Vesper Finance Tutorial by Defi Dad

Before we get started, this is not a recommendation or endorsement to buy VSP. I do not hold VSP.

One recent phenomenon has been a resurgence of farms created by protocols that have already earned a trusted reputation among the greater DeFi community. 

In December 2020, Vesper Finance launched as a platform on Ethereum for “easy-to-use DeFi products” with clear design influence from Yearn Finance. Vesper was cofounded by former Bitcoin core developer Jeff Garzik, who’s now considered a respected builder in the Ethereum community. Vesper quickly became a DeFi favorite by winter/spring 2021 for those seeking high yield with ETH and WBTC. On Vesper, users would deposit single assets like these into pools/vaults which would execute “conservative” or “aggressive” strategies to earn yield denominated in the token deposited. If you deposited ETH, you earned more ETH and so on.

Like many DeFi teams, Vesper accelerated its growth with the launch of the Vesper token (VSP). The VSP token has admirable tokenomics to align incentives within the Vesper community, beyond being a governance token.

• There is a 0.6% fee on withdrawals and a 15% platform fee on all yields.
• For community pools, a 5% share of both of these fees above go to the developer who created the strategy.
• The remaining fees are directed to the Vesper Treasury Box and converted to VSP via open market buy-backs, where 100% of that VSP is distributed to vVSP pool participants (which are those staking VSP).

Having launched  a variety of interest-yielding "Grow Pools" to allow users to passively earn with crypto holdings, a new form of this Vesper product just went