VSC: A Different Approach
VSC, soon to be renamed Magi, is a cross-chain protocol that embeds Hive and HBD at its core, allowing a single wallet to send, receive, and manage assets across multiple blockchains. It simplifies crypto transactions, increases liquidity, and according to @lordbutterfly in his presentation on Day 1 of Hive Fest 10 at REXKL,
"This is actually the first time since Hive launched that there is a new, unique, important use case built for HBD and Hive as tokens."
@lordButterfly
HBD is at the center of all the cross-chain liquidity pools in VSC. Every time someone uses the system to swap assets across chains, fees are generated and converted into HBD, creating direct demand for HBD.
HIVE is also involved because the liquidity pools are over-collateralized with HIVE tokens. For every dollar of liquidity in a pool, 1.5× that value in HIVE is held as collateral. This creates indirect demand for HIVE, as more liquidity in the pools requires more HIVE to support it.
In short, HBD drives transactional demand, while HIVE supports the system as collateral.
By the way, VSC is being renamed Magi, as noted on the project website: https://magi.network.
Blockchains as Isolated Islands
@lordbutterfly explained that the main goal of VSC is to remove the complexity that usually comes with using multiple blockchains. Today, each blockchain is like an "isolated island" with its own wallets, tokens, and rules, so sending assets between them tends to be difficult and confusing.
On the other hand, VSC lets you manage all of this from a single wallet. You can send, receive, and hold tokens from different blockchains without having to learn multiple systems or go through a series of complicated steps.
The 3 Pillars of VSC (Magi)
The technology behind VSC has three main pillars.
The first is cross-chain swaps, which let you trade tokens between blockchains without intermediaries, while staying in full control of your funds.
The second is smart contracts, which are flexible programs that run on the VSC platform and are compatible with wallets from multiple blockchains. This means decentralized apps (dApps) can reach users beyond a single blockchain, expanding access to liquidity and potential customers.
The third is native asset mapping, which allows wallets from one blockchain to hold tokens from another. For example, you could use an Ethereum wallet to hold Hive or HBD, or send Bitcoin to a Hive wallet, all within VSC.
VSC emphasizes wallet interoperability, meaning you don’t need a different wallet for each blockchain. One wallet can interact with multiple dApps across different ecosystems. This opens up new possibilities for payments, remittances, and merchant transactions, because buyers and sellers no longer have to be tied to a single blockchain.
Towards the end of the presentation the VSC team showcased Altera, VSC’s flagship cross-chain wallet application, which you can check out (and log in to with your Hive account via Keychain) here:
Altera allows users to log in with Hive wallets, EVM (Etherium Virtual Machine) wallets such as MetaMask, and over 400 other compatible wallets.
Users can deposit funds, make cross-chain swaps, and even onboard directly from fiat using Coinbase integration.
HBD earned in the system is liquid and can be moved between wallets or used in decentralized finance directly on the platform.
Here's the video of @lordbutterfly explaining the system in detail at Hive Fest 10 (Day1):
VSC Liquidity Pools
Although this was not emphasized in the presentation, liquidity providers will play an essential role in the success of the VSC (Magi) project. Without liquidy, the protocol cannot function, so those who provide liquidity will be "compensated through two primary mechanisms:"
Swap Fees - A portion of every swap fee will be distributed to all liquidity providers who contributed to the pool where the transaction occurred.
Incentive Programs - Nothing concrete yet, but according to the blurb,
VSC may also introduce additional rewards in the form of governance tokens or protocol incentives to encourage deeper liquidity in key pools.
for more info see: https://docs.vsc.eco/roles/liquidity-providers/
In addition to providing liquidity, we can also stake HIVE inside Altera (I don't yet know what the rewards or benefits of doing so are), and even create our own "basic fungible token" on VSC:
- To stake HIVE, log in to Altera and go to: https://altera.magi.eco/witness-assistant
- To create your own token on VSC go to: https://docs.vsc.eco/how-to/create-a-token/
Let's hope this project succeeds; it will make cross-chain transactions a lot easier and create demand for both HIVE and HBD if it does.
Cheers!
I've been excited about VSC/Magi since I first looked more deeply into it, and I've already received and sent both HIVE and HBD using one of my EVM wallets, which is pretty cool, I've got got day. Staked HIVE in VSC is necessary for VSC nodes, so if you don't plan on running a node, you don't need staked HIVE. I can't wait for the diesel/liquidity pools, and for all the blockchains that I use to be integrated. 😁 🙏 💚 ✨ 🤙
!ALIVE
!BBH