Introduction

VivaLeva acknowledges the difficulty in finding a financial service that is both effective and safe, while also being transparent and easy to use. We may not be perfect in every aspect mentioned above, but VivaLeva is trying to reflect these principles in our service and is dedicated to providing users with a seamless and rewarding experience. Today, we would like to introduce 4 key features VivaLeva is focusing on.

Feature 1: Capital Efficiency

Leverage provides a great advantage to our users by allowing for the possibility of higher returns. By borrowing funds to invest, users can increase the total amount of asset invested, which accordingly increases their potential profits.

However, it’s important to understand that using leverage involves risks. Due to the volatility of price of assets invested, investments made with borrowed funds can possibly result in losses. Therefore, investing in a leverage yield farming service requires for a high level of financial and risk management skills. However, the benefit leverage provides definitely outweighs this risk — if you are a mature and skillful investor well enough to manage your own risks!

Here’s an example how profits are maximized by using leverage.

Let’s assume that there is a pool with an APR (Annual Percentage Rate) of 30% and both investors possess a seed investment of $10,000. Each investment is automatically reinvested for compound interest every day, and the position is held for 365 days.

We will compare the performance of two investors: one who invested without leverage and another who invested with 4.0x leverage. The borrowing interest for using leverage is 5%.

First, let’s consider the investor who invested without leverage. In this case, the investor puts in $10,000 into the pool and earns 20% APR over the course of 365 days. With daily compounding, the investor’s ending value after one year would be:

Ending Value = $10,000 x (1 + 30%/365)³⁶⁵ = $13,496.9

Thus, this investor earns a profit of $3,496.9 (Ending Value-Initial Investment) over the course of the year.

Now, let’s consider the investor who invested with 4.0x leverage. In this case, the investor puts in $10,000 and borrows an additional $30,000 at a 5% borrowing interest rate. This brings the total investment to $40,000. The investor earns 30% APR on the entire $40,000 investment over the course of 365 days, with daily compounding. Now, this investor’s ending value at the end of the year would be:

Ending Value = $40,000 x (1 + 30%/365)³⁶⁵ = $53,987.7

Thus, this investor’s profit would be:

Net Profit= Ending Value -Inital Investment-(Compound)Borrowing Interest= $12,449.7

Comparing the two scenarios, we can see that the investor who used leverage earned a higher absolute profit than the investor who did not use leverage. Furthermore, we can see that the ROI of 4.0x leverage investor is about 3.5 times higher than ROI of investor who invested without leverage.

This shows how powerful tool leverage is, in aspect of how it helps investors to maximize the use of their available capital.

Feature 2: User-Centeredness

VivaLeva is committed to creating a service that gives priority to its users. With this aim, we’re developing a tokenomics that puts user share at the forefront. Our goal is to create an ecosystem where every user has a share in the success of our platform. In other words, we strongly believe that success of our service is closely connected to the financial prosperity of our users. By prioritizing user share, we are establishing a sustainable model that benefits all of our users and VivaLeva itself in the long term.

Therefore, one of the main focuses of VivaLeva is on designing UI/UX focused on user convenience. We understand that the world of cryptocurrency and leverage can be confusing and difficult to some users, which is why we have developed a user-friendly and intuitive interface. Our goal is to make it easy for anyone to participate in yield farming, regardless of the level of expertise.

Feature 3: Security

We are a security-oriented development team that places a great emphasis on security. Not only do we have an internal security team, but also all of those who are involved in the development of VivaLeva possess a high level of knowledge and expertise regarding blockchain security. In detail, we conduct manual audits in collaboration with our internal security team and also perform automated code reviews. Just every time the dev team updates the code, an automatic code review is carried out, consequently enhancing the overall level of security. We are open to sharing the knowledge regarding protocol security with the zkSync community, and we intend to notify the community of any additional security concerns we uncover while developing, in order to dedicate to the enhancement of security level of zkSync ecosystem.

Feature 4: Transparency

We have designed a protocol that discloses a wide range of information related to our service, including the policies that govern how various metrics and data are determined, the addresses of our contracts, and the parameters that govern the behavior of our protocol. Of course, it is also fully open-sourced, allowing anyone to access the code and review it. Additionally, we are developing a user-friendly dashboard that will provide users with real-time visibility of current state of the protocol, so that they can make informed decisions and have confidence in the security and stability of our service.

Disclaimer

The information contained in this article is for general informational purposes only. It does not constitute financial advice or a recommendation of any specific service. The information contained in this article is provided by VivaLeva and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information, services, or related graphics contained in the essay for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this article.