal trust-assumptions. ![Flow of Funds](https://docs.vesu.xyz/assets/images/vesu-vaults-flow-of-funds-85cfed23c440d4f1678966c0f5256ff7.png) How it works[​](https://docs.vesu.xyz/curators/vaults/basics#how-it-works "Direct link to How it works") --------------------------------------------------------------------------------------------------------- Vesu Vaults is a modular vault infrastructure allowing third-party curators to launch and manage yield strategies with minimal overhead. At its core, the system builds on the proven [starknet-vault-kit](https://github.com/ForgeYields/starknet_vault_kit) and extends this in a number of ways to minimize the dependence on curators and maximize security for users. ### Vault[​](https://docs.vesu.xyz/curators/vaults/basics#vault "Direct link to Vault") The **Vault** allows users the deposit and withdraw funds to/from a Vesu Vault. It follows the ERC-4626 standard with an asynchronous redemption process. It mints an ERC-20 compatible token representing vault shares and tracking user deposits. The **Assets under Management** and vault share price is informed by a trustless **AuM Oracle**. The Vault further handles the asynchronous redemptions and fees. ### Vault Allocator[​](https://docs.vesu.xyz/curators/vaults/basics#vault-allocator "Direct link to Vault Allocator") The **Vault Allocator** executes strategy actions initiated and verified by the **Manager**. It allocates the **Vault**'s funds in accordance with the pre-approved strategy mandate and maintains positions in the respective DeFi protocols. It further rebalances and unwinds these positions to return funds back to the **Vault** to honor users' redemptions. ### Manager & Merkle tree verification[​](https://docs.vesu.xyz/curators/vaults/basics#manager--merkle-tree-verification "Direct link to Manager & Merkle tree verification") The **Manager** allows the **Strategist** role to allocate the vault's funds within its strategy mandate. This strategy mandate is defined by the **Curator** role in form of a _Merkle tree_ whose leafs consist of approved onchain actions (such as **deposit** in a Vesu lending pool or _swap asset A for asset B_ on Avnu). To allocate vault funds, the manager thus provides a **Merkle proof** that a certain action is in fact a valid leaf in the **Merkle tree** and thus permitted by the strategy mandate. ### NAV Oracle[​](https://docs.vesu.xyz/curators/vaults/basics#nav-oracle "Direct link to NAV Oracle") The **AuM Oracle** is responsible for computing the vault's **Assets under Management** across all positions in external DeFi protocols and idle asset balances. It is therefore configured with the vault's strategy mandate and in particular the list of DeFi protocols the strategy has pre-approved to maintain positions in. ### Governor[​](https://docs.vesu.xyz/curators/vaults/basics#governor "Direct link to Governor") The **Governor** is the owner of all the components of a Vesu Vault. It delegates curator permissions, including changing the strategy mandate or fee configurations, to the **Curator** role and upgrade permissions to the **Vesu Security Council**. ### Vault Factory[​](https://docs.vesu.xyz/curators/vaults/basics#vault-factory "Direct link to Vault Factory") The **Vault Factory** (not included in the diagram above) offers curators a simple and secure way to create new Vesu Vault instances. It deploys the different vault components, initializes the roles, computes the strategy mandate's merkle tree and it initializes the **Manager** and **NAV Oracle** with this strategy setup in order to ensure consistent management and pricing of the vault. Flow of Funds[​](https://docs.vesu.xyz/curators/vaults/basics#flow-of-funds "Direct link to Flow of Funds") ------------------------------------------------------------------------------------------------------------ The following steps outline a common sequence of interactions with Vesu Vaults and the corresponding flow of funds: 1. User deposits funds in the _Vault_ and receives ERC-4626 vault shares in return, with the share conversion rate being reported through the onchain **NAV Oracle**. 2. Funds sit in the vault contract until allocated by the **Strategist**. Allocations are only possible within the vault's strategy mandate which is enforced through an onchain **Merkle tree verification** step. 3. The onchain **AuM Oracle** continuously reports the vault's _Assets under Management_ in a fully trustless manner. 4. In order to withdraw funds, users **request redemptions** by sending the desired vault shares to the vault. Redemptions are batched in epochs with a certain delay (e.g. 1 day). 5. The **Strategist** observes redemption requests and ensures sufficient liquidity is in the vault to honor all redemptions. 6. After the redemption delay has passed, users claim their funds from the vault. Secure strategy mandates[​](https://docs.vesu.xyz/curators/vaults/basics#secure-strategy-mandates "Direct link to Secure strategy mandates") --------------------------------------------------------------------------------------------------------------------------------------------- Based on the built-in **Merkle tree verification** system, Vesu Vaults ensure that yield strategies are enshrined and always enforced by the vault. This reduces both the trust assumptions in the **Strategist** and operational security. Specifically, Vesu Vaults offer the following guarantees: * **Curators** are able to express a strategy mandate by encoding every action a **Strategist** can perform as a leaf in a merkle tree and to embedd this tree in the vault itself. * **Strategists** are able to execute any action that is pre-approved in its embedded merkle tree by submitting a corresponding merkle proof. * The vault enforces all **Strategist** actions to be pre-approved by the curator by verifying the submitted action and merkle proof. * The vault thus makes it impossible for the **Strategist** to execute arbitrary, non pre-approved, actions and thus minimizes trust assumptions. Protocol integrations[​](https://docs.vesu.xyz/curators/vaults/basics#protocol-integrations "Direct link to Protocol integrations") ------------------------------------------------------------------------------------------------------------------------------------ Vesu Vaults currently integrates with the following DeFi protocols on Starknet: * Vesu V2 lending pools * Avnu DEX aggregator for asset swaps * Third-party ERC-4626 vaults More integrations, such as LPing on the Ekubo DEX, are planned to be added over time. Roles[​](https://docs.vesu.xyz/curators/vaults/basics#roles "Direct link to Roles") ------------------------------------------------------------------------------------ Vesu Vaults can be configured with a set of roles and permissions: * **Curator**: Governs over the vault and strategy including the strategy mandate, fees and roles. * **Strategist**: Is able to execute the strategy within the enabled mandate. * **Rewards Caller**: Claims rewards from external distribution contracts and sends these to the **Vault Allocator** over time. Fees[​](https://docs.vesu.xyz/curators/vaults/basics#fees "Direct link to Fees") --------------------------------------------------------------------------------- As a vault curator you are able to specify a number of fees: * Management fee: An annual percentage rate applied on the vault's NAV. * Performance fee: A percentage rate applied on the vault's P&L. * Redemption fee: A percentage rate applied to a user's redemption amounts. Note that multiple fees can be specified at the same time, thus applying in parallel. Protocol fee[​](https://docs.vesu.xyz/curators/vaults/basics#protocol-fee "Direct link to Protocol fee") --------------------------------------------------------------------------------------------------------- The development, maintenance and operation of the Vesu Vaults infrastructure comes at a cost for Vesu. In order to cover this cost, Vesu Vaults are equipped with a **Fee Sharing** mechanism that directs a fixed percentage of the curator's total fee revenue to Vesu. Note that curators still have full control over the fees applicable in a certain Vesu Vault and the fee sharing is limited to whatever fee configuration is made in a vault. Security[​](https://docs.vesu.xyz/curators/vaults/basics#security "Direct link to Security") --------------------------------------------------------------------------------------------- As with all of the Vesu infrastructure we put a strong focus on the security of Vesu Vaults. Among other aspects, this involves that 100% of the production smart contract code is audited and covered by a bug bounty. You can learn more about our rigorous security process, our security partners, our audits and other resources in our Security [docs](https://docs.vesu.xyz/security/) . * [How it works](https://docs.vesu.xyz/curators/vaults/basics#how-it-works) * [Vault](https://docs.vesu.xyz/curators/vaults/basics#vault) * [Vault Allocator](https://docs.vesu.xyz/curators/vaults/basics#vault-allocator) * [Manager & Merkle tree verification](https://docs.vesu.xyz/curators/vaults/basics#manager--merkle-tree-verification) * [NAV Oracle](https://docs.vesu.xyz/curators/vaults/basics#nav-oracle) * [Governor](https://docs.vesu.xyz/curators/vaults/basics#governor) * [Vault Factory](https://docs.vesu.xyz/curators/vaults/basics#vault-factory) * [Flow of Funds](https://docs.vesu.xyz/curators/vaults/basics#flow-of-funds) * [Secure strategy mandates](https://docs.vesu.xyz/curators/vaults/basics#secure-strategy-mandates) * [Protocol integrations](https://docs.vesu.xyz/curators/vaults/basics#protocol-integrations) * [Roles](https://docs.vesu.xyz/curators/vaults/basics#roles) * [Fees](https://docs.vesu.xyz/curators/vaults/basics#fees) * [Protocol fee](https://docs.vesu.xyz/curators/vaults/basics#protocol-fee) * [Security](https://docs.vesu.xyz/curators/vaults/basics#security) --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/onboarding#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. Please contact the owner of the site that linked you to the original URL and let them know their link is broken. --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/security-basics#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. Please contact the owner of the site that linked you to the original URL and let them know their link is broken. --- # How to register a pool for Hypernative monitoring | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/pools/register-hypernative#__docusaurus_skipToContent_fallback) info This guide will be added shortly. --- # How to create a new lending pool | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/pools/create-pool#__docusaurus_skipToContent_fallback) On this page In this section, we'll learn how to create new Vesu pools. Vesu's permissionless nature enables everyone to create new lending pools calling the respective protocol function directly (e.g. through a block explorer). An easier way to do it is with the Curator Dashboard. Requirements[​](https://docs.vesu.xyz/curators/pools/create-pool#requirements "Direct link to Requirements") ------------------------------------------------------------------------------------------------------------- * Starknet wallet: A multisig setup is strongly recommended for the curator role to minimize risks. * Small token amount: A small amount of the token is required to seed the pool (at least 1,000 units in the smallest denomination, such as 0.001 USDC for a USDC pool). This amount is burned to prevent share inflation attacks and ensure pool integrity. Step-by-step Guide[​](https://docs.vesu.xyz/curators/pools/create-pool#step-by-step-guide "Direct link to Step-by-step Guide") ------------------------------------------------------------------------------------------------------------------------------- Click the blue **Create Pool** button on the [Curator Dashboard](http://curator.vesu.xyz/) . **1\. Define Pool** * Name of your pool. * Enter the Starknet wallet address that will be the curator (pool owner). ![create-pool-1.png](https://docs.vesu.xyz/assets/images/create-pool-1-79b137c170b21c25db52e91ef515bae8.png) **2\. General Settings** * Fee recipient: Set a Starknet account as recipient for fees, or check the Box for “No fees” The **Emergency pause agent** can be activated after the creation of the pool. The Hypernative agent will pause the pool in case of an emergency to protect users. As the pool curator, you will be able to unpause the pool again at any time. Please contact the Vesu team if you want to activate this feature. ![create-pool-2.png](https://docs.vesu.xyz/assets/images/create-pool-2-50a04c0e59c2a66b127c9e29c3d5f7b9.png) **3\. Choose the assets for your pool and define the parameter for each token.** Add all the assets and their configuration that should be enabled as market or collateral (or both) in the pool. For each asset, configure the following parameters: * Debt floor * Max utilization * vToken name and symbol (optional) * Interest Rate Model parameters ![create-pool-3.png](https://docs.vesu.xyz/assets/images/create-pool-3-9c944e41399a622b3dd173f9b6ca0e81.png) **4\. Define Lending Pairs** Set up lending pairs by selecting a collateral asset and a debt asset. Configure: * Liquidation loan-to-value (LTV): triggers liquidation once the LTV is reached * Liquidation discount: the reward for liquidators when repaying debt * Debt cap limits how much of the debt asset can be borrowed in this pair ![create-pool-4.png](https://docs.vesu.xyz/assets/images/create-pool-4-e24c39b52e8f5364af30a24ba8838a4c.png) **5\. Create pool** Check all settings and verify that everything is correct. Especially if it is an immutable pool, as then you can’t change any settings after the creation. If you click in one of the sections, you can go back to this step to make changes. ![create-pool-5.png](https://docs.vesu.xyz/assets/images/create-pool-5-88ca616fc998fa030f677e5ea63b0cee.png) When everything is correct, click **Create Pool** and confirm the transaction in your wallet. Once the pool is created, the curator must claim ownership via the contract (see next section). info Reminder: A small amount of the token is required to seed the pool (at least 1,000 units in the smallest denomination, such as 0.001 USDC for a USDC pool). This amount is burned to prevent share inflation attacks and ensure pool integrity. Accept Curator Ownership[​](https://docs.vesu.xyz/curators/pools/create-pool#accept-curator-ownership "Direct link to Accept Curator Ownership") ------------------------------------------------------------------------------------------------------------------------------------------------- After creation of the pool, the ownership must be claimed via a blockexplorer like [Voyager](https://voyager.online/) . Open the address of your pool, click on **Write Contract** and connect your wallet. ![create-pool-ownership.png](https://docs.vesu.xyz/assets/images/create-pool-ownership-4a1e706731709c9b13ec56eaca5ae832.png) Sroll down to `15. accept_curator_ownership`, click on **Transact** and confirm the transaction in your wallet. ![create-pool-ownership2.png](https://docs.vesu.xyz/assets/images/create-pool-ownership2-b92cb6307bea454a6a5df38b24471923.png) Ownership of a pool can be transferred to another account. As an added security layer, the new owner must manually accept ownership via the contract. * [Requirements](https://docs.vesu.xyz/curators/pools/create-pool#requirements) * [Step-by-step Guide](https://docs.vesu.xyz/curators/pools/create-pool#step-by-step-guide) * [Accept Curator Ownership](https://docs.vesu.xyz/curators/pools/create-pool#accept-curator-ownership) --- # Getting started as a vault curator | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/vaults/#__docusaurus_skipToContent_fallback) On this page Vesu Vaults let anyone launch and manage automated yield strategies on Starknet. As a curator, you define how the vault works, what assets it uses, where the capital goes, and how it earns yield. This enables strategies for different use cases from "simple" basis trades to BTCfi and levered yield farming. Vaults run on audited smart contracts, with trust-minimized controls and onchain enforcement. You focus on designing the strategy, the infra handles the rest. Getting started[​](https://docs.vesu.xyz/curators/vaults/#getting-started "Direct link to Getting started") ------------------------------------------------------------------------------------------------------------ * Read the basics of Vesu Vaults [here](https://docs.vesu.xyz/curators/vaults/basics) . * Learn how to manage Vesu Vaults with the Vault Curator SDK [here](https://docs.vesu.xyz/curators/vaults/curator-sdk) . If you have questions around curating Vaults, get in touch with our support [in Discord](https://discord.com/invite/G9Gxgujj8T) . Vault listing[​](https://docs.vesu.xyz/curators/vaults/#vault-listing "Direct link to Vault listing") ------------------------------------------------------------------------------------------------------ Vesu Vaults are permissionless, anyone can deploy a strategy. But to get your vault featured on the main app (and gain visibility), it needs to go through a short review process. Here’s how listing currently works: 1. Collect and review curator information 2. Collect and review strategy information 3. Whitelisting of the Vault on the Vesu App Further information[​](https://docs.vesu.xyz/curators/vaults/#further-information "Direct link to Further information") ------------------------------------------------------------------------------------------------------------------------ * Support [on Discord](https://discord.com/invite/G9Gxgujj8T) * Curator App [on Vesu.xyz](https://vaults.vesu.xyz/) * Source Code [on Github](https://github.com/vesuxyz/vesu-periphery/blob/main/src/managed_vault.cairo) * [Getting started](https://docs.vesu.xyz/curators/vaults/#getting-started) * [Vault listing](https://docs.vesu.xyz/curators/vaults/#vault-listing) * [Further information](https://docs.vesu.xyz/curators/vaults/#further-information) --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/users/multiply-risks#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. Please contact the owner of the site that linked you to the original URL and let them know their link is broken. --- # Tooling for Vesu Vaults | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/vaults/tooling#__docusaurus_skipToContent_fallback) On this page Launching and managing yield strategies can come with significant overhead in terms of setting up and maintaining infrastructure. With Vesu Vaults we have reduced this overhead to a minimum, significantly reducing the initial and ongoing cost for vault curators. ![Vesu Vaults Tooling](https://docs.vesu.xyz/assets/images/vesu-vaults-tooling-6a3a06e86270dcc29b329cffb302d1b3.png) Vault Factory[​](https://docs.vesu.xyz/curators/vaults/tooling#vault-factory "Direct link to Vault Factory") ------------------------------------------------------------------------------------------------------------- This is a smart contract that simplifies the creation of a new vault and increases security for curators and users by: bundling the deployment of all Vault components, configuring roles and oracles, emitting the respective onchain events for vault tracking. AuM Oracle[​](https://docs.vesu.xyz/curators/vaults/tooling#aum-oracle "Direct link to AuM Oracle") ---------------------------------------------------------------------------------------------------- This is a smart contract that computes and reports the vault's **Assets under Management** (AuM) onchain, reducing the dependence on offchain infrastructure and increasing the operational security. Vault indexing & backend[​](https://docs.vesu.xyz/curators/vaults/tooling#vault-indexing--backend "Direct link to Vault indexing & backend") --------------------------------------------------------------------------------------------------------------------------------------------- Vesu Vaults, including all curator, strategist and user actions, are indexed directly in the Vesu backend and information available through our API. Curator UI[​](https://docs.vesu.xyz/curators/vaults/tooling#curator-ui "Direct link to Curator UI") ---------------------------------------------------------------------------------------------------- Currently we do not offer a Curator UI. Instead, curators and strategists can use the Vault Curator SDK which is documented [here](https://docs.vesu.xyz/curators/vaults/curator-sdk) . User UI[​](https://docs.vesu.xyz/curators/vaults/tooling#user-ui "Direct link to User UI") ------------------------------------------------------------------------------------------- Vesu Vaults are embedded in Vesu's main UI, allowing vault curators to launch new strategies without having to build a new app from scratch and leverage the existing Vesu user base from day 1. Automations[​](https://docs.vesu.xyz/curators/vaults/tooling#automations "Direct link to Automations") ------------------------------------------------------------------------------------------------------- Certain operational processes of Vesu Vaults can be automated to reduce the overhead both for vault curators and managers. All Vesu Vaults, and curators, have access to the following default automations: * **Assets under Management** reporting through the **AuM Oracle** * Claiming of user redemptions Please reach out to us, if you want to explore automating more processes for your vault strategy. * [Vault Factory](https://docs.vesu.xyz/curators/vaults/tooling#vault-factory) * [AuM Oracle](https://docs.vesu.xyz/curators/vaults/tooling#aum-oracle) * [Vault indexing & backend](https://docs.vesu.xyz/curators/vaults/tooling#vault-indexing--backend) * [Curator UI](https://docs.vesu.xyz/curators/vaults/tooling#curator-ui) * [User UI](https://docs.vesu.xyz/curators/vaults/tooling#user-ui) * [Automations](https://docs.vesu.xyz/curators/vaults/tooling#automations) --- # Manage Vaults with the Curator SDK | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/vaults/curator-sdk#__docusaurus_skipToContent_fallback) On this page Management of the Vault strategy includes the following actions: * allocation of idle funds to the strategy * re-allocation of funds among the approved strategy positions * unwinding of positions to free liquidity to honor redemptions All these activities are performed by the vault's **Strategist** role. We here outline how these activities can be executed using the Vault Curator SDK. Why use this SDK[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#why-use-this-sdk "Direct link to Why use this SDK") -------------------------------------------------------------------------------------------------------------------------- It reads a vault's Merkle Tree configuration (`VaultConfigData`) and creates correctly-formatted `Call` objects (proofs, decoders, targets, selectors and calldata). The SDK does not send transactions — it returns `Call` objects you can execute with your account/provider. Setup[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#setup "Direct link to Setup") ----------------------------------------------------------------------------------------- * **From file:** `const sdk = VaultCuratorSDK.fromFile('./path/to/vault-config.json');` * **From object:** `const sdk = new VaultCuratorSDK(configObject);` * **Execute calls:** Use your Starknet account/provider to send the returned `Call` or `Call[]` (for example `account.execute(calls)` from `starknet.js`). Call object format[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#call-object-format "Direct link to Call object format") -------------------------------------------------------------------------------------------------------------------------------- * `contractAddress`: `Manager` contract address (set by SDK) * `entrypoint`: `manage_vault_with_merkle_verification` (set by SDK) * `calldata`: string array containing \[proofs..., decoder\_and\_sanitizer, targets, selectors, calldata length, ...calldata\] Important notes[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#important-notes "Direct link to Important notes") ----------------------------------------------------------------------------------------------------------------------- * The SDK expects `VaultConfigData` with `metadata`, `leafs` and `tree` (the strategy Merkle Tree). If an operation's leaf is missing the method throws. * Amounts are converted to Starknet `uint256` via `uint256.bnToUint256(...)`. Pass BigNumberish values. General functions[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#general-functions "Direct link to General functions") ----------------------------------------------------------------------------------------------------------------------------- **approve(approveParams: ApproveParams): Call** * Purpose: Build a `Call` that calls the manager's approved `approve(spender, amount)` operation enabling `spender` to spend the vault's funds. * Params: `{ target: string; spender: string; amount: BigNumberish }` (`target` is the token contract address expected in the vault config leaf) * Returns: a `Call` object ready to be executed. The calldata includes the spender address and `uint256` amount. * Errors: throws if a matching leaf isn't found in the config (selector + target + argument address checks). * Example: const call = sdk.approve({ target: underlyingAddress, spender: vaultAddress, amount: '1000000000000000000' });await account.execute([call]); **bringLiquidity(params: BringLiquidityParams): Call** * Purpose: Build a `Call` for the vault's "bring liquidity" operation (sends underlying assets from the _Vault Allocator_ back to the _Vault_ to honor redemptions). * Params: `{ amount: BigNumberish }` * Returns: a `Call` object that includes the Merkle proofs, decoder, target & selector, and the `uint256` amount calldata. * Errors: throws if the "bring liquidity" leaf is not present in the config. * Tip: Use `bringLiquidityHelper(shouldApprove, amount)` to optionally emit an `approve` call followed by `bringLiquidity` in a single `Call[]`. * Example: const calls = sdk.bringLiquidityHelper(true, '1000000000000000000');await account.execute(calls); // approve + bringLiquidity ## ERC4626 functions **deposit(params: DepositParams): Call** * Purpose: Build a deposit `Call` that instructs the manager to deposit `assets` into an enabled third-party ERC4626 vault (e.g. like Vesu vTokens). * Params: `{ target: string; assets: BigNumberish; receiver: string }` * Returns: a `Call` object containing Merkle proofs, decoder, target/selector and calldata: `uint256` followed by the `receiver` address. * Errors: throws if a matching `deposit` leaf isn't found in the vault config. * Example: const call = sdk.deposit({ target: vaultAddress, assets: '1000000000000000000', receiver: userAddress });await account.execute([call]); **withdraw(params: WithdrawParams): Call** * Purpose: Build a withdraw `Call` to instruct the manager to withdraw `assets` from an enabled third-party ERC4626 vault and send them to `receiver`. * Params: `{ target: string; assets: BigNumberish; receiver: string; owner: string }` * Returns: a `Call` where `assets` is encoded as `uint256` and followed by `receiver` and `owner` addresses. * Errors: throws if the `withdraw` leaf is not found in the config. * Example: const call = sdk.withdraw({ target: strategyAddress, assets: '1000', receiver: vaultAddress, owner: vaultAddress });await account.execute([call]); Starknet-Vault-Kit functions[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#starknet-vault-kit-functions "Direct link to Starknet-Vault-Kit functions") -------------------------------------------------------------------------------------------------------------------------------------------------------------- **requestRedeem(params: RequestRedeemParams): Call** * Purpose: Build a request redeem `Call` to queue a redeem request for an enabled third-party SVK vault. * Params: `{ target: string; shares: BigNumberish; receiver: string; owner: string }` * Returns: a `Call` encoding `shares` as `uint256` followed by `receiver` and `owner`. * Errors: throws if `request_redeem` leaf missing. * Example: const call = sdk.requestRedeem({ target: vaultAddress, shares: '1000', receiver: vaultAddress, owner: vaultAddress });await account.execute([call]); **claimRedeem(params: ClaimRedeemParams): Call** * Purpose: Build a claim redeem `Call` to claim an earlier redeem request by `id`. * Params: `{ target: string; id: BigNumberish }` * Returns: a `Call` with `id` encoded as `uint256`. * Errors: throws if `claim_redeem` leaf missing. * Example: const call = sdk.claimRedeem({ target: vaultAddress, id: '42' });await account.execute([call]); Avnu functions[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#avnu-functions "Direct link to Avnu functions") -------------------------------------------------------------------------------------------------------------------- **multiRouteSwap(params: MultiRouteSwapParams): Call** * Purpose: Build a swap `Call` that serializes multiple routes and amounts to swap tokens via the Avnu aggregator. * Params: `MultiRouteSwapParams` (see SDK types) — includes `target`, `sell_token_address`, `sell_token_amount`, `buy_token_address`, `buy_token_amount`, `buy_token_min_amount`, `integrator_fee_amount_bps`, `integrator_fee_recipient`, `routes: Route[]`, and `beneficiary`. * Returns: a `Call` with all amounts encoded as `uint256`s and the `routes` array serialized. * Errors: throws if the configured `multi_route_swap` leaf is not found. * Tip: Use `multiRouteSwapHelper` to automatically add an approval call for the sell token when needed. * Example: const calls = sdk.multiRouteSwapHelper({ target: swapRouterAddress, sell_token_address: sellToken, sell_token_amount: '1000000', buy_token_address: buyToken, buy_token_amount: '0', buy_token_min_amount: '1', integrator_fee_amount_bps: 0, integrator_fee_recipient: feeRecipient, routes: [{ sell_token: sellToken, buy_token: buyToken, exchange_address: exch, percent: '100', additional_swap_params: [] }]});await account.execute(calls); Vesu V2 functions[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#vesu-v2-functions "Direct link to Vesu V2 functions") ----------------------------------------------------------------------------------------------------------------------------- `modifyPositionV2(params: ModifyPositionParamsV2): Call` * Purpose: Build a modify-position `Call` to borrow or repay funds on Vesu V2. * Params: `ModifyPositionParamsV2` — includes `target`, `collateral_asset`, `debt_asset`, `collateral: AmountV2`, `debt: AmountV2`, and `user`. * Returns: a `Call` with the ModifyPosition data encoded. * Errors: throws if the `modify_position` leaf for Vesu V2 is not present in the config. * Example: const paramsV2 = { target: poolAddress, collateral_asset: collAsset, debt_asset: debtAsset, collateral: { denomination: 'Native', value: { abs: '1000', is_negative: false } }, debt: { denomination: 'Native', value: { abs: '0', is_negative: false } }, user: vaultAddress};const call = sdk.modifyPositionV2(paramsV2);await account.execute([call]); Final notes[​](https://docs.vesu.xyz/curators/vaults/curator-sdk#final-notes "Direct link to Final notes") ----------------------------------------------------------------------------------------------------------- We here only outlined a subset of the available features in the Starknet-Vault-Kit SDK. For the full documentation and more examples please refer to the SDK's GitHub repository [here](https://github.com/ForgeYields/starknet_vault_kit/tree/main/sdk) . * [Why use this SDK](https://docs.vesu.xyz/curators/vaults/curator-sdk#why-use-this-sdk) * [Setup](https://docs.vesu.xyz/curators/vaults/curator-sdk#setup) * [Call object format](https://docs.vesu.xyz/curators/vaults/curator-sdk#call-object-format) * [Important notes](https://docs.vesu.xyz/curators/vaults/curator-sdk#important-notes) * [General functions](https://docs.vesu.xyz/curators/vaults/curator-sdk#general-functions) * [Starknet-Vault-Kit functions](https://docs.vesu.xyz/curators/vaults/curator-sdk#starknet-vault-kit-functions) * [Avnu functions](https://docs.vesu.xyz/curators/vaults/curator-sdk#avnu-functions) * [Vesu V2 functions](https://docs.vesu.xyz/curators/vaults/curator-sdk#vesu-v2-functions) * [Final notes](https://docs.vesu.xyz/curators/vaults/curator-sdk#final-notes) --- # Security Council | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/security-council#__docusaurus_skipToContent_fallback) For security reasons, the core contracts of the Vesu V2 protocol have been made upgradeable. At a future time, permissions to upgrade will be revoked in favor of full decentralization. Until then, in order to ensure safety of the Vesu users and Starknet ecosystem, we have assigned governance over the upgrade permissions to the **Vesu Security Council**, a multisig account with 4-o-6 signer threshold and 50% highly reputed external signers. You can find the Vesu Security Council under this Starknet mainnet address: [0x024b295eED808e3F3160E17AB424a59921F18ee2b1327E4615a5902D12bC9403](https://voyager.online/contract/0x024b295eed808e3f3160e17ab424a59921f18ee2b1327e4615a5902d12bc9403) . --- # Audits | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/audits#__docusaurus_skipToContent_fallback) List of audits performed and audit reports: | **Date** | **Auditor** | **Scope** | **Commit Hash** | **Report** | | --- | --- | --- | --- | --- | | 2024-06-07 | [ChainSecurity](https://www.chainsecurity.com/) | Vesu V1 | [8c6cdea](https://github.com/vesuxyz/vesu-v1/commit/8c6cdeaa6305aef60932d95d3bb63a5145ae0e38) | [Link](https://www.chainsecurity.com/security-audit/vesu-protocol-smart-contracts) | | 2024-07-02 | [CairoSecurityClan](https://x.com/cairoaudit) | Vesu V1 | [77d3cc9](https://github.com/vesuxyz/vesu-v1/commit/77d3cc996273f0654b1f445c08ad2071c3e6e040) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Audit_Report_Final.pdf) | | 2024-08-31 | [CairoSecurityClan](https://x.com/cairoaudit) | Multiply contract | [61cbe86](https://github.com/vesuxyz/vesu-multiply/commit/61cbe861a67173d5c111d0de73561e70c4e91862) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Multiply_Audit_Report.pdf) | | 2024-09-06 | [CairoSecurityClan](https://x.com/cairoaudit) | Liquidate contract | [ea6d068](https://github.com/vesuxyz/vesu-liquidate/commit/ea6d068e2e8e26db7d7cdde3e5e1497a2779fef6) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Liquidate_Audit_Report.pdf) | | 2024-12-03 | [CairoSecurityClan](https://x.com/cairoaudit) | Extension contracts | [9e20700](https://github.com/vesuxyz/vesu-v1/commit/9e207003be96c6203af356cb3d74106d88b11f9c) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Extensions_Audit_Report.pdf) | | 2024-12-31 | [CairoSecurityClan](https://x.com/cairoaudit) | Rebalance contract | [e9559b0](https://github.com/vesuxyz/vesu-periphery/commit/e9559b0bdba3088a856783cc8dd922372a0c94e3) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Periphery_Audit_Report.pdf) | | 2025-03-12 | [CairoSecurityClan](https://x.com/cairoaudit) | Ekubo extension, Permissioned pool emergency, Fixes | [455fe33](https://github.com/vesuxyz/vesu-v1/tree/455fe334825c7279cb18fa9803e898c237720189) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Update_Audit_Report.pdf) | | 2025-03-12 | [CairoSecurityClan](https://x.com/cairoaudit) | Multiply4626 contract, Fixes | [5f1274f](https://github.com/vesuxyz/vesu-periphery/tree/5f1274f90ea49dda43fab3f1e69b87b70ed482a0) | [Link](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Periphery_Update_Audit_Report.pdf) | | 2025-09-04 | [Zenith Security](https://www.zenith.security/) | Vesu V2 | [7a848ce](https://github.com/vesuxyz/vesu-v2/commit/7a848ce3196d62cae96cbf84fd7f80ee433fe203) | [Link](https://github.com/zenith-security/reports/blob/main/reports/Vesu%20V2%20-%20Zenith%20Audit%20Report.pdf) | | 2025-09-17 | [Sherlock](https://sherlock.xyz/) | Vesu Vaults (Starknet-Vault-Kit) | [0ccbf4c](https://github.com/ForgeYields/starknet_vault_kit/tree/0ccbf4ce0f3131fdced947b7c7b4406fea110481) | [Link](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2025_09_23_Final_Vesu_Starknet_Vault_Kit_Collaborative_Audit_Report.pdf) | | 2025-09-26 | [OpenZeppelin](https://www.openzeppelin.com/security-audits) | Vesu V2 | [dd868d5](https://github.com/vesuxyz/vesu-v2/commit/dd868d54f44c3207047301145a1a2767e63a64a5) | [Link](https://www.openzeppelin.com/news/vesu-v2-differential-audit) | | 2025-09-30 | [ChainSecurity](https://www.chainsecurity.com/smart-contract-audit-reports) | Vesu V2 | [dd868d5](https://github.com/vesuxyz/vesu-v2/commit/dd868d54f44c3207047301145a1a2767e63a64a5) | [Link](https://www.chainsecurity.com/security-audit/vesu-v2) | | 2025-10-01 | [Sherlock](https://sherlock.xyz/) | Vesu Vaults | [58b0d13](https://github.com/vesuxyz/vesu-vaults/commit/58b0d136e1ae94752d7282ebd251c81354c078ec) | [Link](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2025.10.31%20-%20Final%20-%20Vesu%20Vaults%20Collaborative%20Audit%20Report%201761914943.pdf) | | 2025-10-13 | [Zenith Security](https://www.zenith.security/) | Vesu V1.1 | [f108967](https://github.com/vesuxyz/vesu-v1.1/commit/f1089675d9ca0e205f3731965216a1529c59c0e4) | [Link](https://github.com/zenith-security/reports/blob/main/reports/Vesu%20V1%20-%20Zenith%20Audit%20Report.pdf) | | 2025-12-10 | [Sherlock](https://sherlock.xyz/) | Vesu V2 Periphery | [ccea4e3](https://github.com/vesuxyz/vesu-v2-periphery/commit/ccea4e3761da0bb35e701bfe65760e312178eeb6) | [Link](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2025.12.10%20-%20Final%20-%20Vesu%20Collaborative%20Audit%20Report%201765410223.pdf) | | 2026-02-21 | [Sherlock](https://sherlock.xyz/) | Starknet Vault Kit | [babfc20](https://github.com/ForgeYields/starknet_vault_kit/commit/babfc20931cb7ba16a86fae0157634026732dcb6) | [Link](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2026.03.18%20-%20Final%20-%20Vesu%20Collaborative%20Audit%20Report%201773874144.pdf) | | 2026-02-21 | [Sherlock](https://sherlock.xyz/) | Vesu Vaults | [879dcb2](https://github.com/vesuxyz/vesu-vaults/commit/879dcb283be7829da0b1f840f92ad1c4b8898118) | [Link](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2026.03.18%20-%20Final%20-%20Vesu%20Collaborative%20Audit%20Report%201773874144.pdf) | --- # Bounty | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/bounties#__docusaurus_skipToContent_fallback) We have put in place a reward bounty program. List of active and past bounty programs: | **Date** | **Platform** | **Amount** | **Program** | | --- | --- | --- | --- | | Ended | [Immunefi](https://immunefi.com/) | USD 100k | [Link](https://immunefi.com/bug-bounty/vesu/) | | Active | [Sherlock](http://sherlock.xyz/) | USD 100k | [Link](https://audits.sherlock.xyz/bug-bounties/354) | --- # Monitoring | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/monitoring#__docusaurus_skipToContent_fallback) info Info about the Hypernative onchain monitoring will be added shortly. --- # Unified Liquidity Incoming | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#__docusaurus_skipToContent_fallback) ![Unified Liquidity](https://docs.vesu.xyz/assets/images/unified-liquidity-59f607b026a02613335ecab7195d31d8.png) In December, liquidity on Vesu will be unified. With native USDC arriving on Starknet, users will migrate their USDC positions into the improved V2 pools. This is the next step in the shift from V1 to V2, and a simple migration tool will handle the move for you. Update December 3[​](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#update-december-3 "Direct link to Update December 3") ----------------------------------------------------------------------------------------------------------------------------------- Migration is now live on [vesu.xyz](https://vesu.xyz/) . Any position that can be upgraded will now show a Migrate button. For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-8d4ad6044c3f15525e01bda5446eca20.png) What you need to know[​](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#what-you-need-to-know "Direct link to What you need to know") ----------------------------------------------------------------------------------------------------------------------------------------------- TL;DR * All USDC.e and V1 positions will move to native USDC and V2 pools * STRK rewards continue for native USDC * V1 pools will enter a limited mode * A 1-click migration will be available in the Vesu UI The current bridged USDC will be renamed USDC.e and native USDC will take over the USDC ticker across Starknet apps and explorers. Once migration begins, V1 pools will switch to limited mode. Existing positions can still be closed, but opening new positions or adding debt will no longer be possible. The pools will continue operating for now. The migration tool will support both steps: moving from USDC.e to native USDC and shifting V1 positions into the newer V2 pools. Open positions and affected markets will show a Migrate button in the UI. V2 as the new standard[​](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#v2-as-the-new-standard "Direct link to V2 as the new standard") -------------------------------------------------------------------------------------------------------------------------------------------------- Vesu currently has 18 pools across V1 and V2, which makes it harder to find the right market and spreads liquidity across many smaller pools. Consolidating liquidity in the V2 pools reduces this fragmentation and creates a simpler setup. V2 pools run on improved smart contracts that have been audited by Zenith, ChainSecurity and OpenZeppelin. Their full reports are available in the [docs](https://docs.vesu.xyz/security/audits) . Each pool uses its own isolated contract, with less complexity and better gas efficiency. **Benefits for users:** * Less fragmentation: liquidity concentrated in stronger pools * Better UX: simpler to find the right markets * Future-proof: all new features and improvements will focus on V2 Strengths of native USDC[​](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#strengths-of-native-usdc "Direct link to Strengths of native USDC") -------------------------------------------------------------------------------------------------------------------------------------------------------- Native USDC is issued directly by Circle and comes with clear benefits: * One unified, canonical USDC * Lower risk and fewer trust assumptions * Fully reserved and redeemable 1:1 * Faster, more reliable cross-chain transfers through CCTP * Opens the door for institutional players on Starknet It is the version exchanges, custodians and market makers prefer. Next steps[​](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#next-steps "Direct link to Next steps") -------------------------------------------------------------------------------------------------------------- There’s nothing you need to do right now. Just keep an eye on our socials. We’ll post the exact go-live announcement on [X](https://x.com/vesuxyz) and [Discord](https://discord.gg/G9Gxgujj8T) once everything is ready. If you have any questions, now or during the migration, feel free to open a ticket in our [Discord](https://discord.gg/G9Gxgujj8T) . We’re here to help. * [Update December 3](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#update-december-3) * [What you need to know](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#what-you-need-to-know) * [V2 as the new standard](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#v2-as-the-new-standard) * [Strengths of native USDC](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#strengths-of-native-usdc) * [Next steps](https://docs.vesu.xyz/blog/2025-11-28-unified-liquidity#next-steps) --- # Welcome to Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/#__docusaurus_skipToContent_fallback) Vesu V2 is a fully open and permissionless lending protocol built on Starknet. Anyone can supply assets to earn yield, borrow against collateral, or create new lending markets. Vesu is designed as an open infrastructure: transparent, accessible, and free to use by anyone. Vesu V2 builds on the same battle-tested concepts than the initial version of the Vesu lending protocol, that was launched in July 2024, but further optimizes for simplicity and security by: * Isolating pools (and respective funds) into separate `Pool` instances * Removing hooks and extensions * Simplifying pool state and logic into a single `Pool` contract * Externalizing `vToken` into stand-alone ERC-4626 vaults --- # The Vesu Leaderboard | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/leaderboard#__docusaurus_skipToContent_fallback) The [Vesu Leaderboard](https://vesu.xyz/pro/leaderboard) tracks the USD-value of the total interest earned across all Vesu markets for users. tip You can easily find your rank on the leaderboard by connecting your wallet. The leaderboard is used to compute users' STRK allocations from the DeFi Spring program. You can find more information about how to participate in DeFi Spring [here](https://docs.vesu.xyz/explore/rewards) . --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/users#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. Please contact the owner of the site that linked you to the original URL and let them know their link is broken. --- # Security | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/#__docusaurus_skipToContent_fallback) On this page Security is a core part of the Vesu lending protocol. The protocol has been reviewed by leading DeFi security experts, including: * [Zenith Security](https://www.zenith.security/) * [Sherlock](https://sherlock.xyz/) * [OpenZeppelin](https://www.openzeppelin.com/security-audits) * [Chain Security](https://www.chainsecurity.com/) * [Cairo Security Clan](https://cairosecurityclan.com/) All audit reports and verification hashes are available in the [Audit Overview](https://docs.vesu.xyz/security/audits) . Bug Bounty[​](https://docs.vesu.xyz/security/#bug-bounty "Direct link to Bug Bounty") -------------------------------------------------------------------------------------- Please submit any bug or vulnerability report through our [Bug Bounty Program](https://audits.sherlock.xyz/bug-bounties/354) . For further inquiries please reach out to [security@vesu.xyz](mailto:security@vesu.xyz) . Access & Custody[​](https://docs.vesu.xyz/security/#access--custody "Direct link to Access & Custody") ------------------------------------------------------------------------------------------------------- Vesu is a non-custodial lending protocol. Funds are never held by Vesu and are accessible directly onchain. If the main Vesu website is unavailable, positions remain accessible through the [Fallback UI](https://lite.vesu.xyz/) . This backup frontend interacts directly with the smart contracts and allows viewing or closing positions without relying on external services. * [Bug Bounty](https://docs.vesu.xyz/security/#bug-bounty) * [Access & Custody](https://docs.vesu.xyz/security/#access--custody) --- # Explore Vesu Vaults | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/vaults#__docusaurus_skipToContent_fallback) On this page Vesu Vaults are programmable yield strategies built on Starknet, designed to make onchain yield more accessible and efficient. They abstract away the complexity of managing positions, optimizing yield, or handling redemptions. Everything runs on audited smart contracts, managed by independent curators. Core features[​](https://docs.vesu.xyz/explore/vaults#core-features "Direct link to Core features") ---------------------------------------------------------------------------------------------------- Vesu Vaults remove the usual friction in yield farming by providing a set of simple, powerful guarantees: * Non-custodial deposits, processed instantly * Withdrawals follow a strategy-specific delay to optimize capital efficiency * Funds can only be used according to an onchain **strategy mandate** * Supports optional fees: management, performance, redemption Use cases[​](https://docs.vesu.xyz/explore/vaults#use-cases "Direct link to Use cases") ---------------------------------------------------------------------------------------- The Vaults are designed to support a wide range of strategies. These can include strategies like: * Diversified `USDC` yield by lending across multiple Vesu pools * Boosted `wBTC` yield via borrowing `USDC` against `wBTC` collateral, to generate yield on the borrowed `USDC` * Automated looping of `ETH` staking yield * Basis trade strategies And much more. The infrastructure is designed to enable almost any possible onchain strategy. How it works[​](https://docs.vesu.xyz/explore/vaults#how-it-works "Direct link to How it works") ------------------------------------------------------------------------------------------------- A modular architecture balances flexibility for curators with safety for users. Key to this are the following innovations: * Built on the [**starknet-vault-kit**](https://github.com/ForgeYields/starknet_vault_kit) , an extension to the proven ERC-4626 standard comparable to an **asynchronous redemption ERC-7540 vault** * Enforced **strategy mandates** ensure that deposited funds are only used as specified * An onchain **AuM Oracle** trustlessly computes and reports the vault's **Assets under Management** * Strategies can integrate with Vesu for lending and borrowing, Avnu for swaps and arbitrary third-party ERC-4626 vaults ![Vesu Vaults](https://docs.vesu.xyz/assets/images/vesu-vaults-7dc292e16e9ed3eddf17695533479b5b.png) _Vaults allocate liquidity across DeFi protocols, follow onchain strategy mandates, and report performance via a AuM oracle._ Curator model[​](https://docs.vesu.xyz/explore/vaults#curator-model "Direct link to Curator model") ---------------------------------------------------------------------------------------------------- In the spirit of Vesu's open and permissionless market model, Vesu Vaults adopts the same open curator model. Vault strategies can be launched by anyone using Vesu's flexible and secure vault infrastructure. Vault curators are professional third-parties responsible for tasks such as: * Careful design and backtesting of yield strategies * Creation and initial setup of new yield strategies * Ongoing management of the yield strategy, eg rebalancing across different yield sources * Maintaining the vault’s liquidity buffer for redemptions * Monitoring of market conditions and risk management This open model creates a dynamic marketplace of competing vault strategies, driving innovation, efficiency, and better yields for users. Security[​](https://docs.vesu.xyz/explore/vaults#security "Direct link to Security") ------------------------------------------------------------------------------------- As with all of the Vesu infrastructure we put a strong focus on the security of Vesu Vaults. * Smart contracts are fully audited * $100k [bug bounty program](https://immunefi.com/bounty/vesu/) * Strategy mandates and NAV oracles minimize trust assumptions Read more about audits, security partners, and our full process [here](https://docs.vesu.xyz/security/) . * [Core features](https://docs.vesu.xyz/explore/vaults#core-features) * [Use cases](https://docs.vesu.xyz/explore/vaults#use-cases) * [How it works](https://docs.vesu.xyz/explore/vaults#how-it-works) * [Curator model](https://docs.vesu.xyz/explore/vaults#curator-model) * [Security](https://docs.vesu.xyz/explore/vaults#security) --- # Explore Curators | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/curators#__docusaurus_skipToContent_fallback) On this page Vesu does not rely on centralized governance but on an open curation model. Professional, third-party **Curators** create and manage lending pools as market demand arises. This keeps the system efficient and avoids delays that governance-based protocols often face. ![Vesu Curators](https://docs.vesu.xyz/assets/images/vesu-curators-95c40a5caddb0f8d1f484bb6f29cd053.png) The diagram above shows a simplified market structure with three Vesu lending pools. The curators of these pools are independent parties with full responsibility for the initial setup and ongoing management of their pools. Most curators are experienced teams with a strong track record across lending protocols and DeFi ecosystems. The diagram above shows a simplified market structure with three Vesu lending pools. Each pool is created and managed by an independent curator, responsible for its setup and ongoing configuration. While many pools are run by experienced teams with a strong track record, Vesu is open for anyone to launch a pool. Always do your own research and choose pools that match your risk tolerance. Role of curators[​](https://docs.vesu.xyz/explore/curators#role-of-curators "Direct link to Role of curators") --------------------------------------------------------------------------------------------------------------- Curators are responsible for keeping their pools running safely and efficiently. This includes, but is not limited to, the following activities: * Creation and initial setup of new lending pools * Monitoring of Vesu market conditions * Monitoring of external market conditions, e.g. liquidity on DEXs required for efficient liquidations * Adjusting pool risk parameters when market conditions change Outside the scope of curator responsibilities[​](https://docs.vesu.xyz/explore/curators#outside-the-scope-of-curator-responsibilities "Direct link to Outside the scope of curator responsibilities") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ This open curator model empowers open, efficient and secure lending markets. At the same time, the role & responsibilities of curators very limited with the goal to minimize the trust assumptions towards these third parties. Curators are not involved in the following: * Custody of user funds * Control over user funds in Vesu pools * Valuation of assets & liabilities, or user positions on Vesu * Executing liquidations In the case of Vaults, curators can define an **on-chain mandate** that governs how funds are allocated. These rules are transparent and enforced by smart contracts. Curator fees[​](https://docs.vesu.xyz/explore/curators#curator-fees "Direct link to Curator fees") --------------------------------------------------------------------------------------------------- Curators may charge a fee, taken as a percentage of the interest generated in a pool. This fee is set by the curator and displayed transparently on the Vesu frontend. * [Role of curators](https://docs.vesu.xyz/explore/curators#role-of-curators) * [Outside the scope of curator responsibilities](https://docs.vesu.xyz/explore/curators#outside-the-scope-of-curator-responsibilities) * [Curator fees](https://docs.vesu.xyz/explore/curators#curator-fees) --- # Explore Vesu pools | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/pools#__docusaurus_skipToContent_fallback) On this page Pools are the core building block of Vesu’s modular lending infrastructure. They are non-custodial, autonomous markets for overcollateralized lending and borrowing. Lenders supply assets as liquidity. Borrowers deposit collateral to borrow other assets. Pool creation and management is permissionless. Curators can deploy and manage secure, use-case-specific lending markets. This page introduces the core concepts behind Vesu pools. Lending market structure[​](https://docs.vesu.xyz/explore/pools#lending-market-structure "Direct link to Lending market structure") ------------------------------------------------------------------------------------------------------------------------------------ Vesu’s modular architecture allows [curators](https://docs.vesu.xyz/explore/curators) to create fully isolated lending pools. Each pool is configurable based on demand and can be tailored to different market needs and use cases. ![Vesu vTokens](https://docs.vesu.xyz/assets/images/markets-b3ef1f4666c74110bb0b4d7f99bb129f.png) Modular lending pools[​](https://docs.vesu.xyz/explore/pools#modular-lending-pools "Direct link to Modular lending pools") --------------------------------------------------------------------------------------------------------------------------- Vesu’s pool design supports a wide range of lending configurations using three core concepts: * **Asset**: An ERC-20 token used as collateral, debt, or both. * **Lending pair**: A unidirectional agreement between a collateral and debt asset, with specific loan-to-value, liquidation bonus, and debt cap settings. * **Lending pool**: A collection of lending pairs sharing liquidity, allowing multiple asset combinations within a single pool. For example, a pool might let users borrow USDC against ETH collateral, with an 80% loan-to-value ratio. ![Vesu Lending Pair](https://docs.vesu.xyz/assets/images/lending-pair-0662f50e1ebbadbe3e70e217a61f4834.png) The diagram below shows different pool configurations: ![Vesu Lending Pools](https://docs.vesu.xyz/assets/images/lending-pool-964eff6c7c0d5107ec4bf5122c4cfb7b.png) * **Pool A**: A single lending pair to borrow USDC against wETH. * **Pool B**: Bi-directional pairs, allowing collateral to be reused across pairs. This introduces risk through rehypothecation. * **Pool C**: Multiple collateral assets can be used to borrow USDC, each pair with its own maximum loan-to-value setting. Positions[​](https://docs.vesu.xyz/explore/pools#positions "Direct link to Positions") --------------------------------------------------------------------------------------- Each lending pair tracks a separate **position**, which includes your deposit and any outstanding debt. Users can have multiple positions in a pool, each tied to a specific pair. Unlike protocols like Aave, Vesu doesn’t use a global account model. This allows for more granular risk control and reduces protocol complexity. info Vesu tracks positions per lending pair to enable specific risk settings and significantly reduce the implementation complexity of the protocol. ![Vesu Positions](https://docs.vesu.xyz/assets/images/positions-80e6486d4f3843d14ef0823c46afecad.png) In the example above, the user holds three positions in Pool C with an overall nominal debt outstanding of 3.5M USDC. Note that the positions in fact track **Supply Shares** and **Nominal Debt** which are explained in more detail in the following sections. Liquidity & risk[​](https://docs.vesu.xyz/explore/pools#liquidity--risk "Direct link to Liquidity & risk") ----------------------------------------------------------------------------------------------------------- info In Vesu V2, each pool is a separate contract with its own funds and risk profile. Assets supplied to a pool are shared across its lending pairs, maximizing capital efficiency. Liquidity is not shared across pools, meaning risk is isolated per pool. Interest rates[​](https://docs.vesu.xyz/explore/pools#interest-rates "Direct link to Interest rates") ------------------------------------------------------------------------------------------------------ Lending markets price demand using interest rates. Vesu’s interest rate model (IRM) adjusts automatically, with no governance. ![Vesu Interest Rate Model](https://docs.vesu.xyz/assets/images/adaptive-irm-28d0b96d57800028c10a0353903d3268.png) The IRM has two components: * An interest rate curve that adjusts instantly with utilization * A curve controller that gradually shifts the curve based on sustained demand changes This gives Vesu stable and predictable behavior for both lenders and borrowers. Liquidations[​](https://docs.vesu.xyz/explore/pools#liquidations "Direct link to Liquidations") ------------------------------------------------------------------------------------------------ All positions must stay overcollateralized. Collateral value must always exceed debt. If a position exceeds the liquidation loan-to-value set by its pair, it becomes eligible for liquidation. Anyone can repay the debt and receive the collateral at a discount. Vesu uses a full liquidation model: liquidators repay all debt in exchange for discounted collateral. ![Vesu vTokens](https://docs.vesu.xyz/assets/images/liquidation-3b9ea6ec68e7066e21ab1c70218e277c.png) The example shows a liquidator repaying the full debt and receiving the max eligible collateral based on prices and the configured bonus. vTokens[​](https://docs.vesu.xyz/explore/pools#vtokens "Direct link to vTokens") --------------------------------------------------------------------------------- **vTokens** are ERC-4626 compatible vault tokens that represent your share in a Vesu pool. They simplify supply and withdrawal. ![Vesu vTokens](https://docs.vesu.xyz/assets/images/vToken-2badd6ee76336f73d646de0b579cc9c3.png) Each asset in each pool has its own vToken. Supplying mints vTokens; withdrawing burns them. As interest accrues, the vToken exchange rate increases, letting you withdraw more over time. Read more in the [SNIP-22 spec](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) . * [Lending market structure](https://docs.vesu.xyz/explore/pools#lending-market-structure) * [Modular lending pools](https://docs.vesu.xyz/explore/pools#modular-lending-pools) * [Positions](https://docs.vesu.xyz/explore/pools#positions) * [Liquidity & risk](https://docs.vesu.xyz/explore/pools#liquidity--risk) * [Interest rates](https://docs.vesu.xyz/explore/pools#interest-rates) * [Liquidations](https://docs.vesu.xyz/explore/pools#liquidations) * [vTokens](https://docs.vesu.xyz/explore/pools#vtokens) --- # Rewards on Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/rewards#__docusaurus_skipToContent_fallback) On this page Vesu users have earned STRK rewards through Starknet Foundation ecosystem programs. The sections below describe these campaigns and their current status. BTCFi Season[​](https://docs.vesu.xyz/explore/rewards#btcfi-season "Direct link to BTCFi Season") -------------------------------------------------------------------------------------------------- The Starknet Foundation allocated 100 million STRK to bootstrap the BTCFi ecosystem. Unlike past programs that focused on static TVL, BTCFi Season rewards **active BTC usage**, especially **borrowing stablecoins against BTC collateral**. Vesu plays a central role as the main money market where users can supply Bitcoin and borrow stablecoins directly on Starknet. The goal is to bootstrap real BTC utility, allowing Bitcoin holders to use their assets productively while staying in full self-custody. ### Eligible Markets[​](https://docs.vesu.xyz/explore/rewards#eligible-markets "Direct link to Eligible Markets") **BTC Collateral:** * WBTC * LBTC * SolvBTC * tBTC * uniBTC (soon) * YBTC.B (soon) **Borrowable Stablecoins:** * USDC * USDT * CASH note To qualify for BTCFi rewards, stablecoins must be borrowed against eligible BTC collateral. Rewards are distributed by the Starknet Foundation to participating protocols based on activity. Vesu does not manage or guarantee the distribution schedule or amounts. For more information, visit the official [BTCFi Season website](https://btcfiseason.starknet.org/) . DeFi Spring (Ended)[​](https://docs.vesu.xyz/explore/rewards#defi-spring-ended "Direct link to DeFi Spring (Ended)") --------------------------------------------------------------------------------------------------------------------- DeFi Spring was a Starknet Foundation incentive program that distributed STRK rewards to participating DeFi protocols, including Vesu. Program ended DeFi Spring has ended. Users can still claim any unclaimed STRK rewards earned during the program **until March 31, 2026**. ### Rewards allocation[​](https://docs.vesu.xyz/explore/rewards#rewards-allocation "Direct link to Rewards allocation") During the program, the allocation of STRK rewards depended on two factors: 1. The amount of STRK allocated to Vesu is determined by activity metrics defined by the Starknet Foundation. 