SVIC token

The SVIC token is a tokenized version of staked VIC. When a user sends VIC into the deFusion liquid staking smart contract, the user receives the corresponding amount of SVIC tokens. The SVIC token represents deFusion user’s deposits and the corresponding staking rewards and slashing penalties. The SVIC token is a liquid alternative for the staked VIC: it could be transferred, traded, or used in DeFi applications.

deFusion makes the SVIC token balance track a balance of the corresponding balance of beacon chain VIC. A user’s balance of SVIC tokens corresponds 1 to 1 to an amount of VIC a user could receive if withdrawals were enabled and instant.

While the fact that a SVIC balance tracks the corresponding amount of VIC, which should be the main driver of the SVIC/VIC exchange rate, several other factors are affecting the market prices.

There is a market risk that the SVIC token supply will outweigh the market demand. While the goal of the deFusion is to provide liquidity for VIC staked, the same liquidity makes it possible to sell the token on exchanges.

However, SVIC tokens also can be used in various decentralized financial products. For instance, SVIC could be used as collateral. The higher the rate of SVIC adoption in different DeFi applications, the more demand for it there would be.