Vesta is a collateralized debt platform. Users can lock up collateral and issue Vesta's stablecoin VST to their own Ethereum address, and subsequently transfer those tokens to any other Ethereum address. The individual collateralized debt positions are called vaults. The stablecoin tokens are economically geared towards maintaining value of 1 VST = $1 USD, due to the following properties:

• The system is designed to always be over-collateralized - the dollar value of the locked Ether exceeds the dollar value of the issued stablecoins.
• The stablecoins are fully redeemable - users can always swap $x worth of VST for $x worth of the underlying collateral (minus fees), directly with the system.
• The system algorithmically controls the generation of VST through a variable issuance fee.