2. Your share depends on the value of your deposits relative to the total value locked (TVL) across all participants in eligible markets over the same period. ### Eligible Markets[​](https://docs.vesu.xyz/explore/rewards#eligible-markets-1 "Direct link to Eligible Markets") The following markets were eligible for DeFi Spring rewards: * STRK * xSTRK * wstETH * ETH * USDC * USDT note According to the Starknet Foundation’s criteria, only non-recursive deposits of stablecoins (USDC/USDT) were eligible for DeFi Spring rewards. Claiming Rewards[​](https://docs.vesu.xyz/explore/rewards#claiming-rewards "Direct link to Claiming Rewards") -------------------------------------------------------------------------------------------------------------- The Starknet Foundation distributes STRK rewards weekly to participating protocols. Once distributed, users can claim their earned share directly on Starknet via a permissionless contract. tip Learn more about claiming rewards in this [guide](https://docs.vesu.xyz/user-guides/claim-rewards) . * [BTCFi Season](https://docs.vesu.xyz/explore/rewards#btcfi-season) * [Eligible Markets](https://docs.vesu.xyz/explore/rewards#eligible-markets) * [DeFi Spring (Ended)](https://docs.vesu.xyz/explore/rewards#defi-spring-ended) * [Rewards allocation](https://docs.vesu.xyz/explore/rewards#rewards-allocation) * [Eligible Markets](https://docs.vesu.xyz/explore/rewards#eligible-markets-1) * [Claiming Rewards](https://docs.vesu.xyz/explore/rewards#claiming-rewards) --- # Glossary | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/glossary#__docusaurus_skipToContent_fallback) On this page A collection of important terms and concepts General[​](https://docs.vesu.xyz/explore/glossary#general "Direct link to General") ------------------------------------------------------------------------------------ ### Asset[​](https://docs.vesu.xyz/explore/glossary#asset "Direct link to Asset") A specific crypto asset or _ERC20_ token, or extensions thereof. ### Collateral Asset[​](https://docs.vesu.xyz/explore/glossary#collateral-asset "Direct link to Collateral Asset") The _Asset_ that is deposited as collateral in a specific lending pair or _Position_. ### Loan Asset[​](https://docs.vesu.xyz/explore/glossary#loan-asset "Direct link to Loan Asset") The _Asset_ that is borrowed in a specific lending pair or _Position_. ### Pool[​](https://docs.vesu.xyz/explore/glossary#pool "Direct link to Pool") An isolated lending arrangement that supports the lending and borrowing of different _Assets_, each a lending _Market_. ### Market[​](https://docs.vesu.xyz/explore/glossary#market "Direct link to Market") A specific _Asset_ that can be lent and borrowed in a _Pool_. ### Position[​](https://docs.vesu.xyz/explore/glossary#position "Direct link to Position") A specific lend or borrow position characterized by the _Collateral Asset_, _Loan Asset_, and _Pool ID_. ### Funds[​](https://docs.vesu.xyz/explore/glossary#funds "Direct link to Funds") The amount of an _Asset_ supplied in a specific _Market_. ### Collateral Asset Price[​](https://docs.vesu.xyz/explore/glossary#collateral-asset-price "Direct link to Collateral Asset Price") The USD price of the _Collateral Asset_ as reported by the _Pool_’s oracle price feed. ### Loan Asset Price[​](https://docs.vesu.xyz/explore/glossary#loan-asset-price "Direct link to Loan Asset Price") The USD price of the _Loan Asset_ as reported by the _Pool_’s oracle price feed. Interest Rates[​](https://docs.vesu.xyz/explore/glossary#interest-rates "Direct link to Interest Rates") --------------------------------------------------------------------------------------------------------- ### Interest Rate Curve[​](https://docs.vesu.xyz/explore/glossary#interest-rate-curve "Direct link to Interest Rate Curve") The specific model according to which the _Interest Rate_ adjusts to the lending and borrowing activity in a given _Market_. This model is implemented in Vesu’s lending hooks and configured in each _Market_ individually. ### Interest Rate Curve Controller[​](https://docs.vesu.xyz/explore/glossary#interest-rate-curve-controller "Direct link to Interest Rate Curve Controller") A submodule of the _Interest Rate Curve_ that controls how the _Full Utilization Rate_, and thus the shape of the _Interest Rate Curve_, is adjusted based on the lending and borrowing activity in a _Market_. ### Zero Utilization Rate[​](https://docs.vesu.xyz/explore/glossary#zero-utilization-rate "Direct link to Zero Utilization Rate") The per-second interest rate that applies for a _Utilization_ of 0% in a given _Market_. The _Zero Utilization Rate_ is static and can only be changed by the _Pool Curator._ ### Target Utilization[​](https://docs.vesu.xyz/explore/glossary#target-utilization "Direct link to Target Utilization") The _Utilization_ that is configured as the target for a given _Market._ Note, the _Target Utilization_ is always larger than 0% and smaller than 100%. ### Minimum Full Utilization Rate[​](https://docs.vesu.xyz/explore/glossary#minimum-full-utilization-rate "Direct link to Minimum Full Utilization Rate") The minimum value that the per-second interest rate can be for a _Utilization_ of 100% in a given _Market_. The _Minimum Full Utilization Rate_ is static and can only be changed by the _Pool Curator._ ### Maximum Full Utilization Rate[​](https://docs.vesu.xyz/explore/glossary#maximum-full-utilization-rate "Direct link to Maximum Full Utilization Rate") The maximum value that the per-second interest rate can be for a _Utilization_ of 100% in a given _Market_. The _Minimum Full Utilization Rate_ is static and can only be changed by the _Pool Curator._ ### Last Updated[​](https://docs.vesu.xyz/explore/glossary#last-updated "Direct link to Last Updated") The timestamp reflecting the block in which the _Last Full Utilization Rate_ (and the _Rate Accumulator_) was adjusted the last time by the _Interest Rate Curve Controller_. ### Last Full Utilization Rate[​](https://docs.vesu.xyz/explore/glossary#last-full-utilization-rate "Direct link to Last Full Utilization Rate") The last value of the _Full Utilization Rate_ that was snapshotted at the _Last Updated_ timestamp by the _Interest Rate Curve Controller_. ### Full Utilization Rate[​](https://docs.vesu.xyz/explore/glossary#full-utilization-rate "Direct link to Full Utilization Rate") The current per-second interest rate that applies for a _Utilization_ of 100% in a given _Market_. The _Interest Rate Curve Controller_ constantly adjusts the _Full Utilization Rate_ within the _Minimum Full Utilization Rate_ and _Maximum Full Utilization Rate_ depending on whether the _Utilization_ exceeds or subceeds the _Market_’s _Target Utilization_. time_delta = current_timestamp - last_updatedif utilization < min_target_utilization: utilization_delta = (min_target_utilization - utilization) / min_target_utilization decay = rate_half_life + (utilization_delta * time_delta) full_utilization_rate = (last_full_utilization_rate * rate_half_life) / decayelse if utilization > max_target_utilization: utilization_delta = (utilization - max_target_utilization) / (1 - max_target_utilization) growth = rate_half_life + (utilization_delta * time_delta) full_utilization_rate = (last_full_utilization_rate * growth) / rate_half_life else: full_utilization_rate = last_full_utilization_rate Note, the _Full Utilization Rate_ is only updated by the _Interest Rate Curve Controller_ if the current _Utilization_ exceeds the configured threshold values _Min Target Utilization_ and _Max Target Utilization._ ### Target Rate Percent[​](https://docs.vesu.xyz/explore/glossary#target-rate-percent "Direct link to Target Rate Percent") The value of the per-second interest rate expressed as a percentage of the _Full Utilization Rate_ of a given _Market_. ### Target Rate[​](https://docs.vesu.xyz/explore/glossary#target-rate "Direct link to Target Rate") The per-second interest rate that applies for a _Utilization_ exactly at the _Target Utilization_ for a given _Market_. `target_rate = zero_utilization_rate + (full_utilization_rate - zero_utilization_rate) * target_rate_percent` ### Interest Rate[​](https://docs.vesu.xyz/explore/glossary#interest-rate "Direct link to Interest Rate") The per-second interest rate based on the current or a projected _Utilization_ and the _Interest Rate Curve_ of a given _Market_. interest_rate(utilization) = if utilization < target_utilization: zero_utilization_rate + utilization * (target_rate - zero_utilization_rate) / target_utilization else: target_rate + (utilization - target_utilization) * (full_utilization_rate - target_rate) / (1 - target_utilization) ### Rate Accumulator[​](https://docs.vesu.xyz/explore/glossary#rate-accumulator "Direct link to Rate Accumulator") An index tracking the accumulation of interest based on the current _Utilization_ and _Interest Rate_ in a given _Market._ The _Rate Accumulator_ always starts with a value of 1.0 for a newly initiated _Market_ and is constantly updated with each user interacting with the _Market_ based on the then applicable _Interest Rate._ `rate_accumulator = last_rate_accumulator * (1 + interest_rate(current_utilization)) ** (current_timestamp - last_updated)` Pools & Markets[​](https://docs.vesu.xyz/explore/glossary#pools--markets "Direct link to Pools & Markets") ----------------------------------------------------------------------------------------------------------- ### Total Nominal Debt[​](https://docs.vesu.xyz/explore/glossary#total-nominal-debt "Direct link to Total Nominal Debt") The total debt outstanding in a _Market_, across all _Positions_, excluding accumulated interest. ### Total Debt[​](https://docs.vesu.xyz/explore/glossary#total-debt "Direct link to Total Debt") The total debt outstanding in a _Market_, across all _Positions_, including accumulated interest. `total_debt = rate_accumulator * total_nominal_debt` ### Total Collateral Shares[​](https://docs.vesu.xyz/explore/glossary#total-collateral-shares "Direct link to Total Collateral Shares") The total shares outstanding, across all _Positions_, for a _Market_. These shares are eligible to claim the _Market_‘s _Total Supplied_. ### Reserves[​](https://docs.vesu.xyz/explore/glossary#reserves "Direct link to Reserves") The portion of _Funds_ in a _Market_ that is not borrowed, or the idle liquidity in a _Market_. ### Total Supplied[​](https://docs.vesu.xyz/explore/glossary#total-supplied "Direct link to Total Supplied") The total _Funds_ supplied in a _Market_ including _Total Debt_ outstanding. `total_supplied = reserves + total_debt` ### Utilization[​](https://docs.vesu.xyz/explore/glossary#utilization "Direct link to Utilization") The percentage of _Funds_ borrowed in a _Market_. `utilization = total_debt / total_supplied` ### Max Utilization[​](https://docs.vesu.xyz/explore/glossary#max-utilization "Direct link to Max Utilization") The maximal percentage of _Funds_ that is enabled to be borrowed in a _Market_. By default, this is 100% but can be lower for different _Markets_. `max_utilization <= 100%` ### Total Liquidity[​](https://docs.vesu.xyz/explore/glossary#total-liquidity "Direct link to Total Liquidity") The total _Funds_ available in a _Market_ _Borrowers_ to borrow and _Lenders_ to withdraw. `total_liquidity = max_utilization * total_supplied` ### Liquidity[​](https://docs.vesu.xyz/explore/glossary#liquidity "Direct link to Liquidity") The remaining _Funds_ available in a _Market_ for lenders or borrowers to withdraw. `liquidity = max(0, total_liquidity - total_debt)` ### Debt Cap[​](https://docs.vesu.xyz/explore/glossary#debt-cap "Direct link to Debt Cap") The maximal amount of _Total Debt_ of a _Market_ beyond which borrowing is restricted. `total_debt <= debt_cap` ### Debt Floor[​](https://docs.vesu.xyz/explore/glossary#debt-floor "Direct link to Debt Floor") The minimal _Position Debt,_ expressed in USD, a “Borrow” position must be created with. ### Total Debt Capacity[​](https://docs.vesu.xyz/explore/glossary#total-debt-capacity "Direct link to Total Debt Capacity") The remaining debt a _Market_ allows to borrow given its _Liquidity_ and _Debt Cap_. `debt_capacity = min(liquidity, max(0, debt_cap - total_debt))` ### Borrow APR[​](https://docs.vesu.xyz/explore/glossary#borrow-apr "Direct link to Borrow APR") The current simple interest rate, that is the interest rate without per-second compounding effect, that applies on a _Borrower_’s _Nominal Debt_ based on the current _Utilization_ and _Interest Rate_ in a given _Market_. `borrow_apr = (1 + interest_rate(current_utilization)) ** (360 * 86400) - 1` ### Gross Lending APR[​](https://docs.vesu.xyz/explore/glossary#gross-lending-apr "Direct link to Gross Lending APR") The current simple interest rate, that is the interest rate without per-second compounding effect, that _Lenders_ in a given _Market_ earn without accounting for fees. `lending_apr = utilization * borrow_apr` ### Lending APR[​](https://docs.vesu.xyz/explore/glossary#lending-apr "Direct link to Lending APR") The current simple interest rate after fees, that _Lenders_ in a given _Market_ earn. `lending_apr = utilization * borrow_apr` Positions[​](https://docs.vesu.xyz/explore/glossary#positions "Direct link to Positions") ------------------------------------------------------------------------------------------ ### Position Nominal Debt[​](https://docs.vesu.xyz/explore/glossary#position-nominal-debt "Direct link to Position Nominal Debt") The debt of a _Position_ excluding accumulated interest. ### Position Debt[​](https://docs.vesu.xyz/explore/glossary#position-debt "Direct link to Position Debt") The debt of a _Position_ including accumulated interest. `position_debt = rate_accumulator * position_nominal_debt` ### Position Collateral Shares[​](https://docs.vesu.xyz/explore/glossary#position-collateral-shares "Direct link to Position Collateral Shares") The shares of a _Market_ owned by a _Position_. ### Position Collateral[​](https://docs.vesu.xyz/explore/glossary#position-collateral "Direct link to Position Collateral") The _Funds_ claimable by the _Position Collateral Shares_ of a _Position_. ### Position Loan-to-Value[​](https://docs.vesu.xyz/explore/glossary#position-loan-to-value "Direct link to Position Loan-to-Value") The percentage value of a _Position_’s _Position Debt_ given its _Position Collateral_. `position_ltv = (position_debt * loan_asset_price) / (position_collateral * collateral_asset_price)` ### Liquidation Loan-to-Value[​](https://docs.vesu.xyz/explore/glossary#liquidation-loan-to-value "Direct link to Liquidation Loan-to-Value") The maximal _Position Loan-to-Value_ of a _Position_ beyond which it is available for liquidation in a given _Market_. ### Max Loan-to-Value[​](https://docs.vesu.xyz/explore/glossary#max-loan-to-value "Direct link to Max Loan-to-Value") The maximal _Position Loan-to-Value_ of a _Position_ beyond which borrowing is restricted in order to ensure a minimal health factor for newly created or updated _Borrow Positions._ `max_ltv = 0.95 * liquidation_ltv` ### Collateral Liquidation Price[​](https://docs.vesu.xyz/explore/glossary#collateral-liquidation-price "Direct link to Collateral Liquidation Price") The _Collateral Asset Price_ that has to be reached for a _Position_ to be liquidated, assuming the _Position_’s current _Position Collateral_, _Position Debt_ and a constant _Loan Asset Price_. `collateral_liquidation_price = (position_debt * loan_asset_price) / (position_collateral * liquidation_ltv)` ### Loan Liquidation Price[​](https://docs.vesu.xyz/explore/glossary#loan-liquidation-price "Direct link to Loan Liquidation Price") The _Loan Asset Price_ that has to be reached for a _Position_ to be liquidated, assuming the _Position_’s current _Position Collateral_, _Position Debt_ and a constant _Collateral Asset Price_. `loan_liquidation_price = liquidation_ltv * position_collateral * collateral_asset_price / position_debt` ### Position Debt Capacity[​](https://docs.vesu.xyz/explore/glossary#position-debt-capacity "Direct link to Position Debt Capacity") The remaining debt a Position allows to borrow, given the _Position_’s current _Position Collateral_, _Position Debt_ and the _Pool_’s _Max Loan-to-Value_. `position_debt_capacity = (max_ltv * position_collateral * collateral_asset_price / loan_asset_price) - position_debt` Multiply[​](https://docs.vesu.xyz/explore/glossary#multiply "Direct link to Multiply") --------------------------------------------------------------------------------------- ### Multiply Position[​](https://docs.vesu.xyz/explore/glossary#multiply-position "Direct link to Multiply Position") A _Position_ involving two correlated _Collateral Asset_ and _Loan Asset_ with the goal of increasing the (long) exposure to the _Collateral Asset_ while “shorting” the _Loan Asset_. A _Multiply Position_ in fact is represented as a regular _Borrow Position_ with the difference that the borrowed _Loan Asset_ is swapped to more of the _Collateral Asset_ which is then deposited as additional _Position Collateral._ Or, when closing a _Multiply Position_, a portion of the _Position Collateral_ is swapped to the _Loan Asset_ to repay the _Position Debt._ ### Multiply Asset[​](https://docs.vesu.xyz/explore/glossary#multiply-asset "Direct link to Multiply Asset") The _Asset_ multiplied in a “Multiply” _Position_ or, in other words, the _Collateral Asset_ in which exposure is built up. ### Swap Quote[​](https://docs.vesu.xyz/explore/glossary#swap-quote "Direct link to Swap Quote") The spot price quoted by the external DEX market for the swap of borrowed _Loan Assets_ to the _Multiply Asset_ when creating (or increasing) the _Multiply Position_. Or, the spot price quoted for the swap of _Position Collateral_ to the _Loan Asset_ when closing (or decreasing) the _Multiply Position_ or computing it’s _Net Asset Value._ Note, currently Vesu is integrated with the Ekubo DEX spot market for the execution of _Multiply Positions._ ### Net Asset Value[​](https://docs.vesu.xyz/explore/glossary#net-asset-value "Direct link to Net Asset Value") The amount of _Collateral Assets_ a _Multiply Position_ allows to withdraw after repaying its _Position Debt,_ expressed in _Collateral Asset_ units. `net_asset_value = position_collateral - swap_quote * position_debt` ### Multiplier[​](https://docs.vesu.xyz/explore/glossary#multiplier "Direct link to Multiplier") The exposure in the _Multiply Asset_ expressed as the proportion of the _Multiply Position_’s total _Position Collateral_ compared to its _Net Asset Value_. `multiplier = position_collateral / net_asset_value` ### Max Multiplier[​](https://docs.vesu.xyz/explore/glossary#max-multiplier "Direct link to Max Multiplier") The maximal _Multiplier_ of a _Multiply Position_ beyond which borrowing is restricted in order to ensure a minimal health factor for newly created or updated _Borrow Positions._ `max_multiplier = swap_quote * debt_asset_price / (swap_quote * debt_asset_price - max_ltv * collateral_asset_price)` Note, this formula accounts for a possible mismatch between the _Assets_’ Oracle prices and spot prices, as achieved in a DEX swap. The formula simplifies under the assumption that these prices are the same. `max_multiplier = 1 / (1 - max_ltv)` ### Net APR[​](https://docs.vesu.xyz/explore/glossary#net-apr "Direct link to Net APR") The net yield of a _Multiply Position_ when accounting for all accumulating yield on its _Position Collateral_ and borrow cost on the _Position Debt_. The _Net APR_ is expressed as a simple annualized rate, that is without accounting for per-second compounding. `net_apr = multiplier * (asset_apr + lending_apr + rewards_apr) - (multiplier - 1) * borrow_apr` ### Max APR[​](https://docs.vesu.xyz/explore/glossary#max-apr "Direct link to Max APR") The maximal _Net APR_ of a _Multiply Position_ based on the _Max Multiplier_. `max_apy = max_multiplier * (asset_apr + lending_apr + rewards_apr) - (max_multiplier - 1) * borrow_apr` ### Liquidation Price[​](https://docs.vesu.xyz/explore/glossary#liquidation-price "Direct link to Liquidation Price") The price of the _Collateral Asset_ expressed in terms of the _Loan Asset_ that has to be reached for a _Multiply Position_ to be liquidated, assuming the _Position_’s current _Position Collateral_ and _Position Debt_. `liquidation_price = position_debt / (position_collateral * liquidation_ltv)` Effective APRs ============== ### Effective Borrow APR[​](https://docs.vesu.xyz/explore/glossary#effective-borrow-apr "Direct link to Effective Borrow APR") The effective _Borrow APR_ a _Borrower_ will pay after taking out a _Loan_. effective_borrow_apr(projected_utilization) = (1 + interest_rate(projected_utilization)) ** (360 * 86400) - 1 with `projected_utilization = (total_debt + loan) / total_supplied` ### Effective Lending APR[​](https://docs.vesu.xyz/explore/glossary#effective-lending-apr "Direct link to Effective Lending APR") The effective _Lending APR_ a _Lender_ will earn after her _Deposit_. effective_lending_apr(projected_utilization) = projected_utilization * ((1 + interest_rate(projected_utilization)) ** (360 * 86400) - 1) with `projected_utilization = total_debt / (total_supplied + deposit)` ### Effective Net APR[​](https://docs.vesu.xyz/explore/glossary#effective-net-apr "Direct link to Effective Net APR") The effectie _Net APR_ of a _Multiply Position_ will generate after taking into account a user’s _Deposit_ (or _Withdrawal_) and new _Multiplier_. `effective_net_apr = new_multiplier * (asset_apr + effective_lending_apr(projected_utilization_lending) + rewards_apr) - (new_multiplier - 1) * effective_borrow_apr(projected_utilization_borrow)` with `projected_utilization_lending = total_debt / (total_supplied + deposit)` `projected_utilization_borrow = (total_debt + delta_debt) / total_supplied` * [General](https://docs.vesu.xyz/explore/glossary#general) * [Asset](https://docs.vesu.xyz/explore/glossary#asset) * [Collateral Asset](https://docs.vesu.xyz/explore/glossary#collateral-asset) * [Loan Asset](https://docs.vesu.xyz/explore/glossary#loan-asset) * [Pool](https://docs.vesu.xyz/explore/glossary#pool) * [Market](https://docs.vesu.xyz/explore/glossary#market) * [Position](https://docs.vesu.xyz/explore/glossary#position) * [Funds](https://docs.vesu.xyz/explore/glossary#funds) * [Collateral Asset Price](https://docs.vesu.xyz/explore/glossary#collateral-asset-price) * [Loan Asset Price](https://docs.vesu.xyz/explore/glossary#loan-asset-price) * [Interest Rates](https://docs.vesu.xyz/explore/glossary#interest-rates) * [Interest Rate Curve](https://docs.vesu.xyz/explore/glossary#interest-rate-curve) * [Interest Rate Curve Controller](https://docs.vesu.xyz/explore/glossary#interest-rate-curve-controller) * [Zero Utilization Rate](https://docs.vesu.xyz/explore/glossary#zero-utilization-rate) * [Target Utilization](https://docs.vesu.xyz/explore/glossary#target-utilization) * [Minimum Full Utilization Rate](https://docs.vesu.xyz/explore/glossary#minimum-full-utilization-rate) * [Maximum Full Utilization Rate](https://docs.vesu.xyz/explore/glossary#maximum-full-utilization-rate) * [Last Updated](https://docs.vesu.xyz/explore/glossary#last-updated) * [Last Full Utilization Rate](https://docs.vesu.xyz/explore/glossary#last-full-utilization-rate) * [Full Utilization Rate](https://docs.vesu.xyz/explore/glossary#full-utilization-rate) * [Target Rate Percent](https://docs.vesu.xyz/explore/glossary#target-rate-percent) * [Target Rate](https://docs.vesu.xyz/explore/glossary#target-rate) * [Interest Rate](https://docs.vesu.xyz/explore/glossary#interest-rate) * [Rate Accumulator](https://docs.vesu.xyz/explore/glossary#rate-accumulator) * [Pools & Markets](https://docs.vesu.xyz/explore/glossary#pools--markets) * [Total Nominal Debt](https://docs.vesu.xyz/explore/glossary#total-nominal-debt) * [Total Debt](https://docs.vesu.xyz/explore/glossary#total-debt) * [Total Collateral Shares](https://docs.vesu.xyz/explore/glossary#total-collateral-shares) * [Reserves](https://docs.vesu.xyz/explore/glossary#reserves) * [Total Supplied](https://docs.vesu.xyz/explore/glossary#total-supplied) * [Utilization](https://docs.vesu.xyz/explore/glossary#utilization) * [Max Utilization](https://docs.vesu.xyz/explore/glossary#max-utilization) * [Total Liquidity](https://docs.vesu.xyz/explore/glossary#total-liquidity) * [Liquidity](https://docs.vesu.xyz/explore/glossary#liquidity) * [Debt Cap](https://docs.vesu.xyz/explore/glossary#debt-cap) * [Debt Floor](https://docs.vesu.xyz/explore/glossary#debt-floor) * [Total Debt Capacity](https://docs.vesu.xyz/explore/glossary#total-debt-capacity) * [Borrow APR](https://docs.vesu.xyz/explore/glossary#borrow-apr) * [Gross Lending APR](https://docs.vesu.xyz/explore/glossary#gross-lending-apr) * [Lending APR](https://docs.vesu.xyz/explore/glossary#lending-apr) * [Positions](https://docs.vesu.xyz/explore/glossary#positions) * [Position Nominal Debt](https://docs.vesu.xyz/explore/glossary#position-nominal-debt) * [Position Debt](https://docs.vesu.xyz/explore/glossary#position-debt) * [Position Collateral Shares](https://docs.vesu.xyz/explore/glossary#position-collateral-shares) * [Position Collateral](https://docs.vesu.xyz/explore/glossary#position-collateral) * [Position Loan-to-Value](https://docs.vesu.xyz/explore/glossary#position-loan-to-value) * [Liquidation Loan-to-Value](https://docs.vesu.xyz/explore/glossary#liquidation-loan-to-value) * [Max Loan-to-Value](https://docs.vesu.xyz/explore/glossary#max-loan-to-value) * [Collateral Liquidation Price](https://docs.vesu.xyz/explore/glossary#collateral-liquidation-price) * [Loan Liquidation Price](https://docs.vesu.xyz/explore/glossary#loan-liquidation-price) * [Position Debt Capacity](https://docs.vesu.xyz/explore/glossary#position-debt-capacity) * [Multiply](https://docs.vesu.xyz/explore/glossary#multiply) * [Multiply Position](https://docs.vesu.xyz/explore/glossary#multiply-position) * [Multiply Asset](https://docs.vesu.xyz/explore/glossary#multiply-asset) * [Swap Quote](https://docs.vesu.xyz/explore/glossary#swap-quote) * [Net Asset Value](https://docs.vesu.xyz/explore/glossary#net-asset-value) * [Multiplier](https://docs.vesu.xyz/explore/glossary#multiplier) * [Max Multiplier](https://docs.vesu.xyz/explore/glossary#max-multiplier) * [Net APR](https://docs.vesu.xyz/explore/glossary#net-apr) * [Max APR](https://docs.vesu.xyz/explore/glossary#max-apr) * [Liquidation Price](https://docs.vesu.xyz/explore/glossary#liquidation-price) * [Effective Borrow APR](https://docs.vesu.xyz/explore/glossary#effective-borrow-apr) * [Effective Lending APR](https://docs.vesu.xyz/explore/glossary#effective-lending-apr) * [Effective Net APR](https://docs.vesu.xyz/explore/glossary#effective-net-apr) --- # Getting Started | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/getting-started#__docusaurus_skipToContent_fallback) On this page ### Repositories[​](https://docs.vesu.xyz/developers/getting-started#repositories "Direct link to Repositories") * Core: [https://github.com/vesuxyz/vesu-v2](https://github.com/vesuxyz/vesu-v2) * Periphery: [https://github.com/vesuxyz/vesu-periphery](https://github.com/vesuxyz/vesu-periphery) ### Support[​](https://docs.vesu.xyz/developers/getting-started#support "Direct link to Support") Find us on [Discord](https://discord.gg/G9Gxgujj8T) . ### Requirements[​](https://docs.vesu.xyz/developers/getting-started#requirements "Direct link to Requirements") This project uses Starknet Foundry for testing. To install Starknet Foundry follow [these instructions](https://foundry-rs.github.io/starknet-foundry/getting-started/installation.html) . ### Install[​](https://docs.vesu.xyz/developers/getting-started#install "Direct link to Install") We advise that you use [nvm](https://github.com/nvm-sh/nvm) to manage your Node versions. yarn ### Test[​](https://docs.vesu.xyz/developers/getting-started#test "Direct link to Test") scarb run test ### Gas Reporting[​](https://docs.vesu.xyz/developers/getting-started#gas-reporting "Direct link to Gas Reporting") Requires running a local devnet. You should have docker installed, then you can start the devnet by running the following command: scarb run startDevnet# in another terminal instancescarb run updateGasReport Deployment[​](https://docs.vesu.xyz/developers/getting-started#deployment "Direct link to Deployment") ------------------------------------------------------------------------------------------------------- ### Prerequisite[​](https://docs.vesu.xyz/developers/getting-started#prerequisite "Direct link to Prerequisite") Copy and update the contents of `.env.example` to `.env`. ### Declare and deploy contracts[​](https://docs.vesu.xyz/developers/getting-started#declare-and-deploy-contracts "Direct link to Declare and deploy contracts") Declare and deploy all contracts under `src` using the account with `PRIVATE_KEY` and `ADDRESS` specified in `.env` scarb run deployProtocolscarb run deploySepoliascarb run deployMainnet * [Repositories](https://docs.vesu.xyz/developers/getting-started#repositories) * [Support](https://docs.vesu.xyz/developers/getting-started#support) * [Requirements](https://docs.vesu.xyz/developers/getting-started#requirements) * [Install](https://docs.vesu.xyz/developers/getting-started#install) * [Test](https://docs.vesu.xyz/developers/getting-started#test) * [Gas Reporting](https://docs.vesu.xyz/developers/getting-started#gas-reporting) * [Deployment](https://docs.vesu.xyz/developers/getting-started#deployment) * [Prerequisite](https://docs.vesu.xyz/developers/getting-started#prerequisite) * [Declare and deploy contracts](https://docs.vesu.xyz/developers/getting-started#declare-and-deploy-contracts) --- # Migrate Positions from V1 to V2 | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/migrate-v1-to-v2#__docusaurus_skipToContent_fallback) On this page warning Migration of positions from the Vesu V1 version is not mandatory. Vesu V1 pools will continue to be supported and there is no risk of maintaining positions in the V1 version. However, liquidity will naturally migrate to the Vesu V2 pools as these will be more deeply integrated in the Starknet ecosystem going forward. **Users, and in particular borrowers, are advised to monitor V1 pools and migrate their positions as the borrow conditions indicate decreasing liquidity.** Migration steps[​](https://docs.vesu.xyz/developers/migrate-v1-to-v2#migration-steps "Direct link to Migration steps") ----------------------------------------------------------------------------------------------------------------------- Since the migration of Vesu V1 positions is not required, we don't automate that for users and also don't offer a simplified UI for it. That means, to migrate a position from Vesu V1 to V2, users have to close their V1 position and reopen it in one of the V2 pools. On the Vesu V2 frontend, V1 and V2 pools will be clearly labeled. Vesu V2 addresses[​](https://docs.vesu.xyz/developers/migrate-v1-to-v2#vesu-v2-addresses "Direct link to Vesu V2 addresses") ----------------------------------------------------------------------------------------------------------------------------- Find the contract addresses [here](https://docs.vesu.xyz/developers/contract-addresses) . Breaking changes[​](https://docs.vesu.xyz/developers/migrate-v1-to-v2#breaking-changes "Direct link to Breaking changes") -------------------------------------------------------------------------------------------------------------------------- Vesu V2 introduces some breaking changes compared to V1. We here provide an overview of these changes. If you have more questions, please reach out on our [Discord](https://discord.gg/G9Gxgujj8T) . * Deprecation of Singleton architecture: Vesu V1 built on a Singleton contract that manages the state and assets for all pools. This concept has been replaced with a Pool instance model where the state and assets are isolated into separate `Pool` contracts. To interact with a position in a specific pool, users now have to send transactions to the specific pool's address instead of the same Singleton address as before. * Removal of hooks and extension: Vesu V1's hooks system has been removed entirely making the separation of pool logic into core and extension unnecessary. In Vesu V2, all logic is now contained in a single `Pool` contract. * Removal of autonomous pool shutdown: The pool shutdown system in Vesu V1 was intended to enable for an orderly wind down of failed pools. This system has added significant complexity to the Vesu V1 codebase since it was designed for immutable pools. With the introduction of the _Vesu Security Council_ and its ability to upgrade pools in case of an emergency, this mechanism was now removed. * Removal of `transfer_position` function: The `transfer_position` function has been removed entirely to simplify the codebase. The same user flows can be achieved by a periphery contract using _flash loans_. * Removal of `AmountType` enum: The Vesu V2 `Amount` type does not support the `AmountType` enum anymore. All Amounts are expressed as `Delta` types. * Removal of `pool_id` fields: Since interactions with a specific pool are now isolated on separate instances, the `pool_id` field in the following data types has been removed: `ModifyPositionParams`, `LiquidatePositionParams`. * Removal of `data` fields: The `data` fields was intended for advanced use cases involving hooks in the Vesu V1 codebase. With the removal of hooks, the `data` field was also removed from the following data types: `ModifyPositionParams`, `LiquidatePositionParams`. * Removal of `receive_as_shares` flag: The `receive_as_shares` flag of the `LiquidatePositionParams` was deactivated already with the migration of the Vesu V1 codebase to the SingletonV2 implementation that was executed in June 2025. In the Vesu V2 implementation, this flag has now been removed entirely as it was unused. * Addition of `fee_shares` in `asset_config`: The accrued fee shares are now explicitly tracked in a new variable `fee_shares` in the `asset_config` of the respective asset in a pool. * Addition of `pool_pausing_agent`: This is a new role that is added to pools with the ability to pause deposits and withdrawals in an emergency. Pool curators can assign this role, such as Vesu's Hypernative pauser agent. * [Migration steps](https://docs.vesu.xyz/developers/migrate-v1-to-v2#migration-steps) * [Vesu V2 addresses](https://docs.vesu.xyz/developers/migrate-v1-to-v2#vesu-v2-addresses) * [Breaking changes](https://docs.vesu.xyz/developers/migrate-v1-to-v2#breaking-changes) --- # Vesu V2 Contract Addresses | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/contract-addresses#__docusaurus_skipToContent_fallback) On this page Below are the deployed contract addresses for Vesu V2 on Starknet Mainnet. | Contract | Address | | --- | --- | | PoolFactory | 0x3760f903a37948f97302736f89ce30290e45f441559325026842b7a6fb388c0 | | Oracle | 0xfe4bfb1b353ba51eb34dff963017f94af5a5cf8bdf3dfc191c504657f3c05 | | Multiply | 0x7964760e90baa28841ec94714151e03fbc13321797e68a874e88f27c9d58513 | | Liquidate | 0x6b895ba904fb8f02ed0d74e343161de48e611e9e771be4cc2c997501dbfb418 | | Migrate | 0x02c4399cfb357f836303d16e8173e4de71b4ba78d97121211357a6d73b9f9213 | | DeFi Spring Distributor | 0x387f3eb1d98632fbe3440a9f1385aec9d87b6172491d3dd81f1c35a7c61048f | | BTCFi Distributor | 0x47ba31cdfc2db9bd20ab8a5b2788f877964482a8548a6e366ce56228ea22fa8 | V2 Pools[​](https://docs.vesu.xyz/developers/contract-addresses#v2-pools "Direct link to V2 Pools") ---------------------------------------------------------------------------------------------------- | Pool | Address | | --- | --- | | Prime | 0x451fe483d5921a2919ddd81d0de6696669bccdacd859f72a4fba7656b97c3b5 | | Re7 USDC Core | 0x3976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124 | | Re7 USDC Prime | 0x2eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf | | Re7 USDC Frontier | 0x5c03e7e0ccfe79c634782388eb1e6ed4e8e2a013ab0fcc055140805e46261bd | | Re7 xBTC | 0x3a8416bf20d036df5b1cf3447630a2e1cb04685f6b0c3a70ed7fb1473548ecf | | Re7 USDC Stable Core | 0x73702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135 | These are the initial pools for Vesu V2. For the latest pool list, see the [Curator Dashboard](https://curators.vesu.xyz/) . * [V2 Pools](https://docs.vesu.xyz/developers/contract-addresses#v2-pools) --- # The Vesu V1 Whitepaper | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/explore/whitepaper-v1#__docusaurus_skipToContent_fallback) On this page warning The Vesu V1 lending protocol has evolved into the version 2 (V2). This next iteration is built on the same lending pool principles but optimized towards simplicity and security. Hence, many of the concepts presented in the initial Vesu V1 whitepaper are outdated. Summary[​](https://docs.vesu.xyz/explore/whitepaper-v1#summary "Direct link to Summary") ----------------------------------------------------------------------------------------- Vesu is a novel fully open and permissionless DeFi lending protocol. At its core, Vesu builds on the pooled liquidity model on which DeFi and its most successful lending protocols run, but in a fully permission-less and immutable manner. Instead of an inefficient and vulnerable governance process, Vesu allows the market to create new lending pools and find an equilibrium state around liquidity distribution. Vesu achieves this with features like an adaptive interest rate model, lending pool fail-safe mechanisms, and most importantly, pool extensions. The latter allows developers to innovate new lending pool features and build their own borrower and lender experiences on top of Vesu. In short, Vesu aspires to be the credibly neutral lending settlement layer that DeFi deserves. 1\. Introduction[​](https://docs.vesu.xyz/explore/whitepaper-v1#1-introduction "Direct link to 1. Introduction") ----------------------------------------------------------------------------------------------------------------- The Decentralized Finance (DeFi) movement has shown that traditional financial services can be delivered as trust-minimized software via open blockchain networks. Uniswap is the most prominent example of such a public infrastructure, giving uninterrupted 24/7 global access to its asset exchange protocol on top of Ethereum. The key to this unmatched service offering is that Uniswap is an autonomous system that delegates asset custody, order matching and trade settlement to a set of immutable programs that are running on a decentralized settlement layer. It highlights DeFi’s key value proposition: the removal of individual intermediaries and the frictions and risks they introduce. While DEXs have pioneered wholly trustless public financial infrastructure, other DeFi areas have developed in a different direction. Specifically, DeFi lending markets have adopted a model where only parts of the service are delegated to autonomous (and only sometimes immutable) programs while other parts are actively managed by an intermediary. So while assets deposited into such protocols are typically held in an immutable program with the depositor retaining control, the actual risk parameters of the lending market are controlled by one or several entities (e.g. foundations, service providers, token holder communities). By re-introducing intermediation, however, this status quo has re-introduced critical vulnerabilities at both a technical and political level. Not only can one find various governance-related exploits boasting losses in the hundreds of millions of USD among the Top 10 Rekt [leaderboard](https://rekt.news/leaderboard/) , but one can also identify multiple instances where legal and regulatory pressure undermined the unstoppable delivery of protocol services. Ultimately, such designs limits the extent to which a lending protocol can scale. We present Vesu in light of these observations and the critical role lending markets play within the broader crypto economy. Vesu is a lending protocol that takes the existing pooled liquidity model common across DeFi but minimizes the role of permissioned governance. Instead, Vesu empowers anyone to create new lending pools and thus allows the market, instead of an inefficient and opinionated intermediary, to build consensus on where liquidity is needed. This composability supports a spectrum of market types ranging from basic single-pair lending to multi-collateral money markets. Moreover, its composable approach ensures for a simple yet robust approach to risk assessment. This combination of scale and security enables Vesu to offer unmatched efficiency. 2\. Overview[​](https://docs.vesu.xyz/explore/whitepaper-v1#2-overview "Direct link to 2. Overview") ----------------------------------------------------------------------------------------------------- Vesu is an on-chain lending protocol that allows users to engage in fully trustless, over-collateralized lending agreements. The lending protocol is built with three main user persona in mind: * _Lending market participants_ (**User**), * _Lending market creators_ (**Developer**), * _Flash loan users_ (**Flashloaner**). Users are regular lenders, borrowers or liquidators in over-collateralized lending markets and generally seek the best lending terms or monitor protocols for liquidation opportunities. Vesu offers these users an [Aave-like](https://aave.com/) lending experience where liquidity is pooled in lending markets that allow for the lending and borrowing of a specified set of assets at certain terms. Unlike Aave, however, Vesu does not delegate any control over these markets and their parameters to an external governance process, instead remaining fully immutable. Thus, all market parameters are either dynamically adjusted by market conditions through some autonomous control mechanism or they are fixed. Further in contrast to Aave, Vesu supports multiple lending pool configurations which can be deployed by anyone on-the-fly and customized through [Uniswap v4-like](https://docs.uniswap.org/contracts/v4/overview) hooks or extensions. This can be taken advantage of by Developers seeking out a neutral lending layer on which to build innovative new lending experiences. This makes Vesu just as much a lending protocol as it is a platform for launching lending protocols. Lastly, while liquidity is pooled in isolated lending pools, aggregate protocol liquidity across all pools is shared and accessible for Flashloaners at zero fees. 3\. Design Principles[​](https://docs.vesu.xyz/explore/whitepaper-v1#3-design-principles "Direct link to 3. Design Principles") -------------------------------------------------------------------------------------------------------------------------------- Vesu reflects the learnings and shortcomings of incumbent DeFi lending protocols to date. **Principle 1: Monolithic** Liquidity is managed in a monolithic smart contract allowing for maximal capital efficiency and coordination. Vesu’s monolithic architecture pools liquidity at multiple layers, making it possible for flash loans to originate protocol-wide while borrowing is constrained to individual pools. **Principle 2: Isolated** Lending pools are compartmentalized lending facilities where risks are shared among depositors (of a certain asset) in a pool but are strictly isolated across one another. **Principle 3: Permissionless** All aspects of the lending protocol, including the creation of new lending pools, are 100% permissionless, allowing the _free market_ to coordinate around capital allocation instead of a central governance unit. **Principle 4: Federated Governance** No central governance unit is in control of any aspect of the protocol. Instead, governance is delegated to pool creators allowing for different governance models to be implemented per pool and the _free market_ to coordinate around these. **Objective 5: Extensibility** Lending pools can be extended with custom features empowering developers to innovate new market designs without having to forgo Vesu’s network effects. **Objective 6: Simplicity** All design and implementation decisions are based on the principle of simplicity over complexity in order to maximize security of the code base. 4\. Concepts[​](https://docs.vesu.xyz/explore/whitepaper-v1#4-concepts "Direct link to 4. Concepts") ----------------------------------------------------------------------------------------------------- The aforementioned principles inform the modular framework of the Vesu protocol. We discuss its key concepts in more detail below. ### 4.1. Lending Pair[​](https://docs.vesu.xyz/explore/whitepaper-v1#41-lending-pair "Direct link to 4.1. Lending Pair") A lending pair is the most basic lending primitive from which more complex arrangements can be composed. A lending pair is a uni-directional lending agreement allowing Users to deposit a specific _collateral asset_ and borrow a specific _debt asset_ whereby a certain _loan-to-value ratio_ is enforced by means of liquidations. It is important to understand the uni-directional nature of a lending pair which supports only the depositing but not the borrowing of the collateral asset and vice versa. ![Vesu Lending Pair](https://docs.vesu.xyz/assets/images/lending-pair-0662f50e1ebbadbe3e70e217a61f4834.png) The diagram exhibits an example lending pair that accepts ETH (Ether) as collateral asset and allows borrowing of USDC (USD Coin) at a maximal loan-to-value ratio of 80%. Due to the immutable nature of the Vesu lending protocol, lending pairs can only be configured when a new lending pool is created. Updating this configuration at a later point is not possible. This gives Users absolute certainty on the lending terms of a pair and mitigates critical vulnerabilities. ### 4.2. Lending Pool[​](https://docs.vesu.xyz/explore/whitepaper-v1#42-lending-pool "Direct link to 4.2. Lending Pool") Lending pools support the creation of more complex lending configurations as a composition of various lending pairs. Thereby, assets supplied in a lending pool serve as shared liquidity across all associated lending pairs to allow for maximal capital efficiency. At the same time, this liquidity is not accessible by other lending pools, thus compartmentalizing risks across pools. In other words, **liquidity and risks are shared** only among the lenders in a lending pool, not to those outside of it. One can easily see that this modular approach allows for the configuration of a divers set of lending arrangements. ![Vesu Lending Pools](https://docs.vesu.xyz/assets/images/lending-pool-964eff6c7c0d5107ec4bf5122c4cfb7b.png) The diagram above depicts a variety of lending pool configurations highlighting Vesu’s modular design. * Pool A (upper left) demonstrates the most basic pool configuration with only a single lending pair allowing for the borrowing of USDC against WETH collateral at a maximal loan-to-value ratio of 80%. * By adding the reverse lending pair, Pool B shows a bi-directional pool configuration where both collateral assets serve as both debt and collateral assets. Note that this configuration effectively reflects the traditional financial practice of rehypothecation in which collateral assets are re-used to increase capital efficiency. This practices introduces new risks within so-called collateral chains, leading to other protocols offering users the ability to preclude their collateral from being used as such. While Vesu lending pools do not offer this optionality to individual borrowers inherently, the concept of uni-directional lending pairs allows for more granular control over how collateral rehypothecation is enabled on the pool level (e.g. which collateral can be used to borrow a rehypothecated asset). * Finally, Pool C shows yet another configuration which supports borrowing USDC with various collateral assets. Note that each lending pair defines a fixed, collateral specific maximal loan-to-value ratio which is critical for enabling both capital efficiency and liquidation safety. ### 4.3. Position[​](https://docs.vesu.xyz/explore/whitepaper-v1#43-position "Direct link to 4.3. Position") Deposits and debt are tracked with positions. A single position keeps track of the collateral assets supplied and debt assets borrowed by the position owner in a specific lending pair or pool respectively. As a result, a User can have only one position per lending pair but multiple positions in a pool. This is different e.g. from Aave where a global (pool) account model is implemented resulting in there being only a single “position” tracked per pool. The reason for tracking positions per lending pair is that Vesu can then enforce a pair-specific loan-to-value ratio and thus account for the pair’s idiosyncratic risk profile. This design decision is further motivated by the principle of _simplicity over complexity_ discussed above and significantly reduces implementation complexity. ![Vesu Positions](https://docs.vesu.xyz/assets/images/positions-80e6486d4f3843d14ef0823c46afecad.png) The diagram shows a User, Owner: 0x5trK, that owns three positions split across different lending pairs in Pool C, WETH → USDC, WBTC → USDC, STRK → USDC, and with an overall nominal debt outstanding of 3.5M USDC. Note that the positions in fact track _Supply Shares_ and _Nominal Debt_ which are explained in more detail in the following sections. ### 4.4. Collateral Shares[​](https://docs.vesu.xyz/explore/whitepaper-v1#44-collateral-shares "Direct link to 4.4. Collateral Shares") Positions record a User’s supplied assets by means of a Collateral Shares balance. These shares give the position owner a claim on the respective asset’s total balance in the pool. Thereby, an asset’s total balance consists of two parts: 1. the available liquidity reserves, and 2. the total debt outstanding. Recording shares instead of the supplied asset balance allows a position to directly reflect the effect of lenders earning interest debited to borrowers in a continuously (per second) increasing amount of total debt outstanding. It further allows for the implementation of effective strategies for the redistribution of _bad debt_ accumulated in a liquidation shortfall event among current lenders. ### 4.5. Nominal Debt[​](https://docs.vesu.xyz/explore/whitepaper-v1#45-nominal-debt "Direct link to 4.5. Nominal Debt") Positions further record the nominal debt outstanding in the respective lending pair’s debt asset. In simple terms, this nominal debt can be interpreted as the position’s outstanding debt balance excluding any accumulated interest due. On the other hand, interest accrues at the same rate for all lenders of a specific asset within a specific pool and can thus be tracked separately with a [MakerDAO-like](https://docs.makerdao.com/smart-contract-modules/rates-module) pool _rate accumulator_. The position’s gross debt is then derived by simply multiplying the recorded nominal debt with the pool’s rate accumulator. This efficient accounting technique allows for the _interest collection_ across any number of positions in a pool with O(1) complexity. ### 4.6. Interest Rate Model[​](https://docs.vesu.xyz/explore/whitepaper-v1#46-interest-rate-model "Direct link to 4.6. Interest Rate Model") Interest rates are an important tool for lending markets to find an equilibrium in supply and demand for a certain asset. Similar to the spot price on an exchange, interest rates express the current price for borrowing the asset. Allowing supply and demand to efficiently discover the equilibrium rate is in fact the main purpose of a lending market. Thus, the interest rate model plays a central role in any lending market design. DeFi lending markets have explored various interest rate model designs from [governance-set rates](https://docs.makerdao.com/smart-contract-modules/rates-module/pot-detailed-documentation#id-4.-gotchas-integration-concerns) , to [utilization-based curves](https://docs.aave.com/risk/liquidity-risk/borrow-interest-rate) , and to PID-inspired (Proportional-Integral-Derivative) [adaptive designs](https://docs.frax.finance/fraxlend/advanced-concepts/interest-rates) . These models all have their pros and cons making the right choice dependent on the use case a lending pool serves. The Vesu lending protocol thus remains agnostic towards the choice of interest rate model but delegates the implementation to a lending pool's extension through the _Interest Rate Accumulator Hook_. ### 4.7. Oracles[​](https://docs.vesu.xyz/explore/whitepaper-v1#47-oracles "Direct link to 4.7. Oracles") Lending protocols determine the solvency of a position as an answer to the following question: **Is the value of the position’s collateral sufficient to recover its debt in case the borrower cannot repay?** This solvency can be determined in different ways, with the most common being that an external data feed, the oracle, provides the respective price data points at any point in time. While this is generally understood to be the most efficient design, other approaches exist that usually rely on an internal price discovery mechanism. Vesu delegates this responsibility to a lending pool’s extension through the _Price Hook_. That said, when designing and implementing an oracle solution it is important to take into account the immutable nature of lending pools and to implement appropriate fail-safes such that user funds are not stuck in a pool due to, for example, a stale oracle price feed. In fact, different mitigation strategies exist, such as a fallback oracle. Since the appropriate strategy depends on the oracle design itself, Vesu does not enforce a specific solution but assumes this to be implemented in the extension. As a result, Vesu remains fully agnostic towards the oracle implementation and is able to embrace further innovation in this area. ### 4.8. Pool Extension[​](https://docs.vesu.xyz/explore/whitepaper-v1#48-pool-extension "Direct link to 4.8. Pool Extension") Vesu introduces the concept of lending pool extensions, or simply extensions, that allow developers to customize pool features and innovate entirely new lending experiences. An extension is a separate program that can be invoked through [Uniswap v4-like](https://docs.uniswap.org/contracts/v4/overview) _hooks_ called from the Vesu lending protocol upon certain user actions. In the following paragraphs we discuss the various extension hooks. **Interest Rate Accumulator Hook** It is called prior to every position change and effectively asks the extension to compute and collect interest on all positions. As noted earlier, the implementation of the interest rate model is entirely delegated to the extension. In general, however, the approach of computing and collecting interest can be divided in the following steps: 1. Compute liquidity utilization of the respective asset, 2. Compute the interest rate as a function of liquidity utilization, 3. Accrue interest according to the interest rate by updating a (global) _rate accumulator_. Based on this rate accumulator, Vesu then evaluates the gross debt outstanding at both the position and global levels. By delegating the implementation of the interest rate model to a lending pool’s extension, developers are able to further innovate and adopt state-of-the art interest rate models for future lending pools. **Oracle Price Hook** It is called to fetch the current price of either a supply or debt asset in order to verify the solvency of a position. The implementation of the oracle price feeds is thus also delegated to an extension, making the Vesu lending protocol agnostic towards the oracle provider itself. Given the important function of the oracle price feed in any over-collateralized lending protocol, it goes without saying that this extension critically alters a lending pool’s risk profile. **Modify Position Hook** It is called with every position update and allows for the execution of custom logic in the extension. This allows for the introduction of new pool features in the extension such as: * deposit tokenization * position rebalancing * pool pausing * p2p lender and borrower matching * etc. **Liquidate Position Hook** It is called with every liquidation of an insolvent position with the expectation that the extension implements the logic for computing and returning the liquidation amounts. Thereby, the lending protocol is agnostic to the details of the liquidation strategy, like support for partial liquidations or dynamic liquidator incentives. Moreover, apart from computing the regular debt-in and collateral-out amounts, the extension may also return a liquidation shortfall (aka bad debt) which is then instantly redistributed among existing asset suppliers. 5\. Actions[​](https://docs.vesu.xyz/explore/whitepaper-v1#5-actions "Direct link to 5. Actions") -------------------------------------------------------------------------------------------------- Below, we briefly discuss the different ways Users can interact with Vesu, its lending pools and their positions. Technically speaking, the following sections outline all public, state-changing functions (i.e. permissionless features) that Vesu exposes. **Create Pool** Allows for the creation of new lending pools. The caller specifies the lending pair configurations and extension with which the new lending pool should be created. Once created the lending pool parameters cannot be changed anymore. **Modify Position** Allows for the creation and updating of positions. In other words, through this feature Users are able to supply and borrow assets to and from a certain lending pool. **Transfer Position** Allows for internal transfers of supply and debt assets across different lending pairs and pools. Thereby, the transfer only updates the internal accounting of the position owner’s balances but does not invoke transfers on the respective token contracts. **Liquidate Position** Allows for the liquidation of insolvent positions. Thereby, the actual liquidation strategy is implemented in the lending pool’s extension and can thus differ between different pools. Note that details on the liquidation strategy implemented in the _Factory Extension_ can be found in Section 3.8. **Flash Loan** Allows for taking Flash Loans which are characterized as unsecured loans that have to be repaid in the same transaction in which have been initiated. Note that Flash Loans are risk neutral from the perspective of the Vesu lending protocol since the entire transaction reverts if this requirement is not met. As a result, Flashlenders are able to access the full liquidity reserves available in the protocol across all lending pools. **Donate** Allows for the donation of supply assets to a lending pair without receiving supply shares in exchange. The Donate action can thus be used for setting up native reward programs targeting specific lending pools or pairs, as well as supply assets. **Modify Delegation** Allows for updating delegation permissions on a specific lending pool. A delegation grants a third party permission over a User’s positions in a certain pool and can only be defined and changed by the position owner. 6\. Factory Extension[​](https://docs.vesu.xyz/explore/whitepaper-v1#6-factory-extension "Direct link to 6. Factory Extension") -------------------------------------------------------------------------------------------------------------------------------- While developers are free to design their own extensions by implementing the various hooks discussed above, we have created a first extension, the _factory extension_, with the goal of showcasing the power of this novel concept and allowing non-developers to deploy first pools. Here we discuss the specific design of this factory extension. ### 6.1. Adaptive Interest Rate Model[​](https://docs.vesu.xyz/explore/whitepaper-v1#61-adaptive-interest-rate-model "Direct link to 6.1. Adaptive Interest Rate Model") As mentioned before, a variety of interest rate model designs has been proposed and used in DeFi lending markets. In the spirit of empowering _free markets_ to coordinate around capital allocation the factory extension implements a fully autonomous, adaptive interest rate model that was originally proposed by [Fraxlend](https://docs.frax.finance/fraxlend/advanced-concepts/interest-rates) . This model consists of two main parts: 1. a utilization-based interest rate curve, and 2. a controller adjusting the interest rate curve in response to market imbalances. This design choice is motivated by the model’s simplicity, in light of our simplicity over complexity principle, and its existing track record, as the controller has been successfully used in Fraxlend for over a year now. ![Vesu Adaptive IRM](https://docs.vesu.xyz/assets/images/adaptive-irm-28d0b96d57800028c10a0353903d3268.png) The diagram above shows the high-level concept of the adaptive interest rate model implemented in the factory extension. As can be seen, the curve controller adjusts the max interest rate and target rate based on a time-weighted distance of the (current) utilization from the target utilization. The current interest rate is then found on this adjusted curve using the current utilization. ### 6.2. Pragma Oracle Implementation[​](https://docs.vesu.xyz/explore/whitepaper-v1#62-pragma-oracle-implementation "Direct link to 6.2. Pragma Oracle Implementation") As discussed above, Vesu delegates the implementation of oracle price feeds to a lending pool’s extension. The factory extension thus integrates with the [Pragma oracle](https://www.pragmaoracle.com/) which offers robust price feeds for a variety of assets on Starknet. Pragma leverages a network of price providers and a variety of on-chain and off-chain price sources. Pragma's innovative design consists of pushing individual price data points to an on-chain contract and applying different statistical operators such as the _average_, _median_ or _variance_. Additional contextual data is also available, such as the number of active data providers and the timestamp of the latest data point. This unique design gives developers more control over how price feeds are consumed and allows for more resilient oracle integrations. The factory extension makes use of these powerfull features in two ways: 1. Compute a robust oracle price from all data points using the Median aggregator, and 2. Use contextual data for advanced sanity checks and oracle fail-safes. For the second point, the extension utilizes an oracle trust score that consists of two data points: first, the number of active data providers, and secondly the timeliness of data points or the timestamp of the latest data point respectively. Based on this score, oracle prices are accepted by the extension or, if not trustworthy, the lending pool enters an _Emergency Shutdown_ mode (read more below). Thereby, the factory extension implements an effective and autonomous fail-safe strategy mitigating oracle manipulation and staleness risks. ### 6.3. Partial Liquidation Strategy[​](https://docs.vesu.xyz/explore/whitepaper-v1#63-partial-liquidation-strategy "Direct link to 6.3. Partial Liquidation Strategy") The factory extension implements a very simple yet robust liquidation strategy that allows for _full_ or _partial liquidations_ of insolvent positions. This means that for any insolvent position, a liquidator may purchase all or parts of the position’s collateral assets by repaying a respective amount of its debt at a discounted price. Thereby, this _liquidation discount_ is a fixed percentage. Partial liquidations are an effective device ensuring that large insolvent positions can be liquidated part by part in case insufficient liquidity results in excessive price impact for a collateral or debt asset. This simple liquidation strategy is chosen as it offers a sensible tradeoff between code simplicity and borrower convenience. ### 6.4. Liquidation Shortfall Redistribution[​](https://docs.vesu.xyz/explore/whitepaper-v1#64-liquidation-shortfall-redistribution "Direct link to 6.4. Liquidation Shortfall Redistribution") Liquidation shortfall, also referred to as bad debt, accumulates in a lending pool if a liquidation fails to recover the full amount of outstanding debt by selling all of the position’s collateral. Similar to bank runs, the perceived risk of bad debt, without bad debt actually having accumulated, can already lead to runs on the remaining liquidity in a pool. An effective way to mitigate the risk of runs on a pool’s liquidity that has been implemented in various DeFi contexts such as Yearn vaults \[5\] is to socialize a shortfall as it accrues among the pool’s liquidity suppliers. The factory extension implements a similar strategy in order to mitigate the risk of liquidity runs. Thereby, the accrued shortfall is allocated to liquidity suppliers in proportion to their ownership in the respective supply shares (see Section XX) in the same transaction as the shortfall occurs. This redistribution scheme thus immediately reflects in a proportional reduction of a User’s claim on the remaining total supplied assets. ### 6.5. Pool Emergency Shutdown[​](https://docs.vesu.xyz/explore/whitepaper-v1#65-pool-emergency-shutdown "Direct link to 6.5. Pool Emergency Shutdown") The factory extension introduces an orderly lending pool shutdown mechanism with the following objectives: 1. limit the risk for losses to accumulate in a pool, and 2. prevent race conditions and a subsequent _bank run_. An orderly pool shutdown mechanism is specifically important for an immutable protocol like the one proposed in this paper as no governance is able to step in and pause or dissolve failed pools manually. The shutdown mechanism considered here centers around the idea that similar to individual positions, pool safety can be expressed by the aggregate pool solvency. The extension thus autonomously _pauses_ and eventually _shuts down_ the pool if any of the pool’s lending pairs falls into insolvency. Thereby, pair insolvency is defined as a pool state where any of the pool’s lending pairs violates the insolvency invariant, which is that the pair’s total debt value divided by the total collateral value cannot exceed a certain threshold. Insolvent lending pools then implicitly fall into _pause_ mode which means that interactions with the pool are only allowed if they improve the pool’s solvency. This means that only asset deposits, collateral deposits, debt repayments or pool donations are supported. This way, the lending pool can recover and establish a solvent pool state during a predefined _recovery period_. If the pool does not recover, it falls into shutdown mode from which no recovery is possible. Instead, lenders and borrowers are required to withdraw their assets along a 3-phased redemption process: **Phase 1 (Subscription)**: Positions subscribe for redemption eligibility during a predefined _subscription period_. However, in order to successfully subscribe, any outstanding debt balance needs to be repaid beforehand. **Phase 2 (Redemption)**: Eligible positions may redeem their collateral shares for a proportional amount of collateral assets during a predefined _redemption period_. **Phase 3 (Collection)**: In this final phase, all successful redeemers are able to collect a proportional share of any unclaimed residual collateral amount. To summarize, the pool shutdown mechanism pauses insolvent pools and allows lenders and borrowers to only deposit assets in, but not withdraw from the paused pool. This allows paused pools to recover during a predefined recovery period. However, non-recovered pools are dissolved automatically by enabling lenders and borrowers to redeem their assets in an orderly manner. 7\. Risk Framework[​](https://docs.vesu.xyz/explore/whitepaper-v1#7-risk-framework "Direct link to 7. Risk Framework") ----------------------------------------------------------------------------------------------------------------------- The fact that the lending pool behavior may be customized with user-defined extensions introduces new risks for Users in a pool. These risks include technical failures, or bugs, flaws in the economic models implemented or intentionally malicious features built in by the extension developers. Following our design principles, we do not intend to prevent extension developers to introduce such flaws as this would require some form of (on-chain) governance. Instead we advocate for trusted access points for users which analyze pool extensions, curate pools with a risk profile that is compliant with the targeted user group’s risk capacity and transparently disclose risks to their users. In fact, we have developed a risk framework that reports lending pool risks along a number of dimensions including extension risks. * [Summary](https://docs.vesu.xyz/explore/whitepaper-v1#summary) * [1\. Introduction](https://docs.vesu.xyz/explore/whitepaper-v1#1-introduction) * [2\. Overview](https://docs.vesu.xyz/explore/whitepaper-v1#2-overview) * [3\. Design Principles](https://docs.vesu.xyz/explore/whitepaper-v1#3-design-principles) * [4\. Concepts](https://docs.vesu.xyz/explore/whitepaper-v1#4-concepts) * [4.1. Lending Pair](https://docs.vesu.xyz/explore/whitepaper-v1#41-lending-pair) * [4.2. Lending Pool](https://docs.vesu.xyz/explore/whitepaper-v1#42-lending-pool) * [4.3. Position](https://docs.vesu.xyz/explore/whitepaper-v1#43-position) * [4.4. Collateral Shares](https://docs.vesu.xyz/explore/whitepaper-v1#44-collateral-shares) * [4.5. Nominal Debt](https://docs.vesu.xyz/explore/whitepaper-v1#45-nominal-debt) * [4.6. Interest Rate Model](https://docs.vesu.xyz/explore/whitepaper-v1#46-interest-rate-model) * [4.7. Oracles](https://docs.vesu.xyz/explore/whitepaper-v1#47-oracles) * [4.8. Pool Extension](https://docs.vesu.xyz/explore/whitepaper-v1#48-pool-extension) * [5\. Actions](https://docs.vesu.xyz/explore/whitepaper-v1#5-actions) * [6\. Factory Extension](https://docs.vesu.xyz/explore/whitepaper-v1#6-factory-extension) * [6.1. Adaptive Interest Rate Model](https://docs.vesu.xyz/explore/whitepaper-v1#61-adaptive-interest-rate-model) * [6.2. Pragma Oracle Implementation](https://docs.vesu.xyz/explore/whitepaper-v1#62-pragma-oracle-implementation) * [6.3. Partial Liquidation Strategy](https://docs.vesu.xyz/explore/whitepaper-v1#63-partial-liquidation-strategy) * [6.4. Liquidation Shortfall Redistribution](https://docs.vesu.xyz/explore/whitepaper-v1#64-liquidation-shortfall-redistribution) * [6.5. Pool Emergency Shutdown](https://docs.vesu.xyz/explore/whitepaper-v1#65-pool-emergency-shutdown) * [7\. Risk Framework](https://docs.vesu.xyz/explore/whitepaper-v1#7-risk-framework) --- # Welcome to the Vesu V2 Developer Documentation | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/#__docusaurus_skipToContent_fallback) The Vesu V2 lending protocol is the next iteration of the Vesu lending protocol, Starknet's most trusted lending market. The Vesu V2 protocol builds on the same concepts than the V1 protocol but makes a number of different design decisions in order to maximize simplicity and security. The main features of Vesu V2 are: * Isolation of pools (and respective funds) into separate `Pool` instances * Removal of hooks and extensions, simplification of pool state and logic into a single `Pool` contract * Externalizing `VToken` into stand-alone ERC-4626 vaults * Simplification of various components and features If you are a developer building on Vesu, a technical expert doing due dilligence or an interested user, your journey to master the Vesu codebase starts here! * [Getting Started](https://docs.vesu.xyz/developers/getting-started) : Ready to jump right in? Find all infos to start coding here. * [Core](https://docs.vesu.xyz/developers/core/architecture) : Explore the Vesu V2 architecture and core building blocks. * [Interact](https://docs.vesu.xyz/developers/interact/supply-withdraw) : Learn about how to create, manage, and liquidate positions. * [Liquidation Bot](https://docs.vesu.xyz/developers/liquidation-bot) : Master the liquidation bot and start making your own bucks liquidating insolvent positions on Vesu. * [Migrate to V2](https://docs.vesu.xyz/developers/migrate-v1-to-v2) : Find additional information on the migration of Vesu V1 positions to V2. * [Vesu V1](https://docs.vesu.xyz/developers/vesu-v1/) : Curious about Vesu V1? Find the docs to our first version here. --- # 2024-12-03 Fee Accounting Disclosure | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#__docusaurus_skipToContent_fallback) On this page Inaccurate accounting of _Fee Shares_ in the Singleton contract. ### Summary[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#summary "Direct link to Summary") Pool creators on Vesu are able to specify a fee that is taken on the interest generated in the specific pool. The accounting of this fee is incorrect resulting in a slightly smaller fee income by the pool curator. This bug does not pose a risk to users apart from slightly smaller fee income for pool curators. ### Background[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#background "Direct link to Background") Vesu runs a bug bounty program on Immunefi offering a total bounty of $100,000. The vulnerability disclosed here has been reported by a whitehat through our Immunefi program recently. Vesu has acknowledged the finding with a "High" classification due to the potential "loss" of expected fee income for pool curators. Vesu has compensated the whitehat with a payout according to the terms of the bug bounty program. ### Details of vulnerability[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#details-of-vulnerability "Direct link to Details of vulnerability") When creating new lending pools, pool curators specify a fee parameter, [fee\_rate](https://github.com/vesuxyz/vesu-v1/blob/b9bb782e0ee0d7243ff314eb6377656ca26e58f6/src/data_model.cairo#L24) , that expresses a percentage fee taken on the interest generated by the pool. This parameter is specified for each market in a Vesu pool separately. The nominal fee is computed and accrued for the pool curator with each interaction with the market in the Singleton contract [here](https://github.com/vesuxyz/vesu-v1/blob/b9bb782e0ee0d7243ff314eb6377656ca26e58f6/src/common.cairo#L172) . The calculation performed to compute the nominal fee (and respective collateral shares) is: fee_shares = (interest * fee_rate * total_shares) / (total_assets + interest) This calculation is slightly wrong. Instead it should be fee_shares = (interest * fee_rate * total_shares) / (total_assets + (1 - fee_rate) * interest) Since the decimal `fee_rate` is a number between 0 and 1, the current calculation thus results in a slightly smaller nominal fee earned by the pool curator than expected with the parameter. For reference, the estimated difference of fee income for a market with 10% interest rate and a 20% `fee_rate` is only about 0.003%. ### Details of fix[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#details-of-fix "Direct link to Details of fix") A fix to the `fee_shares` calculation has been implemented in the `Singleton` contract. Since the `Singleton` contract is immutable, this fix will be applied with a future migration of the protocol. Given the very limited impact on the fee earned, pool creators will only be minimally affected. ### Timeline of events[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#timeline-of-events "Direct link to Timeline of events") 2024-12-03: Disclosure made by the Vesu team ### Links[​](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#links "Direct link to Links") * Vesu's bug bounty [program](https://immunefi.com/bug-bounty/vesu/information/) * [Summary](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#summary) * [Background](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#background) * [Details of vulnerability](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#details-of-vulnerability) * [Details of fix](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#details-of-fix) * [Timeline of events](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#timeline-of-events) * [Links](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure#links) --- # 2024-12-03 Share Inflation Protection Disclosure | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#__docusaurus_skipToContent_fallback) On this page Exploitable _Inflation Fee_ reset in the Singleton contract. ### Summary[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#summary "Direct link to Summary") Vesu's Singleton contract implements an "Inflation Fee" with the goal to mitigate the risk of an attack strategy known as the _Compound donation_ vulnerability which was [exploited](https://www.halborn.com/blog/post/explained-the-sonne-finance-hack-may-2024) on various lending protocols. A bug report on Immunefi reveals a vulnerability in this implementation resulting in a possible exploit through a sophisticated attack strategy. Users were not affected by this since the vulnerability only exists if new assets are added to an existing lending pool. Vesu has implemented a fix which mitigates this vulnerability for future lending pools. ### Background[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#background "Direct link to Background") Vesu runs a bug bounty program on Immunefi offering a total bounty of $100,000. The vulnerability disclosed here has been reported by a whitehat through our Immunefi program recently. Vesu has acknowledged the finding with a "Critical" classification due to the potential pool shares inflation "attack" which was mitigated with a fix explained below. Vesu has compensated the whitehat with a payout according to the terms of the bug bounty program. ### Details of vulnerability[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#details-of-vulnerability "Direct link to Details of vulnerability") Vesu LPs are allocated _pool shares_ tracking their claim on a market's liquidity. When a new asset is added to an existing pool, an attacker can potentially inflate these shares making it possible to steal user funds. This vulerability is know as the _Compound donation attack_ and has been exploitet on various lending markets including [Sonne Finance](https://www.halborn.com/blog/post/explained-the-sonne-finance-hack-may-2024) . Vesu's Singleton contract thus applies an [`INFLATION_FEE_SHARES`](https://github.com/vesuxyz/vesu-v1/blob/54ba4ad665d31b0b0b6d206d6493157a81201150/src/singleton.cairo#L610) to the first depositor in a new market. This `INFLATION_FEE_SHARES` effectively makes the attack unfeasible. Further, an `INFLATION_FEE_SHARES` reset mechanism is implemented with the goal to not accumulate "dust" balances in pools. It turns out, that this `INFLATION_FEE_SHARES` reset mechanism opens up the possibility to execute a sophisticated pool share inflation attack potentially impacting users' funds. This attack is very similar to the original share inflation attack that the `INFLATION_FEE_SHARES` mechanism aimed at preventing, yet it involves additional steps. info It is important to note that the attack is only possible if new assets are added to an existing pool, thus only affects governed Vesu pools. ### Details of fix[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#details-of-fix "Direct link to Details of fix") Key to executing the sophisticated pool shares inflation attack is to trigger a reset of the `INFLATION_FEE_SHARES` as explained above. The fix thus centers on "deactivating" the `INFLATION_FEE_SHARES` reset mechanism. This can be achieved in multiple ways. The implemented fix thus forces to ["burn"](https://github.com/vesuxyz/vesu-v1/blob/54ba4ad665d31b0b0b6d206d6493157a81201150/src/extension/default_extension_po.cairo#L630) a sufficiently large amount of shares with the creation of new markets. The amount of burned pool shares is slightly larger than the `INFLATION_FEE_SHARES` thus making it impossible for the pool shares balance to fall below the `INFLATION_FEE_SHARES` and trigger a reset. info Due to the forced burning of the `INFLATION_FEE_SHARES`, to create new markets users now have to hold the respective assets in their account. warning This fix is implemented in the extension contracts and thus only applies to pools created through "official" extensions. ### Timeline of events[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#timeline-of-events "Direct link to Timeline of events") 2024-12-03: Disclosure made by the Vesu team ### Links[​](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#links "Direct link to Links") * Vesu's bug bounty [program](https://immunefi.com/bug-bounty/vesu/information/) * Fix audit [report](https://github.com/Cairo-Security-Clan/Audit-Portfolio/blob/main/Vesu_Extensions_Audit_Report.pdf) * [Summary](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#summary) * [Background](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#background) * [Details of vulnerability](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#details-of-vulnerability) * [Details of fix](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#details-of-fix) * [Timeline of events](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#timeline-of-events) * [Links](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure#links) --- # 2024-06-07 Extension Trust Disclosure | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#__docusaurus_skipToContent_fallback) On this page Risks related to the Singleton-Extension trust relationship. ### Summary[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#summary "Direct link to Summary") Vesu lending hooks allow developers to build custom lending applications on top of the Vesu protocol. This innovation introduces a trust relationship between the Singleton contract and the Extension contract which implements the lending hooks. Users MUST NOT interact with an untrusted Vesu lending pool or they risk partial or complete loss of funds. Note: This disclosure is NOT about a vulnerability in the Vesu codebase but about the risks related to Vesu's lending hooks and Singleton-Extension trust relationship. ### Background[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#background "Direct link to Background") During the security audits, many conversations centered around the risks introduced by the trust relationship between the Singleton and Extension of a certain lending pool. We here report on these risks and the respective design decisions. Accordingly, all risks reported here, including those due to malicious Extension implementations, are not considered as vulnerabilities in the Vesu codebase but intended behavior. ### Details of vulnerability[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#details-of-vulnerability "Direct link to Details of vulnerability") The Vesu protocol consists of two main [components](https://github.com/vesuxyz/protocol?tab=readme-ov-file#overview) : the [Singleton](https://github.com/vesuxyz/protocol/blob/dev/src/singleton.cairo) and pool Extensions. The Singleton is responsible for lend/borrow position accounting and strict pool isolation. The [Extension](https://github.com/vesuxyz/protocol/blob/dev/src/extension/default_extension.cairo) implements the lending hooks for a specific pool. Each pool can have its own Extension implementation and thus behave differently. The Singleton does not ensure "proper" handling of user funds by the Extension beyond enforcing isolation of pools. Thus, bugs in the Extension's logic or malicious Extension logic can result in partial or total loss of a user's funds. ### Details of fix[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#details-of-fix "Direct link to Details of fix") This is intended behavior, no fix needed. ### Timeline of events[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#timeline-of-events "Direct link to Timeline of events") 2024-06-07: disclosure made by the Vesu team ### Links[​](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#links "Direct link to Links") Find more info in the [docs](https://docs.vesu.xyz/explore) and [audit reports](https://docs.vesu.xyz/security/audits) * [Summary](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#summary) * [Background](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#background) * [Details of vulnerability](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#details-of-vulnerability) * [Details of fix](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#details-of-fix) * [Timeline of events](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#timeline-of-events) * [Links](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure#links) --- # Disclosures | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/disclosures#__docusaurus_skipToContent_fallback) List of reported vulnerabilities: | **Date** | **Reporter** | **Vulnerability** | **Status** | **Report** | | --- | --- | --- | --- | --- | | 2024-06-07 | Vesu team | Extension Trust Relationship | Info | [Link](https://docs.vesu.xyz/security/disclosures-report/extension-trust-disclosure) | | 2024-12-03 | Vesu team | Inaccurate fee accounting | Info | [Link](https://docs.vesu.xyz/security/disclosures-report/fee-accounting-disclosure) | | 2024-12-03 | Vesu team | Improper share inflation protection | Fixed | [Link](https://docs.vesu.xyz/security/disclosures-report/share-inflation-protection-disclosure) | | 2025-06-04 | Vesu team | Rounding convention bug | Fixed | [Link](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure) | --- # Liquidation Bot | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/liquidation-bot#__docusaurus_skipToContent_fallback) Liquidations on the Vesu lending protocol are permissionless creating an efficient market for liquidations and resulting in the best market conditions for lenders and borrowers. In order to make it as simple as possible for new liquidators to entering the Vesu liquidations market, we have developed an open-source liquidation bot in collaboration with the Pragma team. The following diagram outlines the bot's architecture and main components: ![Vesu Liquidation Bot](https://docs.vesu.xyz/assets/images/vesu-liquidation-bot-8139edca6b694f6b6a48d56ebf81335d.png) _Source: Publication in Pragma's blog [here](https://blog.pragma.build/announcing-the-open-source-liquidation-bot-for-vesu/) ._ The liquidation bot indexes and monitors Vesu positions continuously to