What is Vai (VAI)?

Deep Dive

1. Purpose & Value Proposition

Vai aims to provide a decentralized stablecoin alternative, avoiding reliance on single-asset collateral (e.g., USDC). Its multi-asset backing (stablecoins and cryptocurrencies) theoretically reduces systemic risk. However, its current $2.88M market cap (August 2025) and 24-hour volume of $1M suggest limited adoption compared to larger stablecoins.

The Venus Protocol enables users to mint VAI by depositing collateral, which can then be used for yield farming or liquidity provision on platforms like PancakeSwap.

2. Technology & Architecture

Built on BSC, Vai benefits from sub-1-second block times and fees under $0.10. The Venus Protocol uses overcollateralization (users lock assets exceeding the borrowed VAI value) to maintain stability.

Recent data shows a 24-hour turnover of 0.35, indicating moderate liquidity. However, its price stability (flat 30-day change of +0.05%) aligns with its peg despite low trading activity.

3. Risks & Challenges

• Adoption hurdles: Competing with centralized stablecoins (e.g., USDT, USDC) and algorithmic rivals like DAI.
• Supply contraction: Circulating supply fell 98% since 2021, possibly due to Binance’s April 2025 redemption program (Binance), though this may reference a separate Solana-based VAI project.
• Regulatory exposure: Decentralized stablecoins face increasing scrutiny globally.

Conclusion

Vai’s decentralized model and BSC integration offer niche utility, but shrinking supply and muted trading activity raise questions about long-term viability. How might evolving stablecoin regulations impact Vai’s collateralization model?