> For the complete documentation index, see [llms.txt](https://vlabs.gitbook.io/vesq/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vlabs.gitbook.io/vesq/master.md).

# Introduction

## What is VESQ?

[**VESQ**](https://vesq.io) is a decentralized reserve currency protocol available on the [**Polygon (MATIC) Network**](https://polygon.technology) based on the **VSQ** token. Each **VSQ** token is backed by a basket of assets (e.g. **FRAX**, **MATIC**) in the VESQ treasury, giving it an intrinsic value that it cannot fall below. **VESQ** also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

## What is the point of VESQ?

Our goal is to build a policy-controlled currency system, in which the behavior of the **VSQ** token is controlled at a high level by the DAO. In the long term, we believe this system can be used to optimize for stability and consistency so that **VSQ** can function as a global unit-of-account and medium-of-exchange currency. In the short term, we intend to optimize the system for growth and wealth creation.

## How do I participate in VESQ?

There are two main strategies for market participants: [staking](https://vesq.gitbook.io/vesq/basics/staking) and [bonding](https://vesq.gitbook.io/vesq/basics/bonding). Stakers stake their **VSQ** tokens in return for more **VSQ** tokens, while bonders provide LP or DAI tokens in exchange for discounted **VSQ** tokens after a fixed vesting period.

Governance participants can get involved through discussions on our [Community Discord](https://discord.gg/KVFbg7q) and [Telegram](https://t.me/vesqhq). We are always looking for new community members to contribute!

## How can I benefit from VESQ?

The main benefit for stakers comes from supply growth. The protocol mints new **VSQ** tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.

The main benefit for bonders comes from price consistency. Bonders commit a capital upfront and are promised a fixed return at a set point in time; that return is in **VSQ** and thus the bonder's profit would depend on **VSQ** price when the bond matures. Bonders benefit from a rising or static **VSQ** price.

## Who created VESQ? <a href="#who-created-olympus" id="who-created-olympus"></a>

**VESQ** is a fork of [**Olympus**](https://www.olympusdao.finance/) on the Polygon (MATIC) Network. Founded by [Zackary Gates](https://www.crunchbase.com/person/zackary-gates) and [Syed Habib](https://www.crunchbase.com/person/syed-nafis-habib).

## Who runs VESQ? <a href="#who-runs-olympus" id="who-runs-olympus"></a>

Currently most of the decisions are taken by the core team, but we expect to be able to turn this into a DAO-governed model as soon as possible!