identify insolvent positions. Such positions are then immediately executed in a fully capital-neutral manner using our `Liquidate` periphery contract and flash loans. With Vesu V2, a new liquidation bot was introduced to match the updated contract architecture. There are now two bots, one for V1 pools and one for V2 pools, each optimized for their respective deployment. **Vesu V1** * Liquidate contract source code on Vesu's [GitHub](https://github.com/vesuxyz/vesu-periphery/blob/main/src/liquidate.cairo) * Liquidation bot source code on Pragma's [GitHub](https://github.com/astraly-labs/vesu-liquidator) * Pragma explainer blog post [here](https://blog.pragma.build/announcing-the-open-source-liquidation-bot-for-vesu/) **Vesu V2** * Liquidate contract source code on Vesu's [GitHub](https://github.com/vesuxyz/vesu-v2-periphery/blob/main/src/liquidate.cairo) * Liquidation bot source code on Pragma's [GitHub](https://github.com/astraly-labs/vesu-v2-liquidator) --- # 2025-06-04 Rounding Convention Bug Disclosure | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#__docusaurus_skipToContent_fallback) On this page Exploitable rounding convention bug in the Singleton contract. ### Summary:[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#summary "Direct link to Summary:") This report outlines the discovery, reporting, and resolution of a critical vulnerability in the Vesu lending protocol. The vulnerability was identified by a whitehat hacker through Vesu’s Immunefi bug bounty program and was successfully addressed in collaboration with the whitehat hacker, ChainSecurity, Argent’s security team and the lending pool curators. ### 1\. Vulnerability Details[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#1-vulnerability-details "Direct link to 1. Vulnerability Details") **Vulnerability Type:** * Rounding convention **Affected Component:** * Liquidation with activated `receive_as_shares` flag in `Singleton::liquidate_position` **Impact:** * Through a sophisticated attack, involving a malicious pool extension contract, a new lending pool created by the attacker and flashloans, the vulnerability could have been exploited and user funds could have been stolen. ### 2\. Discovery and Reporting[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#2-discovery-and-reporting "Direct link to 2. Discovery and Reporting") * The vulnerability was reported on May 23, 2025 through Vesu’s Immunefi bug bounty program. * The Vesu team reviewed the finding and started to engage with the whitehat on the Immunefi platform within hours. * For security reasons, the vulnerability was only disclosed publicly after the Vesu protocol was migrated and funds secured. ### 3\. Collaboration and Coordination[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#3-collaboration-and-coordination "Direct link to 3. Collaboration and Coordination") **Parties Involved:** * Immunefi: Facilitated the initial report and communication. * Argent Labs: Provided technical expertise, security analysis and observed the migration process. * ChainSecurity: Provided technical expertise, security analysis and observed the migration process. * Lending Pool Curators: Enabled the migration contracts to secure user funds. **Timeline of Events:** | Date | Description | | --- | --- | | May 23, 2025 at 3:54 am | Vulnerability reported to Immunefi. | | May 23, 2025 at 7:19 am | Immunefi Escalated report to Vesu team. | | May 23, 2025 at 10:48 am | Vesu team involved Argent’s security team to assist with technical assessment. | | May 23, 2025 at 2:28 pm | Vesu & Argent team completed initial analysis and started to engage with whitehat on Immunefi. | | May 23, 2025 at 2:44 pm | ChainSecurity engaged for technical assessment and assistance with remediation plan. | | May 24, 2025 at EOD | Remediation plan developed and reviewed in collaboration with ChainSecurity. | | May 27, 2025 at EOD | Fix and Vesu migration contracts and script implemented and tested. Lending pool curators notified. | | May 28, 2025 at 1:00 pm | Migration initiated in collaboration with ChainSecurity, Argent and the lending pool curators. | | May 28, 2025 at 10:30 pm | Migration of Vesu contracts, lending pools, backend and frontend completed and verified. | | May 28, 2025 at 10:40 pm | Public disclosure and announcement of migration on Vesu blog and X. | ### 4\. Remediation[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#4-remediation "Direct link to 4. Remediation") **Steps Taken to Fix the Vulnerability:** * The fix included removing the logic affected by the wrong rounding convention. Specifically, the ability to liquidate an insolvent position by being paid in collateral shares instead of underlying collateral assets, or the ability to use the `receive_as_shares` flag, was removed. This component is not strictly necessary, and has never been used before, for the Vesu protocol to safely liquidate insolvent positions. * In order to prevent similar vulnerabilities in the future, the fix also included whitelisting pool extension contracts, from which new pools can be created. This removes an important attack surface for the Vesu protocol while still enabling fully permisionless pool creation. * Furthermore, in order to prevent from funds being frozen in the migration contracts or the V2 Vesu contracts due to a failed migration, the Vesu V2 contracts, both `SingletonV2` and `DefaultExtensionPOV2` were made upgradeable. The ownership of this new feature currently resides with a 3/5 multisig account, of which 2 are external signers, that will be expanded to an appropriate _Security Council_ setup. **Testing and Verification:** * The fix, as well as the migration contracts and integrity of the migrated protocol state, has been extensively tested prior to the migration using both unit tests and integration tests. * ChainSecurity and Argent’s security teams conducted limited best-effort checks of the migration contracts, fixed Vesu contracts and the migration script prior to the migration. ### 5\. Conclusion[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#5-conclusion "Direct link to 5. Conclusion") **Lessons Learned:** * On a technical level, an exploit of this vulnerability was only possible because Vesu enabled new lending pools to make use of any third party lending hook implementations, through the respective lending pool extension contract. This feature, while having been extensively audited prior to the launch of Vesu, has proven to open a large attack surface. To reduce this surface, the implemented fix now requires new extension contracts to be whitelisted. * This incident has shown, once again, how important an ongoing security process is. Our ability to handle this situation, in collaboration with our partners, with the best outcome possible for Vesu users serves both as confirmation and reminder that security requires constant investment and committment. **Acknowledgments:** * We would like to extend our sincere gratitude and recognition to the whitehat hacker, who responsibly disclosed this critical vulnerability through our bug bounty [program](https://immunefi.com/bug-bounty/vesu/information/) * Furthermore, this migration was only possible through the close collaboration with our partners Immunefi, Argent, ChainSecurity, and lending pool curators Re7 Labs, Braavos and Alterscope. ### 6\. References[​](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#6-references "Direct link to 6. References") * Initial [disclosure](https://x.com/vesuxyz/status/1927827405030244838) * Vesu Security [docs](https://docs.vesu.xyz/security/security-basics) * Further inquiries: [Telegram](https://t.me/VesuChat) , [Discord](https://discord.gg/G9Gxgujj8T) , [security@vesu.xyz](mailto:security@vesu.xyz) * [Summary:](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#summary) * [1\. Vulnerability Details](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#1-vulnerability-details) * [2\. Discovery and Reporting](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#2-discovery-and-reporting) * [3\. Collaboration and Coordination](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#3-collaboration-and-coordination) * [4\. Remediation](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#4-remediation) * [5\. Conclusion](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#5-conclusion) * [6\. References](https://docs.vesu.xyz/security/disclosures-report/rounding-convention-bug-disclosure#6-references) --- # Programmatically liquidate positions | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/interact/liquidate#__docusaurus_skipToContent_fallback) On this page info We have developed an open-source liquidation bot in collaboration with the Pragma team. You can find more information on the bot [here](https://docs.vesu.xyz/developers/liquidation-bot) . Liquidate Position[​](https://docs.vesu.xyz/developers/interact/liquidate#liquidate-position "Direct link to Liquidate Position") ---------------------------------------------------------------------------------------------------------------------------------- To liquidate an insolvent position in a specific Vesu pool, use the `liquidate_position` function: /// Liquidates a position/// # Arguments/// * `params` - see LiquidatePositionParams/// # Returns/// * `response` - see UpdatePositionResponsefn liquidate_position(ref self: ContractState, params: LiquidatePositionParams) -> UpdatePositionResponse Provide the following information with the `LiquidatePositionParams` argument: * collateral\_asset: The address of the position's collateral asset * debt\_asset: The address of the position's debt asset * user: The address of the user who's position is to be liquidated * min\_collateral\_to\_receive: The minimal amount of collateral, in `Assets` denomination, you want to receive in exchange for repaying `debt_to_repay`. * debt\_to\_repay: The amount of debt, in `Assets` denomination, you want to repay (is capped at the position's outstanding debt). * [Liquidate Position](https://docs.vesu.xyz/developers/interact/liquidate#liquidate-position) --- # Borrow and repay | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/interact/borrow-repay#__docusaurus_skipToContent_fallback) On this page Positions in Vesu are created, managed, and closed through a single function, called `manage_position`, on the respective `Pool`'s contract. We here discuss how compute your calldata to borrow and repay assets on a position. Borrow assets[​](https://docs.vesu.xyz/developers/interact/borrow-repay#borrow-assets "Direct link to Borrow assets") ---------------------------------------------------------------------------------------------------------------------- To borrow assets, use the `manage_position` function of the respective `Pool` contract with the following `ModifyPositionParams(collateral_asset,debt_asset,user,collateral,debt)` data: * `collateral_asset`: The address of the asset that is to be supplied as collateral * `debt_asset`: The address of the asset that is to be borrowed * `user`: The address of the position owner (not necessarily the transaction sender) * `collateral`: The amount that should be supplied as collateral encoded as a positive integer * `debt`: The amount that should be borrowed encoded as a positive integer The amounts have to follow the `Amount` type as explained [here](https://docs.vesu.xyz/developers/core/pool) . To supply collateral and borrow assets, you will have to specify both the `collateral` and `debt` amount's `value` fields as positive numbers. As an example, the data for a user with account address 0x1 to supply 1000 STRK as collateral and borrow 100 USDC will look like this: ModifyPositionParams( 0x04718f5a0fc34cc1af16a1cdee98ffb20c31f5cd61d6ab07201858f4287c938d, 0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8, 0x1, Amount(AmountDenomination:Assets, 1000), Amount(AmountDenomination:Assets, 100)) info Note that if `user` is not the sender of the transaction, `user` first has to delegate his position to the sender through `modify_delegation`. Repay assets[​](https://docs.vesu.xyz/developers/interact/borrow-repay#repay-assets "Direct link to Repay assets") ------------------------------------------------------------------------------------------------------------------- To repay debt of an existing position, follow the exact same approach as explained in the "Borrow assets" section but specify only a non-zero amount in the `debt` field: * `collateral_asset`: The address of the collateral asset of the position * `debt_asset`: The address of the debt asset of the position * `user`: The address of the position owner (not necessarily the transaction sender) * `collateral`: A zero amount * `debt`: The amount that should be repaid encoded as a negative integer As an example, the data for a user with account address 0x1, borrowing USDC with STRK as collateral, and wanting to repay 50 USDC will look like this: ModifyPositionParams( 0x04718f5a0fc34cc1af16a1cdee98ffb20c31f5cd61d6ab07201858f4287c938d, 0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8, 0x1, Amount(AmountDenomination:Assets, 0), Amount(AmountDenomination:Assets, -50)) Close position[​](https://docs.vesu.xyz/developers/interact/borrow-repay#close-position "Direct link to Close position") ------------------------------------------------------------------------------------------------------------------------- To close a position, a user needs to repay all outstanding debt and withdraw all remaining collateral assets. However, due to the nature of per-block interest accruals, the total debt outstanding and collateral assets withdrawable are only known at the block where the transaction is included. Therefore, amounts have to be expressed in `Native` denomination instead. The `ModifyPositionParams` data thus are computed as: * `collateral_asset`: The address of the collateral asset of the position * `debt_asset`: The address of the debt asset of the position * `user`: The address of the position owner * `collateral`: The `collateral_shares` owned by the position encoded as an `Amount` with `AmountDenomination:Native` and negative integer in the `value` field * `debt`: The `nominal_debt` owed by the position encoded as an `Amount` with `AmountDenomination:Native` and negative integer in the `value` field As an example, the data for a user with account address 0x1, borrowing USDC with STRK as collateral, and having 900 `collateral_shares` and 90 `nominal_debt` units outstanding will look like: ModifyPositionParams( 0x04718f5a0fc34cc1af16a1cdee98ffb20c31f5cd61d6ab07201858f4287c938d, 0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8, 0x1, Amount(AmountDenomination:Native, -900), Amount(AmountDenomination:Native, -90)) * [Borrow assets](https://docs.vesu.xyz/developers/interact/borrow-repay#borrow-assets) * [Repay assets](https://docs.vesu.xyz/developers/interact/borrow-repay#repay-assets) * [Close position](https://docs.vesu.xyz/developers/interact/borrow-repay#close-position) --- # Singleton contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/singleton#__docusaurus_skipToContent_fallback) On this page This page gives an overview over the storage and the functions of the Singleton contract. Storage[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#storage "Direct link to Storage") ------------------------------------------------------------------------------------------------ The following sections shows each storage variable available in the singleton contract. ##### creator\_nonce (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#creator_nonce-legacymap "Direct link to creator_nonce (LegacyMap)") Tracks a nonce for each creator of a pool to deterministically derive the `pool_id` from it. // creator -> noncecreator_nonce: LegacyMap:: ##### extensions (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#extensions-legacymap "Direct link to extensions (LegacyMap)") Tracks the address of the extension contract for each pool. // pool_id -> extensionextensions: LegacyMap:: ##### asset\_configs (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#asset_configs-legacymap "Direct link to asset_configs (LegacyMap)") Tracks the configuration / state of each asset in each pool. Mapping from pool\_id & asset to // (pool_id, asset) -> asset configurationasset_configs: LegacyMap::<(felt252, ContractAddress), AssetConfig> ##### ltv\_configs (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#ltv_configs-legacymap "Direct link to ltv_configs (LegacyMap)") Tracks the max. allowed loan-to-value ratio for each asset pairing in each pool. Mapping from PoolId & Asset to loan-to-value configruation. ltv_configs: LegacyMap::<(felt252, ContractAddress, ContractAddress), LTVConfig> ##### positions (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#positions-legacymap "Direct link to positions (LegacyMap)") Tracks the state of each position in each pool. // (pool_id, collateral_asset, debt_asset, user) -> positionpositions: LegacyMap::<(felt252, ContractAddress, ContractAddress, ContractAddress), Position> ##### delegations (LegacyMap)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#delegations-legacymap "Direct link to delegations (LegacyMap)") Tracks the delegation status for each delegator to a delegatee for a specific pool. // (pool_id, delegator, delegatee) -> delegationdelegations: LegacyMap::<(felt252, ContractAddress, ContractAddress), bool> ##### lock (boolean)[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#lock-boolean "Direct link to lock (boolean)") Tracks the reentrancy lock status to prohibit reentrancy when loading the context or the asset config. lock: bool Functions[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#functions "Direct link to Functions") ------------------------------------------------------------------------------------------------------ #### asset\_config\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#asset_config_unsafe "Direct link to asset_config_unsafe") Returns the configuration / state of an asset for a given pool This method does not prevent reentrancy which may result in asset\_config being out of date. For contract to contract interactions `asset_config()` should be used instead. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L693) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns "Direct link to Returns") * `asset_config` - asset configuration * `fee_shares` - accrued fee shares minted to the fee recipient fn asset_config_unsafe( self: @ContractState, pool_id: felt252, asset: ContractAddress ) -> (AssetConfig, u256) ### asset\_config[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#asset_config "Direct link to asset_config") Wrapper around `asset_config()` that prevents reentrancy Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L717) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-1 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-1 "Direct link to Returns") * `asset_config` - asset configuration * `fee_shares` - accrued fee shares minted to the fee recipient fn asset_config( ref self: ContractState, pool_id: felt252, asset: ContractAddress ) -> (AssetConfig, u256) ### ltv\_config[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#ltv_config "Direct link to ltv_config") Returns the loan-to-value configuration between two assets (pair) in the pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L732) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-2 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-2 "Direct link to Returns") * `ltv_config` - ltv configuration fn ltv_config( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress ) -> LTVConfig ### position\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#position_unsafe "Direct link to position_unsafe") Returns the current state of a position. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L748) ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-3 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-3 "Direct link to Returns") * `position` - position state * `collateral` - amount of collateral (computed from position.collateral\_shares) \[asset scale\] * `debt` - amount of debt (computed from position.nominal\_debt) \[asset scale\] fn position_unsafe( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress ) -> (Position, u256, u256) ### position[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#position "Direct link to position") Wrapper around position() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L770) ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-4 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-4 "Direct link to Returns") * `position` - position state * `collateral` - amount of collateral (computed from position.collateral\_shares) \[asset scale\] * `debt` - amount of debt (computed from position.nominal\_debt) \[asset scale\] fn position( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress ) -> (Position, u256, u256) ### check\_collateralization\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#check_collateralization_unsafe "Direct link to check_collateralization_unsafe") Checks if a position is collateralized according to the max. loan-to-value ratio. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L794) ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-5 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-5 "Direct link to Returns") * `collateralized` - true if the position is collateralized, false otherwise * `collateral_value` - USD value of the collateral \[SCALE\] * `debt_value` - USD value of the debt \[SCALE\] fn check_collateralization_unsafe( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress) -> (bool, u256, u256) ### check\_collateralization[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#check_collateralization "Direct link to check_collateralization") Wrapper around check\_collateralization\_unsafe() that prevents reentrancy Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L816) ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-6 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-6 "Direct link to Returns") * `collateralized` - true if the position is collateralized, false otherwise * `collateral_value` - USD value of the collateral \[SCALE\] * `debt_value` - USD value of the debt \[SCALE\] fn check_collateralization( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress ) -> (bool, u256, u256) ### rate\_accumulator\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#rate_accumulator_unsafe "Direct link to rate_accumulator_unsafe") Calculates the current (using the current block's timestamp) rate accumulator for a given asset in a pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L837) ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-7 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-7 "Direct link to Returns") * `rate_accumulator` - computed rate accumulator \[SCALE\] fn rate_accumulator_unsafe( self: @ContractState, pool_id: felt252, asset: ContractAddress) -> u256 ### rate\_accumulator[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#rate_accumulator "Direct link to rate_accumulator") Wrapper around rate\_accumulator() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L848) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-8 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-8 "Direct link to Returns") * `rate_accumulator` - computed rate accumulator \[SCALE\] fn rate_accumulator( ref self: ContractState, pool_id: felt252, asset: ContractAddress) -> u256 ### utilization\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#utilization_unsafe "Direct link to utilization_unsafe") Calculates the current utilization of an asset in a pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L862) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-9 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-9 "Direct link to Returns") * `utilization` - computed utilization \[SCALE\] fn utilization_unsafe( self: @ContractState, pool_id: felt252, asset: ContractAddress) -> u256 ### utilization[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#utilization "Direct link to utilization") Wrapper around utilization() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L873) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-10 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-10 "Direct link to Returns") * `utilization` - computed utilization \[SCALE\] fn utilization( ref self: ContractState, pool_id: felt252, asset: ContractAddress) -> u256 ### delegation[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#delegation "Direct link to delegation") Returns the delegation status of a delegator to a delegatee for a specific pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L888) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-11 "Direct link to Arguments") * `pool_id` - id of the pool * `delegator` - address of the delegator * `delegatee` - address of the delegatee ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-11 "Direct link to Returns") * `delegation` - delegation status (true = delegate, false = undelegate) fn delegation( self: @ContractState, pool_id: felt252, delegator: ContractAddress, delegatee: ContractAddress) -> bool ### calculate\_pool\_id[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_pool_id "Direct link to calculate_pool_id") Derives the pool\_id for a given creator and nonce. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L900) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-12 "Direct link to Arguments") * `caller_address` - address of the creator * `nonce` - nonce of the creator (creator\_nonce() + 1 to derive the pool\_id of the next pool) ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-12 "Direct link to Returns") * `pool_id` - id of the pool fn calculate_pool_id( self: @ContractState, caller_address: ContractAddress, nonce: felt252) -> felt252 ### calculate\_debt[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_debt "Direct link to calculate_debt") Calculates the debt for a given amount of nominal debt, the current rate accumulator and debt asset's scale. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L912) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-13 "Direct link to Arguments") * `nominal_debt` - amount of nominal debt \[asset scale\] * `rate_accumulator` - current rate accumulator \[SCALE\] * `asset_scale` - debt asset's scale ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-13 "Direct link to Returns") * `debt` - computed debt \[asset scale\] fn calculate_debt( self: @ContractState, nominal_debt: i257, rate_accumulator: u256, asset_scale: u256) -> u256 ### calculate\_nominal\_debt[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_nominal_debt "Direct link to calculate_nominal_debt") Calculates the nominal debt for a given amount of debt, the current rate accumulator and debt asset's scale. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L923) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-14 "Direct link to Arguments") * `debt` - amount of debt \[asset scale\] * `rate_accumulator` - current rate accumulator \[SCALE\] * `asset_scale` - debt asset's scale ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-14 "Direct link to Returns") * `nominal_debt` - computed nominal debt \[asset scale\] fn calculate_nominal_debt( self: @ContractState, debt: i257, rate_accumulator: u256, asset_scale: u256) -> u256 ### calculate\_collateral\_shares\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_shares_unsafe "Direct link to calculate_collateral_shares_unsafe") Calculates the number of collateral shares (that would be e.g. minted) for a given amount of collateral assets. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L934) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-15 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `collateral` - amount of collateral \[asset scale\] ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-15 "Direct link to Returns") * `collateral_shares` - computed collateral shares \[SCALE\] fn calculate_collateral_shares_unsafe( self: @ContractState, pool_id: felt252, asset: ContractAddress, collateral: i257) -> u256 ### calculate\_collateral\_shares[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_shares "Direct link to calculate_collateral_shares") Wrapper around calculate\_collateral\_shares() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L948) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-16 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `collateral` - amount of collateral \[asset scale\] ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-16 "Direct link to Returns") * `collateral_shares` - computed collateral shares \[SCALE\] fn calculate_collateral_shares( ref self: ContractState, pool_id: felt252, asset: ContractAddress, collateral: i257) -> u256 ### calculate\_collateral\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_unsafe "Direct link to calculate_collateral_unsafe") Calculates the amount of collateral assets (that can e.g. be redeemed) for a given amount of collateral shares. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L965) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-17 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `collateral_shares` - amount of collateral shares ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-17 "Direct link to Returns") * `collateral` - computed collateral \[asset scale\] fn calculate_collateral_unsafe( self: @ContractState, pool_id: felt252, asset: ContractAddress, collateral_shares: i257) -> u256 ### calculate\_collateral[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral "Direct link to calculate_collateral") Wrapper around calculate\_collateral() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L979) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-18 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `collateral_shares` - amount of collateral shares ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-18 "Direct link to Returns") * `collateral` - computed collateral \[asset scale\] fn calculate_collateral( ref self: ContractState, pool_id: felt252, asset: ContractAddress, collateral_shares: i257) -> u256 ### deconstruct\_collateral\_amount\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_collateral_amount_unsafe "Direct link to deconstruct_collateral_amount_unsafe") Deconstructs the collateral amount into collateral delta, collateral shares delta and its sign. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L999) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-19 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner * `collateral` - amount of collateral ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-19 "Direct link to Returns") * `collateral_delta` - computed collateral delta \[asset scale\] * `collateral_shares_delta` - computed collateral shares delta \[SCALE\] fn deconstruct_collateral_amount_unsafe( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress, collateral: Amount) -> (i257, i257) ### deconstruct\_collateral\_amount[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_collateral_amount "Direct link to deconstruct_collateral_amount") Wrapper around deconstruct\_collateral\_amount() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1021) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-20 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner * `collateral` - amount of collateral ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-20 "Direct link to Returns") * `collateral_delta` - computed collateral delta \[asset scale\] * `collateral_shares_delta` - computed collateral shares delta \[SCALE\] fn deconstruct_collateral_amount( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress, collateral: Amount) -> (i257, i257) ### deconstruct\_debt\_amount\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_debt_amount_unsafe "Direct link to deconstruct_debt_amount_unsafe") Deconstructs the debt amount into debt delta, nominal debt delta and its sign. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1047) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-21 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner * `debt` - amount of debt ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-21 "Direct link to Returns") * `debt_delta` - computed debt delta \[asset scale\] * `nominal_debt_delta` - computed nominal debt delta \[SCALE\] fn deconstruct_debt_amount_unsafe( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress, debt: Amount) -> (i257, i257) ### deconstruct\_debt\_amount[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_debt_amount "Direct link to deconstruct_debt_amount") Wrapper around deconstruct\_debt\_amount() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1071) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-22 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner * `debt` - amount of debt ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-22 "Direct link to Returns") * `debt_delta` - computed debt delta \[asset scale\] * `nominal_debt_delta` - computed nominal debt delta \[SCALE\] fn deconstruct_debt_amount( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress, debt: Amount) -> (i257, i257) ### context\_unsafe[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#context_unsafe "Direct link to context_unsafe") Loads the contextual state for a given user. This includes the pool's extension address, the state of the collateral and debt assets, loan-to-value configurations and the state of the position. This method does not prevent reentrancy which may result in context being out of date. For contract-to-contract interactions context() should be used instead. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1098) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-23 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-23 "Direct link to Returns") * `context` - contextual state fn context_unsafe( self: @ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress) -> Context ### context[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#context "Direct link to context") Wrapper around context() that prevents reentrancy. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1149) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-24 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `user` - address of the position's owner ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-24 "Direct link to Returns") * `context` - contextual state fn context( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress) -> Context ### create\_pool[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#create_pool "Direct link to create_pool") Creates a new pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1170) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-25 "Direct link to Arguments") * `asset_params` - array of asset parameters * `ltv_params` - array of loan-to-value parameters * `extension` - address of the extension contract ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-25 "Direct link to Returns") * `pool_id` - id of the pool fn create_pool( ref self: ContractState, asset_params: Span, mut ltv_params: Span, extension: ContractAddress) -> felt252 ### modify\_position[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#modify_position "Direct link to modify_position") Adjusts a position's collateral and debt balances. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1212) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-26 "Direct link to Arguments") * `params` - see ModifyPositionParams ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-26 "Direct link to Returns") * `response` - see UpdatePositionResponse fn modify_position( ref self: ContractState, params: ModifyPositionParams) -> UpdatePositionResponse ### transfer\_position[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#transfer_position "Direct link to transfer_position") Transfers a position's collateral and/or debt balances to another position in the same pool. Either the collateral or debt asset addresses match. For transfers to the same position, `modify_position` should be used instead. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1280) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-27 "Direct link to Arguments") * `params` - see TransferPositionParams fn transfer_position( ref self: ContractState, params: TransferPositionParams) ### liquidate\_position[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#liquidate_position "Direct link to liquidate_position") Liquidates a position. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1523) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-28 "Direct link to Arguments") * `params` - see LiquidatePositionParams ##### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#returns-27 "Direct link to Returns") * `response` - see UpdatePositionResponse fn liquidate_position( ref self: ContractState, params: LiquidatePositionParams) -> UpdatePositionResponse ### flash\_loan[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#flash_loan "Direct link to flash_loan") Executes a flash loan. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1624) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-29 "Direct link to Arguments") * `receiver` - address of the flash loan receiver * `asset` - address of the asset * `amount` - amount of the asset to loan * `is_legacy` - whether the asset is in legacy format * `data` - data to pass to the flash loan receiver fn flash_loan( ref self: ContractState, receiver: ContractAddress, asset: ContractAddress, amount: u256, is_legacy: bool, data: Span) ### modify\_delegation[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#modify_delegation "Direct link to modify_delegation") Modifies the delegation status of a delegator to a delegatee for a specific pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1645) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-30 "Direct link to Arguments") * `pool_id` - id of the pool * `delegatee` - address of the delegatee * `delegation` - delegation status (true = delegate, false = undelegate) fn modify_delegation( ref self: ContractState, pool_id: felt252, delegatee: ContractAddress, delegation: bool) ### donate\_to\_reserve[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#donate_to_reserve "Direct link to donate_to_reserve") Donates an amount of an asset to the pool's reserve. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1656) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-31 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `amount` - amount to donate \[asset scale\] fn donate_to_reserve( ref self: ContractState, pool_id: felt252, asset: ContractAddress, amount: u256) ### retrieve\_from\_reserve[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#retrieve_from_reserve "Direct link to retrieve_from_reserve") Retrieves an amount of an asset from the pool's reserve. Can only be called by the pool's extension. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1675) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-32 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `receiver` - address of the receiver * `amount` - amount to retrieve \[asset scale\] fn retrieve_from_reserve( ref self: ContractState, pool_id: felt252, asset: ContractAddress, receiver: ContractAddress, amount: u256) ### set\_ltv\_config[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_ltv_config "Direct link to set_ltv_config") Sets the loan-to-value configuration between two assets (pair) in the pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1698) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-33 "Direct link to Arguments") * `pool_id` - id of the pool * `collateral_asset` - address of the collateral asset * `debt_asset` - address of the debt asset * `ltv_config` - ltv configuration fn set_ltv_config( ref self: ContractState, pool_id: felt252, collateral_asset: ContractAddress, debt_asset: ContractAddress, ltv_config: LTVConfig) ### set\_asset\_config[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_asset_config "Direct link to set_asset_config") Sets the configuration / initial state of an asset for a given pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1719) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-34 "Direct link to Arguments") * `pool_id` - id of the pool * `params` - see AssetParams fn set_asset_config( ref self: ContractState, pool_id: felt252, params: AssetParams) ### set\_asset\_parameter[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_asset_parameter "Direct link to set_asset_parameter") Sets a parameter of an asset for a given pool. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1753) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-35 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset * `parameter` - parameter name * `value` - value of the parameter fn set_asset_parameter( ref self: ContractState, pool_id: felt252, asset: ContractAddress, parameter: felt252, value: u256) ### set\_extension[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_extension "Direct link to set_extension") Sets the pool's extension address. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1784) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-36 "Direct link to Arguments") * `pool_id` - id of the pool * `extension` - address of the extension contract fn set_extension( ref self: ContractState, pool_id: felt252, extension: ContractAddress) ### claim\_fee\_shares[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#claim_fee_shares "Direct link to claim_fee_shares") Attributes the outstanding fee shares to the pool's extension. Check source code on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/singleton.cairo#L1794) . ##### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/singleton#arguments-37 "Direct link to Arguments") * `pool_id` - id of the pool * `asset` - address of the asset fn claim_fee_shares( ref self: ContractState, pool_id: felt252, asset: ContractAddress) * [Storage](https://docs.vesu.xyz/developers/vesu-v1/singleton#storage) * [Functions](https://docs.vesu.xyz/developers/vesu-v1/singleton#functions) * [asset\_config](https://docs.vesu.xyz/developers/vesu-v1/singleton#asset_config) * [ltv\_config](https://docs.vesu.xyz/developers/vesu-v1/singleton#ltv_config) * [position\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#position_unsafe) * [position](https://docs.vesu.xyz/developers/vesu-v1/singleton#position) * [check\_collateralization\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#check_collateralization_unsafe) * [check\_collateralization](https://docs.vesu.xyz/developers/vesu-v1/singleton#check_collateralization) * [rate\_accumulator\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#rate_accumulator_unsafe) * [rate\_accumulator](https://docs.vesu.xyz/developers/vesu-v1/singleton#rate_accumulator) * [utilization\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#utilization_unsafe) * [utilization](https://docs.vesu.xyz/developers/vesu-v1/singleton#utilization) * [delegation](https://docs.vesu.xyz/developers/vesu-v1/singleton#delegation) * [calculate\_pool\_id](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_pool_id) * [calculate\_debt](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_debt) * [calculate\_nominal\_debt](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_nominal_debt) * [calculate\_collateral\_shares\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_shares_unsafe) * [calculate\_collateral\_shares](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_shares) * [calculate\_collateral\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral_unsafe) * [calculate\_collateral](https://docs.vesu.xyz/developers/vesu-v1/singleton#calculate_collateral) * [deconstruct\_collateral\_amount\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_collateral_amount_unsafe) * [deconstruct\_collateral\_amount](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_collateral_amount) * [deconstruct\_debt\_amount\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_debt_amount_unsafe) * [deconstruct\_debt\_amount](https://docs.vesu.xyz/developers/vesu-v1/singleton#deconstruct_debt_amount) * [context\_unsafe](https://docs.vesu.xyz/developers/vesu-v1/singleton#context_unsafe) * [context](https://docs.vesu.xyz/developers/vesu-v1/singleton#context) * [create\_pool](https://docs.vesu.xyz/developers/vesu-v1/singleton#create_pool) * [modify\_position](https://docs.vesu.xyz/developers/vesu-v1/singleton#modify_position) * [transfer\_position](https://docs.vesu.xyz/developers/vesu-v1/singleton#transfer_position) * [liquidate\_position](https://docs.vesu.xyz/developers/vesu-v1/singleton#liquidate_position) * [flash\_loan](https://docs.vesu.xyz/developers/vesu-v1/singleton#flash_loan) * [modify\_delegation](https://docs.vesu.xyz/developers/vesu-v1/singleton#modify_delegation) * [donate\_to\_reserve](https://docs.vesu.xyz/developers/vesu-v1/singleton#donate_to_reserve) * [retrieve\_from\_reserve](https://docs.vesu.xyz/developers/vesu-v1/singleton#retrieve_from_reserve) * [set\_ltv\_config](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_ltv_config) * [set\_asset\_config](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_asset_config) * [set\_asset\_parameter](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_asset_parameter) * [set\_extension](https://docs.vesu.xyz/developers/vesu-v1/singleton#set_extension) * [claim\_fee\_shares](https://docs.vesu.xyz/developers/vesu-v1/singleton#claim_fee_shares) --- # tBTC Vault & sUSN Live | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#__docusaurus_skipToContent_fallback) ![tBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-vault-b4f8037f15b9eccde012f6de3267821e.png) A new Bitcoin strategy is live on Vesu. The **Noon tBTC Vault** is built for Bitcoin holders looking for strong yield. Users deposit tBTC and earn yield through an automated, fully onchain setup that builds on sUSN yield and Vesu’s low borrow rates. We’re excited to welcome **Noon Vaults** as a new curator, expanding the range of Bitcoin strategies available on Starknet. The Noon tBTC Vault[​](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#the-noon-tbtc-vault "Direct link to The Noon tBTC Vault") --------------------------------------------------------------------------------------------------------------------------------------- The Noon tBTC Vault is designed for users who want to put their Bitcoin to work without selling it or actively managing positions. The setup combines BTC-backed borrowing with yield generated via sUSN, allowing returns to compound back into tBTC over time. Position management, rebalancing, and execution are fully abstracted away. The curator targets **~10% yield**. All funds remain non-custodial and fully transparent onchain. About Noon and sUSN[​](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#about-noon-and-susn "Direct link to About Noon and sUSN") --------------------------------------------------------------------------------------------------------------------------------------- Noon issues USN, a USD-backed stablecoin designed with a focus on sustainable yield, safety, and long-term use. Its staked version, sUSN, accrues yield directly within the token over time. With sUSN live on Vesu, users can use it as collateral, borrow against it, and combine it with Vesu’s vaults and Multiply to access more advanced onchain strategies. Vesu Vaults[​](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#vesu-vaults "Direct link to Vesu Vaults") --------------------------------------------------------------------------------------------------------------- Vesu Vaults are designed to make onchain yield more accessible by abstracting away complexity, while remaining fully non-custodial. Vaults follow strict, onchain strategy mandates and are operated by independent curators. Deposited funds can only be used as defined by the strategy, and performance is reported transparently onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/security/audits) . Get started[​](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#get-started "Direct link to Get started") --------------------------------------------------------------------------------------------------------------- You can now: * Deposit tBTC into the new [Noon tBTC Vault](https://vesu.xyz/vaults/0x04424dec8280f518b35be33139f44ef9fa0855b117f16cda2a30f1b64c27864a) * [Multiply sUSN](https://vesu.xyz/multiply/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) to increase your exposure & yield * [Borrow USDC against sUSN](https://vesu.xyz/borrow/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) Explore the new tBTC Vault and sUSN on Vesu and see what’s possible. * [The Noon tBTC Vault](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#the-noon-tbtc-vault) * [About Noon and sUSN](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#about-noon-and-susn) * [Vesu Vaults](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#vesu-vaults) * [Get started](https://docs.vesu.xyz/blog/2026-01-08-noon-tBTC-vault#get-started) --- # Supply and withdraw | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/interact/supply-withdraw#__docusaurus_skipToContent_fallback) On this page info Each Vesu V2 pool, if created from the official `PoolFactory` contract, has a corresponding vToken that follows the ERC-4626 interface and uses the OpenZeppelin standard implementation that is available [here](https://github.com/OpenZeppelin/cairo-contracts/blob/main/packages/token/src/erc20/extensions/erc4626/erc4626.cairo) . info The vToken to a specific asset and pool can be verified onchain as explained [here](https://docs.vesu.xyz/developers/core/pool-factory) . Vesu vTokens offer a convenient way to supply and withdraw assets in a specific Vesu pool. These vTokens serve as simplified vaults which pool users' assets in a single position in the respective pool and issue a share token to the user. Supply assets[​](https://docs.vesu.xyz/developers/interact/supply-withdraw#supply-assets "Direct link to Supply assets") ------------------------------------------------------------------------------------------------------------------------- To supply assets in a specific Vesu pool, identify the corresponding vToken and use its `deposit` function: /// Mints Vault shares to `receiver` by depositing exactly `assets` of underlying tokens./// Returns the amount of newly-minted shares.////// Requirements:////// - `assets` is less than or equal to the max deposit amount for `receiver`.////// Emits a `Deposit` event.fn deposit( ref self: ComponentState, assets: u256, receiver: ContractAddress,) -> u256 Withdraw assets[​](https://docs.vesu.xyz/developers/interact/supply-withdraw#withdraw-assets "Direct link to Withdraw assets") ------------------------------------------------------------------------------------------------------------------------------- To withdraw assets from a specific Vesu pool, identify the corresponding vToken and use its `withdraw` function: /// Burns shares from `owner` and sends exactly `assets` of underlying tokens to `receiver`.////// Requirements:////// - `assets` is less than or equal to the max withdraw amount of `owner`.////// Emits a `Withdraw` event.fn withdraw( ref self: ComponentState, assets: u256, receiver: ContractAddress, owner: ContractAddress,) -> u256 Alternative Way to Supply and Withdraw[​](https://docs.vesu.xyz/developers/interact/supply-withdraw#alternative-way-to-supply-and-withdraw "Direct link to Alternative Way to Supply and Withdraw") ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Alternatively, if you do not want to use the vToken's `deposit` and `withdraw` functions, you can use the `manage_position` function of the respective `Pool` contract with the following `ModifyPositionParams` data: * `collateral_asset`: The address of the asset that you want to supply or withdraw * `debt_asset`: The address of a second asset that is supported by the pool (this pure implementation detail) * `user`: The address of the position owner (can be a different one than the transaction sender) * collateral: The amount that you want to deposit or withdraw * debt: An `Amount` reflecting 0 All amounts have to follow the `Amount` type as explained [here](https://docs.vesu.xyz/developers/core/pool) . The `value` field determines whether your transaction is going to supply or withdraw assets from the specific pool: * `value > 0`: supply assets * `value < 0`: withdraw assets info Note that if `user` is not the sender of the transaction, `user` first has to delegate his position to the sender through `modify_delegation`. * [Supply assets](https://docs.vesu.xyz/developers/interact/supply-withdraw#supply-assets) * [Withdraw assets](https://docs.vesu.xyz/developers/interact/supply-withdraw#withdraw-assets) * [Alternative Way to Supply and Withdraw](https://docs.vesu.xyz/developers/interact/supply-withdraw#alternative-way-to-supply-and-withdraw) --- # PoolFactory contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/core/pool-factory#__docusaurus_skipToContent_fallback) On this page warning Curators should always use the official `PoolFactory` contract to create new Vesu pools in order to ensure consistency of the pool configuration and compatibility with the Vesu backend and frontend infrastructure. The `PoolFactory` enables anyone to securely create and initialize new Vesu pools and oracles. It further maintains mappings of `VToken -> Pool` and `Pool, Asset -> VToken` that allow you to look up and verify the `VToken` associated with a pool and asset. Storage[​](https://docs.vesu.xyz/developers/core/pool-factory#storage "Direct link to Storage") ------------------------------------------------------------------------------------------------ We here show the full storage of the `Pool` contract with inline docs. struct Storage { pool_class_hash: felt252, v_token_class_hash: felt252, oracle_class_hash: felt252, v_token_for_asset: Map<(ContractAddress, ContractAddress), ContractAddress>, asset_for_v_token: Map<(ContractAddress, ContractAddress), ContractAddress>, #[substorage(v0)] ownable: OwnableComponent::Storage,} User Functions[​](https://docs.vesu.xyz/developers/core/pool-factory#user-functions "Direct link to User Functions") --------------------------------------------------------------------------------------------------------------------- ### VToken Lookup[​](https://docs.vesu.xyz/developers/core/pool-factory#vtoken-lookup "Direct link to VToken Lookup") Use this function to identify the address of the VToken contract for a specific pool and asset. /// Returns the vToken address for a given collateral asset/// # Arguments/// * `pool` - address of the pool/// * `asset` - address of the asset/// # Returns/// * `v_token` - address of the vToken contractfn v_token_for_asset(self: @ContractState, pool: ContractAddress, asset: ContractAddress) -> ContractAddress ### Asset Lookup[​](https://docs.vesu.xyz/developers/core/pool-factory#asset-lookup "Direct link to Asset Lookup") Use this function to identify the address of the asset for a specific pool and VToken. /// Returns the collateral asset for a given vToken/// # Arguments/// * `pool` - address of the pool/// * `v_token` - address of the vToken contract/// # Returns/// * `asset` - address of the collateral assetfn asset_for_v_token(self: @ContractState, pool: ContractAddress, v_token: ContractAddress) -> ContractAddress ### Create Pool[​](https://docs.vesu.xyz/developers/core/pool-factory#create-pool "Direct link to Create Pool") info The `PoolFactory` always assignes the `owner` role of a pool, that is the role with permission to upgrade the `Pool` contract, to the _Vesu Security Council_. info The pool `name` can only be set at pool creation time. It can not be changed at a later point as this may result in inconsistent data (both offchain and onchain). info When creating a new pool, you will have to first approve the `PoolFactory` to spend `2000` base units of each asset that you set up the pool with. These units are burned as an _Inflation Fee_ during the process of pool creation to protect from certain attack vectors. warning The `curator` needs to accept its nomination after the pool has been created. Use the `accept_curator_ownership` function on the deployed pool through a Starknet block explorer like [Voyager](https://voyager.online/) to accept your nomination. Use this function to create a new Vesu pool. The `create_pool` function will deploy a new `Pool` contract, instantiate it with the provided pool parameters, deploy a new `VToken` for each of the pool assets, and return the address of the new pool (aka the `pool_id`). /// Creates a new pool/// # Arguments/// * `name` - name of the pool/// * `curator` - curator of the pool/// * `oracle` - oracle of the pool/// * `fee_recipient` - fee recipient of the pool/// * `asset_params` - asset parameters/// * `v_token_params` - vToken parameters/// * `interest_rate_params` - interest rate model parameters/// * `pair_params` - pair parameters/// # Returns/// * `pool_id` - id of the poolfn create_pool( ref self: ContractState, name: felt252, curator: ContractAddress, oracle: ContractAddress, fee_recipient: ContractAddress, mut asset_params: Span, mut v_token_params: Span, mut interest_rate_params: Span, mut pair_params: Span,) -> ContractAddress ### Add Asset to an existing pool[​](https://docs.vesu.xyz/developers/core/pool-factory#add-asset-to-an-existing-pool "Direct link to Add Asset to an existing pool") info When adding a new asset, you will have to first approve the `PoolFactory` to spend `2000` base units of that asset. These units are burned as an _Inflation Fee_ during the process of pool creation to protect from certain attack vectors. Use this function to add a new asset to an existing pool. The `add_asset` function will correctly add and initialize the new asset to the pool and further deploy a corresponding VToken. /// Adds an asset to the pool. The curator has to nominate the factory as the curator./// The factory will pass the ownership back to the curator after the asset is added./// # Arguments/// * `pool` - address of the pool/// * `asset` - address of the asset/// * `asset_params` - asset parameters/// * `interest_rate_config` - interest rate model configuration/// * `v_token_params` - vToken parametersfn add_asset( ref self: ContractState, pool: ContractAddress, asset: ContractAddress, asset_params: AssetParams, interest_rate_config: InterestRateConfig, v_token_params: VTokenParams,) ### Create Oracle[​](https://docs.vesu.xyz/developers/core/pool-factory#create-oracle "Direct link to Create Oracle") info There exists a _Factory Oracle_ which maintains all major price feeds and can be freely used when creating new pools. You can find the address [here](https://docs.vesu.xyz/developers/contract-addresses) . info The `PoolFactory` always assignes the `owner` role of an oracle, that is the role with permission to upgrade the `Oracle` contract, to the _Vesu Security Council_. Use this function to create and initialize a new oracle. You will be able to specify an oracle `manager` who has the permission to change the oracle configuration after creation. /// Creates a new oracle contract/// # Arguments/// * `manager` - manager of the oracle/// * `pragma_oracle` - address of the pragma oracle contract/// * `pragma_summary` - address of the pragma summary contract/// # Returns/// * `oracle` - address of the oracle contractfn create_oracle( ref self: ContractState, manager: ContractAddress, pragma_oracle: ContractAddress, pragma_summary: ContractAddress,) -> ContractAddress * [Storage](https://docs.vesu.xyz/developers/core/pool-factory#storage) * [User Functions](https://docs.vesu.xyz/developers/core/pool-factory#user-functions) * [VToken Lookup](https://docs.vesu.xyz/developers/core/pool-factory#vtoken-lookup) * [Asset Lookup](https://docs.vesu.xyz/developers/core/pool-factory#asset-lookup) * [Create Pool](https://docs.vesu.xyz/developers/core/pool-factory#create-pool) * [Add Asset to an existing pool](https://docs.vesu.xyz/developers/core/pool-factory#add-asset-to-an-existing-pool) * [Create Oracle](https://docs.vesu.xyz/developers/core/pool-factory#create-oracle) --- # Vesu Protocol Architecture | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/core/architecture#__docusaurus_skipToContent_fallback) On this page The Vesu V2 protocol is built with a focus on simplicity and security. It consists of a few building blocks that aim at maximally isolate user funds, reduce the attack surface increase the overall confidence in the codebase. The architecture of the Vesu V2 protocol and its building blocks is outlined in the figure below. ![Vesu Architecture](https://docs.vesu.xyz/assets/images/vesu-v2-architecture-2247a07647b701d12e7498c41f923923.png) Lending Pool[​](https://docs.vesu.xyz/developers/core/architecture#lending-pool "Direct link to Lending Pool") --------------------------------------------------------------------------------------------------------------- Lending pools are isolated in a separate instance of the `Pool` contract. This contract manages all state, user funds and interactions related to that specific pool. This way, in Vesu V2 user funds are isolated by design in separate `Pool` instances. At the same time, the concept of lending pairs and positions remains exactly the same as in the Vesu V1 protocol. Thus, Vesu V2 pools remain as flexible as it gets when it comes to the configuration of different loan structures within a pool. Similarly, pool curators keep the granular level of control over risk exposures and parameters as known from Vesu V1. Oracle[​](https://docs.vesu.xyz/developers/core/architecture#oracle "Direct link to Oracle") --------------------------------------------------------------------------------------------- info An official _Factory Oracle_ exists and is free to be used by all pools and curators. However, curators are free to use custom oracles too. The `Pool` computes the solvency of positions based on collateral and debt asset prices. It fetches these asset prices from an external, fully trusted, `Oracle`. A _Factory Oracle_ exists and maintains price feeds for all major assets. This _Factory Oracle_ uses Pragma price feeds and implements additional price validations which the `Pool` consumes to decide whether to trust a price or not. In case the `Pool` receives an untrusted price, it pauses all asset withdrawals. vToken[​](https://docs.vesu.xyz/developers/core/architecture#vtoken "Direct link to vToken") --------------------------------------------------------------------------------------------- The `PoolFactory` deploys a `vToken` for each asset in a new pool. The `vToken` offers lenders a simplified UX for depositing funds into a pool and issues a share token in return. `vToken`s are stand-alone, ERC-4626 compatible vaults and work in isolation of the pool itself. Pool Factory[​](https://docs.vesu.xyz/developers/core/architecture#pool-factory "Direct link to Pool Factory") --------------------------------------------------------------------------------------------------------------- The `PoolFactory` allows curators to create new `Pool` instances through a simple interface, `create_pool`. Upon pool creation, the `PoolFactory` deploys a new `Pool` contract, initializes it with the provided asset and pair parameters and deploys the respective `vToken`s. Pool creation and curation remains a permissionless activity continuing Vesu's legacy of empowering fully open, global and secure lending markets on Starknet. Pauser Agent[​](https://docs.vesu.xyz/developers/core/architecture#pauser-agent "Direct link to Pauser Agent") --------------------------------------------------------------------------------------------------------------- A highlight introduced with the Vesu V2 protocol is the ability for curators to opt-in to having a lending pool being monitored by Hypernative's real-time threat detection and onchain actions infrastructure. This enables the respective pool's to be continuously monitored and temporarily paused in case of a potential threat, thereby serving as a crucial layer of protection for users and the Starknet ecosystem. Upgradeability[​](https://docs.vesu.xyz/developers/core/architecture#upgradeability "Direct link to Upgradeability") --------------------------------------------------------------------------------------------------------------------- For security purposes, the `Pool` and `Oracle` contracts are upgradeable with the permission to upgrade owned by the _Vesu Security Council_. This council is explained in more details in the [Security docs](https://docs.vesu.xyz/security/security-council) . * [Lending Pool](https://docs.vesu.xyz/developers/core/architecture#lending-pool) * [Oracle](https://docs.vesu.xyz/developers/core/architecture#oracle) * [vToken](https://docs.vesu.xyz/developers/core/architecture#vtoken) * [Pool Factory](https://docs.vesu.xyz/developers/core/architecture#pool-factory) * [Pauser Agent](https://docs.vesu.xyz/developers/core/architecture#pauser-agent) * [Upgradeability](https://docs.vesu.xyz/developers/core/architecture#upgradeability) --- # Welcome to the Vesu V1 Developer Documentation | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/#__docusaurus_skipToContent_fallback) info The Vesu V1 lending protocol has evolved into a new implementation, the Vesu V2 protocol, that offers even more security to users. The Vesu V1 lending protocol is the first version of our fully open and permissionless lending markets for Starknet. It launched on Starknet mainnet on July 2024 and has operated 24/7/365 ever since. Here you find all relevant information if you are looking to build on Vesu or just want to dig into implementation details. --- # V1 Contract Addresses | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/addresses#__docusaurus_skipToContent_fallback) On this page A list of the Vesu-V1 contracts and their addresses can be found here below: Mainnet[​](https://docs.vesu.xyz/developers/vesu-v1/addresses#mainnet "Direct link to Mainnet") ------------------------------------------------------------------------------------------------ Below are the deployed contract addresses on Starknet Mainnet. **Core Contracts V1** * Singleton: `0x000d8d6dfec4d33bfb6895de9f3852143a17c6f92fd2a21da3d6924d34870160` * Extension (Pragma Oracle): `0x4e06e04b8d624d039aa1c3ca8e0aa9e21dc1ccba1d88d0d650837159e0ee054` **Pragma Feeds** * Oracle: `0x2a85bd616f912537c50a49a4076db02c00b29b2cdc8a197ce92ed1837fa875b` * Summary Stats: `0x049eefafae944d07744d07cc72a5bf14728a6fb463c3eae5bca13552f5d455fd` **Ekubo Integration** * Ekubo Core: `0x00000005dd3D2F4429AF886cD1a3b08289DBcEa99A294197E9eB43b0e0325b4b` **Utilities** * Multiply: `0x3630f1f8e5b8f5c4c4ae9b6620f8a570ae55cddebc0276c37550e7c118edf67` * Liquidate: `0x58c80ed9801b32b441566d320ae236c73257981800dcda63c9f02dd154c3f39` **Assets** * STRK: `0x04718f5a0fc34cc1af16a1cdee98ffb20c31f5cd61d6ab07201858f4287c938d` * xSTRK: `0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a` * sSTRK: `0x0356f304b154d29d2a8fe22f1cb9107a9b564a733cf6b4cc47fd121ac1af90c9` * ETH: `0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7` * wstETH: `0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b` * wstETH (legacy): `0x042b8f0484674ca266ac5d08e4ac6a3fe65bd3129795def2dca5c34ecc5f96d2` * wBTC: `0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac` * USDC: `0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8` * USDT: `0x068f5c6a61780768455de69077e07e89787839bf8166decfbf92b645209c0fb8` * rUSDC: `0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c` * EKUBO: `0x075afe6402ad5a5c20dd25e10ec3b3986acaa647b77e4ae24b0cbc9a54a27a87` * DOG: `0x040e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4` **Pools** * Genesis: `2198503327643286920898110335698706244522220458610657370981979460625005526824` * Re7 USDC: `3592370751539490711610556844458488648008775713878064059760995781404350938653` * Re7 xSTRK: `2345856225134458665876812536882617294246962319062565703131100435311373119841` * Re7 rUSDC: `1749206066145585665304376624725901901307432885480056836110792804696449290137` * Re7 Starknet Ecosystem: `3163948199181372152800322058764275087686391083665033264234338943786798617741` * Re7 wstETH: `2535243615249328221060622268479728814680175138265908305094759253778126318519` * Braavos Vault: `1921054942193708428619433636456748851087331856691656881799540576257302014718` * Alterscope CASH: `3496574735728882918499284446337009546448797063742922299223215375275805529443` * Alterscope Cornerstone: `1159811069645890520539813878756846008647087829665407214583864910459307655916` * Alterscope wstETH: `2612229586214495842527551768232431476062656055007024497123940017576986139174` * CarmineDAO Runes: `2681185522664180117929158590481443496806090795357786716961716864181408932939` ### Deprecated V1 (pre-migration)[​](https://docs.vesu.xyz/developers/vesu-v1/addresses#deprecated-v1-pre-migration "Direct link to Deprecated V1 (pre-migration)") **Core Contracts v1 (legacy)** * Singleton: `0x2545b2e5d519fc230e9cd781046d3a64e092114f07e44771e0d719d148725ef` * Extension: `0x2334189e831d804d4a11d3f71d4a982ec82614ac12ed2e9ca2f8da4e6374fa` * Extension PO: `0x7cf3881eb4a58e76b41a792fa151510e7057037d80eda334682bd3e73389ec0` * Extension CL: `0x4e09a4fa7ab1a6b08693f5d89ab0b9db2de00a9b7d1c8f8ad286a665effd446` **Utilities v1 (legacy)** * Multiply: `0x219ce882a208653c3f96eac91b96616c94772600a35431b5b6a4e485c1dd0b2` * Liquidate: `0x06f77dd7b8a4e34ef712505735f7259fe900b1ed2e2b673cd380c57da3d27dd8` * Rebalance: `0x7967c37a99caa107eef98af43ae51c0624135557949c1214af3770aef651e12` * Distributor: `0x0387f3eb1d98632fbe3440a9f1385aec9d87b6172491d3dd81f1c35a7c61048f` Sepolia[​](https://docs.vesu.xyz/developers/vesu-v1/addresses#sepolia "Direct link to Sepolia") ------------------------------------------------------------------------------------------------ Sepolia Frontend: [https://testnet.vesu.xyz/](https://testnet.vesu.xyz/) **Core Contracts** * Singleton: `0x01ecab07456147a8de92b9273dd6789893401e8462a737431493980d9be6827` * Extension PO: `0x0571efca8cae0e426cb7052dad04badded0855b4cd6c6f475639af3356bc33fe` * Extension CL: `0x05005006d674f502ec74b498b07efca725aeb33da17861fb6a340485092f3fe6` **Pragma Feeds** * Oracle: `0x014af20afa8046eb473c5acf952b19755e5831654c2419538e2d1055b096665a` * Summary Stats: `0x0379afb83d2f8e38ab08252750233665a812a24278aacdde52475618edbf879c` **Ekubo Integration** * Ekubo Core: `0x0444a09d96389aa7148f1aada508e30b71299ffe650d9c97fdaae38cb9a23384` **Utilities** * Multiply: `0x07b911f359a7b8930b4e80b1d50f85cda6f9eb55ad65d6207b1647ca45bc6381` * Multiply 4626: `0x033ee1ca150f7c2664a175d545a32a4095a6fc61cd04f0364b65c01b3a6e9f8d` * Liquidate: `0x03f3601b6d9aaef1d489d925bc0c064241d2444ca0300b77718ae26b7a2cc96c` * Rebalance: `0x06de8512bd8613b748cdbc065520566fab68a4e6399b143597d6f5850f13496a` * Distributor: `0x05443e1b4d540b5ffc096c0d4533cc71d36ddb7bd381624ec5ce254db95cc8e9` **Assets** * ETH `0x07bb0505dde7c05f576a6e08e64dadccd7797f14704763a5ad955727be25e5e9` * wBTC `0xabbd6f1e590eb83addd87ba5ac27960d859b1f17d11a3c1cd6a0006704b1410` * USDC `0x0715649d4c493ca350743e43915b88d2e6838b1c78ddc23d6d9385446b9d6844` * USDT `0x041301316d5313cb7ee3389a04cfb788db7dd600d6369bc1ffd7982d6d808ff4` * wstETH `0x0173d770db353707f2bfac025f760d2a45a288e06f56d48d545bcbdcebe3daa2` * wstETH (legacy) `0x0257ed491384f9708064059e116343931746c8d46a80e67c5ddf0a8a3a3ff9e0` * STRK `0x01278f23115f7e8acf07150b17c1f4b2a58257dde88aad535dbafc142edbd289` **Pools** * Genesis `730993554056884283224259059297934576024721456828383733531590831263129347422` info Any question? Need help? Join us in [Discord](https://discord.gg/CCEsVqmy) . * [Mainnet](https://docs.vesu.xyz/developers/vesu-v1/addresses#mainnet) * [Deprecated V1 (pre-migration)](https://docs.vesu.xyz/developers/vesu-v1/addresses#deprecated-v1-pre-migration) * [Sepolia](https://docs.vesu.xyz/developers/vesu-v1/addresses#sepolia) --- # BTCFI mode | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/btcfi-mode#__docusaurus_skipToContent_fallback) On this page BTCFi mode is built around Bitcoin, letting you use your Bitcoin to earn and borrow. ![BTCFi Mode](https://docs.vesu.xyz/assets/images/btcfi-mode-aa53760bd2415eef0d67eb70ac7f3c4b.png) How BTCFi mode works[​](https://docs.vesu.xyz/user-guides/btcfi-mode#how-btcfi-mode-works "Direct link to How BTCFi mode works") --------------------------------------------------------------------------------------------------------------------------------- BTCFI mode shows best-fitting markets for using your Bitcoin. Use the pool selector dropdown on the right side of the page to switch pools and explore other markets. ![Select a pool](https://docs.vesu.xyz/assets/images/btcfi-mode-pool-selector-8dae1cadca36fa49ec8230e76f0df70c.png) Earn in BTCFi mode[​](https://docs.vesu.xyz/user-guides/btcfi-mode#earn-in-btcfi-mode "Direct link to Earn in BTCFi mode") --------------------------------------------------------------------------------------------------------------------------- 1. Select a market you want to deposit 2. Set the amount and click **Start earning** 3. Confirm in your wallet ![Earn BTCFi](https://docs.vesu.xyz/assets/images/btcfi-mode-earn-ba5cd0db705889eccb5703ba3b4494dc.png) Your deposit starts earning immediately. Borrow in BTCFi mode[​](https://docs.vesu.xyz/user-guides/btcfi-mode#borrow-in-btcfi-mode "Direct link to Borrow in BTCFi mode") --------------------------------------------------------------------------------------------------------------------------------- 1. Select a market 2. Switch to the **Borrow** tab on the market page 3. Enter the amounts to deposit and borrow 4. Confirm in your wallet Vaults[​](https://docs.vesu.xyz/user-guides/btcfi-mode#vaults "Direct link to Vaults") --------------------------------------------------------------------------------------- Vaults behave the same in all modes. See the [Vaults](https://docs.vesu.xyz/user-guides/vaults) user guide for details. When to use PRO mode[​](https://docs.vesu.xyz/user-guides/btcfi-mode#when-to-use-pro-mode "Direct link to When to use PRO mode") --------------------------------------------------------------------------------------------------------------------------------- Switch to PRO if you want: * Multiple markets per asset * Multiply strategies * [How BTCFi mode works](https://docs.vesu.xyz/user-guides/btcfi-mode#how-btcfi-mode-works) * [Earn in BTCFi mode](https://docs.vesu.xyz/user-guides/btcfi-mode#earn-in-btcfi-mode) * [Borrow in BTCFi mode](https://docs.vesu.xyz/user-guides/btcfi-mode#borrow-in-btcfi-mode) * [Vaults](https://docs.vesu.xyz/user-guides/btcfi-mode#vaults) * [When to use PRO mode](https://docs.vesu.xyz/user-guides/btcfi-mode#when-to-use-pro-mode) --- # How to Borrow | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/borrow#__docusaurus_skipToContent_fallback) On this page Borrow one token using another as collateral. This guide explains how to open and close a borrow position using the Pro interface on Vesu. Vesu also offers a [LITE](https://docs.vesu.xyz/user-guides/lite-mode) and a [BTCFI](https://docs.vesu.xyz/user-guides/btcfi-mode) mode, designed for users who want a more guided borrowing experience with curated default markets. Opening a Position[​](https://docs.vesu.xyz/user-guides/borrow#opening-a-position "Direct link to Opening a Position") ----------------------------------------------------------------------------------------------------------------------- 1. Open [vesu.xyz/pro/borrow](https://vesu.xyz/pro/borrow) to see available markets. Select your collateral and borrow asset. You can also filter by curator, pool, or show only tokens in your wallet. Click on a market to view details or start borrowing. ![borrow-1.png](https://docs.vesu.xyz/assets/images/borrow-1-cb3e029d2a44f00cd0d7bc52655b7c5e.png) 2. Review the market details. You’ll see current rates, available liquidity, audit coverage, oracle settings, liquidation thresholds, and how utilization affects rates. ![borrow-2.png](https://docs.vesu.xyz/assets/images/borrow-2-aee06e6d45de961a2b949963e0924d41.png) 3. Enter the amounts for your collateral and borrow. Review the expected yield, costs, and liquidation price. Choose a loan-to-value you’re comfortable with. See the [Glossary](https://docs.vesu.xyz/explore/glossary#positions) for definitions and formulas. ![borrow-3.png](https://docs.vesu.xyz/assets/images/borrow-3-03305b1e49b1d88c0f12e25dae81d700.png) 4. Click **Start borrowing** and confirm in your wallet. Once confirmed, your position appears in your overview with the borrowed amount and collateral balance. Closing a Position[​](https://docs.vesu.xyz/user-guides/borrow#closing-a-position "Direct link to Closing a Position") ----------------------------------------------------------------------------------------------------------------------- To close a borrow position, you first need to have the borrowed asset in your wallet to repay the debt. You will also need to pay the borrow costs for the debt. Make sure you got enough in your wallet to repay. 1. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. Select the position you want to close. 2. Click **Close** and confirm in your wallet to repay your debt. 3. Once confirmed, you receive your collateral back to your wallet. * [Opening a Position](https://docs.vesu.xyz/user-guides/borrow#opening-a-position) * [Closing a Position](https://docs.vesu.xyz/user-guides/borrow#closing-a-position) --- # How to Earn | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/earn#__docusaurus_skipToContent_fallback) On this page Supply assets to earn yield on Vesu. This guide explains how to open and close an Earn position using the PRO interface. Vesu also offers a [LITE](https://docs.vesu.xyz/user-guides/lite-mode) and a [BTCFI](https://docs.vesu.xyz/user-guides/btcfi-mode) mode, designed for users who want a more guided earning experience with curated default markets. ### Opening a Position[​](https://docs.vesu.xyz/user-guides/earn#opening-a-position "Direct link to Opening a Position") Supply assets on Vesu to earn yield. 1. Go to [vesu.xyz/pro/earn](https://vesu.xyz/pro/earn) to view all available markets. Use the filters to narrow by type, pool, curator, or other options. Click on the market you want to supply into or learn more about. ![earn-1.png](https://docs.vesu.xyz/assets/images/earn-1-616abb0d1bde6c973e0ff72591acb155.png) 2. On the market page you’ll find details such as current supply rate, total supplied liquidity, security and oracle settings, collateral exposure, and the interest rate curve. See the [Glossary](https://docs.vesu.xyz/explore/glossary#positions) for definitions. ![earn-2.png](https://docs.vesu.xyz/assets/images/earn-2-f20f116f5d59bf754dde70e9a0bc9b10.png) 3. Enter the amount you want to supply. The panel shows your estimated monthly yield. 4. Click **Start earning** and confirm the transaction in your wallet. Once confirmed, your position appears in the position overview and starts generating yield. ### Closing a Position[​](https://docs.vesu.xyz/user-guides/earn#closing-a-position "Direct link to Closing a Position") 1. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. Select the position you want to close. 2. Click **Withdraw**, enter the amount and hit **Confirm**. ![close-2.png](https://docs.vesu.xyz/assets/images/close-2-311c786092d29e25f89c8ecae87bda7a.png) 3. Sign the transaction in your wallet. Your assets will be returned to your account shortly after. * [Opening a Position](https://docs.vesu.xyz/user-guides/earn#opening-a-position) * [Closing a Position](https://docs.vesu.xyz/user-guides/earn#closing-a-position) --- # LITE mode | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/lite-mode#__docusaurus_skipToContent_fallback) On this page Lite mode is a simplified interface for earning and borrowing on Vesu. It’s designed for users who want a straightforward flow without advanced configuration. ![Lite Mode](https://docs.vesu.xyz/assets/images/lite-mode-b51b05b18148915ce97b3728352f7b19.png) How Lite mode works[​](https://docs.vesu.xyz/user-guides/lite-mode#how-lite-mode-works "Direct link to How Lite mode works") ----------------------------------------------------------------------------------------------------------------------------- Lite mode shows a default market per asset. This market is selected to be a good fit for most users. Use the pool selector dropdown on the right side of the page to switch pools and explore other markets. ![Select a pool](https://docs.vesu.xyz/assets/images/lite-mode-pool-selector-31fa0446f144c47b4cc8d67c4a437f2b.png) Earn in Lite mode[​](https://docs.vesu.xyz/user-guides/lite-mode#earn-in-lite-mode "Direct link to Earn in Lite mode") ----------------------------------------------------------------------------------------------------------------------- 1. Select an asset you want to deposit 2. Set the amount and click **Start earning** 3. Confirm in your wallet ![Supply in Lite](https://docs.vesu.xyz/assets/images/lite-mode-supply-1237a13272fe5479a2fe530d9872182c.png) Your deposit starts earning immediately. Borrow in Lite mode[​](https://docs.vesu.xyz/user-guides/lite-mode#borrow-in-lite-mode "Direct link to Borrow in Lite mode") ----------------------------------------------------------------------------------------------------------------------------- 1. Select an asset 2. Switch to the **Borrow** tab on the market page 3. Enter amounts 4. Confirm in your wallet Borrowed assets are sent directly to your wallet. Vaults[​](https://docs.vesu.xyz/user-guides/lite-mode#vaults "Direct link to Vaults") -------------------------------------------------------------------------------------- Vaults behave the same in all modes. See the [Vaults](https://docs.vesu.xyz/user-guides/vaults) user guide for details. When to use PRO mode[​](https://docs.vesu.xyz/user-guides/lite-mode#when-to-use-pro-mode "Direct link to When to use PRO mode") -------------------------------------------------------------------------------------------------------------------------------- Switch to PRO if you want: * Multiple markets per asset * Multiply * [How Lite mode works](https://docs.vesu.xyz/user-guides/lite-mode#how-lite-mode-works) * [Earn in Lite mode](https://docs.vesu.xyz/user-guides/lite-mode#earn-in-lite-mode) * [Borrow in Lite mode](https://docs.vesu.xyz/user-guides/lite-mode#borrow-in-lite-mode) * [Vaults](https://docs.vesu.xyz/user-guides/lite-mode#vaults) * [When to use PRO mode](https://docs.vesu.xyz/user-guides/lite-mode#when-to-use-pro-mode) --- # How to claim rewards | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/claim-rewards#__docusaurus_skipToContent_fallback) On this page As a Vesu user, you may qualify for STRK rewards distributed by the Starknet Foundation. These rewards support active on-chain participation through programs like DeFi Spring and BTCfi Season. Read more about how the rewards work and which markets are eligible [here](https://docs.vesu.xyz/explore/rewards) . Claim STRK rewards[​](https://docs.vesu.xyz/user-guides/claim-rewards#claim-strk-rewards "Direct link to Claim STRK rewards") ------------------------------------------------------------------------------------------------------------------------------ 1. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. 2. Check the **Rewards** tab. Rewards are distributed weekly and typically become available to claim from Friday onward. ![Claim Rewards](https://docs.vesu.xyz/assets/images/claim-rewards-5756ffa5da23e7823a732d522e278de1.png) 3. Click **Claim** to receive your STRK tokens. info STRK rewards are distributed by the Starknet Foundation. Claim availability is not guaranteed indefinitely, and a limited claim window may apply after a program ends. We recommend claiming your rewards periodically. * [Claim STRK rewards](https://docs.vesu.xyz/user-guides/claim-rewards#claim-strk-rewards) --- # Understand and manage risks of Vesu | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/manage-risks#__docusaurus_skipToContent_fallback) On this page Using Vesu comes with opportunities and risks. This page gives an overview of the most important risk factors when earning, borrowing, or multiplying. info This guide is for informational purposes only and does not contain financial advice. Always assess your own risk tolerance and be prepared for market volatility. General Risks[​](https://docs.vesu.xyz/user-guides/manage-risks#general-risks "Direct link to General Risks") -------------------------------------------------------------------------------------------------------------- These risks exist on every decentralized lending platform, and Vesu is no exception. * **Smart contract risk**: Bugs or vulnerabilities could be exploited. Mitigated through multiple audits, a bug bounty, and onchain monitoring, but never fully eliminated. * **Oracle risk**: Oracles might fail, be stale, or manipulated. Pools on Vesu use Pragma price feeds, which have been reliable since Starknet’s launch. * **Collateral risk**: Your deposit may be borrowed against assets that depeg, fail, or are exploited. Always check which collateral a pool allows. * **Curator risk**: Pool curators can adjust parameters. On Vesu, all curators are screened experts and well-known teams (e.g. Vesu, Re7 Labs, Alterscope, Braavos). The risk is limited but still exists. * **Curator risk**: Each pool is managed by an independent curator who sets parameters such as collateral factors or interest rate models. Always review the curator information and pool setup to ensure it matches your own risk tolerance. * **Accessibility risk**: If the Vesu frontend is unavailable, funds remain safe. For these cases, a minimal fallback frontend is available: [lite.vesu.xyz](https://lite.vesu.xyz/) . Borrow & Multiply Risks[​](https://docs.vesu.xyz/user-guides/manage-risks#borrow--multiply-risks "Direct link to Borrow & Multiply Risks") ------------------------------------------------------------------------------------------------------------------------------------------- Borrowing on Vesu, or using Multiply (which automates borrowing and swapping back into your collateral), comes with the same core risks. The main things to keep in mind are: * Market utilization affects rates. High utilization can push borrow costs up. * Loan-to-Value (LTV) and liquidation price must be monitored closely, especially with volatile assets. When you borrow or multiply, your risk depends on the mix of collateral and debt. Here are the main strategies, what they mean, and the risks that go with them: **Stable collateral, volatile debt** Example: deposit USDC, borrow ETH Effectively short ETH. If ETH rises, repaying becomes more expensive, your LTV increases, and liquidation risk grows. **Volatile collateral, stable debt** Example: deposit ETH, borrow USDC Effectively long ETH. If ETH falls, collateral value drops, LTV rises, and liquidation risk increases. **Volatile collateral and volatile debt** Example: deposit ETH, borrow wBTC You’re exposed to both assets. If their prices move differently, your position can shift quickly, increasing or reducing risk depending on the direction. Close monitoring is required. **Correlated collateral and debt** Example: ETH/wstETH Typically more stable since both assets are expected move together. Risks appear if correlation weakens or if borrowing costs exceed the yield on your supplied asset. * [General Risks](https://docs.vesu.xyz/user-guides/manage-risks#general-risks) * [Borrow & Multiply Risks](https://docs.vesu.xyz/user-guides/manage-risks#borrow--multiply-risks) --- # Managing your Positions | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/positions#__docusaurus_skipToContent_fallback) You can manage your positions anytime. Supply more, withdraw, borrow, or multiply. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. ![positions-1.png](https://docs.vesu.xyz/assets/images/positions-1-b036f24f16b5b0914734f862aaa25b8f.png) When you click on the position the market page opens, showing you all relevant informations. From here you can deposit more, withdraw partly or close your position. ![positions-2.png](https://docs.vesu.xyz/assets/images/positions-2-b625c385b108c7492f5f41377ad0ac69.png) --- # Migrate your Position | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/migrate#__docusaurus_skipToContent_fallback) On this page This page explains how to migrate positions that use `USDC.e` or any V1 market on Vesu. Summary[​](https://docs.vesu.xyz/user-guides/migrate#summary "Direct link to Summary") --------------------------------------------------------------------------------------- * `USDC.e` (legacy USDC) is replaced by native `USDC` * V1 markets are deprecated * No new deposits & borrowing * You can still **repay**, **withdraw**, and **close** positions Migrate to V2[​](https://docs.vesu.xyz/user-guides/migrate#migrate-to-v2 "Direct link to Migrate to V2") --------------------------------------------------------------------------------------------------------- You will see a **Migrate** button if your position is in a V1 pool (e.g. Genesis, Braavos Vault) ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-cf7be7e4b193b4d56ccf5d866106d20a.png) The migration tool makes the process simple: 1. Click the position in the sidebar to open its market page. 2. Click **Migrate** to open the migration dialog. ![Migration Dialog](https://docs.vesu.xyz/assets/images/migration-example-ac918bccfc2e9695e9c75d1187095729.png) The dialog shows your current and new position side-by-side. Review the values and confirm the migration. 3. Approve the transaction in your wallet. Your position is recreated in the new V2 market. Migrate to native USDC[​](https://docs.vesu.xyz/user-guides/migrate#migrate-to-native-usdc "Direct link to Migrate to native USDC") ------------------------------------------------------------------------------------------------------------------------------------ Affected positions show a **Withdraw** button. ![Withdraw button](https://docs.vesu.xyz/assets/images/withdraw-button-6c976edaf2439ee894a23dca20431f30.png) 1. Withdraw your `USDC.e` 2. Swap `USDC.e` to `USDC` on [Ekubo](https://ekubo.org/starknet/swap) or [Avnu](https://app.avnu.fi/) when liquidity is available. Otherwise, bridge `USDC.e` via the official [Starkgate bridge](https://starkgate.starknet.io/) and convert it on another chain. 3. Deposit the native USDC to continue earning yield. Need help?[​](https://docs.vesu.xyz/user-guides/migrate#need-help "Direct link to Need help?") ----------------------------------------------------------------------------------------------- If you have questions or encounter any issues, please open a ticket in [Discord](https://discord.gg/G9Gxgujj8T) . * [Summary](https://docs.vesu.xyz/user-guides/migrate#summary) * [Migrate to V2](https://docs.vesu.xyz/user-guides/migrate#migrate-to-v2) * [Migrate to native USDC](https://docs.vesu.xyz/user-guides/migrate#migrate-to-native-usdc) * [Need help?](https://docs.vesu.xyz/user-guides/migrate#need-help) --- # Vesu Vaults | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/vaults#__docusaurus_skipToContent_fallback) On this page This guide walks you through using Vesu Vaults. From finding the right vault to depositing, tracking performance, and withdrawing your funds. Vaults let you supply assets into curated strategies, managed by curators, with automated yield generation and clear risk parameters. Opening a Vault Position[​](https://docs.vesu.xyz/user-guides/vaults#opening-a-vault-position "Direct link to Opening a Vault Position") ----------------------------------------------------------------------------------------------------------------------------------------- 1. Go to [vesu.xyz/lite/vaults](https://vesu.xyz/lite/vaults) to view all available vaults. Use the filters to narrow by asset, curator, or status. Select the vault you want to explore or deposit into. ![vaults-1.png](https://docs.vesu.xyz/assets/images/vaults-1-7f485b37fcb56ef58d5f29fb77e4b345.png) 2. Review the vault details. Each vault page shows: * Total supplied assets and APY * Age of the vault and number of depositors * Deposit cap * Fees and redemption delay * Security coverage (audits, bug bounty, monitoring) * Curator and contract addresses ![vaults-2.png](https://docs.vesu.xyz/assets/images/vaults-2-c9cf78d1f75e3d2737c6ecfff35c55c7.png) 3. Enter the amount you want to deposit. The panel shows your expected monthly yield. 4. Click **Deposit** and confirm the transaction in your wallet. Once confirmed, your position appears in the vault’s positions view and starts earning yield. Managing Your Vault Position[​](https://docs.vesu.xyz/user-guides/vaults#managing-your-vault-position "Direct link to Managing Your Vault Position") ----------------------------------------------------------------------------------------------------------------------------------------------------- After depositing, you can: * View your current deposit, PnL, and yield * Add more funds by clicking **Deposit** again * Start a redemption process Withdrawing from a Vault[​](https://docs.vesu.xyz/user-guides/vaults#withdrawing-from-a-vault "Direct link to Withdrawing from a Vault") ----------------------------------------------------------------------------------------------------------------------------------------- 1. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. Select the position you want to close. 2. Enter the amount and hit **Redeem**. 3. If the vault has a redemption delay, your funds will be claimable after the delay period ends. 4. Once ready, click **Claim** to receive the assets back in your wallet. * [Opening a Vault Position](https://docs.vesu.xyz/user-guides/vaults#opening-a-vault-position) * [Managing Your Vault Position](https://docs.vesu.xyz/user-guides/vaults#managing-your-vault-position) * [Withdrawing from a Vault](https://docs.vesu.xyz/user-guides/vaults#withdrawing-from-a-vault) --- # How to Multiply | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/multiply-basics#__docusaurus_skipToContent_fallback) On this page his guide explains how to open and close a Multiply position using the PRO interface on Vesu. Vesu also offers a [LITE](https://docs.vesu.xyz/user-guides/lite-mode) and a [BTCFI](https://docs.vesu.xyz/user-guides/btcfi-mode) mode, designed for users who want a more guided experience with curated default markets. Opening a Position[​](https://docs.vesu.xyz/user-guides/multiply-basics#opening-a-position "Direct link to Opening a Position") -------------------------------------------------------------------------------------------------------------------------------- Use Multiply to increase your exposure and yield for a specific asset. 1. Go to [vesu.xyz/pro/multiply](https://vesu.xyz/pro/multiply) and pick a market. Use the filters to choose your collateral and borrow asset, or refine the list using the available filter options. ![multiply-1.png](https://docs.vesu.xyz/assets/images/multiply-1-7a70dd45848cbe7ea096673d5912ac3f.png) 2. On the market page, check the key info for that pair: Net APR, max multiplier, liquidity, liquidation price, and loan-to-value. ![multiply-2.png](https://docs.vesu.xyz/assets/images/multiply-2-0200d53d6c305260af79276618490e37.png) 3. Enter the amount you want to **deposit** and choose your **Loan to value**. The borrow amount is calculated automatically. Make sure you’re comfortable with the shown monthly yield/cost, liquidation price, and multiplier. 4. Click **Start multiplying** and confirm in your wallet. Once confirmed, your position appears in your overview and starts accruing according to the displayed net APR. Closing a Position[​](https://docs.vesu.xyz/user-guides/multiply-basics#closing-a-position "Direct link to Closing a Position") -------------------------------------------------------------------------------------------------------------------------------- To close a Multiply position: 1. Click the button showing your connected wallet in the top-right corner. This opens the side navigation with your open positions. Select the position you want to close. 2. Click **Close** and approve the transaction in your wallet. 3. Once confirmed, the position unwinds and your collateral returns to your wallet. * [Opening a Position](https://docs.vesu.xyz/user-guides/multiply-basics#opening-a-position) * [Closing a Position](https://docs.vesu.xyz/user-guides/multiply-basics#closing-a-position) --- # Vesu Protocol Architecture | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/architecture#__docusaurus_skipToContent_fallback) ![Vesu Architecture](https://docs.vesu.xyz/assets/images/vesu-v1-architecture-8bcf08f6631d9d62167833948510f1a2.png) --- # New to Starknet? Start Here | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/start#__docusaurus_skipToContent_fallback) On this page This guide shows how to set up your wallet, bridge funds, and connect to Vesu for the first time. ### Starknet wallets[​](https://docs.vesu.xyz/user-guides/start#starknet-wallets "Direct link to Starknet wallets") If you don’t have one yet, choose from the options [here](https://www.starknet.io/wallets/) . ### Move funds to Starknet[​](https://docs.vesu.xyz/user-guides/start#move-funds-to-starknet "Direct link to Move funds to Starknet") Use one of the following options to move funds to Starknet: * [StarkGate](https://starkgate.starknet.io/) – the official bridge for ETH, BTC, and more from Ethereum * [Layerswap](https://layerswap.io/app?destNetwork=starknet_mainnet) – bridge from multiple chains and directly from centralized exchanges like Binance, Coinbase, Kraken, etc. Some exchanges like Binance also support direct withdrawals to Starknet. ### Connect your wallet[​](https://docs.vesu.xyz/user-guides/start#connect-your-wallet "Direct link to Connect your wallet") 1. Click on the **Connect wallet** button on the top right hand corner. 2. Choose one of the available options to connect. 3. Once you see your address on the top right hand corner, you are connected. Click on the button that now shows your wallet address to access your positions, rewards and history. * [Starknet wallets](https://docs.vesu.xyz/user-guides/start#starknet-wallets) * [Move funds to Starknet](https://docs.vesu.xyz/user-guides/start#move-funds-to-starknet) * [Connect your wallet](https://docs.vesu.xyz/user-guides/start#connect-your-wallet) --- # How to migrate your wstETH | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/more/migrate-wsteth#__docusaurus_skipToContent_fallback) On this page The wstETH contract has been updated by the Starknet Foundation due to the need for a new bridge contract. This change ensures continued compatibility and security for users interacting with wstETH on Starknet. Key Points for Users:[​](https://docs.vesu.xyz/user-guides/more/migrate-wsteth#key-points-for-users "Direct link to Key Points for Users:") -------------------------------------------------------------------------------------------------------------------------------------------- * Your wstETH (legacy) position can be accessed via [lite.vesu.xyz](https://lite.vesu.xyz/) * Your balance remains the same. The migration only updates the token contract. * During migration, your entire wstETH (legacy) wallet balance will be converted. * The new wstETH is supported in all major Starknet DeFi protocols. * Check the official wstETH Migration Hub by the Starknet Foundation for more information [here](https://wstethmigration.starknet.io/) . How to migrate[​](https://docs.vesu.xyz/user-guides/more/migrate-wsteth#how-to-migrate "Direct link to How to migrate") ------------------------------------------------------------------------------------------------------------------------ 1. Close your position on [lite.vesu.xyz](https://lite.vesu.xyz/) 2. Migrate your wstETH via the official [wstETH Migration Hub](https://wstethmigration.starknet.io/) 3. Reopen your position on [vesu.xyz](https://vesu.xyz/) using the new wstETH. If anything is unclear, [open a ticket on Discord](https://discord.com/invite/G9Gxgujj8T) and we’ll help. * [Key Points for Users:](https://docs.vesu.xyz/user-guides/more/migrate-wsteth#key-points-for-users) * [How to migrate](https://docs.vesu.xyz/user-guides/more/migrate-wsteth#how-to-migrate) --- # vToken contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/vtoken#__docusaurus_skipToContent_fallback) On this page This page gives an overview of the vault Tokens' storage architecture and available functions. vTokens are shares of the underlying asset in a pool. A conversion rate determines the asset amount a user can redeem for the vTokens, and during deposit, how much vToken the user gets after depositing the assets. Our vTokens follow the ERC4626 standard and we encourage to check the [SNIP](https://github.com/starknet-io/SNIPs/pull/95) we created. Check [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/v_token.cairo) the full source code. Storage[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#storage "Direct link to Storage") --------------------------------------------------------------------------------------------- The following section shows each storage variable available in the vToken contract. #### erc20[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#erc20 "Direct link to erc20") Storing the ERC20 specific storage variables erc20: ERC20Component::Storage #### pool\_id[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#pool_id "Direct link to pool_id") The id of the pool in which the vToken's underlying asset is deposited into pool_id: felt252 #### extension[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#extension "Direct link to extension") The vToken is linked to an pool, each pool has an extension, this storage variable stores the extension of this pool. extension: ContractAddress #### asset[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#asset "Direct link to asset") The underlying asset of the vToken asset: ContractAddress #### is\_legacy[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#is_legacy "Direct link to is_legacy") Flag indicating whether the asset is a legacy ERC20 token using camelCase or snake\_case is_legacy: bool Functions[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#functions "Direct link to Functions") --------------------------------------------------------------------------------------------------- ### extension[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#extension-1 "Direct link to extension") Returns the address of the extension associated with the vToken #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns "Direct link to Returns") * address of the extension fn extension(self: @ContractState) -> ContractAddress ### pool\_id[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#pool_id-1 "Direct link to pool_id") Returns the id of the pool in which the vToken's underlying asset is deposited into #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-1 "Direct link to Returns") * id of the pool fn pool_id(self: @ContractState) -> felt252 ### approve\_extension[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#approve_extension "Direct link to approve_extension") Re-approves the vToken to be spendable by the extension fn approve_extension(ref self: ContractState) ### mint\_v\_token[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#mint_v_token "Direct link to mint_v_token") Permissioned minting of vTokens. Can only be called by the associated extension. #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments "Direct link to Arguments") * `recipient` - address to mint the vToken to * `amount` - amount of vToken to mint \[SCALE\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-2 "Direct link to Returns") * true if the minting was successful fn mint_v_token( ref self: ContractState, recipient: ContractAddress, amount: u256 ) -> bool ### burn\_v\_token[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#burn_v_token "Direct link to burn_v_token") Permissioned burning of vTokens. Can only be called by the associated extension. `from` needs to approve the extension to burn the vToken. #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-1 "Direct link to Arguments") * `from` - address to burn the vToken from * `amount` - amount of vToken to burn \[SCALE\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-3 "Direct link to Returns") * true if the burning was successful fn burn_v_token( ref self: ContractState, from: ContractAddress, amount: u256 ) -> bool Functions implementing ERC4626[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#functions-implementing-erc4626 "Direct link to Functions implementing ERC4626") ------------------------------------------------------------------------------------------------------------------------------------------------------------------ ### asset[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#asset-1 "Direct link to asset") Returns the address of the underlying asset of the vToken #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-4 "Direct link to Returns") * address of the asset fn asset(self: @ContractState) -> ContractAddress ### total\_assets[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#total_assets "Direct link to total_assets") Returns the total amount of underlying assets deposited via the vToken #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-5 "Direct link to Returns") * total amount of assets \[asset scale\] fn total_assets(self: @ContractState) -> u256 ### convert\_to\_shares[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#convert_to_shares "Direct link to convert_to_shares") Converts an amount of assets to the equivalent amount of vToken shares #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-2 "Direct link to Arguments") * `assets` - amount of assets to convert \[asset scale\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-6 "Direct link to Returns") * amount of vToken shares \[SCALE\] fn convert_to_shares( self: @ContractState, assets: u256 ) -> u256 ### convert\_to\_assets[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#convert_to_assets "Direct link to convert_to_assets") Converts an amount of vToken shares to the equivalent amount of assets #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-3 "Direct link to Arguments") * `shares` - amount of vToken shares to convert \[SCALE\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-7 "Direct link to Returns") * amount of assets \[asset scale\] fn convert_to_assets( self: @ContractState, shares: u256 ) -> u256 ### max\_deposits[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_deposits "Direct link to max_deposits") Returns the maximum amount of assets that can be deposited via the vToken #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-4 "Direct link to Arguments") * `receiver` - address to receive the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-8 "Direct link to Returns") * maximum amount of assets \[asset scale\] fn max_deposit( self: @ContractState, receiver: ContractAddress ) -> u256 ### preview\_deposit[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_deposit "Direct link to preview_deposit") Returns the amount of vToken shares that will be minted for the given amount of deposited assets #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-5 "Direct link to Arguments") * `assets` - amount of assets to deposit \[asset scale\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-9 "Direct link to Returns") * amount of vToken shares minted \[SCALE\] fn preview_deposit( self: @ContractState, assets: u256 ) -> u256 ### deposit[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#deposit "Direct link to deposit") Deposits assets into the pool and mints vTokens (shares) to the receiver #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-6 "Direct link to Arguments") * `assets` - amount of assets to deposit \[asset scale\] * `receiver` - address to receive the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-10 "Direct link to Returns") * amount of vToken shares minted \[SCALE\] fn deposit( ref self: ContractState, assets: u256, receiver: ContractAddress ) -> u256 ### max\_mint[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_mint "Direct link to max_mint") Returns the maximum amount of vToken shares that can be minted #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-7 "Direct link to Arguments") * `receiver` - address to receive the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-11 "Direct link to Returns") * maximum amount of vToken shares minted \[SCALE\] fn max_mint( self: @ContractState, receiver: ContractAddress ) -> u256 ### preview\_mint[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_mint "Direct link to preview_mint") Returns the amount of assets that will be deposited for a given amount of minted vToken shares #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-8 "Direct link to Arguments") * `shares` - amount of vToken shares to mint \[SCALE\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-12 "Direct link to Returns") * amount of assets deposited \[asset scale\] fn preview_mint( self: @ContractState, shares: u256 ) -> u256 ### mint[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#mint "Direct link to mint") Mints vToken shares to the receiver by depositing assets into the pool #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-9 "Direct link to Arguments") * `shares` - amount of vToken shares to mint \[SCALE\] * `receiver` - address to receive the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-13 "Direct link to Returns") * amount of assets deposited \[asset scale\] fn mint( ref self: ContractState, shares: u256, receiver: ContractAddress ) -> u256 ### max\_withdraw[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_withdraw "Direct link to max_withdraw") Returns the maximum amount of assets that can be withdrawn by the owner of the vToken shares #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-10 "Direct link to Arguments") * `owner` - address of the owner of the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-14 "Direct link to Returns") * maximum amount of assets \[asset scale\] fn max_withdraw( self: @ContractState, owner: ContractAddress ) -> u256 ### preview\_withdraw[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_withdraw "Direct link to preview_withdraw") Returns the amount of vToken shares that will be burned for a given amount of withdrawn assets #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-11 "Direct link to Arguments") * `assets` - amount of assets to withdraw \[asset scale\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-15 "Direct link to Returns") * amount of vToken shares burned \[SCALE\] fn preview_withdraw( self: @ContractState, assets: u256 ) -> u256 ### withdraw[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#withdraw "Direct link to withdraw") Withdraws assets from the pool and burns vTokens (shares) from the owner of the vTokens #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-12 "Direct link to Arguments") * `assets` - amount of assets to withdraw \[asset scale\] * `receiver` - address to receive the withdrawn assets * `owner` - address of the owner of the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-16 "Direct link to Returns") * amount of vTokens (shares) burned \[SCALE\] fn withdraw( ref self: ContractState, assets: u256, receiver: ContractAddress, owner: ContractAddress ) -> u256 ### max\_redeem[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_redeem "Direct link to max_redeem") Returns the maximum amount of vToken shares that can be redeemed by the owner of the vTokens (shares) #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-13 "Direct link to Arguments") * `owner` - address of the owner #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-17 "Direct link to Returns") * maximum amount of vToken shares \[SCALE\] fn max_redeem( self: @ContractState, owner: ContractAddress ) -> u256 ### preview\_redeem[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_redeem "Direct link to preview_redeem") Returns the amount of assets that will be withdrawn for a given amount of redeemed / burned vTokens (shares) #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-14 "Direct link to Arguments") * `shares` - amount of vToken shares to redeem \[SCALE\] #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-18 "Direct link to Returns") * amount of assets withdrawn \[asset scale\] fn preview_redeem( self: @ContractState, shares: u256 ) -> u256 ### redeem[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#redeem "Direct link to redeem") Redeems / burns vTokens (shares) from the owner and withdraws assets from the pool #### Arguments[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#arguments-15 "Direct link to Arguments") * `shares` - amount of vToken shares to redeem \[SCALE\] * `receiver` - address to receive the withdrawn assets * `owner` - address of the owner of the vToken shares #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/vtoken#returns-19 "Direct link to Returns") * amount of assets withdrawn \[asset scale\] fn redeem( ref self: ContractState, shares: u256, receiver: ContractAddress, owner: ContractAddress ) -> u256 * [Storage](https://docs.vesu.xyz/developers/vesu-v1/vtoken#storage) * [Functions](https://docs.vesu.xyz/developers/vesu-v1/vtoken#functions) * [extension](https://docs.vesu.xyz/developers/vesu-v1/vtoken#extension-1) * [pool\_id](https://docs.vesu.xyz/developers/vesu-v1/vtoken#pool_id-1) * [approve\_extension](https://docs.vesu.xyz/developers/vesu-v1/vtoken#approve_extension) * [mint\_v\_token](https://docs.vesu.xyz/developers/vesu-v1/vtoken#mint_v_token) * [burn\_v\_token](https://docs.vesu.xyz/developers/vesu-v1/vtoken#burn_v_token) * [Functions implementing ERC4626](https://docs.vesu.xyz/developers/vesu-v1/vtoken#functions-implementing-erc4626) * [asset](https://docs.vesu.xyz/developers/vesu-v1/vtoken#asset-1) * [total\_assets](https://docs.vesu.xyz/developers/vesu-v1/vtoken#total_assets) * [convert\_to\_shares](https://docs.vesu.xyz/developers/vesu-v1/vtoken#convert_to_shares) * [convert\_to\_assets](https://docs.vesu.xyz/developers/vesu-v1/vtoken#convert_to_assets) * [max\_deposits](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_deposits) * [preview\_deposit](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_deposit) * [deposit](https://docs.vesu.xyz/developers/vesu-v1/vtoken#deposit) * [max\_mint](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_mint) * [preview\_mint](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_mint) * [mint](https://docs.vesu.xyz/developers/vesu-v1/vtoken#mint) * [max\_withdraw](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_withdraw) * [preview\_withdraw](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_withdraw) * [withdraw](https://docs.vesu.xyz/developers/vesu-v1/vtoken#withdraw) * [max\_redeem](https://docs.vesu.xyz/developers/vesu-v1/vtoken#max_redeem) * [preview\_redeem](https://docs.vesu.xyz/developers/vesu-v1/vtoken#preview_redeem) * [redeem](https://docs.vesu.xyz/developers/vesu-v1/vtoken#redeem) --- # User Guides | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/user-guides/#__docusaurus_skipToContent_fallback) Learn how to use the Vesu protocol on Starknet. The sections includes guides about the following actions: * Connecting your wallet * Deposits & withdrawals * Borrowing against a collateral * Using Multiply * Managing risk & rewards * Claiming rewards Visit [vesu.xyz](https://vesu.xyz/) for direct access to the app. --- # Pool contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/core/pool#__docusaurus_skipToContent_fallback) On this page The `Pool` contract implements the state and logic of a single pool instance. Users' deposits and debt in a pool are managed in this specific `Pool` instance. It allows users to retrieve and manage their positions and curators to change the pool configuration and claim fees. On this page, we discuss the `Pool`'s main storage variables and external functions. Data Types[​](https://docs.vesu.xyz/developers/core/pool#data-types "Direct link to Data Types") ------------------------------------------------------------------------------------------------- Vesu V2 defines a number of data types, or `struct`s, that are reused across the different components. We here discuss the main types related to the `Pool` contract. ### AssetConfig[​](https://docs.vesu.xyz/developers/core/pool#assetconfig "Direct link to AssetConfig") The `AssetConfig` struct contains all relevant state on a specific asset in a pool. It is stored in the `asset_configs` mapping in the `Pool` itself and can be fetched with the `asset_config` function. pub struct AssetConfig { // | slot | packed | notes // | ---- | ------ | ----- pub total_collateral_shares: u256, // [SCALE] | 1 | u128 | pub total_nominal_debt: u256, // [SCALE] | 1 | u123 | pub reserve: u256, // [asset scale] | 2 | u128 | pub max_utilization: u256, // [SCALE] | 2 | u8 | constant percentage pub floor: u256, // [SCALE] | 2 | u8 | constant decimals pub scale: u256, // [SCALE] | 2 | u8 | constant decimals pub is_legacy: bool, // | 2 | u8 | constant pub last_updated: u64, // [seconds] | 3 | u32 | pub last_rate_accumulator: u256, // [SCALE] | 3 | u64 | pub last_full_utilization_rate: u256, // [SCALE] | 3 | u64 | pub fee_rate: u256, // [SCALE] | 3 | u8 | percentage // tracks the number of unclaimed allocated shares (from each asset) that can be claimed by // `fee_recipient`. pub fee_shares: u256 // [SCALE] | 4 | u128 |} ### Position[​](https://docs.vesu.xyz/developers/core/pool#position "Direct link to Position") The `Position` struct contains the `collateral_shares` and `nominal_debt` of a user's position in the specific lending pair and pool. Note that `collateral_shares` and `nominal_debt` does not translate 1:1 to the underlying assets but a conversion has to be applied. pub struct Position { pub collateral_shares: u256, // packed as u128 [SCALE] pub nominal_debt: u256 // packed as u123 [SCALE]} ### Amount & AmountDenomination[​](https://docs.vesu.xyz/developers/core/pool#amount--amountdenomination "Direct link to Amount & AmountDenomination") The `Amount` struct is used to express a desired amount to deposit, withdraw, borrow, or repay in a user interaction and the respective `ModifyPositionParam` parameter. The `AmountDenomination` `enum` alows users to express a value in either `Assets` denomination, that is in underlying asset units directly, or in `Native` denomination which is the denomination that Vesu uses and is `collateral_shares` for a collateral asset and `nominal_debt` for a debt asset. pub enum AmountDenomination { #[default] Native, Assets,} The `Amount` is then defined as the `AmountDenomination` and the actual value. pub struct Amount { pub denomination: AmountDenomination, pub value: i257,} Thereby, the `value` is a signed integer and can express both an amount to deposit or withdraw: * Collateral asset * if `value >0`: deposit assets * if `value <0`: withdraw assets * Debt asset * if `value >0`: borrow assets * if `value <0`: repay assets ### ModifyPositionParams[​](https://docs.vesu.xyz/developers/core/pool#modifypositionparams "Direct link to ModifyPositionParams") The `ModifyPositionParams` struct is used to express the changes a user wants to make to a position in a specific `Pool`. It includes the position's `collateral_asset` and `debt_asset`, the `user` who should own the position, and the `collateral` and `debt` amounts, expressed in `Amount` types, with which the position should be modified. pub struct ModifyPositionParams { pub collateral_asset: ContractAddress, pub debt_asset: ContractAddress, pub user: ContractAddress, pub collateral: Amount, pub debt: Amount,} The `ModifyPositionParams` allows to express all sorts of position modifications including deposit, withdrawal, borrow, repay and is used for all position interactions with the `modify_position` function. Read more on this in the _Interact with Vesu_ [section](https://docs.vesu.xyz/developers/interact/borrow-repay) . ### LiquidatePositionParams[​](https://docs.vesu.xyz/developers/core/pool#liquidatepositionparams "Direct link to LiquidatePositionParams") The `LiquidatePositionParams` struct is used to execute liquidations of insolvent position through the `liquidate_position` function. The liquidator defines which position to liquidate with the respective `collateral_asset`, `debt_asset` and `user` fields. He indicates the amount of debt, in `Assets` denomination, he wishes to repay with the `debt_to_repay` field and defines the minimal amount of collateral, in `Assets` denomination, he wants to receive in exchange with the `min_collateral_to_receive`. pub struct LiquidatePositionParams { pub collateral_asset: ContractAddress, pub debt_asset: ContractAddress, pub user: ContractAddress, pub min_collateral_to_receive: u256, pub debt_to_repay: u256,} Storage[​](https://docs.vesu.xyz/developers/core/pool#storage "Direct link to Storage") ---------------------------------------------------------------------------------------- We here show the full storage of the `Pool` contract with inline docs. struct Storage { // tracks the name pool_name: felt252, // tracks the state of each position // (collateral_asset, debt_asset, user) -> position positions: Map<(ContractAddress, ContractAddress, ContractAddress), Position>, // tracks the delegation status for each delegator to a delegatee // (delegator, delegatee) -> delegation delegations: Map<(ContractAddress, ContractAddress), bool>, // tracks the configuration / state of each asset // asset -> asset configuration asset_configs: Map, // Oracle contract address oracle: ContractAddress, // fee recipient fee_recipient: ContractAddress, // tracks the configuration / state of each pair // (collateral_asset, debt_asset) -> pair configuration pair_configs: Map<(ContractAddress, ContractAddress), PairConfig>, // tracks the total collateral shares and the total nominal debt for each pair // (collateral asset, debt asset) -> pair configuration pairs: Map<(ContractAddress, ContractAddress), Pair>, // tracks the address that can pause the contract pausing_agent: ContractAddress, // The owner of the pool curator: ContractAddress, // The pending curator pending_curator: ContractAddress, // Indicates whether the contract is paused paused: bool, #[substorage(v0)] ownable: OwnableComponent::Storage, // storage for the interest rate model component #[substorage(v0)] interest_rate_model: interest_rate_model_component::Storage,} User functions[​](https://docs.vesu.xyz/developers/core/pool#user-functions "Direct link to User functions") ------------------------------------------------------------------------------------------------------------- Users interact with a Vesu pool primarily through the function `position`, to retrieve a position, and `modify_position`, to create or update an existing position. ### Modify a position[​](https://docs.vesu.xyz/developers/core/pool#modify-a-position "Direct link to Modify a position") info Learn more on how to use this function [here](https://docs.vesu.xyz/developers/interact/borrow-repay) . Use this function to create, modify and close positions. See section _Modify Position Params_ above to learn more about the different configurations of the function arguments to achieve the different position updates. /// Adjusts a positions collateral and debt balances/// # Arguments/// * `params` - see ModifyPositionParams/// # Returns/// * `response` - see UpdatePositionResponsefn modify_position(ref self: ContractState, params: ModifyPositionParams) -> UpdatePositionResponse ### Retrieve a position[​](https://docs.vesu.xyz/developers/core/pool#retrieve-a-position "Direct link to Retrieve a position") Use this function to retrieve the current state of a user position including its collateral shares (`Native` denomination), nominal debt (`Native` denomination), collateral assets (`Asset` denomination) and debt assets (`Asset` denomination). /// Returns the current state of a position/// # Arguments/// * `collateral_asset` - address of the collateral asset/// * `debt_asset` - address of the debt asset/// * `user` - address of the position's owner/// # Returns/// * `position` - position state/// * `collateral` - amount of collateral (computed from position.collateral_shares) [asset scale]/// * `debt` - amount of debt (computed from position.nominal_debt) [asset scale]fn position( self: @ContractState, collateral_asset: ContractAddress, debt_asset: ContractAddress, user: ContractAddress,) -> (Position, u256, u256) Liquidator functions[​](https://docs.vesu.xyz/developers/core/pool#liquidator-functions "Direct link to Liquidator functions") ------------------------------------------------------------------------------------------------------------------------------- Use this function to liquidate an insolvent position. /// Liquidates a position/// # Arguments/// * `params` - see LiquidatePositionParams/// # Returns/// * `response` - see UpdatePositionResponsefn liquidate_position(ref self: ContractState, params: LiquidatePositionParams) -> UpdatePositionResponse Curator functions[​](https://docs.vesu.xyz/developers/core/pool#curator-functions "Direct link to Curator functions") ---------------------------------------------------------------------------------------------------------------------- warning To create a new pool and add a new asset to an existing pool, curators should always use the `create_pool` and `add_asset` functions on the `PoolFactory` contract. info Note that only the `curator` role of the `Pool` contract has permission to use the below functions. ### Change Asset Parameter[​](https://docs.vesu.xyz/developers/core/pool#change-asset-parameter "Direct link to Change Asset Parameter") To change a specific parameter for an asset, use the `set_asset_parameter` function: /// Sets a parameter of an asset/// # Arguments/// * `asset` - address of the asset/// * `parameter` - parameter name/// * `value` - value of the parameterfn set_asset_parameter(ref self: ContractState, asset: ContractAddress, parameter: felt252, value: u256) Note, the following parameters can be changed: * `max_utilization` * `floor` * `fee_rate` ### Change Interest Rate Parameter[​](https://docs.vesu.xyz/developers/core/pool#change-interest-rate-parameter "Direct link to Change Interest Rate Parameter") To change a specific parameter of an asset's interest rate model, use the `set_interest_rate_parameter` function: /// Sets a parameter for a given interest rate configuration for an asset/// # Arguments/// * `asset` - address of the asset/// * `parameter` - parameter name/// * `value` - value of the parameterfn set_interest_rate_parameter( ref self: ContractState, asset: ContractAddress, parameter: felt252, value: u256,) ### Change Pair Parameter[​](https://docs.vesu.xyz/developers/core/pool#change-pair-parameter "Direct link to Change Pair Parameter") To change a specific parameter for a lending pair, use the `set_pair_parameter` function: /// Sets a parameter for a given pair configuration/// # Arguments/// * `collateral_asset` - address of the collateral asset/// * `debt_asset` - address of the debt asset/// * `parameter` - parameter name/// * `value` - value of the parameterfn set_pair_parameter( ref self: ContractState, collateral_asset: ContractAddress, debt_asset: ContractAddress, parameter: felt252, value: u128,) Note, the following parameters can be changed: * `max_ltv` * `liquidation_factor` * `debt_cap` ### Change Fee Recipient[​](https://docs.vesu.xyz/developers/core/pool#change-fee-recipient "Direct link to Change Fee Recipient") To change the `fee_recipient` for a pool, use the `set_fee_recipient_parameter` function: /// Sets the address to which fees are sent./// # Arguments/// * `fee_recipient` - new fee addressfn set_fee_recipient(ref self: ContractState, fee_recipient: ContractAddress) ### Nominate new Curator[​](https://docs.vesu.xyz/developers/core/pool#nominate-new-curator "Direct link to Nominate new Curator") To initiate the transfer of the curator role of a pool, use the `nominate_curator` function. Note, transferring the curator role is a 2-step process and requires the new curator to accept the transfer. /// Initiate transferring ownership of the pool./// The nominated curator should invoke `accept_curator_ownership` to complete the transfer./// At that point, the original curator will be removed and replaced with the nominated curator./// # Arguments/// * `curator` - address of the new curatorfn nominate_curator(ref self: ContractState, pending_curator: ContractAddress) ### Accept Curator Role[​](https://docs.vesu.xyz/developers/core/pool#accept-curator-role "Direct link to Accept Curator Role") info Note that without accepting a curator nomintation, you will not be able to use the curator permissions in a pool. Use this function to accept the nomination of the curator role. /// Accept the curator address./// At this point, the original curator will be removed and replaced with the nominated curator.fn accept_curator_ownership(ref self: ContractState) ### Change the Pauser Agent[​](https://docs.vesu.xyz/developers/core/pool#change-the-pauser-agent "Direct link to Change the Pauser Agent") warning The _Pauser Agent_ role has the permission to pause deposits and withdrawals on a pool. Make sure you assign this role only to a trusted agent. Use this function to assign the _Pauser Agent_ role to a new account. /// Sets the pausing agent/// # Arguments/// * `pausing_agent` - address of the pausing agentfn set_pausing_agent(ref self: ContractState, pausing_agent: ContractAddress) ### Pause pool[​](https://docs.vesu.xyz/developers/core/pool#pause-pool "Direct link to Pause pool") warning Pausing a pool should only be used in an emergency as it pauses all deposits and withdrawals in a pool. Pools can be paused by the _Pauser Agent_, _Curator_ and _Owner_ but only be unpaused by the curator or owner. Use this function to pause deposits and withdrawals (including liquidations) in a pool. /// Pauses the contract/// Requirements: The contract is not paused/// Emits a `Paused` eventfn pause(ref self: ContractState) ### Unpause pool[​](https://docs.vesu.xyz/developers/core/pool#unpause-pool "Direct link to Unpause pool") Use this function to unpause a paused pool. /// Lifts the pause on the contract/// Requirements: The contract is paused/// Emits an `Unpaused` eventfn unpause(ref self: ContractState) * [Data Types](https://docs.vesu.xyz/developers/core/pool#data-types) * [AssetConfig](https://docs.vesu.xyz/developers/core/pool#assetconfig) * [Position](https://docs.vesu.xyz/developers/core/pool#position) * [Amount & AmountDenomination](https://docs.vesu.xyz/developers/core/pool#amount--amountdenomination) * [ModifyPositionParams](https://docs.vesu.xyz/developers/core/pool#modifypositionparams) * [LiquidatePositionParams](https://docs.vesu.xyz/developers/core/pool#liquidatepositionparams) * [Storage](https://docs.vesu.xyz/developers/core/pool#storage) * [User functions](https://docs.vesu.xyz/developers/core/pool#user-functions) * [Modify a position](https://docs.vesu.xyz/developers/core/pool#modify-a-position) * [Retrieve a position](https://docs.vesu.xyz/developers/core/pool#retrieve-a-position) * [Liquidator functions](https://docs.vesu.xyz/developers/core/pool#liquidator-functions) * [Curator functions](https://docs.vesu.xyz/developers/core/pool#curator-functions) * [Change Asset Parameter](https://docs.vesu.xyz/developers/core/pool#change-asset-parameter) * [Change Interest Rate Parameter](https://docs.vesu.xyz/developers/core/pool#change-interest-rate-parameter) * [Change Pair Parameter](https://docs.vesu.xyz/developers/core/pool#change-pair-parameter) * [Change Fee Recipient](https://docs.vesu.xyz/developers/core/pool#change-fee-recipient) * [Nominate new Curator](https://docs.vesu.xyz/developers/core/pool#nominate-new-curator) * [Accept Curator Role](https://docs.vesu.xyz/developers/core/pool#accept-curator-role) * [Change the Pauser Agent](https://docs.vesu.xyz/developers/core/pool#change-the-pauser-agent) * [Pause pool](https://docs.vesu.xyz/developers/core/pool#pause-pool) * [Unpause pool](https://docs.vesu.xyz/developers/core/pool#unpause-pool) --- # One protocol, three modes | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-01-20-app-modes#__docusaurus_skipToContent_fallback) ![Choose your mode](https://docs.vesu.xyz/assets/images/app-modes-1f8e9e799657d371bb4f268c000ea3b8.png) Vesu has grown a lot over the last year and one interface no longer fits everyone. More markets. More decisions. Now you choose how you use Vesu. Three modes. One protocol.[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#three-modes-one-protocol "Direct link to Three modes. One protocol.") ---------------------------------------------------------------------------------------------------------------------------------------------------- Vesu now offers three app modes, each designed around a different user intent. All modes run on the same smart contracts and the same risk model. Only the interface changes. LITE[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#lite "Direct link to LITE") ------------------------------------------------------------------------------------ LITE is the new default experience. It is designed to make the most common actions obvious and reduce unnecessary decision making. * Focused on the most common actions * Easier to scan and get started ![LITE Mode](https://docs.vesu.xyz/assets/images/lite-mode-9232ba01503724b7a5321e897b43313c.png) A simpler way to get started on Vesu. BTCFI[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#btcfi "Direct link to BTCFI") --------------------------------------------------------------------------------------- BTCFI is a Bitcoin first experience. ![BTCFI Mode](https://docs.vesu.xyz/assets/images/btcfi-mode-ff88ae098db0b077d35d511a83269f32.png) Designed for users who want to use Bitcoin onchain without selling. Everything you see is centered around BTC, with no extra noise. PRO[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#pro "Direct link to PRO") --------------------------------------------------------------------------------- PRO is the full power Vesu interface. This is exactly what existing users already know. * All markets with full detail * Multiply enabled PRO is designed for users who want full visibility and control. Switching modes[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#switching-modes "Direct link to Switching modes") --------------------------------------------------------------------------------------------------------------------- Switch between LITE, BTCFI, and PRO at any time. Use the mode switch in the top right corner of the app. Or bookmark the link to the mode you prefer and use that directly. Under the hood, nothing changes. Same security. Same risk. Same contracts. Try it out[​](https://docs.vesu.xyz/blog/2026-01-20-app-modes#try-it-out "Direct link to Try it out") ------------------------------------------------------------------------------------------------------ This change is about focus, not limitation. **Explore now:** * A smoother entry for new users → [LITE](https://vesu.xyz/lite) * A clearer BTCFi path for Bitcoin holders → [BTCFI](https://vesu.xyz/btcfi) * Full control for power users → [PRO](https://vesu.xyz/pro) Same protocol. Different ways to use it. * [Three modes. One protocol.](https://docs.vesu.xyz/blog/2026-01-20-app-modes#three-modes-one-protocol) * [LITE](https://docs.vesu.xyz/blog/2026-01-20-app-modes#lite) * [BTCFI](https://docs.vesu.xyz/blog/2026-01-20-app-modes#btcfi) * [PRO](https://docs.vesu.xyz/blog/2026-01-20-app-modes#pro) * [Switching modes](https://docs.vesu.xyz/blog/2026-01-20-app-modes#switching-modes) * [Try it out](https://docs.vesu.xyz/blog/2026-01-20-app-modes#try-it-out) --- # Default Extension contract | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/developers/vesu-v1/default-extension#__docusaurus_skipToContent_fallback) On this page Vesu comes with a already implemented extension which we call the factory extension or default extension. In this article we explore this contract into more detail, to learn how to write our own extension contract and get some inspiration. The interface we need to implement defines the functions * singleton * price * interest\_rate * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_transfer\_position * after\_transfer\_position * before\_liquidate\_position * after\_liquidate\_position Let's see how the default extension implements it. ### singleton[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#singleton "Direct link to singleton") Returns the address of the singleton contract fn singleton(self: @ContractState) -> ContractAddress { self.singleton.read()} ### price[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#price "Direct link to price") Must return the price for a given asset in a given pool. Vesu delegates the implementation of oracle price feeds to a lending pool’s extension. The default extension integrates with the Pragma oracle which offers robust price feeds for a variety of assets on Starknet. fn price( self: @ContractState, pool_id: felt252, asset: ContractAddress ) -> AssetPrice{ let (value, is_valid) = self.pragma_oracle.price(pool_id, asset); AssetPrice { value, is_valid }} ### interest\_rate[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#interest_rate "Direct link to interest_rate") Returns the current interest rate for a given asset in a given pool, given it's utilization. The default's extension interest rate model is implemented as here on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/extension/components/interest_rate_model.cairo) . fn interest_rate( self: @ContractState, pool_id: felt252, asset: ContractAddress, utilization: u256, last_updated: u64, last_full_utilization_rate: u256,) -> u256 { let (interest_rate, _) = self .interest_rate_model .interest_rate(pool_id, asset, utilization, last_updated, last_full_utilization_rate); interest_rate} ### rate\_accumulator[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#rate_accumulator "Direct link to rate_accumulator") Returns the current rate accumulator for a given asset in a given pool, given it's utilization. The default's extension rate accumulator is implemented as here on [Github](https://github.com/vesuxyz/vesu-v1/blob/main/src/extension/components/interest_rate_model.cairo) . fn rate_accumulator( self: @ContractState, pool_id: felt252, asset: ContractAddress, utilization: u256, last_updated: u64, last_rate_accumulator: u256, last_full_utilization_rate: u256, ) -> (u256, u256) { self .interest_rate_model .rate_accumulator( pool_id, asset, utilization, last_updated, last_rate_accumulator, last_full_utilization_rate ) } Hooks[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#hooks "Direct link to Hooks") -------------------------------------------------------------------------------------------------- ### before\_modify\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_modify_position "Direct link to before_modify_position") The default extension hasn't implemented a particular `before_modify_position` hook, it just returns the user's values (collateral, debt). fn before_modify_position( ref self: ContractState, context: Context, collateral: Amount, debt: Amount, data: Span, caller: ContractAddress ) -> (Amount, Amount) { assert!(get_caller_address() == self.singleton.read(), "caller-not-singleton"); (collateral, debt) } ### after\_modify\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_modify_position "Direct link to after_modify_position") `after_modify_position` hook is implemented as defined [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/extension/components/position_hooks.cairo#L423) . `after_modify_position` does a few emergency checks, and if none is active, it returns true. If `true` collateral and debt amounts are allowed to be modified in any way. fn after_modify_position( ref self: ComponentState, mut context: Context, collateral_delta: i257, collateral_shares_delta: i257, debt_delta: i257, nominal_debt_delta: i257, data: Span, caller: ContractAddress ) -> bool { self.update_pair(ref context, collateral_shares_delta, nominal_debt_delta); let shutdown_mode = self.update_shutdown_status(ref context); // check invariants for collateral and debt amounts // check shutdown mode against shutdown types // true} ### before\_transfer\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_transfer_position "Direct link to before_transfer_position") Transfer position callback. Called by the Singleton contract before transferring collateral / debt between position. The function returns * `collateral` - amount of collateral to be transferred * `debt` - amount of debt to be transferred In the implementation of the default extension the amounts are returned unchanged. fn before_transfer_position( ref self: ComponentState, from_context: Context, to_context: Context, collateral: UnsignedAmount, debt: UnsignedAmount, data: Span, caller: ContractAddress ) -> (UnsignedAmount, UnsignedAmount) { if from_context.debt_asset == Zeroable::zero() && from_context.user == get_contract_address() { ISingletonDispatcher { contract_address: self.get_contract().singleton() } .modify_delegation(from_context.pool_id, caller, true); } (collateral, debt) } ### after\_transfer\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_transfer_position "Direct link to after_transfer_position") Implements logic to execute after a transfer of collateral or debt from one position to another. Revokes the caller's delegate to modify the position owned by the extension itself. #### Returns[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#returns "Direct link to Returns") * `bool` - true if it was successful, false otherwise fn after_transfer_position( ref self: ComponentState, mut from_context: Context, mut to_context: Context, collateral_delta: u256, collateral_shares_delta: u256, debt_delta: u256, nominal_debt_delta: u256, data: Span, caller: ContractAddress ) -> bool { // skip shutdown mode evaluation and updating the pairs collateral shares and nominal debt balances // if the pairs are the same let (from_shutdown_mode, to_shutdown_mode) = if (from_context.pool_id == to_context.pool_id && from_context.collateral_asset == to_context.collateral_asset && from_context.debt_asset == to_context.debt_asset) { let from_shutdown_mode = self.update_shutdown_status(ref from_context); (from_shutdown_mode, from_shutdown_mode) } else { // either the collateral asset or the debt asset has to match (also enforced by the singleton) assert!( from_context.collateral_asset == to_context.collateral_asset || from_context.debt_asset == to_context.debt_asset, "asset-mismatch" ); self .update_pair( ref from_context, i257_new(collateral_shares_delta, true), i257_new(nominal_debt_delta, true) ); self .update_pair( ref to_context, i257_new(collateral_shares_delta, false), i257_new(nominal_debt_delta, false) ); (self.update_shutdown_status(ref from_context), self.update_shutdown_status(ref to_context)) }; // if shutdown mode has been triggered then the 'from' position should have no debt and only // transfers within the same pairing are allowed if from_shutdown_mode != ShutdownMode::None || to_shutdown_mode != ShutdownMode::None { assert!(from_context.position.nominal_debt == 0, "shutdown-non-zero-debt"); assert!( from_context.collateral_asset == to_context.collateral_asset && from_context.debt_asset == to_context.debt_asset, "shutdown-pair-mismatch" ); } // mint vTokens if collateral shares are transferred to the corresponding vToken pairing if to_context.debt_asset == Zeroable::zero() && to_context.user == get_contract_address() { assert!(from_context.collateral_asset == to_context.collateral_asset, "v-token-to-asset-mismatch"); let mut tokenization = self.get_contract_mut(); tokenization .mint_or_burn_v_token( to_context.pool_id, to_context.collateral_asset, caller, i257_new(collateral_shares_delta, false) ); } // burn vTokens if collateral shares are transferred from the corresponding vToken pairing if from_context.debt_asset == Zeroable::zero() && from_context.user == get_contract_address() { assert!(from_context.collateral_asset == to_context.collateral_asset, "v-token-from-asset-mismatch"); ISingletonDispatcher { contract_address: self.get_contract().singleton() } .modify_delegation(from_context.pool_id, caller, false); let mut tokenization = self.get_contract_mut(); tokenization .mint_or_burn_v_token( to_context.pool_id, to_context.collateral_asset, caller, i257_new(collateral_shares_delta, true) ); } true } ### before\_liquidate\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_liquidate_position "Direct link to before_liquidate_position") Implements logic to execute before a position gets liquidated. See implementation [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/extension/components/position_hooks.cairo#L588) Liquidations are only allowed in normal and recovery mode. // don't allow for liquidations if the pool is not in normal or recovery modelet shutdown_mode = self.update_shutdown_status(ref context);assert!( (shutdown_mode == ShutdownMode::None || shutdown_mode == ShutdownMode::Recovery) && context.collateral_asset_price.is_valid && context.debt_asset_price.is_valid, "emergency-mode"); The liquidator has to be specify how much debt to repay and the minimum amount of collateral to receive in exchange. The value of the collateral is discounted by the liquidation factor in comparison to the current price (according to the oracle). // apply liquidation factor to debt value to get the collateral amount to releaselet collateral_value_to_receive = debt_to_repay * context.debt_asset_price.value / context.debt_asset_config.scale;let mut collateral_to_receive = (collateral_value_to_receive * SCALE / context.collateral_asset_price.value) * context.collateral_asset_config.scale / liquidation_factor; In an event where there's not enough collateral to cover the debt, the liquidation will result in bad debt. The bad debt is attributed to the pool and distributed amongst the lenders of the corresponding collateral asset. The liquidator receives all the collateral but only has to repay the proportioned debt value. // account for bad debt if there isn't enough collateral to cover the debtlet mut bad_debt = 0;if collateral_value < debt_value { // limit the bad debt by the outstanding collateral and debt values (in usd) if collateral_value < debt_to_repay * context.debt_asset_price.value / context.debt_asset_config.scale { bad_debt = (debt_value - collateral_value) * context.debt_asset_config.scale / context.debt_asset_price.value; debt_to_repay = debt; } else { // derive the bad debt proportionally to the debt repaid bad_debt = debt_to_repay * (debt_value - collateral_value) / collateral_value; debt_to_repay = debt_to_repay + bad_debt; }} ### after\_liquidate\_position[​](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_liquidate_position "Direct link to after_liquidate_position") Implements logic to execute after a position gets liquidated. fn after_liquidate_position( ref self: ComponentState, mut context: Context, collateral_delta: i257, collateral_shares_delta: i257, debt_delta: i257, nominal_debt_delta: i257, bad_debt: u256, data: Span, caller: ContractAddress ) -> bool { self.update_pair(ref context, collateral_shares_delta, nominal_debt_delta); self.update_shutdown_status(ref context); true } * [singleton](https://docs.vesu.xyz/developers/vesu-v1/default-extension#singleton) * [price](https://docs.vesu.xyz/developers/vesu-v1/default-extension#price) * [interest\_rate](https://docs.vesu.xyz/developers/vesu-v1/default-extension#interest_rate) * [rate\_accumulator](https://docs.vesu.xyz/developers/vesu-v1/default-extension#rate_accumulator) * [Hooks](https://docs.vesu.xyz/developers/vesu-v1/default-extension#hooks) * [before\_modify\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_modify_position) * [after\_modify\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_modify_position) * [before\_transfer\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_transfer_position) * [after\_transfer\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_transfer_position) * [before\_liquidate\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#before_liquidate_position) * [after\_liquidate\_position](https://docs.vesu.xyz/developers/vesu-v1/default-extension#after_liquidate_position) --- # Welcome Clearstar | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#__docusaurus_skipToContent_fallback) ![Welcome Clearstar](https://docs.vesu.xyz/assets/images/clearstar-491a3a4fa4880f668f4ba5b3a50cb17c.png) We’re welcoming Clearstar Labs as a new pool curator on Vesu. Clearstar is launching their first pool on Vesu with sUSN and USDC, with plans to add more yield-bearing assets over time. ### Clearstar USDC Reactor[​](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#clearstar-usdc-reactor "Direct link to Clearstar USDC Reactor") The Clearstar USDC Reactor is built for yield-bearing collateral, starting with sUSN as the first supported asset. **Configuration at launch:** * Collateral: sUSN * Borrow: USDC * Debt cap: $2.5M More assets may be added to the pool over time. ### Who’s Clearstar?[​](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#whos-clearstar "Direct link to Who’s Clearstar?") Clearstar is an onchain risk curator active across major DeFi lending and vault platforms like Morpho and Euler. Their team combines TradFi and DeFi backgrounds, with a strong focus on risk, operations, and continuous monitoring. They focus on careful asset review, setting appropriate risk parameters, and continuously monitoring the markets they curate. ### About sUSN[​](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#about-susn "Direct link to About sUSN") sUSN is the yield-bearing version of USN, a USD-backed stablecoin from Noon Capital. Yield accrues directly into the token over time, increasing its value without additional actions. It can be used as collateral to borrow USDC or with Vesu’s Multiply feature to increase exposure to its built-in yield. ### Get started[​](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#get-started "Direct link to Get started") You can now use the Clearstar pool to: * [Deposit USDC](https://vesu.xyz/lite/markets?poolId=0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803) to earn yield * [Borrow USDC](https://vesu.xyz/lite/markets/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb/borrow?collateralAssetAddress=0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) against your sUSN * [Multiply sUSN](https://vesu.xyz/pro/multiply/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) with USDC Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . * [Clearstar USDC Reactor](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#clearstar-usdc-reactor) * [Who’s Clearstar?](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#whos-clearstar) * [About sUSN](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#about-susn) * [Get started](https://docs.vesu.xyz/blog/2026-01-28-new-curator-clearstar#get-started) --- # Re7 Pool Upgrade | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#__docusaurus_skipToContent_fallback) ![Re7 Pool Upgrade](https://docs.vesu.xyz/assets/images/Re7-pool-upgrade-52ba9f6e53301166677c844aba5f68fb.png) Re7 Labs, the main curator behind Vesu’s BTCFi pools, has moved their remaining legacy pools to V2. Any position that can be upgraded will now show a Migrate button in the Vesu UI, guiding you through a simple, one-click migration flow. ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-f53963cfe66fbbe8717df7ba8152f49c.png) TL;DR[​](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#tldr "Direct link to TL;DR") --------------------------------------------------------------------------------------------- * Re7 Labs’ remaining V1 pools are migrating to V2 * Migration is live and handled directly in the app * Funds remain safe throughout For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . New Re7 Pools[​](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#new-re7-pools "Direct link to New Re7 Pools") ---------------------------------------------------------------------------------------------------------------------- | V1 pool | New V2 pool | | --- | --- | | Re7 xSTRK | Re7 STRK | | Re7 wstETH | Re7 ETH | | Re7 Starknet Ecosystem | Re7 Labs Starknet Ecosystem | #### Note on Re7 STRK[​](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#note-on-re7-strk "Direct link to Note on Re7 STRK") Previously, the Re7 xSTRK pool priced xSTRK using the STRK price, as this was the most reliable oracle available at the time of launch. The Re7 STRK pool now uses the xSTRK conversion rate price feed, so xSTRK positions will reflect their full underlying value in the new pool. Re7 USDC pool deprecation[​](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#re7-usdc-pool-deprecation "Direct link to Re7 USDC pool deprecation") ---------------------------------------------------------------------------------------------------------------------------------------------------------- The Re7 USDC pool is being deprecated, with markets migrating to the relevant V2 pools. ![Re7 UDSC migration](https://docs.vesu.xyz/assets/images/Re7-USDC-8a8de5e79c6de63485ca7659be60ac33.png) BTCFi rewards for WBTC and USDC continue in the Re7 USDC Core pool. V2 going forward[​](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#v2-going-forward "Direct link to V2 going forward") ------------------------------------------------------------------------------------------------------------------------------- With this upgrade, all liquidity is coming fully to V2. This allows: * Fewer markets and less fragmentation * A simpler, clearer UX * Full focus on V2 going forward * Improved smart contracts as the single standard V2 is now the foundation for all future improvements on Vesu. If you have any questions, feel free to reach out in Discord. We’re happy to help. * [TL;DR](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#tldr) * [New Re7 Pools](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#new-re7-pools) * [Re7 USDC pool deprecation](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#re7-usdc-pool-deprecation) * [V2 going forward](https://docs.vesu.xyz/blog/2026-01-22-Re7-pool-upgrade#v2-going-forward) --- # Welcome strkBTC | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#__docusaurus_skipToContent_fallback) ![strkBTC now live](https://docs.vesu.xyz/assets/images/strkBTC_web-3ab6f30c02d40fd5e7fff650c2e3e933.png) A new kind of Bitcoin just landed on Starknet. strkBTC is now available on Vesu. Powered by the new STRK20 standard, strkBTC brings optional privacy to Bitcoin on Starknet. Re7 USDC Prime[​](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#re7-usdc-prime "Direct link to Re7 USDC Prime") ------------------------------------------------------------------------------------------------------------------------ strkBTC is live in Re7 USDC Prime, curated by Re7 Labs. The pool keeps things simple with BTC collateral and native USDC: **Collateral** * strkBTC * WBTC **Borrow** * USDC BTCFi rewards[​](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#btcfi-rewards "Direct link to BTCFi rewards") --------------------------------------------------------------------------------------------------------------------- strkBTC deposits earn 2% APR in STRK rewards. USDC borrowing is also subsidized through the BTCFi program, bringing borrow rates down to around 2% APR. STRK rewards can be claimed every Friday, or any day after. Staked strkBTC[​](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#staked-strkbtc "Direct link to Staked strkBTC") ------------------------------------------------------------------------------------------------------------------------ xstrkBTC, the liquid staked version of strkBTC by Endur, is also available on Vesu. It earns staking rewards while remaining usable as collateral. **Available pools and use case:** * Re7 USDC Core to borrow USDC * Re7 xBTC to increase exposure & yield via Multiply Security[​](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#security "Direct link to Security") ------------------------------------------------------------------------------------------------------ All Vesu pools are isolated with their own liquidity and parameters. Onchain monitoring through Hypernative is active. If unusual activity is detected, affected pools are automatically paused. Vesu has undergone multiple independent audits and runs a live bug bounty program. Get started[​](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#get-started "Direct link to Get started") --------------------------------------------------------------------------------------------------------------- * [Deposit strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135) * Borrow [USDC against strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135/borrow?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Borrow [USDC against xstrkBTC](https://vesu.xyz/btcfi/markets/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88/borrow?collateralAssetAddress=0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Explore [Re7 USDC Prime](https://vesu.xyz/btcfi/markets?poolId=0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf) Got a question or want to receive weekly updates? Join the [Discord community](https://discord.com/invite/G9Gxgujj8T) . * [Re7 USDC Prime](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#re7-usdc-prime) * [BTCFi rewards](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#btcfi-rewards) * [Staked strkBTC](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#staked-strkbtc) * [Security](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#security) * [Get started](https://docs.vesu.xyz/blog/2026-05-12-welcome-strkBTC#get-started) --- # WBTC Vault Live | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#__docusaurus_skipToContent_fallback) ![WBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-wbtc-vault-d7992e15163b96f050bea133d613f60b.png) Bitcoin yield on Starknet keeps growing. After the success of the first Noon vault, a new WBTC vault is now live. It brings an automated yield strategy to Bitcoin, without selling or manual position management. The Noon WBTC Vault[​](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#the-noon-wbtc-vault "Direct link to The Noon WBTC Vault") --------------------------------------------------------------------------------------------------------------------------------------- Deposit WBTC. The strategy takes it from there. Stablecoins are borrowed against the deposited Bitcoin and deployed into **sUSN**, Noon’s yield-bearing stablecoin. The position is managed automatically using conservative leverage and rules-based adjustments. All funds remain **non-custodial** and fully **transparent onchain**. The curator targets around **10% APY**. About Noon and sUSN[​](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#about-noon-and-susn "Direct link to About Noon and sUSN") --------------------------------------------------------------------------------------------------------------------------------------- Noon builds stablecoin yield strategies focused on sustainability and risk management. USN is backed 1:1 by a mix of USDT, USDC, and short-term U.S. Treasury Bills. Its staked version, sUSN, accrues yield natively in the token. Noon has been live for over a year with zero downtime and no security incidents. The protocol has been audited by firms including Halborn, Hashlock, and Quantstamp. As with any DeFi strategy, make sure you understand the risks and do your own research. Vesu Vaults[​](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#vesu-vaults "Direct link to Vesu Vaults") --------------------------------------------------------------------------------------------------------------- Vesu Vaults make advanced onchain strategies accessible without the usual complexity. Each vault runs a strict onchain mandate and is operated by an independent curator. Funds can only be used within clearly defined strategy boundaries, and performance is fully transparent onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/explore/vaults) . Get started[​](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#get-started "Direct link to Get started") --------------------------------------------------------------------------------------------------------------- You can now: * Deposit WBTC into the new [Noon WBTC Vault](https://vesu.xyz/btcfi/vaults/0x023ccbaf0f70e8dcb29520ab4ea12e2e916fb71204677321e91e525062279e35) * Explore more ways to use Bitcoin in [Vesu's BTCFi Mode](https://vesu.xyz/btcfi/) Let your capital do more than just sit. If you have any questions, feel free to reach out in Discord. We’re happy to help. * [The Noon WBTC Vault](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#the-noon-wbtc-vault) * [About Noon and sUSN](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#about-noon-and-susn) * [Vesu Vaults](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#vesu-vaults) * [Get started](https://docs.vesu.xyz/blog/2026-02-10-noon-WBTC-vault#get-started) --- # Tags | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags#__docusaurus_skipToContent_fallback) Tags ==== A[​](https://docs.vesu.xyz/blog/tags#A "Direct link to A") ----------------------------------------------------------- * [Announcement29](https://docs.vesu.xyz/blog/tags/announcement) * * * R[​](https://docs.vesu.xyz/blog/tags#R "Direct link to R") ----------------------------------------------------------- * [Research2](https://docs.vesu.xyz/blog/tags/research) * * * U[​](https://docs.vesu.xyz/blog/tags#U "Direct link to U") ----------------------------------------------------------- * [Unlocking Vesu2](https://docs.vesu.xyz/blog/tags/unlocking-vesu) * * * --- # 2 posts tagged with "Research" | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags/research#__docusaurus_skipToContent_fallback) ![Market Review](https://docs.vesu.xyz/assets/images/Market_review1-766f5c0b68d7e171c09260a273ad6971.png) Summary[​](https://docs.vesu.xyz/blog/tags/research#summary "Direct link to Summary") -------------------------------------------------------------------------------------- Vesu has been live for over four months and has grown to the fourth-largest DeFi protocol on Starknet. Time for a recap! In this blog post, we will review the past four months of lending and borrowing activity on Vesu markets and the performance of the autonomous lending pools. info For a refresher on Vesu's autonomous lending pools refer to this [blog post](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . Market Overview[​](https://docs.vesu.xyz/blog/tags/research#market-overview "Direct link to Market Overview") -------------------------------------------------------------------------------------------------------------- We start with an overview of the Vesu lending markets. Figure 1 below shows the evolution of the total value locked (TVL), total borrowed amount and average utilization on Vesu markets during the past four months. We find that both TVL and total borrowed amount have grown consistently over the observed period arriving at about $22M TVL and $4.5M borrowed at the time of writing this post (note the primary y-axis scale of 10^7). Similarly, the average utilization across all markets has more than doubled from about 10% to around 24% at the same time. This indicates that the liquidity on Vesu is increasingly being used by borrowers on Starknet establishing Vesu as an important component of the Starknet DeFi ecosystem. ![Vesu 4-Months Market Overview](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_total-27c24cf33dc0482cf72d5118ecd99803.png "Vesu 4-Months Market Overview") _Figure 1: Evolution of liquidity, borrowings and average utilization on Vesu since launch._ Market Breakdown[​](https://docs.vesu.xyz/blog/tags/research#market-breakdown "Direct link to Market Breakdown") ----------------------------------------------------------------------------------------------------------------- Next, we highlight the breakdown of Vesu markets in terms of their contribution to the overall TVL. Figure 2 gives the percentage breakdown across the six initial markets _ETH_, _STRK_, _USDC_, _USDT_, _WBTC_, _wstETH_. The first observation is that the overall TVL on Vesu is mostly driven by the _ETH_, _STRK_ and _USDC_ markets. These three markets combined account for more than 90% of the overall Vesu TVL at the time of writing this post. The figure further shows that the _ETH_ market share has continuously grown since launch and is currently at over 50%. Over the same period the market share of _STRK_ has decreased significantly. To one part, these observations are driven by the market prices of the respective assets. However, they also reflect a consistent net inflow of _ETH_ into Vesu. ![Vesu 4-Months TVL Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_tvl_breakdown-600327d42b84cde4f7e399f0b4202b07.png "Vesu 4-Months TVL Breakdown") _Figure 2: Breakdown of TVL in Vesu markets since launch._ Similarly, let us also review the borrowing activity for the Vesu markets. Figure 3 shows the breakdown of borrowing activity, in USD, per the different markets. The figure shows that borrowing is highly concentrated around the _USDC_ market which peaked at more than 80% of total amount borrowed in September and currently accounts for around 60% of the outstanding debt. We further find that in recent weeks borrowing activity in _ETH_ and _wstETH_ has increased and, combined, currently represent some 25% of the total debt. On the other hand, both _STRK_ and _WBTC_ have not seen a lot of borrow demand which may be explained by a generally optimistic outlook on the respective markets and thus no interest in entering "short" positions. ![Vesu 4-Months Borrowing Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_borrowing_breakdown-6e619fc688949e6bf132dfa476f2b1b7.png "Vesu 4-Months Borrowing Breakdown") _Figure 3: Breakdown of borrow activity in Vesu markets since launch._ In the following sections, we take a closer look at the individual markets. ETH Market Insights[​](https://docs.vesu.xyz/blog/tags/research#eth-market-insights "Direct link to ETH Market Insights") -------------------------------------------------------------------------------------------------------------------------- Ethereum is the biggest Vesu market in terms of supplied liquidity. At the same time, we have seen that the borrow activity on the _ETH_ market is limited (it accounts for "only" about 15% of the overall debt outstanding). This is confirmed by Figure 3 which shows the _ETH_ utilization over time in orange (right y-axis) and the market's interest rate in blue (left y-axis). We find that the _ETH_ utilization remained consistently in the lower single-digit range throughout most of the observed period. This can be explained by the generally optimistic outlook on Ethereum over the past months with users unwilling to "short" the asset (which entering a borrow position in ETH effectively results in). ![Vesu 4-Months ETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_ETH-528743883d5564f744f2c38ad0170f08.png "Vesu 4-Months ETH-Market Insights") _Figure 4: Utilization and borrow rates in the ETH market since launch._ Furthermore, the _ETH_ market's borrow rate is indicated with a blue line and scale on the primary y-axis (left side). This blue line is hidden under the orange line for utilization for almost the entire observation period. This is due to the fact that utilization has been below the market's target utilization (which is 80%) throughout the period. Hence, the interest rate curve has not been adjusted by the _Curve Controller_ and the borrow rate has only "moved" on the linear range of the curve below target utilization. This relationship resulted in the _ETH_ borrow rate stay at very low levels close to the curve's 0%-utilization rate of 0.1%. info If you need a refresher on Vesu's adaptive interest rate model please refer to this [blog post](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . USDC Market Insights[​](https://docs.vesu.xyz/blog/tags/research#usdc-market-insights "Direct link to USDC Market Insights") ----------------------------------------------------------------------------------------------------------------------------- Turning to the _USDC_ market we find a completely different picture as shown in Figure 5. Shortly after launch (in July 2024) utilization on the USDC market reached a level of more than 90% reflecting the strong demand for USDC as a borrow asset. With utilization consistently above the market's target utilization of 80%, the _Curve Controller_ shifts the interest rate curve upwards at an increasing rate during the last week of August until the interest rate reaches a level of more than 12% by the end of August. At this point, the market's interest rate seems attractive enough for LPs to supply more USDC (and borrowers repay debt) thereby reducing the utilization again. As utilization falls below the market's target utilization, the _Curve Controller_ too starts to shift the curve downwards. ![Vesu 4-Months USDC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDC-008783918a1cd2c6c4638048779c3a40.png "Vesu 4-Months USDC-Market Insights") _Figure 5: Utilization and borrow rates in the USDC market since launch._ Similarly, in the second half of the observation period, utilization on the _USDC_ market has picked up again reaching a level of 80% and above by the end of September. Throughout the remaining period utilization fluctuates around some 85% utilization. In instances, where utilization exceeds the target of 80%, the _Curve Controller_ shifts the curve resulting in a slow but steady upward trend. By the end of the observation period interest rate reaches a level of more than 6% with a utilization at about its target of 80%. These insights highlight the important role of Vesu's adaptive interest rate model in allowing the market participants to coordinate around the optimal use and allocation of capital. Note that in "traditional" DeFi lending markets, which do not make use of an adaptive interest rate model, "operators" manually update parameters in ad-hoc market interventions in order for the participants to find an equilibrium. This does not only result in less efficient markets but also introduces operational risks. More Insights[​](https://docs.vesu.xyz/blog/tags/research#more-insights "Direct link to More Insights") -------------------------------------------------------------------------------------------------------- We here briefly discuss more insights gathered from the _USDT_ (Figure 6), _wstETH_ (Figure 7), _WBTC_ (Figure 8), and _STRK_ (Figure 9) markets. In both the _USDT_ and _wstETH_ markets we can find consistenlty high utilization resulting in regular _Curve Controller_ activity and shifting of the interest rate curve. In response, utilization generally adjusts downwards reflecting market corrections in terms of net liquidity inflows or repayment of outstanding debt. ![Vesu 4-Months USDT-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDT-73c717e7827722d43d74338be6a5bbcb.png "Vesu 4-Months USDT-Market Insights") _Figure 6: Utilization and borrow rates in the USDT market since launch._ ![Vesu 4-Months wstETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_wstETH-d6c72abbaef84d85cfd2779f02c55098.png "Vesu 4-Months wstETH-Market Insights") _Figure 7: Utilization and borrow rates in the wstETH market since launch._ On the other hand, the _WBTC_ and _STARK_ markets highlight low utilization over the observation period indicating low borrowing demand. The interest rates on these markets are thus characterized by a perfectly synchronous relationship with the utilization due to fact that the _Curve Controller_ does not actively adjust rates. ![Vesu 4-Months WBTC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_WBTC-67178e7055e3843f6a96b05243902a11.png "Vesu 4-Months WBTC-Market Insights") _Figure 8: Utilization and borrow rates in the WBTC market since launch._ ![Vesu 4-Months STRK-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_STRK-71d260c7d14df6dc972144a6c1e70e69.png "Vesu 4-Months STRK-Market Insights") _Figure 9: Utilization and borrow rates in the STRK market since launch._ Conclusion[​](https://docs.vesu.xyz/blog/tags/research#conclusion "Direct link to Conclusion") ----------------------------------------------------------------------------------------------- Vesu proudly reflects on four months of steady growth and progress. In this blog post, we reviewed the performance of Vesu markets over the past months. Both lending and borrowing activity have consistently grown, with the average utilization reaching around 24% in November. Both lending and borrowing activity varies greatly between the different markets with _USDC_, _ETH_ and _wstETH_ being the most demanded borrow assets in terms of the outstanding debt. Utilization on certain markets has reached over 90% over sustained time periods. This has resulted in frequent adjustments of the interest rate curve through Vesu's autonomous _Curve Controller_. This blog post has provided important insights into the dynamics of Vesu markets. The data presented validates that Vesu's adaptive interest rate model is capable of autonomously balance supply and demand of liquidity on Vesu markets allowing the participants to efficiently and safely coordinate around the optimal allocation of capital on Starknet. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/snip-22_banner-938159dcadd378eb7aca1de6e70ecd40.png) ### Announcing SNIP-22: Tokenized Vaults on Starknet[​](https://docs.vesu.xyz/blog/tags/research#announcing-snip-22-tokenized-vaults-on-starknet "Direct link to Announcing SNIP-22: Tokenized Vaults on Starknet") Starknet is continuously evolving to support the diverse needs of DeFi applications and Vesu is at the forefront of these developments. Today we are happy to announce that the **Tokenized Vaults** Starknet Improvement Proposal, [SNIP-22](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) , authored by the Vesu team, has been merged to the official repository of Starknet standards. This proposal aims to extend the existing fungible token standard, SNIP-2, by incorporating new functionalities for tokenized yield-bearing vaults, unlocking efficiency, security and better experience for Starknet developers and users. ### What is SNIP-22?[​](https://docs.vesu.xyz/blog/tags/research#what-is-snip-22 "Direct link to What is SNIP-22?") SNIP-22 introduces a standardized framework for creating tokenized, yield-bearing vaults on Starknet. These vaults represent shares of an underlying asset, allowing users to perform various operations such as deposit, withdrawal, and converting between shares and asset balances. Other than _rebasing_ tokens, like stETH or Aave's aETH, aUSDC, etc., SNIP-22 tokenized vaults accumulate yield through a growing conversion rate between vault shares and the underlying asset allowing holders to redeem their shares for an increasing amount of the asset. The proposal is heavily inspired by Ethereum's [EIP-4626](https://eips.ethereum.org/EIPS/eip-4626) , which has found wide adoption in the Ethereum ecosystem. ![SNIP-22](https://docs.vesu.xyz/assets/images/snip-22_concept-3a1d05fba9a798a40898bc2d4b8183a2.png "Tokenized Vault (SNIP-22)") ### Motivation and Benefits[​](https://docs.vesu.xyz/blog/tags/research#motivation-and-benefits "Direct link to Motivation and Benefits") Tokenized vaults are a fundamental component of many DeFi applications, including lending markets, yield aggregators, and interest-bearing tokens. However, the current implementations often expose diverse and non-standardized interfaces, leading to increased integration effort and potential security risks. SNIP-22 addresses these challenges by proposing a standard API for tokenized vaults that would: 1. **Foster composability**: Composability is achieved by well-defined, open interfaces and SNIP-22 has the potential to unlock similar innovation and growth than what SNIP-2 (or ERC-20) has brought for standard fungible tokens. 2. **Lower Integration Efforts**: With a standardized interface, developers of DeFi protocols, aggregators, and wallets can more easily integrate tokenized vaults, thereby reducing development time and costs. 3. **Enhance Security**: Standardization requires less custom code for integrations and adapters and thereby lowers the likelihood of introducing security vulnerabilities. 4. **Improve User Experience (UX)**: A consistent approach across different vaults ensures a smoother experience for end-users holding vault shares in their wallet or interacting with various DeFi applications. ### Key Specifications[​](https://docs.vesu.xyz/blog/tags/research#key-specifications "Direct link to Key Specifications") Here are some of the essential aspects of SNIP-22: * **SNIP-2 Compatibility**: All tokenized vaults must implement the SNIP-2 standard. This ensures that existing infrastructure and tools that already support SNIP-2 can seamlessly integrate with tokenized vaults. * **Vault Metadata**: SNIP-22 requires vaults to expose a number of metadata including the optional SNIP-2 metadata and the address of the vault's underlying (`asset`). * **Asset and Shares Management**: The standard defines a comprehensive set of functions for the retrievel of basic vault data (`total_assets` and `total_supply`) and the management of shares and assets (`deposit`, `withdraw`, `mint` and `redeem`). * **Conversion and Preview**: Tokenized vaults must further provide functions for the conversion between shares and assets (`convert_to_shares` and `convert_to_assets`) and simulation or preview of interactions (`preview_deposit`, `preview_mint`, etc.). The following diagram gives an overview of the standard. ![SNIP-22 API](https://docs.vesu.xyz/assets/images/snip-22_api-1f52c99078e1234f3631b10fa6d0b49f.png) ### Security Considerations[​](https://docs.vesu.xyz/blog/tags/research#security-considerations "Direct link to Security Considerations") While SNIP-22 provides a robust framework for creating and managing tokenized vaults, it is essential to note that the standard itself does not govern the safety of the underlying assets or the associated yield-generating strategies. It further does not ensure safety of certain implementations of the tokenized vault standard. Therefore, developers and users must carefully evaluate the specific implementations and the yield strategies to ensure consistency and security. ### Reference Implementation[​](https://docs.vesu.xyz/blog/tags/research#reference-implementation "Direct link to Reference Implementation") Vesu's _vTokens_ are the first tokenized vaults on Starknet to implement the SNIP-22 standard. Our vToken implementation is audited by ChainSecurity and CairoSecurityClan and can be found [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/v_token.cairo) . While certain functions are specific to our use case, we hope that the implementation can serve other teams as a reference and unlock more innovation across Starknet's growing DeFi ecosystem. ### What's Next[​](https://docs.vesu.xyz/blog/tags/research#whats-next "Direct link to What's Next") The inclusion of SNIP-22 in Starknet's official standards repository marks the first step in growing the awareness and adoption of the tokenized vault standard on Starknet. An important next step is to provide a neutral and secure reference implementation for the tokenized vault standard. Similar to the `ERC4626.sol` extension in their Solidity library, we will advocate for a SNIP-22 extension in OpenZeppelin's cairo-contracts library. Furthermore, the [4626 Alliance](https://erc4626.info/) has done an outstanding job at creating awareness and pushing adoption of the tokenized vault standard on Ethereum and EVM chains. Their webiste and repository of existing vaults is a great place draw inspiration for battle tested vault architectures and new use cases. For Starknet it can serve as a great place to showcase our implementations and growing DeFi ecosystem. Finally, we invite everyone to provide feedback and join the conversation on the [Starknet Community Forum](https://community.starknet.io/t/snip-22-tokenized-vaults/114457) . Happy building! --- # 2 posts tagged with "Unlocking Vesu" | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags/unlocking-vesu#__docusaurus_skipToContent_fallback) ![Earn with ETH](https://docs.vesu.xyz/assets/images/earn-with-ETH-d6b0f2babb1d311a975ddb5b0cb91695.png) Ethereum just turned 10. A full decade of innovation, billions secured, and zero downtime. If you believe in ETH for the long run, ask yourself: Is your ETH working for you? This post breaks down 3 simple ways to earn more ETH. Not by flipping tokens, but with real yield. Let’s start with the basics. Level 1: Simple lending[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-1-simple-lending "Direct link to Level 1: Simple lending") ------------------------------------------------------------------------------------------------------------------------------------------- **Basic yield, zero stress** If you want passive yield with minimal setup: supply ETH or wstETH to a Vesu pool. You earn lending yield and DeFi Spring rewards. wstETH also earns staking rewards on top. Current rates are around 4%, and go higher when markets heat up. **Risk:** Like all lending platforms, there are smart contract, oracle, and pool config risks. Vesu reduces these with [audits](https://docs.vesu.xyz/security/security-basics) and known curators. Level 2: Lending & Borrowing[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-2-lending--borrowing "Direct link to Level 2: Lending & Borrowing") --------------------------------------------------------------------------------------------------------------------------------------------------------- **Double the yield** Deposit ETH or wstETH, then borrow stablecoins like USDC or USDT. ![Borrow USDC with your ETH collateral](https://docs.vesu.xyz/assets/images/borrow-usdc-3bf29387c5ea76ac6b9dfd2cadd1d678.png) You can then deposit those stables into another Vesu pool to earn some extra yield. ![Earn with your USDC](https://docs.vesu.xyz/assets/images/usdc-yield-87f861693f376f6f25045b9f61b239dd.png) Right now, you earn around 4% on your ETH, and 5–6% on the borrowed USDC. Your ETH keeps earning, while the borrowed stables generate yield on top. **Risk:** Same as Level 1, plus exposure to ETH price drops. If ETH falls too much, your position can be liquidated. Start with low borrow amounts and monitor your loan-to-value ratio. Level 3: Multiply it[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-3-multiply-it "Direct link to Level 3: Multiply it") ---------------------------------------------------------------------------------------------------------------------------------- **More exposure, more yield** Multiply lets you increase your exposure to Ethereum. You supply wstETH, borrow ETH, and use it to buy more wstETH. All in one transaction. ![Multiply your wstETH](https://docs.vesu.xyz/assets/images/multiply-wstETH-e4dbaec2b7663fd54a619353f1b7a2a6.png) Current examples show around 10% APY with a 3x multiplier. You can pick your own level, but higher yield comes with more risk. **Risk:** ETH and wstETH prices are correlated, but extreme market stress can break that link. If prices decouple too much, your position could be at risk of liquidation. Learn more about Multiply in our [Docs](https://docs.vesu.xyz/users/multiply-risks) and choose a multiplier that fits your risk tolerance. Make your ETH work[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#make-your-eth-work "Direct link to Make your ETH work") ----------------------------------------------------------------------------------------------------------------------------- **Three levels, one goal: earn more ETH** Whether you’re lending, borrowing, or multiplying, Vesu's got you. Explore the strategies, choose what fits, and grow your stack. Got questions or feedback? Come hang in [Discord](https://discord.gg/g9ahVeyp) . Check out the [Docs](https://docs.vesu.xyz/users) if you want to dig deeper. Ethereum isn’t slowing down. Neither should your yield. ![Earn with STRK](https://docs.vesu.xyz/assets/images/STRK-unlocking-vesu-99238d1c99e7b4d14f3cdd82b2492f60.png) STRK is everywhere on Starknet: held in wallets, staked & supplied in DeFi. But are you using it in the way that fits you best? This post kicks off **Unlocking Vesu**, a new series that dives into strategies on Vesu. No advice, no hand-holding. Just straightforward takes on yield, risk, and what to watch for. Today’s focus is STRK. We present three levels of yield for you. This is your starting point to earn. Level 1: Simple lending[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-1-simple-lending "Direct link to Level 1: Simple lending") ------------------------------------------------------------------------------------------------------------------------------------------- **Plug and earn** If you want passive yield with minimal setup: Supply STRK directly to a Vesu pool. You earn lending yield and DeFi Spring rewards. | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Genesis | 4.5% | most liquid pool on Vesu, best to borrow other assets | | Re7 xSTRK | 8.4% | high borrowing demand from Multiply | **Risk:** Like any DeFi lending platform, there are risks around smart contracts, oracles, and pool settings. Vesu reduces these with full audits and curators that are known teams in the Starknet ecosystem. Level 2: Extra rewards with xSTRK[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-2-extra-rewards-with-xstrk "Direct link to Level 2: Extra rewards with xSTRK") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Liquid Stake and supply** You want to earn more while staying relatively low risk. Stake STRK via [Endur](https://endur.fi/) to mint xSTRK, then supply it to Vesu. If you want to deposit into the Re7 xSTRK pool you can also use the shortcut via [Stake & Earn](https://vesu.xyz/stake-and-earn) . **What you earn:** * Lending yield * DeFi Spring incentives * Staking rewards via Endur * Endur Points (learn more [here](https://x.com/vesuxyz/status/1932796193085563379) ) | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Re7 xSTRK | 11.6% | biggest xSTRK pool, STRK available to borrow | | Re7 rUSDC | 11.6% | use xSTRK as collateral to borrow rUSDC | tip With **[Stake & Earn](https://vesu.xyz/stake-and-earn) **, you can deposit STRK and supply xSTRK to the Re7 pool in one smooth transaction. **Risk:** Additional risks from liquid staking provider (Endur). Level 3: Max xSTRK exposure[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#level-3-max-xstrk-exposure "Direct link to Level 3: Max xSTRK exposure") ------------------------------------------------------------------------------------------------------------------------------------------------------- **Full send** You want to increase exposure and farm harder. It works like this: Supply xSTRK as collateral → borrow STRK → convert to xSTRK → repeat. But don't worry, Vesu's [Multiply](https://vesu.xyz/multiply) feature does all of this for you in one click. Learn how it works in our [Docs](https://docs.vesu.xyz/users/multiply-basics) . ![Multiply xSTRK](https://docs.vesu.xyz/assets/images/xstrk-multiply-dc66b4d5ae0fcf4a16f53d7c852e9276.png) | **Pool** | **Notes** | | --- | --- | | Re7 xSTRK | Uses the same oracle for STRK and xSTRK. Strong correlation, but not risk-free | **What you earn:** * Boosted staking yield * Boosted Endur Points * Boosted DeFi Spring rewards * Higher organic yield from increased position size **Risk:** If xSTRK depegs from STRK, you can be liquidated. Oracle settings reduces this risk, but it’s not zero. TL;DR[​](https://docs.vesu.xyz/blog/tags/unlocking-vesu#tldr "Direct link to TL;DR") ------------------------------------------------------------------------------------- | **Level** | **What you supply** | **What you earn** | **Main risk** | **Pools** | | --- | --- | --- | --- | --- | | 1 | STRK | Organic yield, DeFi Spring rewards | Smart contracts, pool utilization | Genesis, Re7 xSTRK | | 2 | xSTRK | Level 1 + staking rewards, Endur Points | Endur protocol risk | Re7 xSTRK, Re7 rUSDC | | 3 | xSTRK (Multiply) | All of Level 2, multiplied with STRK | Liquidation, xSTRK depeg | Re7 xSTRK | **Which level fits your style?** We’re always curious how people are using Vesu. Drop feedback or questions in [Discord](https://discord.gg/g9ahVeyp) . Or tell us what you’d like to see next in Unlocking Vesu. --- # 29 posts tagged with "Announcement" | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags/announcement#__docusaurus_skipToContent_fallback) ![strkBTC now live](https://docs.vesu.xyz/assets/images/strkBTC_web-3ab6f30c02d40fd5e7fff650c2e3e933.png) A new kind of Bitcoin just landed on Starknet. strkBTC is now available on Vesu. Powered by the new STRK20 standard, strkBTC brings optional privacy to Bitcoin on Starknet. Re7 USDC Prime[​](https://docs.vesu.xyz/blog/tags/announcement#re7-usdc-prime "Direct link to Re7 USDC Prime") --------------------------------------------------------------------------------------------------------------- strkBTC is live in Re7 USDC Prime, curated by Re7 Labs. The pool keeps things simple with BTC collateral and native USDC: **Collateral** * strkBTC * WBTC **Borrow** * USDC BTCFi rewards[​](https://docs.vesu.xyz/blog/tags/announcement#btcfi-rewards "Direct link to BTCFi rewards") ------------------------------------------------------------------------------------------------------------ strkBTC deposits earn 2% APR in STRK rewards. USDC borrowing is also subsidized through the BTCFi program, bringing borrow rates down to around 2% APR. STRK rewards can be claimed every Friday, or any day after. Staked strkBTC[​](https://docs.vesu.xyz/blog/tags/announcement#staked-strkbtc "Direct link to Staked strkBTC") --------------------------------------------------------------------------------------------------------------- xstrkBTC, the liquid staked version of strkBTC by Endur, is also available on Vesu. It earns staking rewards while remaining usable as collateral. **Available pools and use case:** * Re7 USDC Core to borrow USDC * Re7 xBTC to increase exposure & yield via Multiply Security[​](https://docs.vesu.xyz/blog/tags/announcement#security "Direct link to Security") --------------------------------------------------------------------------------------------- All Vesu pools are isolated with their own liquidity and parameters. Onchain monitoring through Hypernative is active. If unusual activity is detected, affected pools are automatically paused. Vesu has undergone multiple independent audits and runs a live bug bounty program. Get started[​](https://docs.vesu.xyz/blog/tags/announcement#get-started "Direct link to Get started") ------------------------------------------------------------------------------------------------------ * [Deposit strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135) * Borrow [USDC against strkBTC](https://vesu.xyz/btcfi/markets/0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf/0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135/borrow?collateralAssetAddress=0x0787150e306e6eae6e3f79dea881770e8bbff2c1b8eb490f969669ee945b3135&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Borrow [USDC against xstrkBTC](https://vesu.xyz/btcfi/markets/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88/borrow?collateralAssetAddress=0x047751b3532fabca89b0f2e35ca1cb45e5a7b11d5e3d3663dfa1f4406b45fd88&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) * Explore [Re7 USDC Prime](https://vesu.xyz/btcfi/markets?poolId=0x02eef0c13b10b487ea5916b54c0a7f98ec43fb3048f60fdeedaf5b08f6f88aaf) Got a question or want to receive weekly updates? Join the [Discord community](https://discord.com/invite/G9Gxgujj8T) . ![WBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-wbtc-vault-d7992e15163b96f050bea133d613f60b.png) Bitcoin yield on Starknet keeps growing. After the success of the first Noon vault, a new WBTC vault is now live. It brings an automated yield strategy to Bitcoin, without selling or manual position management. The Noon WBTC Vault[​](https://docs.vesu.xyz/blog/tags/announcement#the-noon-wbtc-vault "Direct link to The Noon WBTC Vault") ------------------------------------------------------------------------------------------------------------------------------ Deposit WBTC. The strategy takes it from there. Stablecoins are borrowed against the deposited Bitcoin and deployed into **sUSN**, Noon’s yield-bearing stablecoin. The position is managed automatically using conservative leverage and rules-based adjustments. All funds remain **non-custodial** and fully **transparent onchain**. The curator targets around **10% APY**. About Noon and sUSN[​](https://docs.vesu.xyz/blog/tags/announcement#about-noon-and-susn "Direct link to About Noon and sUSN") ------------------------------------------------------------------------------------------------------------------------------ Noon builds stablecoin yield strategies focused on sustainability and risk management. USN is backed 1:1 by a mix of USDT, USDC, and short-term U.S. Treasury Bills. Its staked version, sUSN, accrues yield natively in the token. Noon has been live for over a year with zero downtime and no security incidents. The protocol has been audited by firms including Halborn, Hashlock, and Quantstamp. As with any DeFi strategy, make sure you understand the risks and do your own research. Vesu Vaults[​](https://docs.vesu.xyz/blog/tags/announcement#vesu-vaults "Direct link to Vesu Vaults") ------------------------------------------------------------------------------------------------------ Vesu Vaults make advanced onchain strategies accessible without the usual complexity. Each vault runs a strict onchain mandate and is operated by an independent curator. Funds can only be used within clearly defined strategy boundaries, and performance is fully transparent onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/explore/vaults) . Get started[​](https://docs.vesu.xyz/blog/tags/announcement#get-started "Direct link to Get started") ------------------------------------------------------------------------------------------------------ You can now: * Deposit WBTC into the new [Noon WBTC Vault](https://vesu.xyz/btcfi/vaults/0x023ccbaf0f70e8dcb29520ab4ea12e2e916fb71204677321e91e525062279e35) * Explore more ways to use Bitcoin in [Vesu's BTCFi Mode](https://vesu.xyz/btcfi/) Let your capital do more than just sit. If you have any questions, feel free to reach out in Discord. We’re happy to help. ![Welcome Clearstar](https://docs.vesu.xyz/assets/images/clearstar-491a3a4fa4880f668f4ba5b3a50cb17c.png) We’re welcoming Clearstar Labs as a new pool curator on Vesu. Clearstar is launching their first pool on Vesu with sUSN and USDC, with plans to add more yield-bearing assets over time. ### Clearstar USDC Reactor[​](https://docs.vesu.xyz/blog/tags/announcement#clearstar-usdc-reactor "Direct link to Clearstar USDC Reactor") The Clearstar USDC Reactor is built for yield-bearing collateral, starting with sUSN as the first supported asset. **Configuration at launch:** * Collateral: sUSN * Borrow: USDC * Debt cap: $2.5M More assets may be added to the pool over time. ### Who’s Clearstar?[​](https://docs.vesu.xyz/blog/tags/announcement#whos-clearstar "Direct link to Who’s Clearstar?") Clearstar is an onchain risk curator active across major DeFi lending and vault platforms like Morpho and Euler. Their team combines TradFi and DeFi backgrounds, with a strong focus on risk, operations, and continuous monitoring. They focus on careful asset review, setting appropriate risk parameters, and continuously monitoring the markets they curate. ### About sUSN[​](https://docs.vesu.xyz/blog/tags/announcement#about-susn "Direct link to About sUSN") sUSN is the yield-bearing version of USN, a USD-backed stablecoin from Noon Capital. Yield accrues directly into the token over time, increasing its value without additional actions. It can be used as collateral to borrow USDC or with Vesu’s Multiply feature to increase exposure to its built-in yield. ### Get started[​](https://docs.vesu.xyz/blog/tags/announcement#get-started "Direct link to Get started") You can now use the Clearstar pool to: * [Deposit USDC](https://vesu.xyz/lite/markets?poolId=0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803) to earn yield * [Borrow USDC](https://vesu.xyz/lite/markets/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb/borrow?collateralAssetAddress=0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17&debtAssetAddress=0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) against your sUSN * [Multiply sUSN](https://vesu.xyz/pro/multiply/0x01bc5de51365ed7fbb11ebc81cef9fd66b70050ec10fd898f0c4698765bf5803/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) with USDC Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . ![Re7 Pool Upgrade](https://docs.vesu.xyz/assets/images/Re7-pool-upgrade-52ba9f6e53301166677c844aba5f68fb.png) Re7 Labs, the main curator behind Vesu’s BTCFi pools, has moved their remaining legacy pools to V2. Any position that can be upgraded will now show a Migrate button in the Vesu UI, guiding you through a simple, one-click migration flow. ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-f53963cfe66fbbe8717df7ba8152f49c.png) TL;DR[​](https://docs.vesu.xyz/blog/tags/announcement#tldr "Direct link to TL;DR") ----------------------------------------------------------------------------------- * Re7 Labs’ remaining V1 pools are migrating to V2 * Migration is live and handled directly in the app * Funds remain safe throughout For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . New Re7 Pools[​](https://docs.vesu.xyz/blog/tags/announcement#new-re7-pools "Direct link to New Re7 Pools") ------------------------------------------------------------------------------------------------------------ | V1 pool | New V2 pool | | --- | --- | | Re7 xSTRK | Re7 STRK | | Re7 wstETH | Re7 ETH | | Re7 Starknet Ecosystem | Re7 Labs Starknet Ecosystem | #### Note on Re7 STRK[​](https://docs.vesu.xyz/blog/tags/announcement#note-on-re7-strk "Direct link to Note on Re7 STRK") Previously, the Re7 xSTRK pool priced xSTRK using the STRK price, as this was the most reliable oracle available at the time of launch. The Re7 STRK pool now uses the xSTRK conversion rate price feed, so xSTRK positions will reflect their full underlying value in the new pool. Re7 USDC pool deprecation[​](https://docs.vesu.xyz/blog/tags/announcement#re7-usdc-pool-deprecation "Direct link to Re7 USDC pool deprecation") ------------------------------------------------------------------------------------------------------------------------------------------------ The Re7 USDC pool is being deprecated, with markets migrating to the relevant V2 pools. ![Re7 UDSC migration](https://docs.vesu.xyz/assets/images/Re7-USDC-8a8de5e79c6de63485ca7659be60ac33.png) BTCFi rewards for WBTC and USDC continue in the Re7 USDC Core pool. V2 going forward[​](https://docs.vesu.xyz/blog/tags/announcement#v2-going-forward "Direct link to V2 going forward") --------------------------------------------------------------------------------------------------------------------- With this upgrade, all liquidity is coming fully to V2. This allows: * Fewer markets and less fragmentation * A simpler, clearer UX * Full focus on V2 going forward * Improved smart contracts as the single standard V2 is now the foundation for all future improvements on Vesu. If you have any questions, feel free to reach out in Discord. We’re happy to help. ![Choose your mode](https://docs.vesu.xyz/assets/images/app-modes-1f8e9e799657d371bb4f268c000ea3b8.png) Vesu has grown a lot over the last year and one interface no longer fits everyone. More markets. More decisions. Now you choose how you use Vesu. Three modes. One protocol.[​](https://docs.vesu.xyz/blog/tags/announcement#three-modes-one-protocol "Direct link to Three modes. One protocol.") ------------------------------------------------------------------------------------------------------------------------------------------------- Vesu now offers three app modes, each designed around a different user intent. All modes run on the same smart contracts and the same risk model. Only the interface changes. LITE[​](https://docs.vesu.xyz/blog/tags/announcement#lite "Direct link to LITE") --------------------------------------------------------------------------------- LITE is the new default experience. It is designed to make the most common actions obvious and reduce unnecessary decision making. * Focused on the most common actions * Easier to scan and get started ![LITE Mode](https://docs.vesu.xyz/assets/images/lite-mode-9232ba01503724b7a5321e897b43313c.png) A simpler way to get started on Vesu. BTCFI[​](https://docs.vesu.xyz/blog/tags/announcement#btcfi "Direct link to BTCFI") ------------------------------------------------------------------------------------ BTCFI is a Bitcoin first experience. ![BTCFI Mode](https://docs.vesu.xyz/assets/images/btcfi-mode-ff88ae098db0b077d35d511a83269f32.png) Designed for users who want to use Bitcoin onchain without selling. Everything you see is centered around BTC, with no extra noise. PRO[​](https://docs.vesu.xyz/blog/tags/announcement#pro "Direct link to PRO") ------------------------------------------------------------------------------ PRO is the full power Vesu interface. This is exactly what existing users already know. * All markets with full detail * Multiply enabled PRO is designed for users who want full visibility and control. Switching modes[​](https://docs.vesu.xyz/blog/tags/announcement#switching-modes "Direct link to Switching modes") ------------------------------------------------------------------------------------------------------------------ Switch between LITE, BTCFI, and PRO at any time. Use the mode switch in the top right corner of the app. Or bookmark the link to the mode you prefer and use that directly. Under the hood, nothing changes. Same security. Same risk. Same contracts. Try it out[​](https://docs.vesu.xyz/blog/tags/announcement#try-it-out "Direct link to Try it out") --------------------------------------------------------------------------------------------------- This change is about focus, not limitation. **Explore now:** * A smoother entry for new users → [LITE](https://vesu.xyz/lite) * A clearer BTCFi path for Bitcoin holders → [BTCFI](https://vesu.xyz/btcfi) * Full control for power users → [PRO](https://vesu.xyz/pro) Same protocol. Different ways to use it. ![tBTC yield powered by Noon Vaults](https://docs.vesu.xyz/assets/images/noon-vault-b4f8037f15b9eccde012f6de3267821e.png) A new Bitcoin strategy is live on Vesu. The **Noon tBTC Vault** is built for Bitcoin holders looking for strong yield. Users deposit tBTC and earn yield through an automated, fully onchain setup that builds on sUSN yield and Vesu’s low borrow rates. We’re excited to welcome **Noon Vaults** as a new curator, expanding the range of Bitcoin strategies available on Starknet. The Noon tBTC Vault[​](https://docs.vesu.xyz/blog/tags/announcement#the-noon-tbtc-vault "Direct link to The Noon tBTC Vault") ------------------------------------------------------------------------------------------------------------------------------ The Noon tBTC Vault is designed for users who want to put their Bitcoin to work without selling it or actively managing positions. The setup combines BTC-backed borrowing with yield generated via sUSN, allowing returns to compound back into tBTC over time. Position management, rebalancing, and execution are fully abstracted away. The curator targets **~10% yield**. All funds remain non-custodial and fully transparent onchain. About Noon and sUSN[​](https://docs.vesu.xyz/blog/tags/announcement#about-noon-and-susn "Direct link to About Noon and sUSN") ------------------------------------------------------------------------------------------------------------------------------ Noon issues USN, a USD-backed stablecoin designed with a focus on sustainable yield, safety, and long-term use. Its staked version, sUSN, accrues yield directly within the token over time. With sUSN live on Vesu, users can use it as collateral, borrow against it, and combine it with Vesu’s vaults and Multiply to access more advanced onchain strategies. Vesu Vaults[​](https://docs.vesu.xyz/blog/tags/announcement#vesu-vaults "Direct link to Vesu Vaults") ------------------------------------------------------------------------------------------------------ Vesu Vaults are designed to make onchain yield more accessible by abstracting away complexity, while remaining fully non-custodial. Vaults follow strict, onchain strategy mandates and are operated by independent curators. Deposited funds can only be used as defined by the strategy, and performance is reported transparently onchain. The Vesu Vaults framework has undergone multiple independent audits. Full details are available in the [Vesu docs](https://docs.vesu.xyz/security/audits) . Get started[​](https://docs.vesu.xyz/blog/tags/announcement#get-started "Direct link to Get started") ------------------------------------------------------------------------------------------------------ You can now: * Deposit tBTC into the new [Noon tBTC Vault](https://vesu.xyz/vaults/0x04424dec8280f518b35be33139f44ef9fa0855b117f16cda2a30f1b64c27864a) * [Multiply sUSN](https://vesu.xyz/multiply/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) to increase your exposure & yield * [Borrow USDC against sUSN](https://vesu.xyz/borrow/0x073702fce24aba36da1eac539bd4bae62d4d6a76747b7cdd3e016da754d7a135/0x02411565ef1a14decfbe83d2e987cced918cd752508a3d9c55deb67148d14d17/0x033068f6539f8e6e6b131e6b2b814e6c34a5224bc66947c47dab9dfee93b35fb) Explore the new tBTC Vault and sUSN on Vesu and see what’s possible. ![Unified Liquidity](https://docs.vesu.xyz/assets/images/unified-liquidity-59f607b026a02613335ecab7195d31d8.png) In December, liquidity on Vesu will be unified. With native USDC arriving on Starknet, users will migrate their USDC positions into the improved V2 pools. This is the next step in the shift from V1 to V2, and a simple migration tool will handle the move for you. Update December 3[​](https://docs.vesu.xyz/blog/tags/announcement#update-december-3 "Direct link to Update December 3") ------------------------------------------------------------------------------------------------------------------------ Migration is now live on [vesu.xyz](https://vesu.xyz/) . Any position that can be upgraded will now show a Migrate button. For a step-by-step walkthrough, see the guide in the [docs](https://docs.vesu.xyz/user-guides/migrate) . ![Migrate Button](https://docs.vesu.xyz/assets/images/migration-8d4ad6044c3f15525e01bda5446eca20.png) What you need to know[​](https://docs.vesu.xyz/blog/tags/announcement#what-you-need-to-know "Direct link to What you need to know") ------------------------------------------------------------------------------------------------------------------------------------ TL;DR * All USDC.e and V1 positions will move to native USDC and V2 pools * STRK rewards continue for native USDC * V1 pools will enter a limited mode * A 1-click migration will be available in the Vesu UI The current bridged USDC will be renamed USDC.e and native USDC will take over the USDC ticker across Starknet apps and explorers. Once migration begins, V1 pools will switch to limited mode. Existing positions can still be closed, but opening new positions or adding debt will no longer be possible. The pools will continue operating for now. The migration tool will support both steps: moving from USDC.e to native USDC and shifting V1 positions into the newer V2 pools. Open positions and affected markets will show a Migrate button in the UI. V2 as the new standard[​](https://docs.vesu.xyz/blog/tags/announcement#v2-as-the-new-standard "Direct link to V2 as the new standard") --------------------------------------------------------------------------------------------------------------------------------------- Vesu currently has 18 pools across V1 and V2, which makes it harder to find the right market and spreads liquidity across many smaller pools. Consolidating liquidity in the V2 pools reduces this fragmentation and creates a simpler setup. V2 pools run on improved smart contracts that have been audited by Zenith, ChainSecurity and OpenZeppelin. Their full reports are available in the [docs](https://docs.vesu.xyz/security/audits) . Each pool uses its own isolated contract, with less complexity and better gas efficiency. **Benefits for users:** * Less fragmentation: liquidity concentrated in stronger pools * Better UX: simpler to find the right markets * Future-proof: all new features and improvements will focus on V2 Strengths of native USDC[​](https://docs.vesu.xyz/blog/tags/announcement#strengths-of-native-usdc "Direct link to Strengths of native USDC") --------------------------------------------------------------------------------------------------------------------------------------------- Native USDC is issued directly by Circle and comes with clear benefits: * One unified, canonical USDC * Lower risk and fewer trust assumptions * Fully reserved and redeemable 1:1 * Faster, more reliable cross-chain transfers through CCTP * Opens the door for institutional players on Starknet It is the version exchanges, custodians and market makers prefer. Next steps[​](https://docs.vesu.xyz/blog/tags/announcement#next-steps "Direct link to Next steps") --------------------------------------------------------------------------------------------------- There’s nothing you need to do right now. Just keep an eye on our socials. We’ll post the exact go-live announcement on [X](https://x.com/vesuxyz) and [Discord](https://discord.gg/G9Gxgujj8T) once everything is ready. If you have any questions, now or during the migration, feel free to open a ticket in our [Discord](https://discord.gg/G9Gxgujj8T) . We’re here to help. ![Unlock LBTC](https://docs.vesu.xyz/assets/images/unlock-LBTC-a15d02aad282c1bf622e33d684c4c1c0.png) Bitcoin isn’t just a store of value anymore. It’s becoming the foundation for a new financial layer, one where BTC itself can earn, move, and work across chains. Lombard makes this possible with LBTC, a liquid, yield-bearing version of BTC that brings native Bitcoin yield into DeFi. And now on Vesu, LBTC goes even further. You can earn, borrow, or multiply your position directly on Starknet, the home of permissionless BTCFi. new here? Start here → [Starknet Wallets & Bridging](https://docs.vesu.xyz/user-guides/start) You’ll be ready in 2 minutes. Earn passive yield[​](https://docs.vesu.xyz/blog/tags/announcement#earn-passive-yield "Direct link to Earn passive yield") --------------------------------------------------------------------------------------------------------------------------- Earn >2% APR on your LBTC deposit. Two pools by Re7 Labs are currently available. ![LBTC-earn](https://docs.vesu.xyz/assets/images/LBTC-earn-338cd7197be1c4e40ca262e607b4d2a3.png) **Re7 xBTC** This pool is built to Multiply staked Bitcoin. Deposited LBTC earns BTCFi rewards and organic yield driven by user-demand from Multiply and Borrow. **Re7 USDC Core** The LBTC you deposit is not lent out, and can be withdrawn anytime. It earns BTCFi rewards while continuing to accrue staking rewards via Lombard. [Earn more yield with your LBTC.](https://vesu.xyz/earn?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Borrow stablecoins at top rates[​](https://docs.vesu.xyz/blog/tags/announcement#borrow-stablecoins-at-top-rates "Direct link to Borrow stablecoins at top rates") ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Use your LBTC as collateral to borrow USDC within the Re7 USDC Core pool. It’s the easiest way to unlock liquidity without selling your Bitcoin. ![LBTC-borrow-USDC](https://docs.vesu.xyz/assets/images/LBTC-borrow-USDC-c8e650a529e4030cc842621351e6cda2.png) Your borrowed USDC stays flexible. Use it to farm additional yield on Vesu, buy more Bitcoin, or spend it with the Ready Card. [Borrow USDC against your LBTC.](https://vesu.xyz/borrow?collateralAssets=0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4) Multiply your Bitcoin[​](https://docs.vesu.xyz/blog/tags/announcement#multiply-your-bitcoin "Direct link to Multiply your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------------ LBTC is already staked Bitcoin, earning yield while staying liquid. But on Starknet, you can take it one level deeper. Stake LBTC via Endur to mint **xLBTC**. It keeps earning staking rewards within the token, around 5% APY. Now, Vesu lets you use that yield-bearing BTC as collateral to multiply your exposure, boosting yield up to 30% APY. ![xLBTC-multiply.png](https://docs.vesu.xyz/assets/images/xLBTC-multiply-0c651faaf71bd3f97e0cca257589e18c.png) The Re7 xBTC pool is designed to multiply staked Bitcoin. Users can supply xLBTC to increase exposure and staking rewards. Available to multiply are LBTC, tBTC, SolvBTC, and WBTC. The correlated setup helps smooth volatility and improve stability for positions. [Multiply staked LBTC (xLBTC) for higher exposure & yield.](https://vesu.xyz/multiply?collateralAssets=0x07dd3c80de9fcc5545f0cb83678826819c79619ed7992cc06ff81fc67cd2efe0) Make more with your Bitcoin[​](https://docs.vesu.xyz/blog/tags/announcement#make-more-with-your-bitcoin "Direct link to Make more with your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------------------------------ Vesu turns LBTC into productive collateral. Earn consistent yield, access stable liquidity at top rates, or multiply your exposure. Vesu is built for those who want their Bitcoin to do more: to stay self-custodial, secure, and earning while remaining entirely onchain. Security is non-negotiable when it comes to Bitcoin. Vesu’s smart contracts have been [audited by multiple independent firms](https://docs.vesu.xyz/security/audits) , and there is a [$100K Immunefi bug bounty](https://docs.vesu.xyz/security/bounties) . Additionally, if the main interface is ever unavailable, users can still access their positions through Vesu’s [lite frontend](https://lite.vesu.xyz/) . It’s time to put your LBTC to work with Vesu. ![Vesu V2](https://docs.vesu.xyz/assets/images/VesuV2-b69e043611b6965c2843ef4dde69af47.png) **Vesu V2 is live! Just in time for the BTCFi Season on Starknet.** To kick things off, the Starknet Foundation is allocating **100M STRK** in rewards to anyone who brings their Bitcoin onchain and puts it to work. Vesu V2 makes that easier than ever. With a fully redesigned frontend, smarter contracts, and new curated pools by Re7Labs, Vesu is the main lending market powering BTCFi from day one. Borrow against Bitcoin, earn yield and more. All without giving up custody. Do More With Your Bitcoin[​](https://docs.vesu.xyz/blog/tags/announcement#do-more-with-your-bitcoin "Direct link to Do More With Your Bitcoin") ------------------------------------------------------------------------------------------------------------------------------------------------ Bitcoin is great, but using it has been tough. Until now, choices were limited: sell and lose exposure, trust a centralized lender, or pay high borrow rates. BTCFi on Starknet changes that. For the first time, you can access cheap liquidity. Without selling or giving up self-custody. ![borrow-usdc.png](https://docs.vesu.xyz/assets/images/borrow-usdc-0304992047cefd9cf5c080bb913aa375.png) **Example**: Deposit **LBTC** into the new **Re7 USDC Core** pool to borrow **USDC**. Your borrow costs get subsidized by STRK rewards. Use the extra liquidity as you like, deploy it into yield strategies, or spend with the Ready Card. Supply BTC to Earn[​](https://docs.vesu.xyz/blog/tags/announcement#supply-btc-to-earn "Direct link to Supply BTC to Earn") --------------------------------------------------------------------------------------------------------------------------- Supplying Bitcoin earns BTCFi rewards and interest from borrowers. The new **Re7 xBTC** pool pairs staked Bitcoin with their native assets and creates strong borrow demand as users boost exposure and yield with Vesu’s Multiply feature. This leads to a healthy organic yield on top. ![earn.png](https://docs.vesu.xyz/assets/images/earn-04e3b3ce6e8f2e4bb74ffc334899e791.png) **Looking for something even simpler?** Vesu V2 introduces Vaults. A new strategy layer that automates yield on autopilot. At launch, we’re kicking things off with Bitcoin Vaults curated by 0D. Deposit BTC once. It gets supplied into Vesu, borrows stablecoins, and allocates them into 0D institutional-grade yield strategies. No micromanaging, no more chasing APRs. Multiply your staked Bitcoin[​](https://docs.vesu.xyz/blog/tags/announcement#multiply-your-staked-bitcoin "Direct link to Multiply your staked Bitcoin") --------------------------------------------------------------------------------------------------------------------------------------------------------- Stake your Bitcoin on Starknet through Endur.fi to earn STRK staking rewards. For example, stake tBTC to receive xtBTC in return. Multiply the xtBTC against tBTC, increasing your exposure and boosting your yield. Because the assets are expected to move closely together, this strategy carries lower liquidation risk while still stacking staking rewards. Claim and Supported Assets[​](https://docs.vesu.xyz/blog/tags/announcement#claim-and-supported-assets "Direct link to Claim and Supported Assets") --------------------------------------------------------------------------------------------------------------------------------------------------- Rewards are based on real usage. Borrowing earns rewards according to interest paid. Supplying BTC also qualifies, provided it’s non-recursive. They’re distributed weekly and become claimable every Friday (or anytime after that). **The following assets are eligible for BTCFi rewards:** Lending: wBTC, tBTC, LBTC, SolvBTC Borrowing: USDC, USDT, CASH More assets and ways to earn will be added as BTCFi Season continues. Vesu V2: Making DeFi simpler[​](https://docs.vesu.xyz/blog/tags/announcement#vesu-v2-making-defi-simpler "Direct link to Vesu V2: Making DeFi simpler") -------------------------------------------------------------------------------------------------------------------------------------------------------- Vesu V2 takes everything learned from V1 and builds an even stronger foundation for DeFi on Starknet. * **Modern UX:** A clean, fast interface makes it easier to find the right opportunity * **Simplified Contracts:** Each pool now runs on its own isolated contract, improving security, reducing complexity, and lowering gas costs * **Vaults:** simply deposit to the vault to enjoy complex yield strategies on autopilot, enforced fully on-chain * **Security first:** Multiple audits; $100K Immunefi bug bounty and new features like onchain monitoring by Hypernative. ![Position and market view](https://docs.vesu.xyz/assets/images/wBTCUSDC-4bc556a11848196ff7c6377ca510d3fd.png) Vesu V2 strengthens UX and security while unlocking support for new assets and strategies. It is the liquidity hub for BTCFi on Starknet. The Big Picture[​](https://docs.vesu.xyz/blog/tags/announcement#the-big-picture "Direct link to The Big Picture") ------------------------------------------------------------------------------------------------------------------ BTCFi isn’t just a rewards program. It's Bitcoin’s next chapter. Capital comes in through staking, Vesu makes it productive, and users borrow, lend, and spend. This approach rewards real activity, not idle deposits that leave when incentives end. Vesu becomes the bank for your Bitcoin, with liquidity ready to use anywhere. ### Explore Vesu V2 now:[​](https://docs.vesu.xyz/blog/tags/announcement#explore-vesu-v2-now "Direct link to Explore Vesu V2 now:") * [Deposit tBTC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x04daa17763b286d1e59b97c283c0b8c949994c361e426a28f743c67bdfe9a32f/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) into the Re7 USDC Core pool. * [Borrow USDC](https://vesu.xyz/borrow/0x03976cac265a12609934089004df458ea29c776d77da423c96dc761d09d24124/0x036834a40984312f7f7de8d31e3f6305b325389eaeea5b1c0664b2fb936461a4/0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) against your LBTC. * [Multiply xsBTC](https://vesu.xyz/multiply/0x03a8416bf20d036df5b1cf3447630a2e1cb04685f6b0c3a70ed7fb1473548ecf/0x0580f3dc564a7b82f21d40d404b3842d490ae7205e6ac07b1b7af2b4a5183dc9/0x0593e034dda23eea82d2ba9a30960ed42cf4a01502cc2351dc9b9881f9931a68) with solvBTC. * Explore the new Bitcoin [Vaults](https://vesu.xyz/vaults) . * Learn more about V2 in our [docs](https://docs.vesu.xyz/) . ![CarmineDAO Runes pool](https://docs.vesu.xyz/assets/images/CarmineDAO-runes-125cfa0769683d0ead60b6a3e4a72df6.png) New Curator and Asset[​](https://docs.vesu.xyz/blog/tags/announcement#new-curator-and-asset "Direct link to New Curator and Asset") ------------------------------------------------------------------------------------------------------------------------------------ We’re excited to welcome CarmineDAO as a new curator on Vesu. From Carmine Finance to RemusDEX, they’ve helped shape Starknet DeFi from the start. Now, they bring that experience to Vesu by curating the first lending market for DOG, one of the first Bitcoin Runes on Starknet. More may follow. CarmineDAO Runes Pool[​](https://docs.vesu.xyz/blog/tags/announcement#carminedao-runes-pool "Direct link to CarmineDAO Runes Pool") ------------------------------------------------------------------------------------------------------------------------------------ **Collateral**: DOG, ETH, STRK, USDC, WBTC **Borrow**: DOG, ETH, STRK, USDC, WBTC All assets can be used as collateral or borrowed against one another. Whether you’re holding DOG or ETH, WBTC or STRK, you can now unlock liquidity or build custom cross-asset strategies. Collateral remains isolated to your position. No rehypothecation. About the Curator[​](https://docs.vesu.xyz/blog/tags/announcement#about-the-curator "Direct link to About the Curator") ------------------------------------------------------------------------------------------------------------------------ CarmineDAO is a long-standing builder on Starknet. After launching Carmine Finance, they’ve continued to grow the ecosystem with community-led initiatives. One of those is RemusDEX, a fully on-chain Central Limit Order Book (CLOB) DEX built by a small team from within the CarmineDAO community. RemusDEX uses a CLOB model, enabling traders to place limit and market orders with full transparency and control. DOG is the first Bitcoin Rune traded on RemusDEX and is now supported on Vesu through this new lending pool. Explore the Pool[​](https://docs.vesu.xyz/blog/tags/announcement#explore-the-pool "Direct link to Explore the Pool") --------------------------------------------------------------------------------------------------------------------- The CarmineDAO Runes pool is live. You can: * [Supply DOG to the new pool](https://vesu.xyz/lend?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * [Use WBTC as collateral to borrow DOG](https://vesu.xyz/borrow?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * Learn more in the [risk report](https://docs.vesu.xyz/curators/risk-reports/2681185522664180117929158590481443496806090795357786716961716864181408932939/dog) . All pool parameters are available via the [Pools page](https://vesu.xyz/pools) . Questions? Join us on [Discord](https://discord.gg/BV9JrFfG) . --- # Blog | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/page/2#__docusaurus_skipToContent_fallback) ![Earn with STRK](https://docs.vesu.xyz/assets/images/STRK-unlocking-vesu-99238d1c99e7b4d14f3cdd82b2492f60.png) STRK is everywhere on Starknet: held in wallets, staked & supplied in DeFi. But are you using it in the way that fits you best? This post kicks off **Unlocking Vesu**, a new series that dives into strategies on Vesu. No advice, no hand-holding. Just straightforward takes on yield, risk, and what to watch for. Today’s focus is STRK. We present three levels of yield for you. This is your starting point to earn. Level 1: Simple lending[​](https://docs.vesu.xyz/blog/page/2#level-1-simple-lending "Direct link to Level 1: Simple lending") ------------------------------------------------------------------------------------------------------------------------------ **Plug and earn** If you want passive yield with minimal setup: Supply STRK directly to a Vesu pool. You earn lending yield and DeFi Spring rewards. | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Genesis | 4.5% | most liquid pool on Vesu, best to borrow other assets | | Re7 xSTRK | 8.4% | high borrowing demand from Multiply | **Risk:** Like any DeFi lending platform, there are risks around smart contracts, oracles, and pool settings. Vesu reduces these with full audits and curators that are known teams in the Starknet ecosystem. Level 2: Extra rewards with xSTRK[​](https://docs.vesu.xyz/blog/page/2#level-2-extra-rewards-with-xstrk "Direct link to Level 2: Extra rewards with xSTRK") ------------------------------------------------------------------------------------------------------------------------------------------------------------ **Liquid Stake and supply** You want to earn more while staying relatively low risk. Stake STRK via [Endur](https://endur.fi/) to mint xSTRK, then supply it to Vesu. If you want to deposit into the Re7 xSTRK pool you can also use the shortcut via [Stake & Earn](https://vesu.xyz/stake-and-earn) . **What you earn:** * Lending yield * DeFi Spring incentives * Staking rewards via Endur * Endur Points (learn more [here](https://x.com/vesuxyz/status/1932796193085563379) ) | **Pool** | **APY** | **Notes** | | --- | --- | --- | | Re7 xSTRK | 11.6% | biggest xSTRK pool, STRK available to borrow | | Re7 rUSDC | 11.6% | use xSTRK as collateral to borrow rUSDC | tip With **[Stake & Earn](https://vesu.xyz/stake-and-earn) **, you can deposit STRK and supply xSTRK to the Re7 pool in one smooth transaction. **Risk:** Additional risks from liquid staking provider (Endur). Level 3: Max xSTRK exposure[​](https://docs.vesu.xyz/blog/page/2#level-3-max-xstrk-exposure "Direct link to Level 3: Max xSTRK exposure") ------------------------------------------------------------------------------------------------------------------------------------------ **Full send** You want to increase exposure and farm harder. It works like this: Supply xSTRK as collateral → borrow STRK → convert to xSTRK → repeat. But don't worry, Vesu's [Multiply](https://vesu.xyz/multiply) feature does all of this for you in one click. Learn how it works in our [Docs](https://docs.vesu.xyz/users/multiply-basics) . ![Multiply xSTRK](https://docs.vesu.xyz/assets/images/xstrk-multiply-dc66b4d5ae0fcf4a16f53d7c852e9276.png) | **Pool** | **Notes** | | --- | --- | | Re7 xSTRK | Uses the same oracle for STRK and xSTRK. Strong correlation, but not risk-free | **What you earn:** * Boosted staking yield * Boosted Endur Points * Boosted DeFi Spring rewards * Higher organic yield from increased position size **Risk:** If xSTRK depegs from STRK, you can be liquidated. Oracle settings reduces this risk, but it’s not zero. TL;DR[​](https://docs.vesu.xyz/blog/page/2#tldr "Direct link to TL;DR") ------------------------------------------------------------------------ | **Level** | **What you supply** | **What you earn** | **Main risk** | **Pools** | | --- | --- | --- | --- | --- | | 1 | STRK | Organic yield, DeFi Spring rewards | Smart contracts, pool utilization | Genesis, Re7 xSTRK | | 2 | xSTRK | Level 1 + staking rewards, Endur Points | Endur protocol risk | Re7 xSTRK, Re7 rUSDC | | 3 | xSTRK (Multiply) | All of Level 2, multiplied with STRK | Liquidation, xSTRK depeg | Re7 xSTRK | **Which level fits your style?** We’re always curious how people are using Vesu. Drop feedback or questions in [Discord](https://discord.gg/g9ahVeyp) . Or tell us what you’d like to see next in Unlocking Vesu. ![CarmineDAO Runes pool](https://docs.vesu.xyz/assets/images/CarmineDAO-runes-125cfa0769683d0ead60b6a3e4a72df6.png) New Curator and Asset[​](https://docs.vesu.xyz/blog/page/2#new-curator-and-asset "Direct link to New Curator and Asset") ------------------------------------------------------------------------------------------------------------------------- We’re excited to welcome CarmineDAO as a new curator on Vesu. From Carmine Finance to RemusDEX, they’ve helped shape Starknet DeFi from the start. Now, they bring that experience to Vesu by curating the first lending market for DOG, one of the first Bitcoin Runes on Starknet. More may follow. CarmineDAO Runes Pool[​](https://docs.vesu.xyz/blog/page/2#carminedao-runes-pool "Direct link to CarmineDAO Runes Pool") ------------------------------------------------------------------------------------------------------------------------- **Collateral**: DOG, ETH, STRK, USDC, WBTC **Borrow**: DOG, ETH, STRK, USDC, WBTC All assets can be used as collateral or borrowed against one another. Whether you’re holding DOG or ETH, WBTC or STRK, you can now unlock liquidity or build custom cross-asset strategies. Collateral remains isolated to your position. No rehypothecation. About the Curator[​](https://docs.vesu.xyz/blog/page/2#about-the-curator "Direct link to About the Curator") ------------------------------------------------------------------------------------------------------------- CarmineDAO is a long-standing builder on Starknet. After launching Carmine Finance, they’ve continued to grow the ecosystem with community-led initiatives. One of those is RemusDEX, a fully on-chain Central Limit Order Book (CLOB) DEX built by a small team from within the CarmineDAO community. RemusDEX uses a CLOB model, enabling traders to place limit and market orders with full transparency and control. DOG is the first Bitcoin Rune traded on RemusDEX and is now supported on Vesu through this new lending pool. Explore the Pool[​](https://docs.vesu.xyz/blog/page/2#explore-the-pool "Direct link to Explore the Pool") ---------------------------------------------------------------------------------------------------------- The CarmineDAO Runes pool is live. You can: * [Supply DOG to the new pool](https://vesu.xyz/lend?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * [Use WBTC as collateral to borrow DOG](https://vesu.xyz/borrow?form=true&poolId=2681185522664180117929158590481443496806090795357786716961716864181408932939&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x40e81cfeb176bfdbc5047bbc55eb471cfab20a6b221f38d8fda134e1bfffca4) . * Learn more in the [risk report](https://docs.vesu.xyz/curators/risk-reports/2681185522664180117929158590481443496806090795357786716961716864181408932939/dog) . All pool parameters are available via the [Pools page](https://vesu.xyz/pools) . Questions? Join us on [Discord](https://discord.gg/BV9JrFfG) . ![Vesu Migration](https://docs.vesu.xyz/assets/images/migration_success-e7dfabb1ea80d213d981b6cc7fa6e10a.png) **Vesu has successfully completed a planned migration to address a security related disclosure and strengthen the protocol's long-term security.** What this means for you[​](https://docs.vesu.xyz/blog/page/2#what-this-means-for-you "Direct link to What this means for you") ------------------------------------------------------------------------------------------------------------------------------- All funds are safe and positions continue to work as expected, earn interest and DeFi Spring rewards. Update June 9, 2025 Your Earn position will now be automatically migrated the next time you interact with it, such as modifying or withdrawing the position. Your wallet will show an additional Multicall for the vToken migration. Nothing changes in value: your old vTokens are just converted to the new version. Why we migrated[​](https://docs.vesu.xyz/blog/page/2#why-we-migrated "Direct link to Why we migrated") ------------------------------------------------------------------------------------------------------- As protocols grow, so does the complexity of maintaining and securing them. This migration addresses a bug responsibly disclosed through Immunefi and resolved in close collaboration with Chainsecurity, our curators, and wallet partners. User funds are safe, and the fix is now fully implemented through this migration. Vesu continues to operate normally. Thanks to Chainsecurity, Immunefi, and our partners across the Starknet ecosystem for making this transition seamless. Questions? Reach us anytime on [Discord](https://discord.gg/8QeGhHch) . ![Happy Bitcoin Pizza Day](https://docs.vesu.xyz/assets/images/pizza-day-saylor-btcfi-71b6866c166f7531ecdda12953c0da8f.png) **The most expensive pizza ever. And the best case for BTCfi.** You already know the story. In 2010, Laszlo paid 10,000 BTC for two pizzas. One supreme, one cheese. It was the first time anyone bought something physical with Bitcoin. Back then, those 10k BTC were worth about $41. Today? Over $1 billion. It’s crypto history. And if you ask Saylor? The takeaway is simple: **"Never sell your Bitcoin."** ![Saylor Tweet](https://docs.vesu.xyz/assets/images/never-sell-453b2bceb2bba03c47d0835c995be29c.png) Because what if Laszlo had borrowed instead? He could’ve kept the BTC, borrowed a few dollars for lunch, and still had a billion-dollar bag years later. That’s what BTCfi is here for. ![Borrow in Vesu Genesis Pool](https://docs.vesu.xyz/assets/images/borrow-against-btc-d94b8bf5d3723067f71ebf93a30e49c3.png) Bitcoin began as an experiment. A wild idea shared in forums and mined on laptops. Then it became digital gold. Now it’s time to actually use it. Borrow against it. Earn with it. That’s BTCfi. ### BTCfi is live on Starknet[​](https://docs.vesu.xyz/blog/page/2#btcfi-is-live-on-starknet "Direct link to BTCfi is live on Starknet") Here’s what you can already do today: * [Earn 6% APY on your Bitcoin](https://vesu.xyz/lend?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac) * [Borrow USDC at just 0.5% APR against your Bitcoin](https://vesu.xyz/borrow?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) * [Borrow USDC & spend it with your Argent Card](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch/) More opportunities incoming soon. Stay tuned! **This Bitcoin Pizza Day, maybe just borrow for the pizza.** ![Vesu 10-Month Anniversary](https://docs.vesu.xyz/assets/images/10months-1de194d6b315b8aae919f383e32bbfa4.png) We are thrilled to celebrate the 10-month anniversary of Vesu and its initial Genesis pool. Over the past ten months, Vesu has grown to become Starknet's largest lending market. The Genesis pool, the first and largest lending pool, stands as a testament to our commitment to innovation, user experience, and security. ### A Journey of Growth and Innovation[​](https://docs.vesu.xyz/blog/page/2#a-journey-of-growth-and-innovation "Direct link to A Journey of Growth and Innovation") Since its inception, Vesu has operated autonomously, governed solely by math and code, without reliance on third-party interventions. This approach aligns perfectly with Starknet's ZKP-powered technology, ensuring a trustless and efficient lending environment. On that journey, we have achieved significant milestones including the following; 🏆 Grow to the largest lending market on Starknet 🛡️ Onboard best-in-class pool curators like Re7 Labs 👛 Native wallet integration with Argent and Braavos ✨ Enable new products like Braavos' Bitcoin Earn ✅ Securely navigate various market crashes We invite everyone to track and verify Vesu's progress for which we have built an extensive Dune dashboard that you can find [here](https://dune.com/vesu/vesu) . ![TVL by assets](https://docs.vesu.xyz/assets/images/Vesu-tvl-by-asset-106b7382733bb9816b954ae5d708f067.png) _Vesu TVL breakdown by asset, as shown on Dune._ ### Evolving with the Ecosystem[​](https://docs.vesu.xyz/blog/page/2#evolving-with-the-ecosystem "Direct link to Evolving with the Ecosystem") As the Starknet ecosystem matures, we recognize the need to make few adjustments to the Genesis pool configuration, the first in its 10-months existence. These updates aim at reflecting the increased liquidity, availability of proven liquidation bots, and overall confidence in Vesu's robust design: 1. **Minimal Loan Amounts**: Reduce the minimal loan amounts in the Genesis pool to $10, making lending more accessible to a broader range of users. 2. **Liquidation Loan-to-Value (LLTV)**: Increase the LLTV ratios on certain lending pairs where Starknet liquidity has increased to improve capital efficiency. Find the details in this [sheet](https://docs.google.com/spreadsheets/d/1C9FzJscdDvfEa1Vf1Yzqp_NHswezpQFTBJE5S52DmOc/edit?gid=1410152640#gid=1410152640) . 3. **Interest Rate Curve**: Increase rate halving to 5 days (reduce the autonomous curve adjustment speed) and the minimal 100%-utilization rate to 5% improving market efficiency and UX for both lenders and borrowers. Read more on Vesu's adaptive curve design [here](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . ### What You Need to Do[​](https://docs.vesu.xyz/blog/page/2#what-you-need-to-do "Direct link to What You Need to Do") No action is required from your side. These updates do not have an immediate impact on your existing positions in Vesu's Genesis pool. However, you may observe elevated market activity as users take advantage of the new configurations such as the lower loan amount requirements or increased LLTVs, resulting in a change in Supply and Borrow APRs. With these conservative changes, the Genesis pool stays the core of lending on Starknet. Trusted for its stability and liquidity, the pool is now ready to support the next 10 months of growth. If you have any questions, please reach out on the Vesu [Discord](https://discord.gg/G9Gxgujj8T) or [Telegram](https://t.me/VesuChat) . ### Stay Tuned[​](https://docs.vesu.xyz/blog/page/2#stay-tuned "Direct link to Stay Tuned") It has been an incredible first 10-months on this journey and that is mostly thanks to the trust our users and partners put into Vesu. We are even more excited for the next months as we continue to push the boundaries of DeFi and build a future where BTC becomes a productive asset you can earn with, use in DeFi and build on. 🧡 ![Welcome rUSDC on Starknet](https://docs.vesu.xyz/assets/images/rUSDC-on-Starknet-d9c868512c4c99b079527c146f0f1c38.png) Starknet is growing—more assets, more players, more opportunities. rUSDC, a stablecoin by Relend Network, has now a new home in the Re7 rUSDC pool on Vesu. Curated by Re7 Labs and seeded with $15m from Relend Network, this pool expands borrowing and lending opportunities while making capital more efficient. Let’s take a look at what this new pool brings. Re7 rUSDC Pool[​](https://docs.vesu.xyz/blog/page/2#re7-rusdc-pool "Direct link to Re7 rUSDC Pool") ---------------------------------------------------------------------------------------------------- **Borrow:** rUSDC **Collateral:** ETH, wstETH, WBTC, USDC, STRK, xSTRK This pool lets users borrow rUSDC against key assets. Users can keep assets like wstETH or xSTRK working while unlocking fresh liquidity to use as they like. To bootstrap the new pool, Re7 Labs has set debt caps to manage liquidity and risk, ensuring a secure launch with room to scale. The initial limit is 500k rUSDC per asset (100k rUSDC for WBTC), with potential adjustments as the pool grows. All parameters of the new pool can be accessed via the [Pools page](https://vesu.xyz/pools) . info rUSDC is a CDP-based stablecoin issued by Relend Network. It is backed by USDC and lending market collateral, designed to provide scalable and stable liquidity across L2s. rUSDC can be redeemed 1:1 for USDC on Ethereum mainnet. Learn more in the [Relend Docs](https://docs.relend.network/) . Discover the New Pools & the Curator[​](https://docs.vesu.xyz/blog/page/2#discover-the-new-pools--the-curator "Direct link to Discover the New Pools & the Curator") --------------------------------------------------------------------------------------------------------------------------------------------------------------------- With the new pool you can now: * [Supply wstETH and borrow rUSDC against it.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) * [Supply xSTRK as collateral and borrow rUSDC.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) Learn more about Re7 Labs and their previously launched pools: * [Re7 Labs Comes to Starknet](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7) * [New Pools by Re7 Labs](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7) Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . ![Welcome Argent Metal](https://docs.vesu.xyz/assets/images/Argent_card_v2-64d1ee096c07cdbdb0bbffb226ee696c.png) Update June 24, 2025 Argent has rebranded to **Ready**, with a renewed mission to bring crypto to the mainstream. Read more in their [announcement](https://www.ready.co/blog/argent-is-now-ready) . Argent has just launched **Argent Metal**, a self-custodial crypto card that makes spending USDC effortless anywhere Mastercard is accepted. Unlike other crypto cards that require preloading or custodial accounts, Argent Metal lets users **spend directly from their wallet** while maintaining full ownership of their assets. ### Why Argent Metal?[​](https://docs.vesu.xyz/blog/page/2#why-argent-metal "Direct link to Why Argent Metal?") * No FX fees (1 USD = 1 USDC) * Earn cashback rewards. Up to $1,800 in the first year. * Exclusive perks and benefits. * Full self-custody. Funds stay in your control until spent. Argent Metal isn’t just powerful, it looks good too. Choose your 16g metal card in Gold or Platinum. ![Argent Card now available!](https://docs.vesu.xyz/assets/images/Card-press-02_blog-401d4e13d8856f9d5a21b3405f38ee94.png) Power to DeFi with Vesu[​](https://docs.vesu.xyz/blog/page/2#power-to-defi-with-vesu "Direct link to Power to DeFi with Vesu") ------------------------------------------------------------------------------------------------------------------------------- Argent Metal gives you full control over your assets. With Vesu, you can take it even further and access true financial freedom: * Earn yield on your idle USDC. Let your assets work for you. * Borrow USDC against your holdings (ETH, BTC, etc.) to access liquidity without selling. * Compound cashback rewards to maximize returns. Easily accessible via [vesu.xyz](https://vesu.xyz/) or directly in the Argent Wallet’s Invest tab, delivering a true Web2-like experience. ![Vesu integration into Argent Invest](https://docs.vesu.xyz/assets/images/argent_invest_blog-0f6c770da4d0b3cdf284aae065ede64f.png) Get Started[​](https://docs.vesu.xyz/blog/page/2#get-started "Direct link to Get Started") ------------------------------------------------------------------------------------------- * **Sign up for Argent Metal**: [argent.xyz/metal-card](https://www.argent.xyz/metal-card) * **Explore Vesu for top borrowing and yield opportunities**: [vesu.xyz/markets](https://vesu.xyz/markets) The way you spend crypto just changed. Keep control, keep earning, and unlock true financial freedom. ![Welcome BTCfi to Vesu](https://docs.vesu.xyz/assets/images/unlock-bitcoin-on-vesu-a3d56ead0bd84efce2ccfce7aa33d29b.png) Bitcoin is the most secure and decentralized asset, yet most BTC sits idle or locked in centralized platforms. Starknet changes that by introducing scalable, trustless, and programmable Bitcoin finance. Secured by STARK proofs. It’s time for Bitcoin to go beyond HODLing. Welcome to BTCfi. What Vesu Has to Offer[​](https://docs.vesu.xyz/blog/page/2#what-vesu-has-to-offer "Direct link to What Vesu Has to Offer") ---------------------------------------------------------------------------------------------------------------------------- Bitcoin’s liquidity is trapped—held on exchanges, locked in custodial solutions, or simply collecting digital dust. The problem? No native DeFi, high fees, and security risks. **With Starknet scaling Bitcoin, Vesu enables Bitcoiners to:** * Earn yield on BTC by putting your Bitcoin to work while HODLing. * Borrow with BTC to access liquidity without selling. * Multiply BTC to increase exposure and maximize yield. **All while benefiting from:** * Low fees, keeping more of your BTC instead of losing it to transaction costs. * A frictionless experience\*\* thanks to smart wallets like [Ready](https://www.ready.co/) . * Full self-custody, eliminating reliance on centralized entities or third parties. * Proven security\*\* with every line of Vesu’s smart contract code audited. What This Means for Starknet & Vesu[​](https://docs.vesu.xyz/blog/page/2#what-this-means-for-starknet--vesu "Direct link to What This Means for Starknet & Vesu") ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Bringing Bitcoin to Starknet is the next logical step: * Bitcoin’s market cap dwarfs existing DeFi TVL. Unlocking BTC liquidity brings new users, strengthens network effects, and expands DeFi on Starknet. * More liquidity strengthens lending markets.\*\* Better rates, deeper composability, and new integrations follow. * New Bitcoin-native DeFi primitives are possible. Vesu has the infrastructure ready. * STARK proofs provide the security Bitcoin needs. BTC moves on-chain without intermediaries. Both Starknet and Vesu offer scalable, trustless finance, powered by math and cryptography. Together, we bring native BTCfi to Bitcoiners. What’s Next? The Future of BTCfi[​](https://docs.vesu.xyz/blog/page/2#whats-next-the-future-of-btcfi "Direct link to What’s Next? The Future of BTCfi") -------------------------------------------------------------------------------------------------------------------------------------------------------- Scaling **native BTCfi** is a long-term roadmap, with **OP\_CAT** as a key upgrade to enable smart contract functionality on Bitcoin. But we don’t wait for OP\_CAT. In the meantime, we’re bringing Bitcoiners into BTCfi by: * Bootstrapping BTC liquidity through bridged BTC, restaked BTC, and BTC derivatives. * Enabling BTC lending strategies tailored specifically for Bitcoiners. * Maintaining strong security on Vesu to give Bitcoiners peace of mind when using BTCfi. **This isn’t just an experiment. The future of BTCfi starts now.** ![New Curator on Vesu](https://docs.vesu.xyz/assets/images/AlterscopeXvesu-3f5d3a2ab61493158ab4891e5ae20eac.png) We’re thrilled to welcome Alterscope as a new curator on Vesu! Alterscope is known for its expertise in risk management and data-driven analytics, shaping secure and efficient DeFi markets. Now, they’re bringing their experience to Starknet with a set of new curated pools—introducing new assets and expanding opportunities for DeFi users. Let’s check them out! Alterscope CASH Pool[​](https://docs.vesu.xyz/blog/page/2#alterscope-cash-pool "Direct link to Alterscope CASH Pool") ---------------------------------------------------------------------------------------------------------------------- **Collateral:** ETH, STRK, USDC, USDT, WBTC **Borrow:** CASH This pool introduces the CASH stablecoin to Vesu, unlocking a new way to borrow against key assets. Users can keep assets like ETH or USDC working while unlocking fresh liquidity in CASH to use as they like. info CASH is an overcollateralized stablecoin issued by Opus. Learn more in the [Opus Docs](https://docs.opus.money/) . Alterscope wstETH Pool[​](https://docs.vesu.xyz/blog/page/2#alterscope-wsteth-pool "Direct link to Alterscope wstETH Pool") ---------------------------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** STRK, ETH, WBTC, USDC, USDT This pool lets wstETH holders borrow assets or multiply their exposure—all while still earning staking rewards and DeFi Spring incentives. Alterscope xSTRK Pool[​](https://docs.vesu.xyz/blog/page/2#alterscope-xstrk-pool "Direct link to Alterscope xSTRK Pool") ------------------------------------------------------------------------------------------------------------------------- **Collateral:** xSTRK **Borrow:** STRK, ETH, WBTC, USDC, USDT This pool enables borrowing against Endur’s xSTRK, a liquid staking token for STRK. Depositors receive staking and DeFi Spring rewards while being able to borrow other key assets. Alterscope Cornerstone Pool[​](https://docs.vesu.xyz/blog/page/2#alterscope-cornerstone-pool "Direct link to Alterscope Cornerstone Pool") ------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** STRK, ETH, WBTC, USDC, USDT **Borrow:** STRK, ETH, WBTC, USDC, USDT A broader lending market for multiple assets, designed for diverse borrowing and lending strategies. Optimized loan-to-value (LTV) and utilization settings make this pool highly capital-efficient. note The same asset provided as collateral cannot be borrowed, ensuring stability and minimizing risk. Discover the New Pools[​](https://docs.vesu.xyz/blog/page/2#discover-the-new-pools "Direct link to Discover the New Pools") ---------------------------------------------------------------------------------------------------------------------------- Alterscope’s curated pools offer new ways to optimize your assets—unlock liquidity, multiply exposure, or maximize staking rewards. Here are a few: * [Borrow CASH against USDC](https://vesu.xyz/borrow?form=true&poolId=3496574735728882918499284446337009546448797063742922299223215375275805529443&collateralAddress=0x53c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8&debtAddress=0x498edfaf50ca5855666a700c25dd629d577eb9afccdf3b5977aec79aee55ada) to access liquidity while earning with your USDC. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2612229586214495842527551768232431476062656055007024497123940017576986139174&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost your ETH exposure. * [Deposit xSTRK to borrow fresh liquidity](https://vesu.xyz/borrow?form=true&poolId=1129317009595740662798266590704690378283717359139782594834794341553978002262&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a) while receiving staking & STRK rewards for xSTRK. note These pools are new and may need more liquidity to become fully active. If borrowing or multiplying isn’t available yet, start by depositing to help bootstrap liquidity. All parameters of the new pools can be accessed via the [Pools page](https://vesu.xyz/pools) . Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . ![New Pools by Re7 Labs](https://docs.vesu.xyz/assets/images/re7-new-pools-blog-890a7061998a667109ff88a11a94effb.png) Big update! Two new pools, curated by Re7 Labs, are now live—offering fresh opportunities for earning, borrowing, and optimizing capital efficiency. And there’s more—DeFi Spring rewards for wstETH start today, Feb 6, 2025, giving an extra boost to yield opportunities in one of the pools! Re7 Labs, known for their expertise as a leading risk curator, first launched their curated pools on Vesu in November. Learn more in our previous [Blog post](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7/) . Now, let’s take a closer look at what these new pools offer. Re7 Starknet Ecosystem Pool[​](https://docs.vesu.xyz/blog/page/2#re7-starknet-ecosystem-pool "Direct link to Re7 Starknet Ecosystem Pool") ------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** EKUBO, STRK **Borrow:** USDC This is the first pool on Vesu where EKUBO can be used as collateral—a long-requested feature. It introduces a new way for EKUBO holders to access liquidity. To ensure a controlled launch, Re7 Labs has set an initial debt cap of 9,000 USDC for the EKUBO-USDC pair and 2M USDC for the STRK-USDC pair. The curator can adjust this pool as needed—raising the debt cap or adding more tokens from the Starknet ecosystem, ensuring it remains aligned with market needs and long-term stability. Re7 wstETH Pool[​](https://docs.vesu.xyz/blog/page/2#re7-wsteth-pool "Direct link to Re7 wstETH Pool") ------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** ETH The pool is designed to maximize wstETH exposure with Vesu’s Multiply feature, allowing users to boost yield by capturing both staking rewards and the DeFi Spring rewards starting today. info While strongly correlated, ETH and wstETH prices (and the Pragma price feeds) can deviate in particular in a stressed market environment. Users are responsible for ensuring enough buffer in their position to account for price differences between the two tokens on Starknet. The Strengths of Vesu’s Infrastructure[​](https://docs.vesu.xyz/blog/page/2#the-strengths-of-vesus-infrastructure "Direct link to The Strengths of Vesu’s Infrastructure") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Both pools leverage Vesu’s fully customizable lending architecture, allowing the curator to design pools that adapt to evolving market needs. Debt caps can be adjusted based on demand to keep the pools balanced and secure. The parameters of each pool can be accessed via the [Pools page](https://vesu.xyz/pools) . Since Vesu’s pools are isolated, risks stay within each pool without affecting others. This keeps borrowing and lending safer, even as more assets are added. Discover the New Pools[​](https://docs.vesu.xyz/blog/page/2#discover-the-new-pools "Direct link to Discover the New Pools") ---------------------------------------------------------------------------------------------------------------------------- * [Borrow USDC against EKUBO](https://vesu.xyz/borrow?form=true&poolId=3163948199181372152800322058764275087686391083665033264234338943786798617741&collateralAddress=0x075afe6402ad5a5c20dd25e10ec3b3986acaa647b77e4ae24b0cbc9a54a27a87) and unlock liquidity without selling. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2535243615249328221060622268479728814680175138265908305094759253778126318519&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost exposure & maximize rewards. Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . --- # 29 posts tagged with "Announcement" | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags/announcement/page/2#__docusaurus_skipToContent_fallback) ![Vesu Migration](https://docs.vesu.xyz/assets/images/migration_success-e7dfabb1ea80d213d981b6cc7fa6e10a.png) **Vesu has successfully completed a planned migration to address a security related disclosure and strengthen the protocol's long-term security.** What this means for you[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#what-this-means-for-you "Direct link to What this means for you") ------------------------------------------------------------------------------------------------------------------------------------------------- All funds are safe and positions continue to work as expected, earn interest and DeFi Spring rewards. Update June 9, 2025 Your Earn position will now be automatically migrated the next time you interact with it, such as modifying or withdrawing the position. Your wallet will show an additional Multicall for the vToken migration. Nothing changes in value: your old vTokens are just converted to the new version. Why we migrated[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#why-we-migrated "Direct link to Why we migrated") ------------------------------------------------------------------------------------------------------------------------- As protocols grow, so does the complexity of maintaining and securing them. This migration addresses a bug responsibly disclosed through Immunefi and resolved in close collaboration with Chainsecurity, our curators, and wallet partners. User funds are safe, and the fix is now fully implemented through this migration. Vesu continues to operate normally. Thanks to Chainsecurity, Immunefi, and our partners across the Starknet ecosystem for making this transition seamless. Questions? Reach us anytime on [Discord](https://discord.gg/8QeGhHch) . ![Happy Bitcoin Pizza Day](https://docs.vesu.xyz/assets/images/pizza-day-saylor-btcfi-71b6866c166f7531ecdda12953c0da8f.png) **The most expensive pizza ever. And the best case for BTCfi.** You already know the story. In 2010, Laszlo paid 10,000 BTC for two pizzas. One supreme, one cheese. It was the first time anyone bought something physical with Bitcoin. Back then, those 10k BTC were worth about $41. Today? Over $1 billion. It’s crypto history. And if you ask Saylor? The takeaway is simple: **"Never sell your Bitcoin."** ![Saylor Tweet](https://docs.vesu.xyz/assets/images/never-sell-453b2bceb2bba03c47d0835c995be29c.png) Because what if Laszlo had borrowed instead? He could’ve kept the BTC, borrowed a few dollars for lunch, and still had a billion-dollar bag years later. That’s what BTCfi is here for. ![Borrow in Vesu Genesis Pool](https://docs.vesu.xyz/assets/images/borrow-against-btc-d94b8bf5d3723067f71ebf93a30e49c3.png) Bitcoin began as an experiment. A wild idea shared in forums and mined on laptops. Then it became digital gold. Now it’s time to actually use it. Borrow against it. Earn with it. That’s BTCfi. ### BTCfi is live on Starknet[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#btcfi-is-live-on-starknet "Direct link to BTCfi is live on Starknet") Here’s what you can already do today: * [Earn 6% APY on your Bitcoin](https://vesu.xyz/lend?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac) * [Borrow USDC at just 0.5% APR against your Bitcoin](https://vesu.xyz/borrow?form=true&poolId=2198503327643286920898110335698706244522220458610657370981979460625005526824&collateralAddress=0x03fe2b97c1fd336e750087d68b9b867997fd64a2661ff3ca5a7c771641e8e7ac&debtAddress=0x053c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8) * [Borrow USDC & spend it with your Argent Card](https://docs.vesu.xyz/blog/2025-03-18-argent-metal-launch/) More opportunities incoming soon. Stay tuned! **This Bitcoin Pizza Day, maybe just borrow for the pizza.** ![Vesu 10-Month Anniversary](https://docs.vesu.xyz/assets/images/10months-1de194d6b315b8aae919f383e32bbfa4.png) We are thrilled to celebrate the 10-month anniversary of Vesu and its initial Genesis pool. Over the past ten months, Vesu has grown to become Starknet's largest lending market. The Genesis pool, the first and largest lending pool, stands as a testament to our commitment to innovation, user experience, and security. ### A Journey of Growth and Innovation[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#a-journey-of-growth-and-innovation "Direct link to A Journey of Growth and Innovation") Since its inception, Vesu has operated autonomously, governed solely by math and code, without reliance on third-party interventions. This approach aligns perfectly with Starknet's ZKP-powered technology, ensuring a trustless and efficient lending environment. On that journey, we have achieved significant milestones including the following; 🏆 Grow to the largest lending market on Starknet 🛡️ Onboard best-in-class pool curators like Re7 Labs 👛 Native wallet integration with Argent and Braavos ✨ Enable new products like Braavos' Bitcoin Earn ✅ Securely navigate various market crashes We invite everyone to track and verify Vesu's progress for which we have built an extensive Dune dashboard that you can find [here](https://dune.com/vesu/vesu) . ![TVL by assets](https://docs.vesu.xyz/assets/images/Vesu-tvl-by-asset-106b7382733bb9816b954ae5d708f067.png) _Vesu TVL breakdown by asset, as shown on Dune._ ### Evolving with the Ecosystem[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#evolving-with-the-ecosystem "Direct link to Evolving with the Ecosystem") As the Starknet ecosystem matures, we recognize the need to make few adjustments to the Genesis pool configuration, the first in its 10-months existence. These updates aim at reflecting the increased liquidity, availability of proven liquidation bots, and overall confidence in Vesu's robust design: 1. **Minimal Loan Amounts**: Reduce the minimal loan amounts in the Genesis pool to $10, making lending more accessible to a broader range of users. 2. **Liquidation Loan-to-Value (LLTV)**: Increase the LLTV ratios on certain lending pairs where Starknet liquidity has increased to improve capital efficiency. Find the details in this [sheet](https://docs.google.com/spreadsheets/d/1C9FzJscdDvfEa1Vf1Yzqp_NHswezpQFTBJE5S52DmOc/edit?gid=1410152640#gid=1410152640) . 3. **Interest Rate Curve**: Increase rate halving to 5 days (reduce the autonomous curve adjustment speed) and the minimal 100%-utilization rate to 5% improving market efficiency and UX for both lenders and borrowers. Read more on Vesu's adaptive curve design [here](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . ### What You Need to Do[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#what-you-need-to-do "Direct link to What You Need to Do") No action is required from your side. These updates do not have an immediate impact on your existing positions in Vesu's Genesis pool. However, you may observe elevated market activity as users take advantage of the new configurations such as the lower loan amount requirements or increased LLTVs, resulting in a change in Supply and Borrow APRs. With these conservative changes, the Genesis pool stays the core of lending on Starknet. Trusted for its stability and liquidity, the pool is now ready to support the next 10 months of growth. If you have any questions, please reach out on the Vesu [Discord](https://discord.gg/G9Gxgujj8T) or [Telegram](https://t.me/VesuChat) . ### Stay Tuned[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#stay-tuned "Direct link to Stay Tuned") It has been an incredible first 10-months on this journey and that is mostly thanks to the trust our users and partners put into Vesu. We are even more excited for the next months as we continue to push the boundaries of DeFi and build a future where BTC becomes a productive asset you can earn with, use in DeFi and build on. 🧡 ![Welcome rUSDC on Starknet](https://docs.vesu.xyz/assets/images/rUSDC-on-Starknet-d9c868512c4c99b079527c146f0f1c38.png) Starknet is growing—more assets, more players, more opportunities. rUSDC, a stablecoin by Relend Network, has now a new home in the Re7 rUSDC pool on Vesu. Curated by Re7 Labs and seeded with $15m from Relend Network, this pool expands borrowing and lending opportunities while making capital more efficient. Let’s take a look at what this new pool brings. Re7 rUSDC Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#re7-rusdc-pool "Direct link to Re7 rUSDC Pool") ---------------------------------------------------------------------------------------------------------------------- **Borrow:** rUSDC **Collateral:** ETH, wstETH, WBTC, USDC, STRK, xSTRK This pool lets users borrow rUSDC against key assets. Users can keep assets like wstETH or xSTRK working while unlocking fresh liquidity to use as they like. To bootstrap the new pool, Re7 Labs has set debt caps to manage liquidity and risk, ensuring a secure launch with room to scale. The initial limit is 500k rUSDC per asset (100k rUSDC for WBTC), with potential adjustments as the pool grows. All parameters of the new pool can be accessed via the [Pools page](https://vesu.xyz/pools) . info rUSDC is a CDP-based stablecoin issued by Relend Network. It is backed by USDC and lending market collateral, designed to provide scalable and stable liquidity across L2s. rUSDC can be redeemed 1:1 for USDC on Ethereum mainnet. Learn more in the [Relend Docs](https://docs.relend.network/) . Discover the New Pools & the Curator[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#discover-the-new-pools--the-curator "Direct link to Discover the New Pools & the Curator") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- With the new pool you can now: * [Supply wstETH and borrow rUSDC against it.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) * [Supply xSTRK as collateral and borrow rUSDC.](https://vesu.xyz/borrow?form=true&poolId=1749206066145585665304376624725901901307432885480056836110792804696449290137&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a&debtAddress=0x02019e47a0bc54ea6b4853c6123ffc8158ea3ae2af4166928b0de6e89f06de6c) Learn more about Re7 Labs and their previously launched pools: * [Re7 Labs Comes to Starknet](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7) * [New Pools by Re7 Labs](https://docs.vesu.xyz/blog/2025-02-06-new-pools-by-re7) Got feedback? Let us know on [X](https://x.com/vesuxyz) or [Discord](https://discord.com/invite/G9Gxgujj8T) . ![Welcome Argent Metal](https://docs.vesu.xyz/assets/images/Argent_card_v2-64d1ee096c07cdbdb0bbffb226ee696c.png) Update June 24, 2025 Argent has rebranded to **Ready**, with a renewed mission to bring crypto to the mainstream. Read more in their [announcement](https://www.ready.co/blog/argent-is-now-ready) . Argent has just launched **Argent Metal**, a self-custodial crypto card that makes spending USDC effortless anywhere Mastercard is accepted. Unlike other crypto cards that require preloading or custodial accounts, Argent Metal lets users **spend directly from their wallet** while maintaining full ownership of their assets. ### Why Argent Metal?[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#why-argent-metal "Direct link to Why Argent Metal?") * No FX fees (1 USD = 1 USDC) * Earn cashback rewards. Up to $1,800 in the first year. * Exclusive perks and benefits. * Full self-custody. Funds stay in your control until spent. Argent Metal isn’t just powerful, it looks good too. Choose your 16g metal card in Gold or Platinum. ![Argent Card now available!](https://docs.vesu.xyz/assets/images/Card-press-02_blog-401d4e13d8856f9d5a21b3405f38ee94.png) Power to DeFi with Vesu[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#power-to-defi-with-vesu "Direct link to Power to DeFi with Vesu") ------------------------------------------------------------------------------------------------------------------------------------------------- Argent Metal gives you full control over your assets. With Vesu, you can take it even further and access true financial freedom: * Earn yield on your idle USDC. Let your assets work for you. * Borrow USDC against your holdings (ETH, BTC, etc.) to access liquidity without selling. * Compound cashback rewards to maximize returns. Easily accessible via [vesu.xyz](https://vesu.xyz/) or directly in the Argent Wallet’s Invest tab, delivering a true Web2-like experience. ![Vesu integration into Argent Invest](https://docs.vesu.xyz/assets/images/argent_invest_blog-0f6c770da4d0b3cdf284aae065ede64f.png) Get Started[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#get-started "Direct link to Get Started") ------------------------------------------------------------------------------------------------------------- * **Sign up for Argent Metal**: [argent.xyz/metal-card](https://www.argent.xyz/metal-card) * **Explore Vesu for top borrowing and yield opportunities**: [vesu.xyz/markets](https://vesu.xyz/markets) The way you spend crypto just changed. Keep control, keep earning, and unlock true financial freedom. ![Welcome BTCfi to Vesu](https://docs.vesu.xyz/assets/images/unlock-bitcoin-on-vesu-a3d56ead0bd84efce2ccfce7aa33d29b.png) Bitcoin is the most secure and decentralized asset, yet most BTC sits idle or locked in centralized platforms. Starknet changes that by introducing scalable, trustless, and programmable Bitcoin finance. Secured by STARK proofs. It’s time for Bitcoin to go beyond HODLing. Welcome to BTCfi. What Vesu Has to Offer[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#what-vesu-has-to-offer "Direct link to What Vesu Has to Offer") ---------------------------------------------------------------------------------------------------------------------------------------------- Bitcoin’s liquidity is trapped—held on exchanges, locked in custodial solutions, or simply collecting digital dust. The problem? No native DeFi, high fees, and security risks. **With Starknet scaling Bitcoin, Vesu enables Bitcoiners to:** * Earn yield on BTC by putting your Bitcoin to work while HODLing. * Borrow with BTC to access liquidity without selling. * Multiply BTC to increase exposure and maximize yield. **All while benefiting from:** * Low fees, keeping more of your BTC instead of losing it to transaction costs. * A frictionless experience\*\* thanks to smart wallets like [Ready](https://www.ready.co/) . * Full self-custody, eliminating reliance on centralized entities or third parties. * Proven security\*\* with every line of Vesu’s smart contract code audited. What This Means for Starknet & Vesu[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#what-this-means-for-starknet--vesu "Direct link to What This Means for Starknet & Vesu") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Bringing Bitcoin to Starknet is the next logical step: * Bitcoin’s market cap dwarfs existing DeFi TVL. Unlocking BTC liquidity brings new users, strengthens network effects, and expands DeFi on Starknet. * More liquidity strengthens lending markets.\*\* Better rates, deeper composability, and new integrations follow. * New Bitcoin-native DeFi primitives are possible. Vesu has the infrastructure ready. * STARK proofs provide the security Bitcoin needs. BTC moves on-chain without intermediaries. Both Starknet and Vesu offer scalable, trustless finance, powered by math and cryptography. Together, we bring native BTCfi to Bitcoiners. What’s Next? The Future of BTCfi[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#whats-next-the-future-of-btcfi "Direct link to What’s Next? The Future of BTCfi") -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Scaling **native BTCfi** is a long-term roadmap, with **OP\_CAT** as a key upgrade to enable smart contract functionality on Bitcoin. But we don’t wait for OP\_CAT. In the meantime, we’re bringing Bitcoiners into BTCfi by: * Bootstrapping BTC liquidity through bridged BTC, restaked BTC, and BTC derivatives. * Enabling BTC lending strategies tailored specifically for Bitcoiners. * Maintaining strong security on Vesu to give Bitcoiners peace of mind when using BTCfi. **This isn’t just an experiment. The future of BTCfi starts now.** ![New Curator on Vesu](https://docs.vesu.xyz/assets/images/AlterscopeXvesu-3f5d3a2ab61493158ab4891e5ae20eac.png) We’re thrilled to welcome Alterscope as a new curator on Vesu! Alterscope is known for its expertise in risk management and data-driven analytics, shaping secure and efficient DeFi markets. Now, they’re bringing their experience to Starknet with a set of new curated pools—introducing new assets and expanding opportunities for DeFi users. Let’s check them out! Alterscope CASH Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#alterscope-cash-pool "Direct link to Alterscope CASH Pool") ---------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** ETH, STRK, USDC, USDT, WBTC **Borrow:** CASH This pool introduces the CASH stablecoin to Vesu, unlocking a new way to borrow against key assets. Users can keep assets like ETH or USDC working while unlocking fresh liquidity in CASH to use as they like. info CASH is an overcollateralized stablecoin issued by Opus. Learn more in the [Opus Docs](https://docs.opus.money/) . Alterscope wstETH Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#alterscope-wsteth-pool "Direct link to Alterscope wstETH Pool") ---------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** STRK, ETH, WBTC, USDC, USDT This pool lets wstETH holders borrow assets or multiply their exposure—all while still earning staking rewards and DeFi Spring incentives. Alterscope xSTRK Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#alterscope-xstrk-pool "Direct link to Alterscope xSTRK Pool") ------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** xSTRK **Borrow:** STRK, ETH, WBTC, USDC, USDT This pool enables borrowing against Endur’s xSTRK, a liquid staking token for STRK. Depositors receive staking and DeFi Spring rewards while being able to borrow other key assets. Alterscope Cornerstone Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#alterscope-cornerstone-pool "Direct link to Alterscope Cornerstone Pool") ------------------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** STRK, ETH, WBTC, USDC, USDT **Borrow:** STRK, ETH, WBTC, USDC, USDT A broader lending market for multiple assets, designed for diverse borrowing and lending strategies. Optimized loan-to-value (LTV) and utilization settings make this pool highly capital-efficient. note The same asset provided as collateral cannot be borrowed, ensuring stability and minimizing risk. Discover the New Pools[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#discover-the-new-pools "Direct link to Discover the New Pools") ---------------------------------------------------------------------------------------------------------------------------------------------- Alterscope’s curated pools offer new ways to optimize your assets—unlock liquidity, multiply exposure, or maximize staking rewards. Here are a few: * [Borrow CASH against USDC](https://vesu.xyz/borrow?form=true&poolId=3496574735728882918499284446337009546448797063742922299223215375275805529443&collateralAddress=0x53c91253bc9682c04929ca02ed00b3e423f6710d2ee7e0d5ebb06f3ecf368a8&debtAddress=0x498edfaf50ca5855666a700c25dd629d577eb9afccdf3b5977aec79aee55ada) to access liquidity while earning with your USDC. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2612229586214495842527551768232431476062656055007024497123940017576986139174&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost your ETH exposure. * [Deposit xSTRK to borrow fresh liquidity](https://vesu.xyz/borrow?form=true&poolId=1129317009595740662798266590704690378283717359139782594834794341553978002262&collateralAddress=0x028d709c875c0ceac3dce7065bec5328186dc89fe254527084d1689910954b0a) while receiving staking & STRK rewards for xSTRK. note These pools are new and may need more liquidity to become fully active. If borrowing or multiplying isn’t available yet, start by depositing to help bootstrap liquidity. All parameters of the new pools can be accessed via the [Pools page](https://vesu.xyz/pools) . Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . ![New Pools by Re7 Labs](https://docs.vesu.xyz/assets/images/re7-new-pools-blog-890a7061998a667109ff88a11a94effb.png) Big update! Two new pools, curated by Re7 Labs, are now live—offering fresh opportunities for earning, borrowing, and optimizing capital efficiency. And there’s more—DeFi Spring rewards for wstETH start today, Feb 6, 2025, giving an extra boost to yield opportunities in one of the pools! Re7 Labs, known for their expertise as a leading risk curator, first launched their curated pools on Vesu in November. Learn more in our previous [Blog post](https://docs.vesu.xyz/blog/2024-11-27-welcome-re7/) . Now, let’s take a closer look at what these new pools offer. Re7 Starknet Ecosystem Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#re7-starknet-ecosystem-pool "Direct link to Re7 Starknet Ecosystem Pool") ------------------------------------------------------------------------------------------------------------------------------------------------------------- **Collateral:** EKUBO, STRK **Borrow:** USDC This is the first pool on Vesu where EKUBO can be used as collateral—a long-requested feature. It introduces a new way for EKUBO holders to access liquidity. To ensure a controlled launch, Re7 Labs has set an initial debt cap of 9,000 USDC for the EKUBO-USDC pair and 2M USDC for the STRK-USDC pair. The curator can adjust this pool as needed—raising the debt cap or adding more tokens from the Starknet ecosystem, ensuring it remains aligned with market needs and long-term stability. Re7 wstETH Pool[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#re7-wsteth-pool "Direct link to Re7 wstETH Pool") ------------------------------------------------------------------------------------------------------------------------- **Collateral:** wstETH **Borrow/Multiply with:** ETH The pool is designed to maximize wstETH exposure with Vesu’s Multiply feature, allowing users to boost yield by capturing both staking rewards and the DeFi Spring rewards starting today. info While strongly correlated, ETH and wstETH prices (and the Pragma price feeds) can deviate in particular in a stressed market environment. Users are responsible for ensuring enough buffer in their position to account for price differences between the two tokens on Starknet. The Strengths of Vesu’s Infrastructure[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#the-strengths-of-vesus-infrastructure "Direct link to The Strengths of Vesu’s Infrastructure") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Both pools leverage Vesu’s fully customizable lending architecture, allowing the curator to design pools that adapt to evolving market needs. Debt caps can be adjusted based on demand to keep the pools balanced and secure. The parameters of each pool can be accessed via the [Pools page](https://vesu.xyz/pools) . Since Vesu’s pools are isolated, risks stay within each pool without affecting others. This keeps borrowing and lending safer, even as more assets are added. Discover the New Pools[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#discover-the-new-pools "Direct link to Discover the New Pools") ---------------------------------------------------------------------------------------------------------------------------------------------- * [Borrow USDC against EKUBO](https://vesu.xyz/borrow?form=true&poolId=3163948199181372152800322058764275087686391083665033264234338943786798617741&collateralAddress=0x075afe6402ad5a5c20dd25e10ec3b3986acaa647b77e4ae24b0cbc9a54a27a87) and unlock liquidity without selling. * [Multiply wstETH](https://vesu.xyz/multiply?poolId=2535243615249328221060622268479728814680175138265908305094759253778126318519&targetAddress=0x0057912720381af14b0e5c87aa4718ed5e527eab60b3801ebf702ab09139e38b&debtAddress=0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7) to boost exposure & maximize rewards. Got feedback? Let us know via [X](https://x.com/vesuxyz) or [Discord](https://discord.gg/kef7VwmG) . ![Vibe with Vesu](https://docs.vesu.xyz/assets/images/zero-to-top3-b05c2609eed2828896956b59d1be8939.png) Reflecting on 2024 Milestones and What’s Next[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#reflecting-on-2024-milestones-and-whats-next "Direct link to Reflecting on 2024 Milestones and What’s Next") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ As we step into 2025, we’re proud to share how far we’ve come. In just six months, Vesu has risen to **3rd in TVL among all Starknet projects!** ![Vesu Protocol Rankings](https://docs.vesu.xyz/assets/images/top3light-68c908fd9a27fb5056d8b8c1b1071381.png) _Protocol Rankings by DeFiLlama (01/14/25)_ This milestone reflects the incredible support and trust from our growing community. Let’s take a moment to celebrate the key achievements of 2024 together. Key Milestones of 2024[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#key-milestones-of-2024 "Direct link to Key Milestones of 2024") ---------------------------------------------------------------------------------------------------------------------------------------------- **Launch Day:** July 10, 2024 – the day it all began! 🥳 **Multiply:** The first feature launched on Vesu—and a Starknet-first! A game-changer for users looking to amplify exposure to their favorite assets. **Pools Page Launch:** Create fully customizable pools and unlock fresh, exciting lending markets. Your pool, your rules. **Re7 Labs as Curator:** Big news for Vesu and Starknet—Re7 Labs, a leading DeFi risk expert, became our first curator. Their xSTRK and sSTRK pools opened up exciting new earning opportunities. **Stake & Earn:** Why complicate things? With Vesu, earning 20% APY with your STRK is a breeze. Staking rewards and DeFi Spring rewards come together in one single step. Stake & earn [now](https://vesu.xyz/stake-and-earn) . 👉 Dive into our [2024 recap on X](https://x.com/vesuxyz/status/1871496693293744317) for more exciting highlights and milestones! Looking Ahead[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#looking-ahead "Direct link to Looking Ahead") ------------------------------------------------------------------------------------------------------------------- 2025 is set to be a big year for Vesu, with a sharp focus on seamless UX, innovation, and security. Here’s what’s on the horizon: **🌸 DeFi Spring Campaign Continues** The rewards program has been extended until all 90M STRK are distributed. **🤖 DeFAI** From simple rule-based automations to AI agents, we’re unlocking smarter ways to manage pools and positions. **🌍 Expanding Ecosystem** Welcoming new curators, liquidity providers, and partnerships within Starknet and the EVM ecosystem. **⚡ DeFi for Bitcoin** Bridging Bitcoin into Starknet-powered DeFi—unlocking fresh opportunities for BTC holders. Starknet’s tech is ready to scale with lower fees and faster transactions, creating the perfect environment for DeFi innovation—and Vesu is ready to lead the way. Thank You![​](https://docs.vesu.xyz/blog/tags/announcement/page/2#thank-you "Direct link to Thank You!") --------------------------------------------------------------------------------------------------------- Your feedback and engagement have made everything we’ve achieved possible. Together, we’re shaping the future of DeFi on Starknet. Stay connected for the latest updates: * Follow us on **[X](https://twitter.com/vesuxyz) ** * Join the community on **[Discord](https://discord.com/invite/G9Gxgujj8T) ** ![New: Vesu Pools Page](https://docs.vesu.xyz/assets/images/pools-page-header-1c01ddea3870c36c01d19d9cd0ea63ad.png) The New Pools Page Is Here: A New Chapter for Vesu![​](https://docs.vesu.xyz/blog/tags/announcement/page/2#the-new-pools-page-is-here-a-new-chapter-for-vesu "Direct link to The New Pools Page Is Here: A New Chapter for Vesu!") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **The wait is over: Vesu's new Pools Page is live! This update empowers anyone to create custom lending pools, unlocking exciting opportunities for creators, curators, and users alike.** ### What’s New?[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#whats-new "Direct link to What’s New?") The Pools Page makes it easier than ever to create and manage lending pools. Anyone can now launch new markets, no technical expertise or approval from others required. You’re in control! Customize your pool to align with your vision and goals. Choose to make your pool immutable or if you want to enable pool emergency procedures, giving borrowers and lenders extra trust in its stability & security. Prefer flexibility? Curate your pool as it grows, adjusting settings to adapt to evolving needs. ![New Pool Creation UI](https://docs.vesu.xyz/assets/images/create-brother-pool-770c16256fd944954efaec2fc21b7cde.png) _The new pool creation UI._ ### Why Create Your Own Pool?[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#why-create-your-own-pool "Direct link to Why Create Your Own Pool?") As the only neutral lending protocol on Starknet, Vesu is the ultimate launchpad for its thriving ecosystem. Here’s what you can achieve: * **Add Utility to Your Token**: Enable your community to earn yield or use your token as collateral. * **Innovate and Experiment**: Launch markets for untapped assets, tailor liquidations or oracles, and fine-tune risk strategies. * **Fuel Ecosystem Growth**: Attract users, capital, and innovative use cases to push DeFi forward on Starknet. Whether you're a community builder, an innovator, or simply looking to create a market for a token, the new pools page provides everything you need to bring your ideas to life. note Creating a new pool is simple, but finding the right parameters to attract demand from both lenders and borrowers can be challenging. We’re here to help! Contact us via [Discord](https://discord.com/invite/G9Gxgujj8T) for support with your new pool. ### What’s in It for Users?[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#whats-in-it-for-users "Direct link to What’s in It for Users?") This update is a game-changer for Vesu users, unlocking exciting opportunities: * **More Liquidity**: New pools mean new opportunities for earning and borrowing. * **New Strategies**: Increase your STRK exposure with Vesu's Multiply feature. * **Exciting Collaborations:** Re7 Labs and other upcoming curators bring innovation and expertise to the ecosystem. We’re committed to pushing DeFi on Starknet to the next level. With innovative products, expert curators, and growing integrations, this is just the beginning! Discover all the new markets on [vesu.xyz/markets](https://vesu.xyz/markets) note Vesu is fully permissionless, allowing anyone to create a pool. Before participating, take the time to review the parameters and understand the associated risks. A detailed guide to help you get started will be available soon. ### Get Started Today[​](https://docs.vesu.xyz/blog/tags/announcement/page/2#get-started-today "Direct link to Get Started Today") Ready to dive in? **For Creators:** Build your own pool and bring your vision to life. Start with our [Onboarding Docs](https://docs.vesu.xyz/curators/onboarding) . **For Users:** Explore the new pools already launched by Re7 Labs on the updated [Markets page](https://vesu.xyz/markets) . Got questions or ideas for a pool? Let us know in [Discord](https://discord.com/invite/G9Gxgujj8T) . 🔗 **Links** * **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) * **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) * **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) --- # Blog | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/page/3#__docusaurus_skipToContent_fallback) ![Vibe with Vesu](https://docs.vesu.xyz/assets/images/zero-to-top3-b05c2609eed2828896956b59d1be8939.png) Reflecting on 2024 Milestones and What’s Next[​](https://docs.vesu.xyz/blog/page/3#reflecting-on-2024-milestones-and-whats-next "Direct link to Reflecting on 2024 Milestones and What’s Next") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ As we step into 2025, we’re proud to share how far we’ve come. In just six months, Vesu has risen to **3rd in TVL among all Starknet projects!** ![Vesu Protocol Rankings](https://docs.vesu.xyz/assets/images/top3light-68c908fd9a27fb5056d8b8c1b1071381.png) _Protocol Rankings by DeFiLlama (01/14/25)_ This milestone reflects the incredible support and trust from our growing community. Let’s take a moment to celebrate the key achievements of 2024 together. Key Milestones of 2024[​](https://docs.vesu.xyz/blog/page/3#key-milestones-of-2024 "Direct link to Key Milestones of 2024") ---------------------------------------------------------------------------------------------------------------------------- **Launch Day:** July 10, 2024 – the day it all began! 🥳 **Multiply:** The first feature launched on Vesu—and a Starknet-first! A game-changer for users looking to amplify exposure to their favorite assets. **Pools Page Launch:** Create fully customizable pools and unlock fresh, exciting lending markets. Your pool, your rules. **Re7 Labs as Curator:** Big news for Vesu and Starknet—Re7 Labs, a leading DeFi risk expert, became our first curator. Their xSTRK and sSTRK pools opened up exciting new earning opportunities. **Stake & Earn:** Why complicate things? With Vesu, earning 20% APY with your STRK is a breeze. Staking rewards and DeFi Spring rewards come together in one single step. Stake & earn [now](https://vesu.xyz/stake-and-earn) . 👉 Dive into our [2024 recap on X](https://x.com/vesuxyz/status/1871496693293744317) for more exciting highlights and milestones! Looking Ahead[​](https://docs.vesu.xyz/blog/page/3#looking-ahead "Direct link to Looking Ahead") ------------------------------------------------------------------------------------------------- 2025 is set to be a big year for Vesu, with a sharp focus on seamless UX, innovation, and security. Here’s what’s on the horizon: **🌸 DeFi Spring Campaign Continues** The rewards program has been extended until all 90M STRK are distributed. **🤖 DeFAI** From simple rule-based automations to AI agents, we’re unlocking smarter ways to manage pools and positions. **🌍 Expanding Ecosystem** Welcoming new curators, liquidity providers, and partnerships within Starknet and the EVM ecosystem. **⚡ DeFi for Bitcoin** Bridging Bitcoin into Starknet-powered DeFi—unlocking fresh opportunities for BTC holders. Starknet’s tech is ready to scale with lower fees and faster transactions, creating the perfect environment for DeFi innovation—and Vesu is ready to lead the way. Thank You![​](https://docs.vesu.xyz/blog/page/3#thank-you "Direct link to Thank You!") --------------------------------------------------------------------------------------- Your feedback and engagement have made everything we’ve achieved possible. Together, we’re shaping the future of DeFi on Starknet. Stay connected for the latest updates: * Follow us on **[X](https://twitter.com/vesuxyz) ** * Join the community on **[Discord](https://discord.com/invite/G9Gxgujj8T) ** ![New: Vesu Pools Page](https://docs.vesu.xyz/assets/images/pools-page-header-1c01ddea3870c36c01d19d9cd0ea63ad.png) The New Pools Page Is Here: A New Chapter for Vesu![​](https://docs.vesu.xyz/blog/page/3#the-new-pools-page-is-here-a-new-chapter-for-vesu "Direct link to The New Pools Page Is Here: A New Chapter for Vesu!") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **The wait is over: Vesu's new Pools Page is live! This update empowers anyone to create custom lending pools, unlocking exciting opportunities for creators, curators, and users alike.** ### What’s New?[​](https://docs.vesu.xyz/blog/page/3#whats-new "Direct link to What’s New?") The Pools Page makes it easier than ever to create and manage lending pools. Anyone can now launch new markets, no technical expertise or approval from others required. You’re in control! Customize your pool to align with your vision and goals. Choose to make your pool immutable or if you want to enable pool emergency procedures, giving borrowers and lenders extra trust in its stability & security. Prefer flexibility? Curate your pool as it grows, adjusting settings to adapt to evolving needs. ![New Pool Creation UI](https://docs.vesu.xyz/assets/images/create-brother-pool-770c16256fd944954efaec2fc21b7cde.png) _The new pool creation UI._ ### Why Create Your Own Pool?[​](https://docs.vesu.xyz/blog/page/3#why-create-your-own-pool "Direct link to Why Create Your Own Pool?") As the only neutral lending protocol on Starknet, Vesu is the ultimate launchpad for its thriving ecosystem. Here’s what you can achieve: * **Add Utility to Your Token**: Enable your community to earn yield or use your token as collateral. * **Innovate and Experiment**: Launch markets for untapped assets, tailor liquidations or oracles, and fine-tune risk strategies. * **Fuel Ecosystem Growth**: Attract users, capital, and innovative use cases to push DeFi forward on Starknet. Whether you're a community builder, an innovator, or simply looking to create a market for a token, the new pools page provides everything you need to bring your ideas to life. note Creating a new pool is simple, but finding the right parameters to attract demand from both lenders and borrowers can be challenging. We’re here to help! Contact us via [Discord](https://discord.com/invite/G9Gxgujj8T) for support with your new pool. ### What’s in It for Users?[​](https://docs.vesu.xyz/blog/page/3#whats-in-it-for-users "Direct link to What’s in It for Users?") This update is a game-changer for Vesu users, unlocking exciting opportunities: * **More Liquidity**: New pools mean new opportunities for earning and borrowing. * **New Strategies**: Increase your STRK exposure with Vesu's Multiply feature. * **Exciting Collaborations:** Re7 Labs and other upcoming curators bring innovation and expertise to the ecosystem. We’re committed to pushing DeFi on Starknet to the next level. With innovative products, expert curators, and growing integrations, this is just the beginning! Discover all the new markets on [vesu.xyz/markets](https://vesu.xyz/markets) note Vesu is fully permissionless, allowing anyone to create a pool. Before participating, take the time to review the parameters and understand the associated risks. A detailed guide to help you get started will be available soon. ### Get Started Today[​](https://docs.vesu.xyz/blog/page/3#get-started-today "Direct link to Get Started Today") Ready to dive in? **For Creators:** Build your own pool and bring your vision to life. Start with our [Onboarding Docs](https://docs.vesu.xyz/curators/onboarding) . **For Users:** Explore the new pools already launched by Re7 Labs on the updated [Markets page](https://vesu.xyz/markets) . Got questions or ideas for a pool? Let us know in [Discord](https://discord.com/invite/G9Gxgujj8T) . 🔗 **Links** * **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) * **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) * **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) ![Welcome Re7 Labs](https://docs.vesu.xyz/assets/images/welcome-re7-551103f8e154765c28118737d7a20058.png) **Next Level DeFi with Re7 Labs**[​](https://docs.vesu.xyz/blog/page/3#next-level-defi-with-re7-labs "Direct link to next-level-defi-with-re7-labs") ----------------------------------------------------------------------------------------------------------------------------------------------------- We’re thrilled to welcome **[Re7 Labs](https://x.com/Re7Capital) ** to the Starknet ecosystem! As a leading risk curator, they are known for their expertise in crypto yield strategies and DeFi. Re7 Labs is recognized as one of the top vault curators, having played a key role in driving TVL to $3B on Morpho. Joining Vesu as the first pool curator thus signifies a major step for the entire Starknet ecosystem. This collaboration will allow Vesu and Starknet to expand to new use cases and further drive adoption and growth. ### **Introducing The New Pools**[​](https://docs.vesu.xyz/blog/page/3#introducing-the-new-pools "Direct link to introducing-the-new-pools") Right in time for the launch of STRK staking and the new liquid staking token (LST), Re7 will create three new pools on Vesu: * **Re7 STRK/xSTRK** Collateral Assets: xSTRK Borrow: STRK * **Re7 STRK/sSTRK** Collateral Assets: sSTRK Borrow: STRK * **Re7 USDC** Collateral Assets: ETH, wstETH, wBTC, STRK Borrow: USDC With these pools, Re7 Labs and Vesu are unlocking new use cases for the LST from Endur.fi and Nimbora. By adding liquidity and enabling innovative DeFi strategies on a neutral platform, we’re laying the foundation for a successful launch of STRK LSTs and fostering a healthy STRK staking ecosystem. At Vesu, providing permissionless and secure access to liquidity has always been central to our mission. We’re thrilled to take this next step alongside our incredible partners! ### **What’s Next?**[​](https://docs.vesu.xyz/blog/page/3#whats-next "Direct link to whats-next") The new pools are currently finalized and launched publicly together with Vesu’s new pools page in the coming days. At this point, everyone will be able to further support Starknet’s staking and LST landscape as well as to create new lending pools on Vesu. If you’re interested in creating a lending pool for your community, we’re here to help! Stay tuned for more updates as we continue to grow the DeFi landscape on Starknet. **Links** **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) ![Market Review](https://docs.vesu.xyz/assets/images/Market_review1-766f5c0b68d7e171c09260a273ad6971.png) Summary[​](https://docs.vesu.xyz/blog/page/3#summary "Direct link to Summary") ------------------------------------------------------------------------------- Vesu has been live for over four months and has grown to the fourth-largest DeFi protocol on Starknet. Time for a recap! In this blog post, we will review the past four months of lending and borrowing activity on Vesu markets and the performance of the autonomous lending pools. info For a refresher on Vesu's autonomous lending pools refer to this [blog post](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . Market Overview[​](https://docs.vesu.xyz/blog/page/3#market-overview "Direct link to Market Overview") ------------------------------------------------------------------------------------------------------- We start with an overview of the Vesu lending markets. Figure 1 below shows the evolution of the total value locked (TVL), total borrowed amount and average utilization on Vesu markets during the past four months. We find that both TVL and total borrowed amount have grown consistently over the observed period arriving at about $22M TVL and $4.5M borrowed at the time of writing this post (note the primary y-axis scale of 10^7). Similarly, the average utilization across all markets has more than doubled from about 10% to around 24% at the same time. This indicates that the liquidity on Vesu is increasingly being used by borrowers on Starknet establishing Vesu as an important component of the Starknet DeFi ecosystem. ![Vesu 4-Months Market Overview](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_total-27c24cf33dc0482cf72d5118ecd99803.png "Vesu 4-Months Market Overview") _Figure 1: Evolution of liquidity, borrowings and average utilization on Vesu since launch._ Market Breakdown[​](https://docs.vesu.xyz/blog/page/3#market-breakdown "Direct link to Market Breakdown") ---------------------------------------------------------------------------------------------------------- Next, we highlight the breakdown of Vesu markets in terms of their contribution to the overall TVL. Figure 2 gives the percentage breakdown across the six initial markets _ETH_, _STRK_, _USDC_, _USDT_, _WBTC_, _wstETH_. The first observation is that the overall TVL on Vesu is mostly driven by the _ETH_, _STRK_ and _USDC_ markets. These three markets combined account for more than 90% of the overall Vesu TVL at the time of writing this post. The figure further shows that the _ETH_ market share has continuously grown since launch and is currently at over 50%. Over the same period the market share of _STRK_ has decreased significantly. To one part, these observations are driven by the market prices of the respective assets. However, they also reflect a consistent net inflow of _ETH_ into Vesu. ![Vesu 4-Months TVL Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_tvl_breakdown-600327d42b84cde4f7e399f0b4202b07.png "Vesu 4-Months TVL Breakdown") _Figure 2: Breakdown of TVL in Vesu markets since launch._ Similarly, let us also review the borrowing activity for the Vesu markets. Figure 3 shows the breakdown of borrowing activity, in USD, per the different markets. The figure shows that borrowing is highly concentrated around the _USDC_ market which peaked at more than 80% of total amount borrowed in September and currently accounts for around 60% of the outstanding debt. We further find that in recent weeks borrowing activity in _ETH_ and _wstETH_ has increased and, combined, currently represent some 25% of the total debt. On the other hand, both _STRK_ and _WBTC_ have not seen a lot of borrow demand which may be explained by a generally optimistic outlook on the respective markets and thus no interest in entering "short" positions. ![Vesu 4-Months Borrowing Breakdown](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_borrowing_breakdown-6e619fc688949e6bf132dfa476f2b1b7.png "Vesu 4-Months Borrowing Breakdown") _Figure 3: Breakdown of borrow activity in Vesu markets since launch._ In the following sections, we take a closer look at the individual markets. ETH Market Insights[​](https://docs.vesu.xyz/blog/page/3#eth-market-insights "Direct link to ETH Market Insights") ------------------------------------------------------------------------------------------------------------------- Ethereum is the biggest Vesu market in terms of supplied liquidity. At the same time, we have seen that the borrow activity on the _ETH_ market is limited (it accounts for "only" about 15% of the overall debt outstanding). This is confirmed by Figure 3 which shows the _ETH_ utilization over time in orange (right y-axis) and the market's interest rate in blue (left y-axis). We find that the _ETH_ utilization remained consistently in the lower single-digit range throughout most of the observed period. This can be explained by the generally optimistic outlook on Ethereum over the past months with users unwilling to "short" the asset (which entering a borrow position in ETH effectively results in). ![Vesu 4-Months ETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_ETH-528743883d5564f744f2c38ad0170f08.png "Vesu 4-Months ETH-Market Insights") _Figure 4: Utilization and borrow rates in the ETH market since launch._ Furthermore, the _ETH_ market's borrow rate is indicated with a blue line and scale on the primary y-axis (left side). This blue line is hidden under the orange line for utilization for almost the entire observation period. This is due to the fact that utilization has been below the market's target utilization (which is 80%) throughout the period. Hence, the interest rate curve has not been adjusted by the _Curve Controller_ and the borrow rate has only "moved" on the linear range of the curve below target utilization. This relationship resulted in the _ETH_ borrow rate stay at very low levels close to the curve's 0%-utilization rate of 0.1%. info If you need a refresher on Vesu's adaptive interest rate model please refer to this [blog post](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#adaptive-interest-rates) . USDC Market Insights[​](https://docs.vesu.xyz/blog/page/3#usdc-market-insights "Direct link to USDC Market Insights") ---------------------------------------------------------------------------------------------------------------------- Turning to the _USDC_ market we find a completely different picture as shown in Figure 5. Shortly after launch (in July 2024) utilization on the USDC market reached a level of more than 90% reflecting the strong demand for USDC as a borrow asset. With utilization consistently above the market's target utilization of 80%, the _Curve Controller_ shifts the interest rate curve upwards at an increasing rate during the last week of August until the interest rate reaches a level of more than 12% by the end of August. At this point, the market's interest rate seems attractive enough for LPs to supply more USDC (and borrowers repay debt) thereby reducing the utilization again. As utilization falls below the market's target utilization, the _Curve Controller_ too starts to shift the curve downwards. ![Vesu 4-Months USDC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDC-008783918a1cd2c6c4638048779c3a40.png "Vesu 4-Months USDC-Market Insights") _Figure 5: Utilization and borrow rates in the USDC market since launch._ Similarly, in the second half of the observation period, utilization on the _USDC_ market has picked up again reaching a level of 80% and above by the end of September. Throughout the remaining period utilization fluctuates around some 85% utilization. In instances, where utilization exceeds the target of 80%, the _Curve Controller_ shifts the curve resulting in a slow but steady upward trend. By the end of the observation period interest rate reaches a level of more than 6% with a utilization at about its target of 80%. These insights highlight the important role of Vesu's adaptive interest rate model in allowing the market participants to coordinate around the optimal use and allocation of capital. Note that in "traditional" DeFi lending markets, which do not make use of an adaptive interest rate model, "operators" manually update parameters in ad-hoc market interventions in order for the participants to find an equilibrium. This does not only result in less efficient markets but also introduces operational risks. More Insights[​](https://docs.vesu.xyz/blog/page/3#more-insights "Direct link to More Insights") ------------------------------------------------------------------------------------------------- We here briefly discuss more insights gathered from the _USDT_ (Figure 6), _wstETH_ (Figure 7), _WBTC_ (Figure 8), and _STRK_ (Figure 9) markets. In both the _USDT_ and _wstETH_ markets we can find consistenlty high utilization resulting in regular _Curve Controller_ activity and shifting of the interest rate curve. In response, utilization generally adjusts downwards reflecting market corrections in terms of net liquidity inflows or repayment of outstanding debt. ![Vesu 4-Months USDT-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_USDT-73c717e7827722d43d74338be6a5bbcb.png "Vesu 4-Months USDT-Market Insights") _Figure 6: Utilization and borrow rates in the USDT market since launch._ ![Vesu 4-Months wstETH-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_wstETH-d6c72abbaef84d85cfd2779f02c55098.png "Vesu 4-Months wstETH-Market Insights") _Figure 7: Utilization and borrow rates in the wstETH market since launch._ On the other hand, the _WBTC_ and _STARK_ markets highlight low utilization over the observation period indicating low borrowing demand. The interest rates on these markets are thus characterized by a perfectly synchronous relationship with the utilization due to fact that the _Curve Controller_ does not actively adjust rates. ![Vesu 4-Months WBTC-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_WBTC-67178e7055e3843f6a96b05243902a11.png "Vesu 4-Months WBTC-Market Insights") _Figure 8: Utilization and borrow rates in the WBTC market since launch._ ![Vesu 4-Months STRK-Market Insights](https://docs.vesu.xyz/assets/images/2024-07-15_2024-11-17_STRK-71d260c7d14df6dc972144a6c1e70e69.png "Vesu 4-Months STRK-Market Insights") _Figure 9: Utilization and borrow rates in the STRK market since launch._ Conclusion[​](https://docs.vesu.xyz/blog/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- Vesu proudly reflects on four months of steady growth and progress. In this blog post, we reviewed the performance of Vesu markets over the past months. Both lending and borrowing activity have consistently grown, with the average utilization reaching around 24% in November. Both lending and borrowing activity varies greatly between the different markets with _USDC_, _ETH_ and _wstETH_ being the most demanded borrow assets in terms of the outstanding debt. Utilization on certain markets has reached over 90% over sustained time periods. This has resulted in frequent adjustments of the interest rate curve through Vesu's autonomous _Curve Controller_. This blog post has provided important insights into the dynamics of Vesu markets. The data presented validates that Vesu's adaptive interest rate model is capable of autonomously balance supply and demand of liquidity on Vesu markets allowing the participants to efficiently and safely coordinate around the optimal allocation of capital on Starknet. ![About Vesu: What & Why We Build](https://docs.vesu.xyz/assets/images/about-vesu-791418c188a502453c6fb4cd69e9f553.png) note In this post, we’ll walk you through what sets Vesu apart, our purpose, and the key features we’re bringing to life. DeFi is transforming the future of finance, with the Total Value Locked (TVL) reaching $177 billion in 2023 (Source: DefiLlama). But compared to the trillions of dollars in Assets under Management (AUM) within traditional finance, there’s still vast room for DeFi to grow. Vesu is here to drive that expansion with a platform that is **secure, user-friendly, and built for innovation**. Our Purpose[​](https://docs.vesu.xyz/blog/page/3#our-purpose "Direct link to Our Purpose") ------------------------------------------------------------------------------------------- We are building a secure lending platform that opens decentralized finance to everyone. Lenders and borrowers gain access to optimal market conditions, backed by a user experience that rivals leading FinTech platforms. Vesu's robust infrastructure and developer tools are driving the evolution of DeFi. We empower developers to innovate, create new features, and seamlessly integrate with other platforms. What We Offer[​](https://docs.vesu.xyz/blog/page/3#what-we-offer "Direct link to What We Offer") ------------------------------------------------------------------------------------------------- Vesu allows users to: * Supply: Earn passive income by supplying your crypto assets. * Borrow: Access capital without the need for intermediaries. * Build with us: Create your own markets. Innovate and build on top of Vesu’s infrastructure. Why choose Vesu?[​](https://docs.vesu.xyz/blog/page/3#why-choose-vesu "Direct link to Why choose Vesu?") --------------------------------------------------------------------------------------------------------- Here’s what makes Vesu different and how we aim to improve DeFi: * **User Experience**: Vesu delivers a FinTech-like experience with the security of Ethereum, using Starknet features like multicalls to make DeFi accessible and user-friendly. With our direct integration into the Argent smart wallet for example, users are able to earn yield directly within the wallet. Learn more about our [UX principles](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles) . ![Integration in Argent Invest](https://docs.vesu.xyz/assets/images/argent-integration-c5c8bba5adf2ad165d86b5851561691d.png) * **Better Rates**: Vesu’s rates are set by a dynamic interest rate model that automatically adjusts based on real-time demand, ensuring fair and efficient rates without the need for slow, manual governance. This approach allows the market to naturally balance supply and demand, so users always get the best possible borrowing conditions. * **Better Risk Control**: All lending pools have separate risks that don’t affect other pools. Within a pool, depositors share risk only with others in the same pool. Each lending pair within a pool has a specific maximal loan-to-value (LTV) ratio, set by the pool creator, which is critical for enabling both capital efficiency and liquidation safety. * **Innovation**: By creating a flexible and open infrastructure we enable continuous development and innovation, allowing both our team and external developers to build on top of Vesu’s platform. Examples of this include features like Multiply and the upcoming Automations. * **Create New Market**: Anyone can create new markets tailored to their preferences, including custom settings like loan-to-value (LTV) ratios, interest rate models, or oracle choices, among others. * **Security**: Keeping user funds safe is the highest priority. We have [multiple audits](https://docs.vesu.xyz/security/audits) and a [$100,000 Immunefi bug bounty](https://immunefi.com/bug-bounty/vesu/information/) . The Vesu team is publicly known, with strong security practices. We take these and many more steps to keep Vesu safe and secure. Next Steps[​](https://docs.vesu.xyz/blog/page/3#next-steps "Direct link to Next Steps") ---------------------------------------------------------------------------------------- ### Multiply Improvements & Automation Features[​](https://docs.vesu.xyz/blog/page/3#multiply-improvements--automation-features "Direct link to Multiply Improvements & Automation Features") We are continuously refining the Multiply feature based on feedback from our community. Our goal is to make managing your positions even easier and more secure. Upcoming improvements will include automation features designed to help users maintain for example a healthy Loan-to-Value (LTV) ratio, reducing the risk of liquidation. ### Custom Pool Creation[​](https://docs.vesu.xyz/blog/page/3#custom-pool-creation "Direct link to Custom Pool Creation") While it’s already possible to create new markets on Vesu, we are working on a Custom Pools page with an intuitive interface. This new frontend will make it easy for anyone to create and manage their own lending pools. An exclusive preview screenshot is available below. ![Preview of new Pools Page](https://docs.vesu.xyz/assets/images/pools-page-small-4197eef4091529eabe1bf580d118123a.png) ### Vesu API[​](https://docs.vesu.xyz/blog/page/3#vesu-api "Direct link to Vesu API") We are expanding our API to ensure smooth integration with other platforms and wallets. This will enhance the user experience by adding features like notifications for borrowers when their positions are at risk. Conclusion[​](https://docs.vesu.xyz/blog/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- In a rapidly evolving DeFi landscape, Vesu stands out as the most aligned lending market on Starknet, built with a focus on decentralization, security, and user empowerment. By embracing core crypto values like permissionless innovation and transparency, Vesu gives users full control over their assets. Whether you’re looking to earn yield, access liquidity, or create new custom markets, Vesu is the platform for you. We’re always looking to improve and innovate. Your feedback, ideas, or collaboration could help shape the future of Vesu. Join us, share your thoughts, and let’s build the future of finance together! * Follow us on X: [https://x.com/vesuxyz](https://x.com/vesuxyz) * Join our Discord: [https://discord.com/invite/G9Gxgujj8T](https://discord.com/invite/G9Gxgujj8T) ![Announcement: New Feature called Multiply](https://docs.vesu.xyz/assets/images/new-feature-multiply-046379b39d4a70af28979804bdfde588.png) ### Introducing Flashloan-Powered Multiply Feature![​](https://docs.vesu.xyz/blog/page/3#introducing-flashloan-powered-multiply-feature "Direct link to Introducing Flashloan-Powered Multiply Feature!") We are thrilled to announce the launch of our brand-new **Multiply** feature, designed to supercharge your lending experience and optimize your DeFi strategies! ### What is Multiply?[​](https://docs.vesu.xyz/blog/page/3#what-is-multiply "Direct link to What is Multiply?") Our innovative feature lets you instantly borrow assets using Ekubo flashloans with no fees at all. This enables you to enter an increased position in your favorite Vesu market without needing to fully own the deposited assets. With Multiply, you can enhance your yield farming or arbitrage strategies quickly and securely. ### Why Use Flashloan-Powered Multiply?[​](https://docs.vesu.xyz/blog/page/3#why-use-flashloan-powered-multiply "Direct link to Why Use Flashloan-Powered Multiply?") * **Multiply Exposure:** Maximize your exposure to your favorite crypto assets. * **Multiply Earnings:** Take advantage of higher APY to boost profits. * **Multiply Efficiency:** Flashloans allow you to start with minimal initial capital. As always on Vesu, Multiply comes with a single-click, full-transparency and security-first UX. ### How to Get Started?[​](https://docs.vesu.xyz/blog/page/3#how-to-get-started "Direct link to How to Get Started?") 1. Head over to [Vesu.xyz](https://vesu.xyz/) and connect your wallet. 2. Navigate to the "Multiply" tab on the app. 3. Choose your preferred assets and multiplier. 4. Review the position and risk information and let our flashloan engine handle the rest! **Happy multiplying! 🚀** Stay tuned for more updates and tutorials on how to make the most of this powerful new tool. If you have any questions, feedback, or just want to connect with our community, we’d love to see you in our Discord: [Join here!](https://discord.com/invite/G9Gxgujj8T) To learn more about Vesu and our newest feature [visit our Docs](https://docs.vesu.xyz/) ! #### Disclaimer[​](https://docs.vesu.xyz/blog/page/3#disclaimer "Direct link to Disclaimer") Vesu is a fully permissionless lending protocol, allowing users to lend, borrow, and create new markets autonomously. This decentralized system puts risk management directly in the hands of users, who are responsible for their own strategies. Please ensure you thoroughly inform yourself of the risks before using the platform. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/snip-22_banner-938159dcadd378eb7aca1de6e70ecd40.png) ### Announcing SNIP-22: Tokenized Vaults on Starknet[​](https://docs.vesu.xyz/blog/page/3#announcing-snip-22-tokenized-vaults-on-starknet "Direct link to Announcing SNIP-22: Tokenized Vaults on Starknet") Starknet is continuously evolving to support the diverse needs of DeFi applications and Vesu is at the forefront of these developments. Today we are happy to announce that the **Tokenized Vaults** Starknet Improvement Proposal, [SNIP-22](https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-22.md) , authored by the Vesu team, has been merged to the official repository of Starknet standards. This proposal aims to extend the existing fungible token standard, SNIP-2, by incorporating new functionalities for tokenized yield-bearing vaults, unlocking efficiency, security and better experience for Starknet developers and users. ### What is SNIP-22?[​](https://docs.vesu.xyz/blog/page/3#what-is-snip-22 "Direct link to What is SNIP-22?") SNIP-22 introduces a standardized framework for creating tokenized, yield-bearing vaults on Starknet. These vaults represent shares of an underlying asset, allowing users to perform various operations such as deposit, withdrawal, and converting between shares and asset balances. Other than _rebasing_ tokens, like stETH or Aave's aETH, aUSDC, etc., SNIP-22 tokenized vaults accumulate yield through a growing conversion rate between vault shares and the underlying asset allowing holders to redeem their shares for an increasing amount of the asset. The proposal is heavily inspired by Ethereum's [EIP-4626](https://eips.ethereum.org/EIPS/eip-4626) , which has found wide adoption in the Ethereum ecosystem. ![SNIP-22](https://docs.vesu.xyz/assets/images/snip-22_concept-3a1d05fba9a798a40898bc2d4b8183a2.png "Tokenized Vault (SNIP-22)") ### Motivation and Benefits[​](https://docs.vesu.xyz/blog/page/3#motivation-and-benefits "Direct link to Motivation and Benefits") Tokenized vaults are a fundamental component of many DeFi applications, including lending markets, yield aggregators, and interest-bearing tokens. However, the current implementations often expose diverse and non-standardized interfaces, leading to increased integration effort and potential security risks. SNIP-22 addresses these challenges by proposing a standard API for tokenized vaults that would: 1. **Foster composability**: Composability is achieved by well-defined, open interfaces and SNIP-22 has the potential to unlock similar innovation and growth than what SNIP-2 (or ERC-20) has brought for standard fungible tokens. 2. **Lower Integration Efforts**: With a standardized interface, developers of DeFi protocols, aggregators, and wallets can more easily integrate tokenized vaults, thereby reducing development time and costs. 3. **Enhance Security**: Standardization requires less custom code for integrations and adapters and thereby lowers the likelihood of introducing security vulnerabilities. 4. **Improve User Experience (UX)**: A consistent approach across different vaults ensures a smoother experience for end-users holding vault shares in their wallet or interacting with various DeFi applications. ### Key Specifications[​](https://docs.vesu.xyz/blog/page/3#key-specifications "Direct link to Key Specifications") Here are some of the essential aspects of SNIP-22: * **SNIP-2 Compatibility**: All tokenized vaults must implement the SNIP-2 standard. This ensures that existing infrastructure and tools that already support SNIP-2 can seamlessly integrate with tokenized vaults. * **Vault Metadata**: SNIP-22 requires vaults to expose a number of metadata including the optional SNIP-2 metadata and the address of the vault's underlying (`asset`). * **Asset and Shares Management**: The standard defines a comprehensive set of functions for the retrievel of basic vault data (`total_assets` and `total_supply`) and the management of shares and assets (`deposit`, `withdraw`, `mint` and `redeem`). * **Conversion and Preview**: Tokenized vaults must further provide functions for the conversion between shares and assets (`convert_to_shares` and `convert_to_assets`) and simulation or preview of interactions (`preview_deposit`, `preview_mint`, etc.). The following diagram gives an overview of the standard. ![SNIP-22 API](https://docs.vesu.xyz/assets/images/snip-22_api-1f52c99078e1234f3631b10fa6d0b49f.png) ### Security Considerations[​](https://docs.vesu.xyz/blog/page/3#security-considerations "Direct link to Security Considerations") While SNIP-22 provides a robust framework for creating and managing tokenized vaults, it is essential to note that the standard itself does not govern the safety of the underlying assets or the associated yield-generating strategies. It further does not ensure safety of certain implementations of the tokenized vault standard. Therefore, developers and users must carefully evaluate the specific implementations and the yield strategies to ensure consistency and security. ### Reference Implementation[​](https://docs.vesu.xyz/blog/page/3#reference-implementation "Direct link to Reference Implementation") Vesu's _vTokens_ are the first tokenized vaults on Starknet to implement the SNIP-22 standard. Our vToken implementation is audited by ChainSecurity and CairoSecurityClan and can be found [here](https://github.com/vesuxyz/vesu-v1/blob/main/src/v_token.cairo) . While certain functions are specific to our use case, we hope that the implementation can serve other teams as a reference and unlock more innovation across Starknet's growing DeFi ecosystem. ### What's Next[​](https://docs.vesu.xyz/blog/page/3#whats-next "Direct link to What's Next") The inclusion of SNIP-22 in Starknet's official standards repository marks the first step in growing the awareness and adoption of the tokenized vault standard on Starknet. An important next step is to provide a neutral and secure reference implementation for the tokenized vault standard. Similar to the `ERC4626.sol` extension in their Solidity library, we will advocate for a SNIP-22 extension in OpenZeppelin's cairo-contracts library. Furthermore, the [4626 Alliance](https://erc4626.info/) has done an outstanding job at creating awareness and pushing adoption of the tokenized vault standard on Ethereum and EVM chains. Their webiste and repository of existing vaults is a great place draw inspiration for battle tested vault architectures and new use cases. For Starknet it can serve as a great place to showcase our implementations and growing DeFi ecosystem. Finally, we invite everyone to provide feedback and join the conversation on the [Starknet Community Forum](https://community.starknet.io/t/snip-22-tokenized-vaults/114457) . Happy building! ![Welcome Vesu](https://docs.vesu.xyz/assets/images/the-future-of-lending-777b6f28a39e04d164c96e334a035ccc.jpeg) ### Vesu is Officially Live on Starknet![​](https://docs.vesu.xyz/blog/page/3#vesu-is-officially-live-on-starknet "Direct link to Vesu is Officially Live on Starknet!") We are thrilled to announce that Vesu is now live on Starknet, offering the best lending experience in town. Earn, borrow and build on Vesu with ease of use and peace of mind! ### What is Vesu?[​](https://docs.vesu.xyz/blog/page/3#what-is-vesu "Direct link to What is Vesu?") Vesu is a fully open and permissionless lending protocol allowing anyone to earn, build and create new lending markets. Here's what sets Vesu apart: 1️⃣ Free Markets: Vesu enables anyone to create lending markets without governance restrictions, fostering a truly free market 2️⃣ Simplicity: Vesu provides an intuitive user interface bringing web2 like UX to DeFi 3️⃣ Transparency: Vesu highlights all relevant information including fees, effective APYs and risk so users can make informed decisions 4️⃣ Security: Vesu prioritizes security with audits by [Chain Security](https://x.com/chain_security) and [Cairo Security Clan](https://x.com/cairoaudit) , a public codebase and an [Immunefi](https://x.com/immunefi) bug bounty ### What's next?[​](https://docs.vesu.xyz/blog/page/3#whats-next "Direct link to What's next?") 🖥️ Pool creation & admin dashboard ➿ Multiply position feature 📊 Advanced risk dashboard ### Get Started[​](https://docs.vesu.xyz/blog/page/3#get-started "Direct link to Get Started") Dive into Vesu today with our tutorials, and start earning yield and $STRK rewards. Explore the future of lending on Starknet! For more details, visit [vesu.xyz](https://vesu.xyz/) or the [docs](https://docs.vesu.xyz/) . ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/page/3#intro "Direct link to Intro") ------------------------------------------------------------------------- The evolution of blockchain technology from its niche presence to a mainstream technology underscores a critical need: enhancing user experience (UX) to meet the standards of conventional digital platforms. This requirement is even more pronounced in the decentralized finance (DeFi) sector, where current interfaces often present usability challenges and expose users to significant financial risks. Vesu aims to offer a superior UX comparable to that of FinTech apps while leveraging the power of DeFi technology “under the hood”. To achieve this goal, Vesu has partnered with [Argent](https://argent.xyz/) , the leading Wallet on Starknet and Web3 UX champion. ![Magic Meme](https://docs.vesu.xyz/assets/images/magic-meme-302e4cb4bcc8fa4a54bc2b1196b26a86.png "Magic Meme") DeFi UX Challenges[​](https://docs.vesu.xyz/blog/page/3#defi-ux-challenges "Direct link to DeFi UX Challenges") ---------------------------------------------------------------------------------------------------------------- The blockchain ecosystem traditionally demands a high degree of technical understanding from its users. Engaging with blockchain technologies involves navigating complex cryptographic processes and managing transparent yet intricate transactions, which can render DeFi apps practically unusable and deter novice users. The following presents a (incomplete) list of key UX challenges in DeFi apps: * **Self-custody** requires users to securely store (and backup) their private keys in order to not lose access to their assets. This can be both a feature and a bug if users lack the appropriate tools e.g. for key recovery (hint to Web3 wallets). * **Transaction fees** pose a significant barrier to interact with DeFi apps. The fact that each interaction with an app can be very costly and has to be paid in a blockchain’s native token makes it currently impossible for DeFi to scale. * **Token spend approvals** are required for most interactions. Oftentimes DeFi apps require explicit approval transactions making the use less convenient and more expensive. Furthermore, unused approvals pose a significant security risk for users as evidenced by billions of USD hacked over the past years. * **Transaction decoding**, in Web3 wallets, is required for users to understand the result of a signed transaction. This poses a significant risk of "blind signing," where users approve transactions presented as indecipherable hashes and thus mislead users into approving unintended actions potentially leading to "wallet drains." * **Wallet Compatibility**: User deposits in DeFi apps are often tracked with internal positions. However, these positions are not represented using standard interfaces and thus are not compatible with Web3 wallets. As a result, wallets are not able to show a user’s positions across DeFi apps requiring users to connect to the individual apps. * **Transparency on risks and fees** is mostly insufficient, meaning that users are unable to make informed decisions. As a result, users are at risk of incurring unexpected losses or costs when interacting with a DeFi app. Clearly, these challenges are not solved by a single player but require careful orchestration across different layers in the DeFi stack such as wallets, protocols and apps. Argent Wallet has been a driving force in improving Web3 UX with innovations like “account abstraction,” “social recovery” and an early L2 roadmap. Vesu too strives to be at the forefront of DeFi UX. Together with Argent we have therefore identified a number of UX principles that will benefit Vesu users with a seamless and secure lending experience. Vesu UX Principles[​](https://docs.vesu.xyz/blog/page/3#vesu-ux-principles "Direct link to Vesu UX Principles") ---------------------------------------------------------------------------------------------------------------- ### 1\. Minimize gas fees[​](https://docs.vesu.xyz/blog/page/3#1-minimize-gas-fees "Direct link to 1. Minimize gas fees") We built Vesu on Starknet because it offers the best “decentralization - security - scalability” (aka the blockchain trilemma) tradeoff. Starknet boasts the lowest transaction fees across L2s (see comparison below), and its roadmap offers a clear path towards unlocking more scaling improvements. ![L2 Tx Fee Comparison](https://docs.vesu.xyz/assets/images/l2-tx-fee-comparison-6b20ba1a03c8e95c9051867afa4da34f.png "L2 Tx Fee Comparison") _Source: [GrowThePie](https://fees.growthepie.xyz/) _ This means that Vesu users don’t have to worry about spending more on transactions than earning on deposits. ### 2\. Transaction Bundling[​](https://docs.vesu.xyz/blog/page/3#2-transaction-bundling "Direct link to 2. Transaction Bundling") On Vesu multiple actions are always bundled in a single transaction using Starknet’s native multicall protocol. For example, token spend approvals are always bundled with the actual position action on Vesu. ![Vesu Approval Revokes](https://docs.vesu.xyz/assets/images/vesu-tx-bundling-c901b7079d13ac541de5bc3169b32578.png "Vesu Approval Revokes") With Starknet's native account abstraction and multicall features, this in fact results in minimal overhead and results in a seamless UX. As a result, Vesu users are never required to sign, and pay for, multiple transactions even if an interaction requires multiple steps. ### 3\. Revoke Spend Approvals[​](https://docs.vesu.xyz/blog/page/3#3-revoke-spend-approvals "Direct link to 3. Revoke Spend Approvals") A key UX principle is automatically revoking unused token spend approvals when a user exits the app. Therefore, users are either asked to approve only a known amount of tokens spent, or an approval reset is appended to the transaction. This proactive measure ensures that malicious bugs or attackers do not create openings for potential fund drainage, safeguarding users' assets more effectively than many other protocols. ### 4\. Tokenized Deposits[​](https://docs.vesu.xyz/blog/page/3#4-tokenized-deposits "Direct link to 4. Tokenized Deposits") Vesu pools, through the [factory extension](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#factory-extension) , issue a yield-bearing token, called the **vToken**, reflecting the deposited assets and the accumulated interest. This token implements the ERC4626 interfaces, a “tokenized vaults” standard that extends the ERC20 token standard and has found widespread use in the Ethereum ecosystem. Apart from the ERC20 transfer-related and metadata interfaces, this standard also enables convenience around wallet integration and overall UX improvements. ![Vesu vToken](https://docs.vesu.xyz/assets/images/vToken-2badd6ee76336f73d646de0b579cc9c3.png "Vesu vToken") In order to unlock similar improvements and security across Starknet’s DeFi ecosystem we have created a Starknet Improvement Proposal (SNIP) which can be found [here](https://github.com/starknet-io/SNIPs/pull/85) . ### 5\. Transparency[​](https://docs.vesu.xyz/blog/page/3#5-transparency "Direct link to 5. Transparency") Vesu values clarity and transparency in user interactions, especially regarding the critical aspects of risks, rewards, and fees associated with lending and borrowing activities. This commitment is summarized by the following principles: * **Show effective APYs** and borrow cost, instead of current (irrelevant) numbers * **Continuous risk assessment** and mitigation (read more [here](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework) ) * **Full fee transparency** means Vesu users have visibility on all fees ![Vesu APY Transparency](https://docs.vesu.xyz/assets/images/vesu-fee-transparency-fb29716abbdf812962607f2aedbafb97.png "Vesu APY Transparency") By presenting this information user-friendly and intuitively, Vesu ensures that users are fully informed and can make decisions with a clear understanding of potential outcomes. ### 6\. Optimistic Position Updates[​](https://docs.vesu.xyz/blog/page/3#6-optimistic-position-updates "Direct link to 6. Optimistic Position Updates") Vesu leverages optimistic position updates to enhance the UX and create a seamless user journey. This means that users see their position updates immediately, without waiting for the transaction to finalize on the blockchain. This real-time feedback eliminates the latency typically associated with the underlying blockchain transactions. If a transaction fails, these updates are automatically reverted, ensuring the information users see is always accurate and up to date. This innovative feature improves general usability, bringing Vesu one step closer to the looks and feels of a FinTech app. Conclusion[​](https://docs.vesu.xyz/blog/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- The evolution of blockchain technology, particularly in the DeFi sector, demands an emphasis on user experience to drive wider adoption and improve security. Vesu mitigates the complexities and risks traditionally associated with blockchain and DeFi interactions by leveraging Starknet’s low transaction fees and unique capabilities, and systematically bundling user transactions. This approach not only simplifies the onboarding and transaction processes for users but also establishes a new standard for transparency and user engagement in the DeFi landscape. As the Starknet ecosystem continues to evolve, platforms like Vesu are crucial in bridging the gap between cutting-edge DeFi technology and the usability standards expected by everyday users. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/page/3#intro "Direct link to Intro") ------------------------------------------------------------------------- Vesu democratizes access to financial infrastructure, enabling anyone to lend, borrow, and create new lending markets. This "free markets" approach places risk management squarely in the hands of users, underscoring the importance of transparency and informed decision-making. Technological vulnerabilities, counterparty risk, and market volatility are among the key concerns. Vesu thus equips users with a comprehensive _Risk Framework_ creating a transparent and safe environment for lenders, borrowers alike. This article delves into the intricacies of Vesu's Risk Framework and the methodologies employed to assess and communicate risks, empowering users to safely navigate this new open and permissionless world. Main Idea Behind the Risk Framework[​](https://docs.vesu.xyz/blog/page/3#main-idea-behind-the-risk-framework "Direct link to Main Idea Behind the Risk Framework") ------------------------------------------------------------------------------------------------------------------------------------------------------------------- "There is no free lunch" is a key principle of finance hinting to the fact that financial opportunities generally come with a risk for investors. This also applies to DeFi and may even be amplified by the open and permissionless nature of these new markets. ![N0 Free Lunch](https://docs.vesu.xyz/assets/images/no-free-lunch-bd6d8eecc5fa7427d329a506b1c148da.jpg) _Source: [https://mises.org/mises-wire/why-there-no-free-lunch](https://mises.org/mises-wire/why-there-no-free-lunch) _ The inherent risks within DeFi lending markets are multifaceted, encompassing smart contract vulnerabilities, dependencies on external price oracles, market volatility and liquidity issues, and counterparty concerns, among others. These elements underscore the pressing need for a comprehensive risk framework capable of addressing the unique characteristics of DeFi protocols. Such a framework would not only facilitate the accurate measurement of risk for a specific lending pool but also transparently and intuitively communicate these risks to users. In doing so, it could significantly improve user's decision making and diminish barriers to entry for new users. A successful risk assessment methodology for lending markets must be adaptive, reflecting the highly dynamic essence of the sector. It should provide a structured approach to identifying and quantifying risks, incorporating both quantitative and qualitative analysis to offer a holistic view of the exposed risk levels within a lending pool. Moreover, this framework must evolve in tandem with the innovation of new lending models and the DeFi ecosystem itself, accommodating new risks as they arise. Vesu’s risk framework is a step in that direction, offering a comprehensive methodology for evaluating and conveying the risks associated with depositing assets into a specific market, through an intuitive risk rating. This framework empowers lenders and borrowers to assess lending markets accurately, identify those that align with their risk profiles, and make informed decisions regarding their asset allocations. Developers can leverage the risk framework to make informed decisions when creating new lending markets or building extensions, ensuring the longevity and sustainability of the protocol. Methodology[​](https://docs.vesu.xyz/blog/page/3#methodology "Direct link to Methodology") ------------------------------------------------------------------------------------------- Our methodology builds on the general risk concept that suggests that `risk = likelihood x impact`. It focuses on a single risk impact metric: `impact := "loss of funds"`. Risk assessment thus relates to the estimation of a risk event's likelihood. ![Vesu Risk Framework](https://docs.vesu.xyz/assets/images/vesu-risk-framework-aa783930fc978e9033154b7366b3429c.png) The risk methodology involves a continuous process resulting in a) identification of relevant risk events, b) risk rating, c) communication of risks, and d) mitigation measures. ### a) Risk Identification[​](https://docs.vesu.xyz/blog/page/3#a-risk-identification "Direct link to a) Risk Identification") This step involves compiling a list of risk events related to a lending market and resulting in the aforementioned impact: "loss of user funds". Risk events can stem from the design, implementation, or configuration of a lending market or the respective asset and includes technical, economic, and counterparty risks. The main risk events, or categories respectively, identified in Vesu’s model are: * **Pool Risk**: Pool risk includes the technical risks innate in smart contract code, including potential flaws in the framework or execution of the pool or its extension's logic. Additionally, counterparty risk in a pool can arise from central points of control within the pool's operational structure and the management procedures surrounding them. * **Asset Risk**: This event deals with the risks tied to the specific asset being deposited into a pool. It covers the potential for flaws within the smart contract, as well as depeg risk. Furthermore, counterparty risks are highlighted, stemming from centralized control points within the token's framework, its dependencies, and the governance mechanisms that oversee these aspects. * **Oracle Risk**: Decentralized lending mechanisms, such as Vesu's pool model, are susceptible to targeted economic attacks, particularly through price oracle manipulation. Malevolent actors may exploit the oracles by artificially inflating the prices of certain tokens. Such maneuvers involve the use of less liquid tokens to distort their value, subsequently leveraging this inflated valuation to maximize borrowings. This practice burdens the protocol with unsustainable debt, highlighting the critical need for robust security measures and vigilant monitoring of oracle activities to deter manipulation. * **Market Risk**: The DeFi sector is no stranger to the whims of market volatility, which poses a substantial risk to participants. Sharp declines in the value of collateral can precipitate situations where collateral ratios plummet to 100% or lower, triggering liquidation cascades. Similarly, market liquidity is another driver of market risk effectively defining a market's ability to absorb liquidations. If not properly accounted for, these factors can result in failed liquidations leading to _bad debt_ and losses incurred by lenders in a market. * **Collateral Risk**: This parameter highlights how risks can transfer across different assets via a sequence of collateralized positions or collateral chains. Even if the primary asset appears secure, it might absorb the risks associated with the assets used as its collateral, or the collateral asset's collateral. Collateral chains thus serve as an important risk translation mechanism that can only be mitigated by isolating collateral from liquidity assets in a pool. ### b) Risk Rating[​](https://docs.vesu.xyz/blog/page/3#b-risk-rating "Direct link to b) Risk Rating") Remember, `risk = likelihood x impact`. This step concerns allocating a risk rating to the identified risk events. This rating relies on estimating a risk event's likelihood, or how likely the event is to occur. For some risk events, the likelihood can be expressed as a statistical probability of occurrence within a given time period. However, in most cases, a qualitative approach is necessary due to a lack of data. Our risk rating methodology uses a qualitative likelihood score consisting of four likelihood levels as shown in the table below. | Likelihood | Description | | --- | --- | | Neutral ⬜ | Impossible for the risk event to occur | | Low 🟩 | Risk event is unlikely to occur | | Medium 🟨 | Risk event is unexpected but possible to occur | | High 🟥 | Risk event is expected or unable to assess likelihood | Applied to each of the identified risk events, these scores result in a multidimensional _Risk Scorecard_ providing full risk transparency on Vesu markets. We further aggregate these scores into a **holistic rating** reflecting the likelihood for any of the risk events to occur in a certain market. This holistic risk rating caputures the **worst score across all events**. Consequently, a Vesu market's overarching risk rating mirrors the worst-case risk across all events. ### c) Risk Declaration[​](https://docs.vesu.xyz/blog/page/3#c-risk-declaration "Direct link to c) Risk Declaration") Risk declarations form the third step in our methodology. The objective of this step is to communicate risks in a transparent and intuitive way towards users and other stakeholders. For this purpose, the results of the risk assessment are published in a dedicated section in the Vesu docs and are thus accessible to anyone. Furthermore, the risk scorecards and holistic rating (see Screenshot below) for each market are available in the Vesu app for full transparency. ![Vesu Risk Scorecard](https://docs.vesu.xyz/assets/images/ether-risk-scorecard-0b93e1decb8c72ecb8382d176e425064.png) Users and the community thus have full visibility on the identified risks allowing everyone to make informed decisions when interacting with Vesu markets. ### d) Risk Mitigation[​](https://docs.vesu.xyz/blog/page/3#d-risk-mitigation "Direct link to d) Risk Mitigation") Vesu is a fully open and permissionless protocol allowing anyone to create new lending markets. The absence of protocol governance means that only the creator can control the risk exposed by a lending market. Risk mitigation thus has to be implemented on different levels as shown in the following table. | Level | Owner | Mitigation Strategy | | --- | --- | --- | | Protocol | Market creator | Configure markets targeting appropriate risk rating | | Frontend | Frontend provider | Curate list of markets with acceptable risk rating | | User | User | Deposit in markets with acceptable risk rating | As a frontend provider, we play an important role in facilitating access to the Vesu protocol in a secure and risk-aware manner. The Vesu frontend will thus curate the list of lending markets exposing only markets with a well understood risk profile. That said, since a frontend is only an optional access point, users may still chose to access non-listed markets directly, bypassing the Vesu frontend. Conclusion[​](https://docs.vesu.xyz/blog/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- The Vesu protocol is a fully open and permissionless lending protocol that empowers users to lend, borrow, and create new lending markets without restrictions. As with any lending platform, Vesu users face inherent risks. To address this, the Vesu Risk Framework introduces a risk assessment method inspired by established risk management best practices. At the heart of this methodology is a comprehensive risk rating system, designed to evaluate and convey the various risks associated with each lending market. Using this rating system, risks are transparently and intuitively communicated to users and the community, thereby facilitating well-informed decision-making. --- # Blog | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/page/4#__docusaurus_skipToContent_fallback) ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/page/4#intro "Direct link to Intro") ------------------------------------------------------------------------- Vesu is a fully permissionless lending protocol and is reshaping how lenders, borrowers, and developers envision the future of onchain lending. At its essence, Vesu is engineered to overcome the challenges faced by traditional protocols, providing a neutral, efficient, and secure platform for global and borderless lending markets. At the heart of Vesu’s approach is: * a governance-free model ensuring efficiency and global access, * permissionless, risk-isolating lending pools, * efficient, market-driven rates, and * Uni v4-inspired lending hooks for unparalleled optionality. Read more about Vesu's foundational concepts in our [previous article](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . This article will focus on this last bullet point around “lending hooks,” explaining what they are, how they’re implemented into Vesu’s design, and what ramifications this revolutionary approach may have on users as it looks to change the standards for onchain lending. Vesu Lending Hooks[​](https://docs.vesu.xyz/blog/page/4#vesu-lending-hooks "Direct link to Vesu Lending Hooks") ---------------------------------------------------------------------------------------------------------------- One of Vesu’s biggest differentiators in the lending space is the concept of programmable extensions and lending hooks. Extensions are separate programs that can be created and implemented for individual pools. These programs are invoked via “lending hooks.” Hooks, a term popularized by [Uniswap v4](https://docs.uniswap.org/contracts/v4/overview) , are code segments triggered during various stages within the extension/liquidity pool. These programmable features empower developers to use their creativity to launch entirely new lending experiences using the same battle-tested platform to settle lending transactions. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal for all crypto users. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) In the case of Vesu, hooks integrate into each specific pool through distinct triggers initiated by user actions. Specifically, Vesu offers the following hooks * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_transfer\_position * after\_transfer\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for the extensions to implement customized logic and functionalities, ranging from interest rate calculations to position modifications and liquidations. At launch, Vesu will provide pools with a “baseline” setting, entitled the “factory extension.” This factory extension is created by the Vesu team and audited together with the Vesu protocol. Below, we review the features encoded in the factory extension and their implications for a lending pool and its users. Factory Extension[​](https://docs.vesu.xyz/blog/page/4#factory-extension "Direct link to Factory Extension") ------------------------------------------------------------------------------------------------------------- ### Adaptive Interest Rates[​](https://docs.vesu.xyz/blog/page/4#adaptive-interest-rates "Direct link to Adaptive Interest Rates") Interest rates serve as a pivotal mechanism in lending markets, facilitating the alignment of supply and demand for specific assets. The primary aim of a lending market is to enable the efficient discovery of an equilibrium rate through the interplay of supply and demand. This is especially true for Vesu’s “free market” approach to lending pools. Consequently, the design of an interest rate model is fundamental to the architecture of any lending market. Because of that, a diverse array of interest rate models have been explored, with most relying on a governance mechanism to fine-tune the interest rate parameters to changing market conditions. This is inefficient and problematic as it adds centralization vectors in the protocol design instead of allowing markets to arrive at an equilibrium. Vesu removes reliance on governance processes for rate adjustments or the fine-tuning of rate model parameters. Instead, the factory extension adopts an autonomous, adaptive interest rate model. This model is composed of two principal components: a utilization-based interest rate curve and a controller mechanism designed to modify the interest rate curve in reaction to market imbalances. While adaptive models represent a relatively new DeFi frontier, the chosen controller design has been in use in [Fraxlend markets](https://docs.frax.finance/fraxlend/fraxlend-overview) and has offered robust, market-driven rates across a variety of market regimes. The factory extension's specific controller design is predicated on a half-life growth (decay) rate. The model's curve controller dynamically adjusts the maximum interest rate and the target rate based on the time-weighted deviation of current utilization from the target utilization. The applicable interest rate is then determined from this adjusted curve, taking into account the present utilization level. This mechanism underscores the model's capacity to adapt to changing market conditions, thereby ensuring the lending market's responsiveness and resilience. ![Vesu Adaptive Interest Rates](https://docs.vesu.xyz/assets/images/vesu-adaptive-interest-rates-a6aac756c762d2460cf130d1cedafe32.png) This model marks a significant shift towards fully automated, real-time interest rate adjustments, addressing market imbalances without human intervention. Beyond that, this governance-less approach epitomizes simplicity, favoring straightforward, proven strategies over complex, untested alternatives. By automatically adjusting the interest rate curve based on the utilization rate's deviation from a predetermined target, the model ensures adaptability and responsiveness to market dynamics, a critical feature illustrated in the provided diagram. ### Autonomous Oracle[​](https://docs.vesu.xyz/blog/page/4#autonomous-oracle "Direct link to Autonomous Oracle") The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. This solvency check, for most lending protocols, is conducted using oracles, external data feeds that supply real-time price data. Similarly, the factory extension, through the “price” hook, uses the [Pragma oracle](https://www.pragma.build/) solution to inform the protocol about position solvency. Pragma is Starknet’s leading oracle solution and secures over $250M at the time of writing this article. Pragma distinguishes itself by offering a more decentralized and transparent design by pushing individual data points directly onchain allowing for the onchain aggregation through smart contracts. It thereby allows for the use of a variety of powerful aggregation methods, such as the median, TWAP or volatility. Furthermore, Pragma provides a richer set of contextual data—such as the number of active data providers and the timestamp of the latest data point—that enhances the reliability of the price feeds. This transparency and depth of data empower the Vesu factory extension to perform advanced sanity checks and implement oracle fail-safes, thus elevating the platform's resilience to inaccuracies or manipulations in price feeds. The factory extension utilizes this rich data set in two pivotal ways. Firstly, it computes a robust oracle price using the Median aggregator, ensuring that outlier data points do not skew valuations. Secondly, it leverages contextual data to construct an oracle trust score, which evaluates the reliability of price feeds based on the diversity of data sources and the timeliness of data. This score is instrumental in determining whether prices are trustworthy or if the lending pool should be paused to protect against potential risks stemming from stale or manipulated data. ### Liquidation Strategy[​](https://docs.vesu.xyz/blog/page/4#liquidation-strategy "Direct link to Liquidation Strategy") The management of insolvent positions through liquidation is a delicate balancing act in DeFi protocols between optimizing for lender and borrower protections. The strategy's design is notably pragmatic, allowing liquidators to purchase all or part of an insolvent position's collateral at a discount. This discount serves as an incentive for liquidators to participate in the process, facilitating the rapid recovery of debts and minimizing the probability for a shortfall affecting lenders in the market. By enabling partial liquidations, the Vesu factory extension addresses the challenge of liquidating large positions in markets where collateral or debt assets may have limited liquidity. This methodical approach ensures that insolvent positions can be gradually resolved, preventing sudden market shifts that could arise from the forced liquidation of large positions. ![Vesu Liquidation](https://docs.vesu.xyz/assets/images/vesu-liquidation-57687a724370685a45cde12f7bef4373.png) The liquidation strategy further allows a liquidator to receive collateral shares instead of assets. Thereby, the factory extension enables liquidations to function properly in the scenario where collateral assets are not available. While unlikely, this is possible in markets where the rehypothecation of collateral assets, as liquidity for borrowers of the same asset, is enabled. ### Bad Debt Redistribution[​](https://docs.vesu.xyz/blog/page/4#bad-debt-redistribution "Direct link to Bad Debt Redistribution") The liquidation strategy serves as the protocol’s main safeguard against a shortfall, or bad debt, incurred by lenders. While the strategy’s design focuses on safety for market participants, and in particular lenders, the possibility of bad debt events cannot be fully eliminated. In fact, the likelihood of such events is largely driven by the risk parameters of individual lending pools which for permissionless markets, like Vesu, is outside of the protocol’s control. The factory extension thus implements an effective strategy for the redistribution of “bad debt.” If/when liquidations fail to cover the outstanding debt fully, this strategy employs a method of “socializing the loss,” a tactic found in many DeFi applications to mitigate liquidity run risks. This approach involves spreading the accumulated shortfall across the pool's liquidity suppliers, allocating losses in proportion to their share in the pool. This immediate redistribution of losses ensures that any shortfall is promptly reflected in each supplier's claim on the remaining assets, thus reducing the risk of panic withdrawals and preserving the pool's overall stability. In essence, the factory extension's liquidation and bad debt redistribution strategies adhere to the principle of preferring simplicity over complexity, offering prudent measures designed to maintain liquidity and confidence within the lending pool ecosystem. By enabling manageable liquidation processes and equitable loss distribution, these mechanisms safeguard against the systemic risks posed by insolvent positions and potential liquidity crises, notably in a fully autonomous manner without requiring any form of external intervention. ### Pause Mode[​](https://docs.vesu.xyz/blog/page/4#pause-mode "Direct link to Pause Mode") This extension implements an autonomous Pause Mode mitigating potential financial risks and preventing liquidity crises, commonly referred to as a "bank run." The mechanism's primary objectives are to limit the accumulation of losses within a pool and to avert race conditions that can lead to such panics. Central to this approach is the concept of measuring pool health through aggregate solvency, analogous to individual positions within the pool, and oracle liveness. The extension autonomously initiates a pause and, if necessary, a shutdown of a lending pool upon detecting an unhealthy state among any of its lending pairs. ![Vesu Pool Pause](https://docs.vesu.xyz/assets/images/vesu-pool-pause-0690f92e0b0bbda142e8f6fb895f4ca6.png) Upon entering an unhealthy state, the pool transitions into a "pause" mode, during which interactions that could potentially worsen its financial health are restricted. Instead, activities that contribute to improving solvency - such as collateral deposits or debt repayments - are encouraged. This phase aims to allow the pool an opportunity to return to solvency within a specified recovery period. Failing to achieve solvency within this timeframe results in the pool entering a shutdown mode, which precludes the possibility of recovery. Instead, the shutdown mode enables an orderly withdrawal of deposited assets for pool participants. In essence, this shutdown mechanism provides a systematic approach to winding down insolvent lending pools within immutable protocols, prioritizing the recovery of solvency where possible and facilitating an organized asset redemption process in cases where recovery is unattainable. Conclusion[​](https://docs.vesu.xyz/blog/page/4#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- Through its unique governance-free model, permissionless lending pools, and the implementation of versatile lending hooks inspired by Uniswap v4, Vesu provides a neutral, efficient, and secure lending environment that addresses the dynamic needs of lenders, borrowers, and developers. The factory extension's adaptive interest rate model, reliable oracle design, and effective liquidation strategy underscore its commitment to optimizing user experience and market stability. Moreover, the bad debt redistribution and pause mode features reflect Vesu's proactive approach to managing financial risks and ensuring the protocol's resilience. As Vesu continues to evolve and its lending hook implementations further diversify, it stands poised to redefine the standards of onchain lending, offering a blueprint for future innovations in the DeFi space. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Introduction[​](https://docs.vesu.xyz/blog/page/4#introduction "Direct link to Introduction") ---------------------------------------------------------------------------------------------- Vesu is the latest innovation in DeFi’s lending sector, enabling fully permissionless, over-collateralized lending markets that combine the strengths of both pooled and isolated liquidity systems. It integrates Aave-inspired lending pools to enhance efficiency, alongside the provision for permissionless pool creation, thereby removing the governance overhead found in existing lending markets and maximizing decentralization. At its core, Vesu delivers an experience reminiscent of Aave, offering users access to aggregated liquidity in lending markets. This framework facilitates the lending and borrowing of designated assets under specific conditions. However, Vesu diverges from Aave in its unwavering commitment to unpermissioned, truly neutral protocols. By adopting this stance, Vesu allows the “free markets” to coordinate around capital allocation instead of a central governance unit. But beyond the “free markets” approach, Vesu also offers numerous technical advantages to provide users with the best user experience and rates. Let’s take a look at a few of these features. Lending Pool Design[​](https://docs.vesu.xyz/blog/page/4#lending-pool-design "Direct link to Lending Pool Design") ------------------------------------------------------------------------------------------------------------------- Much like market leader Aave, Vesu is designed to support maximal liquidity pooling and capital efficiency. However, other than Aave, Vesu is a modular protocol and supports permissionless pool creation. While all liquidity is managed in a monolith, risk is isolated between pools. To better understand the benefits of such a design, let’s first back up and understand the different, specific elements that come together to form a lending protocol, such as a position, a lending pair, and a lending pool. The deposits and debts of the Vesu protocol are tracked by “positions”. A single position keeps track of the collateral assets supplied and debt assets borrowed by the position owner in a specific lending pair. Unlike platforms like Aave, which utilize a global account model to track interactions within a pool, Vesu allows users to maintain distinct positions for each lending pair, facilitating precise oversight of individual pairs. This design enables the enforcement of pair-specific loan-to-value (LTV) ratios, directly addressing the unique risk profiles associated with each lending pair. Opting for simplicity, Vesu's approach further reduces implementation complexity and increases security. ![Vesu Lending Pair](https://docs.vesu.xyz/assets/images/vesu-lending-pair-ce974a766ad3ee126ed3ce01cad01d7f.png) A lending pair constitutes a one-way lending agreement, enabling participants to deposit a designated collateral asset (e.g., WETH) in exchange for borrowing a specific debt asset (e.g., USDC). In Vesu, this process is governed by a predetermined loan-to-value (LTV) ratio, underpinned by liquidation protocols to enforce compliance. Due to the permissionless nature of Vesu’s pools, lending pairs are configurable during the creation of a new lending pool. Expanding from the foundation laid by lending pairs, lending pools facilitate more elaborate lending configurations through the amalgamation of multiple lending pairs. This arrangement allows for the pooling of assets, thus serving as collective liquidity for all constituent lending pairs within a pool. This design principle not only enhances capital efficiency but also maintains liquidity isolation across different lending pools, effectively segmenting risk (more on this later). Illustrating the versatility of lending pools: * Pool A exemplifies the simplest form of a lending pool configuration, comprising a single lending pair. This arrangement allows for the borrowing of USDC against WETH collateral, adhering to a maximum loan-to-value ratio of 80%. * Pool B introduces a bi-directional configuration, where collateral assets are interchangeable with debt assets. This mirrors the traditional financial practice of rehypothecation, wherein collateral assets are reused to augment capital efficiency. However, this practice inherently introduces additional risks through the creation of collateral chains. While Vesu lending pools do not inherently offer borrowers the option to opt out of their collateral being rehypothecated, the utilization of uni-directional lending pairs provides a nuanced level of control over the activation of collateral rehypothecation at the pool level. * Pool C unveils a configuration that accommodates the borrowing of USDC with various collateral assets. Each lending pair within this pool prescribes a specific, collateral-dependent maximum loan-to-value ratio crucial for balancing capital efficiency against the safety nets provided by liquidation protocols. ![Vesu Lending Pool](https://docs.vesu.xyz/assets/images/vesu-lending-pool-18380e863c44752a09010e6c03c3fda4.png) Risk Isolation[​](https://docs.vesu.xyz/blog/page/4#risk-isolation "Direct link to Risk Isolation") ---------------------------------------------------------------------------------------------------- Isolated pools represent discrete lending environments that cater to a specific assortment of assets. This approach is notably different from a unified cross-collateral pool where any asset might be borrowed against another. While isolated pools do not eliminate risk, they do confine it to the individual pool instead of the protocol's entire total value locked (TVL). In this design, each pool has its own liquidity and risks, separate and apart from the other pools in the Vesu ecosystem. This mechanism acts as a form of risk containment for assets deemed as higher risk. Moreover, the advent of isolated pools allows for the introduction of a broader range of assets and the adoption of more daring operational parameters. “Bad debt” occurs within a lending pool when the liquidation process fails to cover the total outstanding debt when selling the collateral tied to a position. This scenario is akin to traditional bank runs, where even the mere anticipation of bad debt, irrespective of its actual presence, can trigger a rush to withdraw the remaining liquidity from a pool. A proven strategy to counteract the risk of such liquidity crises involves the communal absorption of any developing shortfall among the liquidity providers of the pool. Vesu takes a similar approach. Consequently, any emerging shortfall is apportioned among the liquidity providers according to their share of the liquidity pool and executed within the same transaction that sees the shortfall arise. This method of immediate “bad debt” absorption stops a potential “bank run” scenario. Price Oracle[​](https://docs.vesu.xyz/blog/page/4#price-oracle "Direct link to Price Oracle") ---------------------------------------------------------------------------------------------- The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. Traditionally, this solvency check is conducted using external data feeds known as oracles, which supply real-time price data. Recognized for their efficiency, oracles are central to most lending protocol designs. However, alternative methodologies exist that utilize internal mechanisms for price discovery. Within this framework, Vesu positions itself by outsourcing the oracle functionality to the extensions (more on that below) associated with each lending pool. This delegation of oracle price feeds to the extension allows pool designs to continuously innovate on the oracle solution. Lending Hooks[​](https://docs.vesu.xyz/blog/page/4#lending-hooks "Direct link to Lending Hooks") ------------------------------------------------------------------------------------------------- The introduction of "lending hooks" by Vesu represents a significant stride toward flexibility and innovation. Lending hooks operate much in the same way than Uniswap v4 hooks with triggers after certain actions. These hooks are essentially separate programs that are invoked at various stages of user interaction with the lending protocol. Specifically, Vesu offers the following lending hooks: * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for user-defined custom logic and functionalities, ranging from oracle price feeds to interest rate calculations, position modifications and liquidations. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) Flash Loans[​](https://docs.vesu.xyz/blog/page/4#flash-loans "Direct link to Flash Loans") ------------------------------------------------------------------------------------------- One of DeFi’s most innovative “unlocks” that separate it from TradFi has been the creation and evolution of flash loans. Flash loans, by design, are unsecured loans that must be repaid within the same transaction or the transaction is reverted. Vesu's particular integration of flash loans into its protocol allows flash loan users to access its protocol-wide liquidity rather than being confined to the liquidity available within individual pools. This access to global liquidity enables a plethora of advanced financial strategies, such as more efficient liquidations and sophisticated position rebalancing, that is not possible on other lending protocols. Another unique aspect of flash loans on Vesu is that users can utilize them without facing any fees. This fee-less approach underpins Vesu’s commitment to fostering an open and inclusive financial ecosystem. Conclusion[​](https://docs.vesu.xyz/blog/page/4#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------- Vesu aims to set a new standard in the DeFi lending space by offering a unique amalgamation of pooled and isolated liquidity systems to create a modular, efficient, and fully decentralized lending protocol. Drawing inspiration from the current market leaders, Vesu enhances user experiences by facilitating access to aggregated liquidity and permitting permissionless pool creation. Its modular pool design and the incorporation of strict risk isolation coupled with Uniswap v4-style hooks offer a flexible and secure environment for users to freely create and experience a new wave of lending markets. By championing the principles of permissionless innovation and free-market capital allocation, Vesu not only addresses existing challenges within DeFi lending but also paves the way for a more inclusive, secure, and user-centric future in decentralized finance. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) DeFi’s Beginnings and Constant Evolution[​](https://docs.vesu.xyz/blog/page/4#defis-beginnings-and-constant-evolution "Direct link to DeFi’s Beginnings and Constant Evolution") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- In the ever-evolving landscape of DeFi, the paradigms of traditional financial services continue to be fundamentally challenged and redefined. Arguably, DeFi’s biggest and earliest widespread breakthroughs were the decentralized exchange (DEX) and on-chain borrowing and lending platforms. The evolution of the DeFi lending space has been marked by significant milestones, beginning with the launch of ETHLend in 2017. ETHLend introduced a peer-to-peer lending model on the blockchain, eliminating intermediaries and using ether as collateral, making lending more accessible and efficient. Aave and Compound expanded on ETHLend's foundation, introducing liquidity pools and features like over-collateralization and flash loans, which revolutionized DeFi lending by offering more efficiency and composability. The pooled liquidity model further simplified the lending and borrowing process, ensuring security and ease of access for users. Compound is also known for its governance model which was one of the first to emphasize a decentralized decision-making process, as well as bringing the idea of “yield farming” mainstream. The DeFi lending space continued to evolve with the introduction of adaptive interest rate models, oracle-less designs, and permissionless pool creation. The latter has been pushed by platforms like Morpho and represents the latest advancement in DeFi lending. It allows for the creation of new lending pools by anyone without a central governance unit deciding on supported assets and other risk parameters. Lending protocols have become essential to any DeFi ecosystem and have continually rolled out efficiency advancements over the years. In today’s protocols, features like pooled liquidity, flash loans, and risk-mitigation techniques are commonplace. On the other hand, one can see two distinct design approaches with respect to how risk parameters are managed. DeFi Lending Market’s Two Primary Designs[​](https://docs.vesu.xyz/blog/page/4#defi-lending-markets-two-primary-designs "Direct link to DeFi Lending Market�’s Two Primary Designs") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Despite the multitude of parameters that can be tweaked in constructing different on-chain lending protocol designs, one element that cleanly segregates the market into two distinct camps is how the protocol ultimately handles risk management. The two competing approaches can be described as: * **Central governance**: risk management is controlled by a central governance unit, generally a DAO, where parameters often are voted on, rolled out, and managed in a top-down manner (ex: Aave, Compound) * **Free markets** (ungoverned): Protocols that actively repel and eschew central governance due to the attack vectors they enable and instead simply rely on smart contracts to adjust risk parameters and the free market (the users) to handle their own risk management (ex: Morpho Blue) ![Central Governance vs Free Markets](https://docs.vesu.xyz/assets/images/governance-vs-free-markets-fc3f56c479b5b3fe01ad3d282764c9ca.png) ### Central Governance Model[​](https://docs.vesu.xyz/blog/page/4#central-governance-model "Direct link to Central Governance Model") The DAO-driven model relies on smart contracts for custody and general market mechanisms, yet also reintroduces central intermediaries to manage risk parameters. This hybrid model has allowed early lending platforms to create a moat of liquidity and users, yet it is also prone to shortcomings highlighting the challenge of scaling in a semi-decentralized context. The arguments for a centrally governed model are that it enables the DAO to elect specialists to monitor on-chain activities and risk parameters that normal community members either will not or are incapable of doing. Protocols that have adopted this model typically defer to the specialist to adjust their risk parameters, ex: Loan-to-Value (LTV) ratios, as the market dictates. This approach not only aids in maintaining a unified liquidity pool but also ensures a “hands-off” experience for users who entrust the specialist with risk management on their deposits. In scenarios where the market environment deteriorates, it falls upon the specialist and the DAO to modify the protocol's parameters to better align with the changing conditions. Despite its advantages, the central governance model of risk management is not without its shortcomings. DAOs, while pioneering in the DeFi space, are not immune to the operational, cyber and human risks that plague traditional organizations. Additionally, smart contract powered governance systems are vulnerable to the same design and technical flaws as the lending protocol itself as witnessed by past exploits resulting in losses of hundreds of millions USD. Furthermore, the politics within DAOs often mirror those of traditional entities, challenging the notion of neutrality and creating barriers to entry for newcomers. This political dynamic, coupled with governance bottlenecks, can significantly hinder the DAO's ability to make efficient capital allocation decisions, thereby limiting market scalability. ### Free Markets Model[​](https://docs.vesu.xyz/blog/page/4#free-markets-model "Direct link to Free Markets Model") The current alternative to the central governance model can be described as a hands-off, free-market approach to handling risk. The exploration of free market principles within the lending protocol landscape introduces a dynamic where lenders are empowered to navigate their own risk/reward pathways, essentially allowing market forces to dictate the equilibrium of risk parameters. This model hinges on the belief that free markets are better at allocating capital than any form of central governance and that only neutral, aka un-governed, technology empowers truly free markets. Lenders and borrowers, under this regime, are granted the autonomy to select their liquidity pools based on personal risk tolerance or create new pools if the existing ones are not compliant with their tolerance. As one would expect, this creates a diverse array of lending and borrowing scenarios, catering to the varied needs of users. At the protocol level, the absence of overarching governance simplifies the foundational codebase, making it more robust and secure. This design philosophy aims to streamline the core functions of the protocol, relegating complexity to use case specific peripheral modules. However, the free market approach is not without its challenges. One significant issue is the fragmentation of liquidity, which can undermine capital efficiency. Isolated pools, while offering tailored risk/reward profiles, may struggle to achieve the same level of market penetration as their monolithic counterparts, primarily due to the need for continuous rebalancing across pools in order to optimize both borrowing cost and income from supplying assets. The requirement for borrowers to provide non-yielding collateral in many isolated markets exacerbates this issue, contrasting with monolithic models where assets can serve dual purposes—acting as collateral while still earning yield. The limitation on capital efficiency from the user perspective cannot be overstated, as users are more likely to make their decisions based on easy-to-comprehend KPIs rather than the nuanced trade-offs involving pooled vs. isolated liquidity. Introducing Vesu[​](https://docs.vesu.xyz/blog/page/4#introducing-vesu "Direct link to Introducing Vesu") ---------------------------------------------------------------------------------------------------------- Vesu, DeFi’s latest progression in the on-chain lending space, is a pioneering platform designed to facilitate fully permissionless, over-collateralized lending agreements. With its ambitious design, Vesu looks to combine the best aspects of both worlds: a liquidity monolith with permissionless, multi-asset lending compartments aka lending pools. Risk is isolated across lending pools and governance delegated to these pools individually. Vesu thus implements the free markets approach in that no central governance exists and lending pools can be created permissionlessly. Through its modular lending pool design, Vesu allows for a large degree of flexibility in terms of expressing different lending arrangements including a strict two asset design and more capital efficient multi-asset pools as known e.g. from Aave. ![Vesu Modular Lending Markets](https://docs.vesu.xyz/assets/images/vesu-modular-lending-markets-12735edf22c63b275379b64b4ce7b55b.png) Moreover, one of Vesu’s biggest differentiators is the concept of extensions akin to Uniswap v4 hooks, empowering developers to create entirely new lending experiences. This flexibility positions Vesu not only as a lending protocol but also as a foundational platform for the development of new lending protocols. Additionally, because it is permissionless and there is no central governance adding friction and politics, Vesu offers a truly neutral technology for “free market competition” amongst lending markets. At its core, Vesu addresses the limitations of existing protocols while introducing innovative features that cater to the needs of a broad spectrum of users. Its modular, permissionless, and scalable architecture, coupled with a focus on simplicity and security, positions Vesu as a cornerstone of the next generation of DeFi lending platforms. --- # 29 posts tagged with "Announcement" | Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/blog/tags/announcement/page/3#__docusaurus_skipToContent_fallback) ![Welcome Re7 Labs](https://docs.vesu.xyz/assets/images/welcome-re7-551103f8e154765c28118737d7a20058.png) **Next Level DeFi with Re7 Labs**[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#next-level-defi-with-re7-labs "Direct link to next-level-defi-with-re7-labs") ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- We’re thrilled to welcome **[Re7 Labs](https://x.com/Re7Capital) ** to the Starknet ecosystem! As a leading risk curator, they are known for their expertise in crypto yield strategies and DeFi. Re7 Labs is recognized as one of the top vault curators, having played a key role in driving TVL to $3B on Morpho. Joining Vesu as the first pool curator thus signifies a major step for the entire Starknet ecosystem. This collaboration will allow Vesu and Starknet to expand to new use cases and further drive adoption and growth. ### **Introducing The New Pools**[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#introducing-the-new-pools "Direct link to introducing-the-new-pools") Right in time for the launch of STRK staking and the new liquid staking token (LST), Re7 will create three new pools on Vesu: * **Re7 STRK/xSTRK** Collateral Assets: xSTRK Borrow: STRK * **Re7 STRK/sSTRK** Collateral Assets: sSTRK Borrow: STRK * **Re7 USDC** Collateral Assets: ETH, wstETH, wBTC, STRK Borrow: USDC With these pools, Re7 Labs and Vesu are unlocking new use cases for the LST from Endur.fi and Nimbora. By adding liquidity and enabling innovative DeFi strategies on a neutral platform, we’re laying the foundation for a successful launch of STRK LSTs and fostering a healthy STRK staking ecosystem. At Vesu, providing permissionless and secure access to liquidity has always been central to our mission. We’re thrilled to take this next step alongside our incredible partners! ### **What’s Next?**[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#whats-next "Direct link to whats-next") The new pools are currently finalized and launched publicly together with Vesu’s new pools page in the coming days. At this point, everyone will be able to further support Starknet’s staking and LST landscape as well as to create new lending pools on Vesu. If you’re interested in creating a lending pool for your community, we’re here to help! Stay tuned for more updates as we continue to grow the DeFi landscape on Starknet. **Links** **Vesu.xyz**: [Earn, Borrow, Multiply!](https://vesu.xyz/) **X/Twitter**: [Follow us!](https://twitter.com/vesuxyz) **Discord**: [Join the community!](https://discord.com/invite/G9Gxgujj8T) ![About Vesu: What & Why We Build](https://docs.vesu.xyz/assets/images/about-vesu-791418c188a502453c6fb4cd69e9f553.png) note In this post, we’ll walk you through what sets Vesu apart, our purpose, and the key features we’re bringing to life. DeFi is transforming the future of finance, with the Total Value Locked (TVL) reaching $177 billion in 2023 (Source: DefiLlama). But compared to the trillions of dollars in Assets under Management (AUM) within traditional finance, there’s still vast room for DeFi to grow. Vesu is here to drive that expansion with a platform that is **secure, user-friendly, and built for innovation**. Our Purpose[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#our-purpose "Direct link to Our Purpose") ------------------------------------------------------------------------------------------------------------- We are building a secure lending platform that opens decentralized finance to everyone. Lenders and borrowers gain access to optimal market conditions, backed by a user experience that rivals leading FinTech platforms. Vesu's robust infrastructure and developer tools are driving the evolution of DeFi. We empower developers to innovate, create new features, and seamlessly integrate with other platforms. What We Offer[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#what-we-offer "Direct link to What We Offer") ------------------------------------------------------------------------------------------------------------------- Vesu allows users to: * Supply: Earn passive income by supplying your crypto assets. * Borrow: Access capital without the need for intermediaries. * Build with us: Create your own markets. Innovate and build on top of Vesu’s infrastructure. Why choose Vesu?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#why-choose-vesu "Direct link to Why choose Vesu?") --------------------------------------------------------------------------------------------------------------------------- Here’s what makes Vesu different and how we aim to improve DeFi: * **User Experience**: Vesu delivers a FinTech-like experience with the security of Ethereum, using Starknet features like multicalls to make DeFi accessible and user-friendly. With our direct integration into the Argent smart wallet for example, users are able to earn yield directly within the wallet. Learn more about our [UX principles](https://docs.vesu.xyz/blog/2024-05-17-vesu-ux-principles) . ![Integration in Argent Invest](https://docs.vesu.xyz/assets/images/argent-integration-c5c8bba5adf2ad165d86b5851561691d.png) * **Better Rates**: Vesu’s rates are set by a dynamic interest rate model that automatically adjusts based on real-time demand, ensuring fair and efficient rates without the need for slow, manual governance. This approach allows the market to naturally balance supply and demand, so users always get the best possible borrowing conditions. * **Better Risk Control**: All lending pools have separate risks that don’t affect other pools. Within a pool, depositors share risk only with others in the same pool. Each lending pair within a pool has a specific maximal loan-to-value (LTV) ratio, set by the pool creator, which is critical for enabling both capital efficiency and liquidation safety. * **Innovation**: By creating a flexible and open infrastructure we enable continuous development and innovation, allowing both our team and external developers to build on top of Vesu’s platform. Examples of this include features like Multiply and the upcoming Automations. * **Create New Market**: Anyone can create new markets tailored to their preferences, including custom settings like loan-to-value (LTV) ratios, interest rate models, or oracle choices, among others. * **Security**: Keeping user funds safe is the highest priority. We have [multiple audits](https://docs.vesu.xyz/security/audits) and a [$100,000 Immunefi bug bounty](https://immunefi.com/bug-bounty/vesu/information/) . The Vesu team is publicly known, with strong security practices. We take these and many more steps to keep Vesu safe and secure. Next Steps[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#next-steps "Direct link to Next Steps") ---------------------------------------------------------------------------------------------------------- ### Multiply Improvements & Automation Features[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#multiply-improvements--automation-features "Direct link to Multiply Improvements & Automation Features") We are continuously refining the Multiply feature based on feedback from our community. Our goal is to make managing your positions even easier and more secure. Upcoming improvements will include automation features designed to help users maintain for example a healthy Loan-to-Value (LTV) ratio, reducing the risk of liquidation. ### Custom Pool Creation[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#custom-pool-creation "Direct link to Custom Pool Creation") While it’s already possible to create new markets on Vesu, we are working on a Custom Pools page with an intuitive interface. This new frontend will make it easy for anyone to create and manage their own lending pools. An exclusive preview screenshot is available below. ![Preview of new Pools Page](https://docs.vesu.xyz/assets/images/pools-page-small-4197eef4091529eabe1bf580d118123a.png) ### Vesu API[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#vesu-api "Direct link to Vesu API") We are expanding our API to ensure smooth integration with other platforms and wallets. This will enhance the user experience by adding features like notifications for borrowers when their positions are at risk. Conclusion[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- In a rapidly evolving DeFi landscape, Vesu stands out as the most aligned lending market on Starknet, built with a focus on decentralization, security, and user empowerment. By embracing core crypto values like permissionless innovation and transparency, Vesu gives users full control over their assets. Whether you’re looking to earn yield, access liquidity, or create new custom markets, Vesu is the platform for you. We’re always looking to improve and innovate. Your feedback, ideas, or collaboration could help shape the future of Vesu. Join us, share your thoughts, and let’s build the future of finance together! * Follow us on X: [https://x.com/vesuxyz](https://x.com/vesuxyz) * Join our Discord: [https://discord.com/invite/G9Gxgujj8T](https://discord.com/invite/G9Gxgujj8T) ![Announcement: New Feature called Multiply](https://docs.vesu.xyz/assets/images/new-feature-multiply-046379b39d4a70af28979804bdfde588.png) ### Introducing Flashloan-Powered Multiply Feature![​](https://docs.vesu.xyz/blog/tags/announcement/page/3#introducing-flashloan-powered-multiply-feature "Direct link to Introducing Flashloan-Powered Multiply Feature!") We are thrilled to announce the launch of our brand-new **Multiply** feature, designed to supercharge your lending experience and optimize your DeFi strategies! ### What is Multiply?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#what-is-multiply "Direct link to What is Multiply?") Our innovative feature lets you instantly borrow assets using Ekubo flashloans with no fees at all. This enables you to enter an increased position in your favorite Vesu market without needing to fully own the deposited assets. With Multiply, you can enhance your yield farming or arbitrage strategies quickly and securely. ### Why Use Flashloan-Powered Multiply?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#why-use-flashloan-powered-multiply "Direct link to Why Use Flashloan-Powered Multiply?") * **Multiply Exposure:** Maximize your exposure to your favorite crypto assets. * **Multiply Earnings:** Take advantage of higher APY to boost profits. * **Multiply Efficiency:** Flashloans allow you to start with minimal initial capital. As always on Vesu, Multiply comes with a single-click, full-transparency and security-first UX. ### How to Get Started?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#how-to-get-started "Direct link to How to Get Started?") 1. Head over to [Vesu.xyz](https://vesu.xyz/) and connect your wallet. 2. Navigate to the "Multiply" tab on the app. 3. Choose your preferred assets and multiplier. 4. Review the position and risk information and let our flashloan engine handle the rest! **Happy multiplying! 🚀** Stay tuned for more updates and tutorials on how to make the most of this powerful new tool. If you have any questions, feedback, or just want to connect with our community, we’d love to see you in our Discord: [Join here!](https://discord.com/invite/G9Gxgujj8T) To learn more about Vesu and our newest feature [visit our Docs](https://docs.vesu.xyz/) ! #### Disclaimer[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#disclaimer "Direct link to Disclaimer") Vesu is a fully permissionless lending protocol, allowing users to lend, borrow, and create new markets autonomously. This decentralized system puts risk management directly in the hands of users, who are responsible for their own strategies. Please ensure you thoroughly inform yourself of the risks before using the platform. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/the-future-of-lending-777b6f28a39e04d164c96e334a035ccc.jpeg) ### Vesu is Officially Live on Starknet![​](https://docs.vesu.xyz/blog/tags/announcement/page/3#vesu-is-officially-live-on-starknet "Direct link to Vesu is Officially Live on Starknet!") We are thrilled to announce that Vesu is now live on Starknet, offering the best lending experience in town. Earn, borrow and build on Vesu with ease of use and peace of mind! ### What is Vesu?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#what-is-vesu "Direct link to What is Vesu?") Vesu is a fully open and permissionless lending protocol allowing anyone to earn, build and create new lending markets. Here's what sets Vesu apart: 1️⃣ Free Markets: Vesu enables anyone to create lending markets without governance restrictions, fostering a truly free market 2️⃣ Simplicity: Vesu provides an intuitive user interface bringing web2 like UX to DeFi 3️⃣ Transparency: Vesu highlights all relevant information including fees, effective APYs and risk so users can make informed decisions 4️⃣ Security: Vesu prioritizes security with audits by [Chain Security](https://x.com/chain_security) and [Cairo Security Clan](https://x.com/cairoaudit) , a public codebase and an [Immunefi](https://x.com/immunefi) bug bounty ### What's next?[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#whats-next "Direct link to What's next?") 🖥️ Pool creation & admin dashboard ➿ Multiply position feature 📊 Advanced risk dashboard ### Get Started[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#get-started "Direct link to Get Started") Dive into Vesu today with our tutorials, and start earning yield and $STRK rewards. Explore the future of lending on Starknet! For more details, visit [vesu.xyz](https://vesu.xyz/) or the [docs](https://docs.vesu.xyz/) . ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#intro "Direct link to Intro") ------------------------------------------------------------------------------------------- The evolution of blockchain technology from its niche presence to a mainstream technology underscores a critical need: enhancing user experience (UX) to meet the standards of conventional digital platforms. This requirement is even more pronounced in the decentralized finance (DeFi) sector, where current interfaces often present usability challenges and expose users to significant financial risks. Vesu aims to offer a superior UX comparable to that of FinTech apps while leveraging the power of DeFi technology “under the hood”. To achieve this goal, Vesu has partnered with [Argent](https://argent.xyz/) , the leading Wallet on Starknet and Web3 UX champion. ![Magic Meme](https://docs.vesu.xyz/assets/images/magic-meme-302e4cb4bcc8fa4a54bc2b1196b26a86.png "Magic Meme") DeFi UX Challenges[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#defi-ux-challenges "Direct link to DeFi UX Challenges") ---------------------------------------------------------------------------------------------------------------------------------- The blockchain ecosystem traditionally demands a high degree of technical understanding from its users. Engaging with blockchain technologies involves navigating complex cryptographic processes and managing transparent yet intricate transactions, which can render DeFi apps practically unusable and deter novice users. The following presents a (incomplete) list of key UX challenges in DeFi apps: * **Self-custody** requires users to securely store (and backup) their private keys in order to not lose access to their assets. This can be both a feature and a bug if users lack the appropriate tools e.g. for key recovery (hint to Web3 wallets). * **Transaction fees** pose a significant barrier to interact with DeFi apps. The fact that each interaction with an app can be very costly and has to be paid in a blockchain’s native token makes it currently impossible for DeFi to scale. * **Token spend approvals** are required for most interactions. Oftentimes DeFi apps require explicit approval transactions making the use less convenient and more expensive. Furthermore, unused approvals pose a significant security risk for users as evidenced by billions of USD hacked over the past years. * **Transaction decoding**, in Web3 wallets, is required for users to understand the result of a signed transaction. This poses a significant risk of "blind signing," where users approve transactions presented as indecipherable hashes and thus mislead users into approving unintended actions potentially leading to "wallet drains." * **Wallet Compatibility**: User deposits in DeFi apps are often tracked with internal positions. However, these positions are not represented using standard interfaces and thus are not compatible with Web3 wallets. As a result, wallets are not able to show a user’s positions across DeFi apps requiring users to connect to the individual apps. * **Transparency on risks and fees** is mostly insufficient, meaning that users are unable to make informed decisions. As a result, users are at risk of incurring unexpected losses or costs when interacting with a DeFi app. Clearly, these challenges are not solved by a single player but require careful orchestration across different layers in the DeFi stack such as wallets, protocols and apps. Argent Wallet has been a driving force in improving Web3 UX with innovations like “account abstraction,” “social recovery” and an early L2 roadmap. Vesu too strives to be at the forefront of DeFi UX. Together with Argent we have therefore identified a number of UX principles that will benefit Vesu users with a seamless and secure lending experience. Vesu UX Principles[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#vesu-ux-principles "Direct link to Vesu UX Principles") ---------------------------------------------------------------------------------------------------------------------------------- ### 1\. Minimize gas fees[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#1-minimize-gas-fees "Direct link to 1. Minimize gas fees") We built Vesu on Starknet because it offers the best “decentralization - security - scalability” (aka the blockchain trilemma) tradeoff. Starknet boasts the lowest transaction fees across L2s (see comparison below), and its roadmap offers a clear path towards unlocking more scaling improvements. ![L2 Tx Fee Comparison](https://docs.vesu.xyz/assets/images/l2-tx-fee-comparison-6b20ba1a03c8e95c9051867afa4da34f.png "L2 Tx Fee Comparison") _Source: [GrowThePie](https://fees.growthepie.xyz/) _ This means that Vesu users don’t have to worry about spending more on transactions than earning on deposits. ### 2\. Transaction Bundling[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#2-transaction-bundling "Direct link to 2. Transaction Bundling") On Vesu multiple actions are always bundled in a single transaction using Starknet’s native multicall protocol. For example, token spend approvals are always bundled with the actual position action on Vesu. ![Vesu Approval Revokes](https://docs.vesu.xyz/assets/images/vesu-tx-bundling-c901b7079d13ac541de5bc3169b32578.png "Vesu Approval Revokes") With Starknet's native account abstraction and multicall features, this in fact results in minimal overhead and results in a seamless UX. As a result, Vesu users are never required to sign, and pay for, multiple transactions even if an interaction requires multiple steps. ### 3\. Revoke Spend Approvals[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#3-revoke-spend-approvals "Direct link to 3. Revoke Spend Approvals") A key UX principle is automatically revoking unused token spend approvals when a user exits the app. Therefore, users are either asked to approve only a known amount of tokens spent, or an approval reset is appended to the transaction. This proactive measure ensures that malicious bugs or attackers do not create openings for potential fund drainage, safeguarding users' assets more effectively than many other protocols. ### 4\. Tokenized Deposits[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#4-tokenized-deposits "Direct link to 4. Tokenized Deposits") Vesu pools, through the [factory extension](https://docs.vesu.xyz/blog/2024-04-03-vesu-lending-hooks#factory-extension) , issue a yield-bearing token, called the **vToken**, reflecting the deposited assets and the accumulated interest. This token implements the ERC4626 interfaces, a “tokenized vaults” standard that extends the ERC20 token standard and has found widespread use in the Ethereum ecosystem. Apart from the ERC20 transfer-related and metadata interfaces, this standard also enables convenience around wallet integration and overall UX improvements. ![Vesu vToken](https://docs.vesu.xyz/assets/images/vToken-2badd6ee76336f73d646de0b579cc9c3.png "Vesu vToken") In order to unlock similar improvements and security across Starknet’s DeFi ecosystem we have created a Starknet Improvement Proposal (SNIP) which can be found [here](https://github.com/starknet-io/SNIPs/pull/85) . ### 5\. Transparency[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#5-transparency "Direct link to 5. Transparency") Vesu values clarity and transparency in user interactions, especially regarding the critical aspects of risks, rewards, and fees associated with lending and borrowing activities. This commitment is summarized by the following principles: * **Show effective APYs** and borrow cost, instead of current (irrelevant) numbers * **Continuous risk assessment** and mitigation (read more [here](https://docs.vesu.xyz/blog/2024-04-23-vesu-risk-framework) ) * **Full fee transparency** means Vesu users have visibility on all fees ![Vesu APY Transparency](https://docs.vesu.xyz/assets/images/vesu-fee-transparency-fb29716abbdf812962607f2aedbafb97.png "Vesu APY Transparency") By presenting this information user-friendly and intuitively, Vesu ensures that users are fully informed and can make decisions with a clear understanding of potential outcomes. ### 6\. Optimistic Position Updates[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#6-optimistic-position-updates "Direct link to 6. Optimistic Position Updates") Vesu leverages optimistic position updates to enhance the UX and create a seamless user journey. This means that users see their position updates immediately, without waiting for the transaction to finalize on the blockchain. This real-time feedback eliminates the latency typically associated with the underlying blockchain transactions. If a transaction fails, these updates are automatically reverted, ensuring the information users see is always accurate and up to date. This innovative feature improves general usability, bringing Vesu one step closer to the looks and feels of a FinTech app. Conclusion[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- The evolution of blockchain technology, particularly in the DeFi sector, demands an emphasis on user experience to drive wider adoption and improve security. Vesu mitigates the complexities and risks traditionally associated with blockchain and DeFi interactions by leveraging Starknet’s low transaction fees and unique capabilities, and systematically bundling user transactions. This approach not only simplifies the onboarding and transaction processes for users but also establishes a new standard for transparency and user engagement in the DeFi landscape. As the Starknet ecosystem continues to evolve, platforms like Vesu are crucial in bridging the gap between cutting-edge DeFi technology and the usability standards expected by everyday users. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#intro "Direct link to Intro") ------------------------------------------------------------------------------------------- Vesu democratizes access to financial infrastructure, enabling anyone to lend, borrow, and create new lending markets. This "free markets" approach places risk management squarely in the hands of users, underscoring the importance of transparency and informed decision-making. Technological vulnerabilities, counterparty risk, and market volatility are among the key concerns. Vesu thus equips users with a comprehensive _Risk Framework_ creating a transparent and safe environment for lenders, borrowers alike. This article delves into the intricacies of Vesu's Risk Framework and the methodologies employed to assess and communicate risks, empowering users to safely navigate this new open and permissionless world. Main Idea Behind the Risk Framework[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#main-idea-behind-the-risk-framework "Direct link to Main Idea Behind the Risk Framework") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- "There is no free lunch" is a key principle of finance hinting to the fact that financial opportunities generally come with a risk for investors. This also applies to DeFi and may even be amplified by the open and permissionless nature of these new markets. ![N0 Free Lunch](https://docs.vesu.xyz/assets/images/no-free-lunch-bd6d8eecc5fa7427d329a506b1c148da.jpg) _Source: [https://mises.org/mises-wire/why-there-no-free-lunch](https://mises.org/mises-wire/why-there-no-free-lunch) _ The inherent risks within DeFi lending markets are multifaceted, encompassing smart contract vulnerabilities, dependencies on external price oracles, market volatility and liquidity issues, and counterparty concerns, among others. These elements underscore the pressing need for a comprehensive risk framework capable of addressing the unique characteristics of DeFi protocols. Such a framework would not only facilitate the accurate measurement of risk for a specific lending pool but also transparently and intuitively communicate these risks to users. In doing so, it could significantly improve user's decision making and diminish barriers to entry for new users. A successful risk assessment methodology for lending markets must be adaptive, reflecting the highly dynamic essence of the sector. It should provide a structured approach to identifying and quantifying risks, incorporating both quantitative and qualitative analysis to offer a holistic view of the exposed risk levels within a lending pool. Moreover, this framework must evolve in tandem with the innovation of new lending models and the DeFi ecosystem itself, accommodating new risks as they arise. Vesu’s risk framework is a step in that direction, offering a comprehensive methodology for evaluating and conveying the risks associated with depositing assets into a specific market, through an intuitive risk rating. This framework empowers lenders and borrowers to assess lending markets accurately, identify those that align with their risk profiles, and make informed decisions regarding their asset allocations. Developers can leverage the risk framework to make informed decisions when creating new lending markets or building extensions, ensuring the longevity and sustainability of the protocol. Methodology[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#methodology "Direct link to Methodology") ------------------------------------------------------------------------------------------------------------- Our methodology builds on the general risk concept that suggests that `risk = likelihood x impact`. It focuses on a single risk impact metric: `impact := "loss of funds"`. Risk assessment thus relates to the estimation of a risk event's likelihood. ![Vesu Risk Framework](https://docs.vesu.xyz/assets/images/vesu-risk-framework-aa783930fc978e9033154b7366b3429c.png) The risk methodology involves a continuous process resulting in a) identification of relevant risk events, b) risk rating, c) communication of risks, and d) mitigation measures. ### a) Risk Identification[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#a-risk-identification "Direct link to a) Risk Identification") This step involves compiling a list of risk events related to a lending market and resulting in the aforementioned impact: "loss of user funds". Risk events can stem from the design, implementation, or configuration of a lending market or the respective asset and includes technical, economic, and counterparty risks. The main risk events, or categories respectively, identified in Vesu’s model are: * **Pool Risk**: Pool risk includes the technical risks innate in smart contract code, including potential flaws in the framework or execution of the pool or its extension's logic. Additionally, counterparty risk in a pool can arise from central points of control within the pool's operational structure and the management procedures surrounding them. * **Asset Risk**: This event deals with the risks tied to the specific asset being deposited into a pool. It covers the potential for flaws within the smart contract, as well as depeg risk. Furthermore, counterparty risks are highlighted, stemming from centralized control points within the token's framework, its dependencies, and the governance mechanisms that oversee these aspects. * **Oracle Risk**: Decentralized lending mechanisms, such as Vesu's pool model, are susceptible to targeted economic attacks, particularly through price oracle manipulation. Malevolent actors may exploit the oracles by artificially inflating the prices of certain tokens. Such maneuvers involve the use of less liquid tokens to distort their value, subsequently leveraging this inflated valuation to maximize borrowings. This practice burdens the protocol with unsustainable debt, highlighting the critical need for robust security measures and vigilant monitoring of oracle activities to deter manipulation. * **Market Risk**: The DeFi sector is no stranger to the whims of market volatility, which poses a substantial risk to participants. Sharp declines in the value of collateral can precipitate situations where collateral ratios plummet to 100% or lower, triggering liquidation cascades. Similarly, market liquidity is another driver of market risk effectively defining a market's ability to absorb liquidations. If not properly accounted for, these factors can result in failed liquidations leading to _bad debt_ and losses incurred by lenders in a market. * **Collateral Risk**: This parameter highlights how risks can transfer across different assets via a sequence of collateralized positions or collateral chains. Even if the primary asset appears secure, it might absorb the risks associated with the assets used as its collateral, or the collateral asset's collateral. Collateral chains thus serve as an important risk translation mechanism that can only be mitigated by isolating collateral from liquidity assets in a pool. ### b) Risk Rating[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#b-risk-rating "Direct link to b) Risk Rating") Remember, `risk = likelihood x impact`. This step concerns allocating a risk rating to the identified risk events. This rating relies on estimating a risk event's likelihood, or how likely the event is to occur. For some risk events, the likelihood can be expressed as a statistical probability of occurrence within a given time period. However, in most cases, a qualitative approach is necessary due to a lack of data. Our risk rating methodology uses a qualitative likelihood score consisting of four likelihood levels as shown in the table below. | Likelihood | Description | | --- | --- | | Neutral ⬜ | Impossible for the risk event to occur | | Low 🟩 | Risk event is unlikely to occur | | Medium 🟨 | Risk event is unexpected but possible to occur | | High 🟥 | Risk event is expected or unable to assess likelihood | Applied to each of the identified risk events, these scores result in a multidimensional _Risk Scorecard_ providing full risk transparency on Vesu markets. We further aggregate these scores into a **holistic rating** reflecting the likelihood for any of the risk events to occur in a certain market. This holistic risk rating caputures the **worst score across all events**. Consequently, a Vesu market's overarching risk rating mirrors the worst-case risk across all events. ### c) Risk Declaration[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#c-risk-declaration "Direct link to c) Risk Declaration") Risk declarations form the third step in our methodology. The objective of this step is to communicate risks in a transparent and intuitive way towards users and other stakeholders. For this purpose, the results of the risk assessment are published in a dedicated section in the Vesu docs and are thus accessible to anyone. Furthermore, the risk scorecards and holistic rating (see Screenshot below) for each market are available in the Vesu app for full transparency. ![Vesu Risk Scorecard](https://docs.vesu.xyz/assets/images/ether-risk-scorecard-0b93e1decb8c72ecb8382d176e425064.png) Users and the community thus have full visibility on the identified risks allowing everyone to make informed decisions when interacting with Vesu markets. ### d) Risk Mitigation[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#d-risk-mitigation "Direct link to d) Risk Mitigation") Vesu is a fully open and permissionless protocol allowing anyone to create new lending markets. The absence of protocol governance means that only the creator can control the risk exposed by a lending market. Risk mitigation thus has to be implemented on different levels as shown in the following table. | Level | Owner | Mitigation Strategy | | --- | --- | --- | | Protocol | Market creator | Configure markets targeting appropriate risk rating | | Frontend | Frontend provider | Curate list of markets with acceptable risk rating | | User | User | Deposit in markets with acceptable risk rating | As a frontend provider, we play an important role in facilitating access to the Vesu protocol in a secure and risk-aware manner. The Vesu frontend will thus curate the list of lending markets exposing only markets with a well understood risk profile. That said, since a frontend is only an optional access point, users may still chose to access non-listed markets directly, bypassing the Vesu frontend. Conclusion[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- The Vesu protocol is a fully open and permissionless lending protocol that empowers users to lend, borrow, and create new lending markets without restrictions. As with any lending platform, Vesu users face inherent risks. To address this, the Vesu Risk Framework introduces a risk assessment method inspired by established risk management best practices. At the heart of this methodology is a comprehensive risk rating system, designed to evaluate and convey the various risks associated with each lending market. Using this rating system, risks are transparently and intuitively communicated to users and the community, thereby facilitating well-informed decision-making. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Intro[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#intro "Direct link to Intro") ------------------------------------------------------------------------------------------- Vesu is a fully permissionless lending protocol and is reshaping how lenders, borrowers, and developers envision the future of onchain lending. At its essence, Vesu is engineered to overcome the challenges faced by traditional protocols, providing a neutral, efficient, and secure platform for global and borderless lending markets. At the heart of Vesu’s approach is: * a governance-free model ensuring efficiency and global access, * permissionless, risk-isolating lending pools, * efficient, market-driven rates, and * Uni v4-inspired lending hooks for unparalleled optionality. Read more about Vesu's foundational concepts in our [previous article](https://docs.vesu.xyz/blog/2024-03-15-vesu-protocol) . This article will focus on this last bullet point around “lending hooks,” explaining what they are, how they’re implemented into Vesu’s design, and what ramifications this revolutionary approach may have on users as it looks to change the standards for onchain lending. Vesu Lending Hooks[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#vesu-lending-hooks "Direct link to Vesu Lending Hooks") ---------------------------------------------------------------------------------------------------------------------------------- One of Vesu’s biggest differentiators in the lending space is the concept of programmable extensions and lending hooks. Extensions are separate programs that can be created and implemented for individual pools. These programs are invoked via “lending hooks.” Hooks, a term popularized by [Uniswap v4](https://docs.uniswap.org/contracts/v4/overview) , are code segments triggered during various stages within the extension/liquidity pool. These programmable features empower developers to use their creativity to launch entirely new lending experiences using the same battle-tested platform to settle lending transactions. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal for all crypto users. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) In the case of Vesu, hooks integrate into each specific pool through distinct triggers initiated by user actions. Specifically, Vesu offers the following hooks * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_transfer\_position * after\_transfer\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for the extensions to implement customized logic and functionalities, ranging from interest rate calculations to position modifications and liquidations. At launch, Vesu will provide pools with a “baseline” setting, entitled the “factory extension.” This factory extension is created by the Vesu team and audited together with the Vesu protocol. Below, we review the features encoded in the factory extension and their implications for a lending pool and its users. Factory Extension[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#factory-extension "Direct link to Factory Extension") ------------------------------------------------------------------------------------------------------------------------------- ### Adaptive Interest Rates[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#adaptive-interest-rates "Direct link to Adaptive Interest Rates") Interest rates serve as a pivotal mechanism in lending markets, facilitating the alignment of supply and demand for specific assets. The primary aim of a lending market is to enable the efficient discovery of an equilibrium rate through the interplay of supply and demand. This is especially true for Vesu’s “free market” approach to lending pools. Consequently, the design of an interest rate model is fundamental to the architecture of any lending market. Because of that, a diverse array of interest rate models have been explored, with most relying on a governance mechanism to fine-tune the interest rate parameters to changing market conditions. This is inefficient and problematic as it adds centralization vectors in the protocol design instead of allowing markets to arrive at an equilibrium. Vesu removes reliance on governance processes for rate adjustments or the fine-tuning of rate model parameters. Instead, the factory extension adopts an autonomous, adaptive interest rate model. This model is composed of two principal components: a utilization-based interest rate curve and a controller mechanism designed to modify the interest rate curve in reaction to market imbalances. While adaptive models represent a relatively new DeFi frontier, the chosen controller design has been in use in [Fraxlend markets](https://docs.frax.finance/fraxlend/fraxlend-overview) and has offered robust, market-driven rates across a variety of market regimes. The factory extension's specific controller design is predicated on a half-life growth (decay) rate. The model's curve controller dynamically adjusts the maximum interest rate and the target rate based on the time-weighted deviation of current utilization from the target utilization. The applicable interest rate is then determined from this adjusted curve, taking into account the present utilization level. This mechanism underscores the model's capacity to adapt to changing market conditions, thereby ensuring the lending market's responsiveness and resilience. ![Vesu Adaptive Interest Rates](https://docs.vesu.xyz/assets/images/vesu-adaptive-interest-rates-a6aac756c762d2460cf130d1cedafe32.png) This model marks a significant shift towards fully automated, real-time interest rate adjustments, addressing market imbalances without human intervention. Beyond that, this governance-less approach epitomizes simplicity, favoring straightforward, proven strategies over complex, untested alternatives. By automatically adjusting the interest rate curve based on the utilization rate's deviation from a predetermined target, the model ensures adaptability and responsiveness to market dynamics, a critical feature illustrated in the provided diagram. ### Autonomous Oracle[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#autonomous-oracle "Direct link to Autonomous Oracle") The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. This solvency check, for most lending protocols, is conducted using oracles, external data feeds that supply real-time price data. Similarly, the factory extension, through the “price” hook, uses the [Pragma oracle](https://www.pragma.build/) solution to inform the protocol about position solvency. Pragma is Starknet’s leading oracle solution and secures over $250M at the time of writing this article. Pragma distinguishes itself by offering a more decentralized and transparent design by pushing individual data points directly onchain allowing for the onchain aggregation through smart contracts. It thereby allows for the use of a variety of powerful aggregation methods, such as the median, TWAP or volatility. Furthermore, Pragma provides a richer set of contextual data—such as the number of active data providers and the timestamp of the latest data point—that enhances the reliability of the price feeds. This transparency and depth of data empower the Vesu factory extension to perform advanced sanity checks and implement oracle fail-safes, thus elevating the platform's resilience to inaccuracies or manipulations in price feeds. The factory extension utilizes this rich data set in two pivotal ways. Firstly, it computes a robust oracle price using the Median aggregator, ensuring that outlier data points do not skew valuations. Secondly, it leverages contextual data to construct an oracle trust score, which evaluates the reliability of price feeds based on the diversity of data sources and the timeliness of data. This score is instrumental in determining whether prices are trustworthy or if the lending pool should be paused to protect against potential risks stemming from stale or manipulated data. ### Liquidation Strategy[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#liquidation-strategy "Direct link to Liquidation Strategy") The management of insolvent positions through liquidation is a delicate balancing act in DeFi protocols between optimizing for lender and borrower protections. The strategy's design is notably pragmatic, allowing liquidators to purchase all or part of an insolvent position's collateral at a discount. This discount serves as an incentive for liquidators to participate in the process, facilitating the rapid recovery of debts and minimizing the probability for a shortfall affecting lenders in the market. By enabling partial liquidations, the Vesu factory extension addresses the challenge of liquidating large positions in markets where collateral or debt assets may have limited liquidity. This methodical approach ensures that insolvent positions can be gradually resolved, preventing sudden market shifts that could arise from the forced liquidation of large positions. ![Vesu Liquidation](https://docs.vesu.xyz/assets/images/vesu-liquidation-57687a724370685a45cde12f7bef4373.png) The liquidation strategy further allows a liquidator to receive collateral shares instead of assets. Thereby, the factory extension enables liquidations to function properly in the scenario where collateral assets are not available. While unlikely, this is possible in markets where the rehypothecation of collateral assets, as liquidity for borrowers of the same asset, is enabled. ### Bad Debt Redistribution[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#bad-debt-redistribution "Direct link to Bad Debt Redistribution") The liquidation strategy serves as the protocol’s main safeguard against a shortfall, or bad debt, incurred by lenders. While the strategy’s design focuses on safety for market participants, and in particular lenders, the possibility of bad debt events cannot be fully eliminated. In fact, the likelihood of such events is largely driven by the risk parameters of individual lending pools which for permissionless markets, like Vesu, is outside of the protocol’s control. The factory extension thus implements an effective strategy for the redistribution of “bad debt.” If/when liquidations fail to cover the outstanding debt fully, this strategy employs a method of “socializing the loss,” a tactic found in many DeFi applications to mitigate liquidity run risks. This approach involves spreading the accumulated shortfall across the pool's liquidity suppliers, allocating losses in proportion to their share in the pool. This immediate redistribution of losses ensures that any shortfall is promptly reflected in each supplier's claim on the remaining assets, thus reducing the risk of panic withdrawals and preserving the pool's overall stability. In essence, the factory extension's liquidation and bad debt redistribution strategies adhere to the principle of preferring simplicity over complexity, offering prudent measures designed to maintain liquidity and confidence within the lending pool ecosystem. By enabling manageable liquidation processes and equitable loss distribution, these mechanisms safeguard against the systemic risks posed by insolvent positions and potential liquidity crises, notably in a fully autonomous manner without requiring any form of external intervention. ### Pause Mode[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#pause-mode "Direct link to Pause Mode") This extension implements an autonomous Pause Mode mitigating potential financial risks and preventing liquidity crises, commonly referred to as a "bank run." The mechanism's primary objectives are to limit the accumulation of losses within a pool and to avert race conditions that can lead to such panics. Central to this approach is the concept of measuring pool health through aggregate solvency, analogous to individual positions within the pool, and oracle liveness. The extension autonomously initiates a pause and, if necessary, a shutdown of a lending pool upon detecting an unhealthy state among any of its lending pairs. ![Vesu Pool Pause](https://docs.vesu.xyz/assets/images/vesu-pool-pause-0690f92e0b0bbda142e8f6fb895f4ca6.png) Upon entering an unhealthy state, the pool transitions into a "pause" mode, during which interactions that could potentially worsen its financial health are restricted. Instead, activities that contribute to improving solvency - such as collateral deposits or debt repayments - are encouraged. This phase aims to allow the pool an opportunity to return to solvency within a specified recovery period. Failing to achieve solvency within this timeframe results in the pool entering a shutdown mode, which precludes the possibility of recovery. Instead, the shutdown mode enables an orderly withdrawal of deposited assets for pool participants. In essence, this shutdown mechanism provides a systematic approach to winding down insolvent lending pools within immutable protocols, prioritizing the recovery of solvency where possible and facilitating an organized asset redemption process in cases where recovery is unattainable. Conclusion[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- Through its unique governance-free model, permissionless lending pools, and the implementation of versatile lending hooks inspired by Uniswap v4, Vesu provides a neutral, efficient, and secure lending environment that addresses the dynamic needs of lenders, borrowers, and developers. The factory extension's adaptive interest rate model, reliable oracle design, and effective liquidation strategy underscore its commitment to optimizing user experience and market stability. Moreover, the bad debt redistribution and pause mode features reflect Vesu's proactive approach to managing financial risks and ensuring the protocol's resilience. As Vesu continues to evolve and its lending hook implementations further diversify, it stands poised to redefine the standards of onchain lending, offering a blueprint for future innovations in the DeFi space. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) Introduction[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#introduction "Direct link to Introduction") ---------------------------------------------------------------------------------------------------------------- Vesu is the latest innovation in DeFi’s lending sector, enabling fully permissionless, over-collateralized lending markets that combine the strengths of both pooled and isolated liquidity systems. It integrates Aave-inspired lending pools to enhance efficiency, alongside the provision for permissionless pool creation, thereby removing the governance overhead found in existing lending markets and maximizing decentralization. At its core, Vesu delivers an experience reminiscent of Aave, offering users access to aggregated liquidity in lending markets. This framework facilitates the lending and borrowing of designated assets under specific conditions. However, Vesu diverges from Aave in its unwavering commitment to unpermissioned, truly neutral protocols. By adopting this stance, Vesu allows the “free markets” to coordinate around capital allocation instead of a central governance unit. But beyond the “free markets” approach, Vesu also offers numerous technical advantages to provide users with the best user experience and rates. Let’s take a look at a few of these features. Lending Pool Design[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#lending-pool-design "Direct link to Lending Pool Design") ------------------------------------------------------------------------------------------------------------------------------------- Much like market leader Aave, Vesu is designed to support maximal liquidity pooling and capital efficiency. However, other than Aave, Vesu is a modular protocol and supports permissionless pool creation. While all liquidity is managed in a monolith, risk is isolated between pools. To better understand the benefits of such a design, let’s first back up and understand the different, specific elements that come together to form a lending protocol, such as a position, a lending pair, and a lending pool. The deposits and debts of the Vesu protocol are tracked by “positions”. A single position keeps track of the collateral assets supplied and debt assets borrowed by the position owner in a specific lending pair. Unlike platforms like Aave, which utilize a global account model to track interactions within a pool, Vesu allows users to maintain distinct positions for each lending pair, facilitating precise oversight of individual pairs. This design enables the enforcement of pair-specific loan-to-value (LTV) ratios, directly addressing the unique risk profiles associated with each lending pair. Opting for simplicity, Vesu's approach further reduces implementation complexity and increases security. ![Vesu Lending Pair](https://docs.vesu.xyz/assets/images/vesu-lending-pair-ce974a766ad3ee126ed3ce01cad01d7f.png) A lending pair constitutes a one-way lending agreement, enabling participants to deposit a designated collateral asset (e.g., WETH) in exchange for borrowing a specific debt asset (e.g., USDC). In Vesu, this process is governed by a predetermined loan-to-value (LTV) ratio, underpinned by liquidation protocols to enforce compliance. Due to the permissionless nature of Vesu’s pools, lending pairs are configurable during the creation of a new lending pool. Expanding from the foundation laid by lending pairs, lending pools facilitate more elaborate lending configurations through the amalgamation of multiple lending pairs. This arrangement allows for the pooling of assets, thus serving as collective liquidity for all constituent lending pairs within a pool. This design principle not only enhances capital efficiency but also maintains liquidity isolation across different lending pools, effectively segmenting risk (more on this later). Illustrating the versatility of lending pools: * Pool A exemplifies the simplest form of a lending pool configuration, comprising a single lending pair. This arrangement allows for the borrowing of USDC against WETH collateral, adhering to a maximum loan-to-value ratio of 80%. * Pool B introduces a bi-directional configuration, where collateral assets are interchangeable with debt assets. This mirrors the traditional financial practice of rehypothecation, wherein collateral assets are reused to augment capital efficiency. However, this practice inherently introduces additional risks through the creation of collateral chains. While Vesu lending pools do not inherently offer borrowers the option to opt out of their collateral being rehypothecated, the utilization of uni-directional lending pairs provides a nuanced level of control over the activation of collateral rehypothecation at the pool level. * Pool C unveils a configuration that accommodates the borrowing of USDC with various collateral assets. Each lending pair within this pool prescribes a specific, collateral-dependent maximum loan-to-value ratio crucial for balancing capital efficiency against the safety nets provided by liquidation protocols. ![Vesu Lending Pool](https://docs.vesu.xyz/assets/images/vesu-lending-pool-18380e863c44752a09010e6c03c3fda4.png) Risk Isolation[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#risk-isolation "Direct link to Risk Isolation") ---------------------------------------------------------------------------------------------------------------------- Isolated pools represent discrete lending environments that cater to a specific assortment of assets. This approach is notably different from a unified cross-collateral pool where any asset might be borrowed against another. While isolated pools do not eliminate risk, they do confine it to the individual pool instead of the protocol's entire total value locked (TVL). In this design, each pool has its own liquidity and risks, separate and apart from the other pools in the Vesu ecosystem. This mechanism acts as a form of risk containment for assets deemed as higher risk. Moreover, the advent of isolated pools allows for the introduction of a broader range of assets and the adoption of more daring operational parameters. “Bad debt” occurs within a lending pool when the liquidation process fails to cover the total outstanding debt when selling the collateral tied to a position. This scenario is akin to traditional bank runs, where even the mere anticipation of bad debt, irrespective of its actual presence, can trigger a rush to withdraw the remaining liquidity from a pool. A proven strategy to counteract the risk of such liquidity crises involves the communal absorption of any developing shortfall among the liquidity providers of the pool. Vesu takes a similar approach. Consequently, any emerging shortfall is apportioned among the liquidity providers according to their share of the liquidity pool and executed within the same transaction that sees the shortfall arise. This method of immediate “bad debt” absorption stops a potential “bank run” scenario. Price Oracle[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#price-oracle "Direct link to Price Oracle") ---------------------------------------------------------------------------------------------------------------- The assessment of a position's solvency is crucial for the stability and trustworthiness of lending protocols. This assessment hinges on whether the value of the collateral within a position is adequate to cover its debt should the borrower default. Traditionally, this solvency check is conducted using external data feeds known as oracles, which supply real-time price data. Recognized for their efficiency, oracles are central to most lending protocol designs. However, alternative methodologies exist that utilize internal mechanisms for price discovery. Within this framework, Vesu positions itself by outsourcing the oracle functionality to the extensions (more on that below) associated with each lending pool. This delegation of oracle price feeds to the extension allows pool designs to continuously innovate on the oracle solution. Lending Hooks[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#lending-hooks "Direct link to Lending Hooks") ------------------------------------------------------------------------------------------------------------------- The introduction of "lending hooks" by Vesu represents a significant stride toward flexibility and innovation. Lending hooks operate much in the same way than Uniswap v4 hooks with triggers after certain actions. These hooks are essentially separate programs that are invoked at various stages of user interaction with the lending protocol. Specifically, Vesu offers the following lending hooks: * price * rate\_accumulator * before\_modify\_position * after\_modify\_position * before\_liquidate\_position * after\_liquidate\_position These hooks serve as entry points for user-defined custom logic and functionalities, ranging from oracle price feeds to interest rate calculations, position modifications and liquidations. The flexibility offered by these hooks allows developers to tailor lending pool behaviors to specific needs or market conditions, thereby enhancing the protocol's utility and appeal. ![Vesu Lending Hooks](https://docs.vesu.xyz/assets/images/vesu-lending-hooks-1ca91976ef6c8a55e91231616eb91a68.png) Flash Loans[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#flash-loans "Direct link to Flash Loans") ------------------------------------------------------------------------------------------------------------- One of DeFi’s most innovative “unlocks” that separate it from TradFi has been the creation and evolution of flash loans. Flash loans, by design, are unsecured loans that must be repaid within the same transaction or the transaction is reverted. Vesu's particular integration of flash loans into its protocol allows flash loan users to access its protocol-wide liquidity rather than being confined to the liquidity available within individual pools. This access to global liquidity enables a plethora of advanced financial strategies, such as more efficient liquidations and sophisticated position rebalancing, that is not possible on other lending protocols. Another unique aspect of flash loans on Vesu is that users can utilize them without facing any fees. This fee-less approach underpins Vesu’s commitment to fostering an open and inclusive financial ecosystem. Conclusion[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#conclusion "Direct link to Conclusion") ---------------------------------------------------------------------------------------------------------- Vesu aims to set a new standard in the DeFi lending space by offering a unique amalgamation of pooled and isolated liquidity systems to create a modular, efficient, and fully decentralized lending protocol. Drawing inspiration from the current market leaders, Vesu enhances user experiences by facilitating access to aggregated liquidity and permitting permissionless pool creation. Its modular pool design and the incorporation of strict risk isolation coupled with Uniswap v4-style hooks offer a flexible and secure environment for users to freely create and experience a new wave of lending markets. By championing the principles of permissionless innovation and free-market capital allocation, Vesu not only addresses existing challenges within DeFi lending but also paves the way for a more inclusive, secure, and user-centric future in decentralized finance. ![Welcome Vesu](https://docs.vesu.xyz/assets/images/banner_c-4ce5539fbaea1818870ef3b689a19ba7.png) DeFi’s Beginnings and Constant Evolution[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#defis-beginnings-and-constant-evolution "Direct link to DeFi’s Beginnings and Constant Evolution") --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- In the ever-evolving landscape of DeFi, the paradigms of traditional financial services continue to be fundamentally challenged and redefined. Arguably, DeFi’s biggest and earliest widespread breakthroughs were the decentralized exchange (DEX) and on-chain borrowing and lending platforms. The evolution of the DeFi lending space has been marked by significant milestones, beginning with the launch of ETHLend in 2017. ETHLend introduced a peer-to-peer lending model on the blockchain, eliminating intermediaries and using ether as collateral, making lending more accessible and efficient. Aave and Compound expanded on ETHLend's foundation, introducing liquidity pools and features like over-collateralization and flash loans, which revolutionized DeFi lending by offering more efficiency and composability. The pooled liquidity model further simplified the lending and borrowing process, ensuring security and ease of access for users. Compound is also known for its governance model which was one of the first to emphasize a decentralized decision-making process, as well as bringing the idea of “yield farming” mainstream. The DeFi lending space continued to evolve with the introduction of adaptive interest rate models, oracle-less designs, and permissionless pool creation. The latter has been pushed by platforms like Morpho and represents the latest advancement in DeFi lending. It allows for the creation of new lending pools by anyone without a central governance unit deciding on supported assets and other risk parameters. Lending protocols have become essential to any DeFi ecosystem and have continually rolled out efficiency advancements over the years. In today’s protocols, features like pooled liquidity, flash loans, and risk-mitigation techniques are commonplace. On the other hand, one can see two distinct design approaches with respect to how risk parameters are managed. DeFi Lending Market’s Two Primary Designs[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#defi-lending-markets-two-primary-designs "Direct link to DeFi Lending Market�’s Two Primary Designs") ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Despite the multitude of parameters that can be tweaked in constructing different on-chain lending protocol designs, one element that cleanly segregates the market into two distinct camps is how the protocol ultimately handles risk management. The two competing approaches can be described as: * **Central governance**: risk management is controlled by a central governance unit, generally a DAO, where parameters often are voted on, rolled out, and managed in a top-down manner (ex: Aave, Compound) * **Free markets** (ungoverned): Protocols that actively repel and eschew central governance due to the attack vectors they enable and instead simply rely on smart contracts to adjust risk parameters and the free market (the users) to handle their own risk management (ex: Morpho Blue) ![Central Governance vs Free Markets](https://docs.vesu.xyz/assets/images/governance-vs-free-markets-fc3f56c479b5b3fe01ad3d282764c9ca.png) ### Central Governance Model[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#central-governance-model "Direct link to Central Governance Model") The DAO-driven model relies on smart contracts for custody and general market mechanisms, yet also reintroduces central intermediaries to manage risk parameters. This hybrid model has allowed early lending platforms to create a moat of liquidity and users, yet it is also prone to shortcomings highlighting the challenge of scaling in a semi-decentralized context. The arguments for a centrally governed model are that it enables the DAO to elect specialists to monitor on-chain activities and risk parameters that normal community members either will not or are incapable of doing. Protocols that have adopted this model typically defer to the specialist to adjust their risk parameters, ex: Loan-to-Value (LTV) ratios, as the market dictates. This approach not only aids in maintaining a unified liquidity pool but also ensures a “hands-off” experience for users who entrust the specialist with risk management on their deposits. In scenarios where the market environment deteriorates, it falls upon the specialist and the DAO to modify the protocol's parameters to better align with the changing conditions. Despite its advantages, the central governance model of risk management is not without its shortcomings. DAOs, while pioneering in the DeFi space, are not immune to the operational, cyber and human risks that plague traditional organizations. Additionally, smart contract powered governance systems are vulnerable to the same design and technical flaws as the lending protocol itself as witnessed by past exploits resulting in losses of hundreds of millions USD. Furthermore, the politics within DAOs often mirror those of traditional entities, challenging the notion of neutrality and creating barriers to entry for newcomers. This political dynamic, coupled with governance bottlenecks, can significantly hinder the DAO's ability to make efficient capital allocation decisions, thereby limiting market scalability. ### Free Markets Model[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#free-markets-model "Direct link to Free Markets Model") The current alternative to the central governance model can be described as a hands-off, free-market approach to handling risk. The exploration of free market principles within the lending protocol landscape introduces a dynamic where lenders are empowered to navigate their own risk/reward pathways, essentially allowing market forces to dictate the equilibrium of risk parameters. This model hinges on the belief that free markets are better at allocating capital than any form of central governance and that only neutral, aka un-governed, technology empowers truly free markets. Lenders and borrowers, under this regime, are granted the autonomy to select their liquidity pools based on personal risk tolerance or create new pools if the existing ones are not compliant with their tolerance. As one would expect, this creates a diverse array of lending and borrowing scenarios, catering to the varied needs of users. At the protocol level, the absence of overarching governance simplifies the foundational codebase, making it more robust and secure. This design philosophy aims to streamline the core functions of the protocol, relegating complexity to use case specific peripheral modules. However, the free market approach is not without its challenges. One significant issue is the fragmentation of liquidity, which can undermine capital efficiency. Isolated pools, while offering tailored risk/reward profiles, may struggle to achieve the same level of market penetration as their monolithic counterparts, primarily due to the need for continuous rebalancing across pools in order to optimize both borrowing cost and income from supplying assets. The requirement for borrowers to provide non-yielding collateral in many isolated markets exacerbates this issue, contrasting with monolithic models where assets can serve dual purposes—acting as collateral while still earning yield. The limitation on capital efficiency from the user perspective cannot be overstated, as users are more likely to make their decisions based on easy-to-comprehend KPIs rather than the nuanced trade-offs involving pooled vs. isolated liquidity. Introducing Vesu[​](https://docs.vesu.xyz/blog/tags/announcement/page/3#introducing-vesu "Direct link to Introducing Vesu") ---------------------------------------------------------------------------------------------------------------------------- Vesu, DeFi’s latest progression in the on-chain lending space, is a pioneering platform designed to facilitate fully permissionless, over-collateralized lending agreements. With its ambitious design, Vesu looks to combine the best aspects of both worlds: a liquidity monolith with permissionless, multi-asset lending compartments aka lending pools. Risk is isolated across lending pools and governance delegated to these pools individually. Vesu thus implements the free markets approach in that no central governance exists and lending pools can be created permissionlessly. Through its modular lending pool design, Vesu allows for a large degree of flexibility in terms of expressing different lending arrangements including a strict two asset design and more capital efficient multi-asset pools as known e.g. from Aave. ![Vesu Modular Lending Markets](https://docs.vesu.xyz/assets/images/vesu-modular-lending-markets-12735edf22c63b275379b64b4ce7b55b.png) Moreover, one of Vesu’s biggest differentiators is the concept of extensions akin to Uniswap v4 hooks, empowering developers to create entirely new lending experiences. This flexibility positions Vesu not only as a lending protocol but also as a foundational platform for the development of new lending protocols. Additionally, because it is permissionless and there is no central governance adding friction and politics, Vesu offers a truly neutral technology for “free market competition” amongst lending markets. At its core, Vesu addresses the limitations of existing protocols while introducing innovative features that cater to the needs of a broad spectrum of users. Its modular, permissionless, and scalable architecture, coupled with a focus on simplicity and security, positions Vesu as a cornerstone of the next generation of DeFi lending platforms. --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/curators/risk-reports/2681185522664180117929158590481443496806090795357786716961716864181408932939/dog#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. Please contact the owner of the site that linked you to the original URL and let them know their link is broken. --- # Vesu Knowledge Hub [Skip to main content](https://docs.vesu.xyz/users/multiply-basics#__docusaurus_skipToContent_fallback) Page Not Found ============== We could not find what you were looking for. 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