What is Venus Protocol? Venus Protocol is a decentralized Lending & Borrowing protocol that allows users to use their collateral to mint the VAI stablecoin and use it on the BNB Chain.
Follow Weakhand to learn more about how it works and the latest updates in the article below!
What is Venus Protocol?
Venus Protocol provides a decentralized lending protocol system on the BNB Chain ecosystem. Venus protocol is designed based on the inspiration of Marker DAO, aiming to bring more benefits to Defi users.
With Venus Protocol, users can mortgage crypto assets to borrow stablecoin VAI similar to DAI and do not need to sell their assets.
What Makes Venus Protocol Unique in the Defi Market?
There are 3 main points below that bring advantages to the Venus Protocol platform at the present time.
- Venus Protocol helps reshape traditional financial concepts by bringing popular financial lending services to blockchain-based decentralized protocols, combining the advantages of two very popular projects. Success is Compound and MarkerDAO.
- Instead of being backed by fiat currencies, Venus Protocol’s VAI stablecoin is backed by other cryptocurrencies. This attracts users holding cryptocurrencies to participate more actively in the platform as they can optimize their asset returns instead of just HODL TO DIE during this downtrend season.
- Venus Protocol is deployed on BNB Chain so transactions are quick and the cost is quite low. At the same time, liquidity for assets on Venus is also very good.
Key Features and Operation Mechanism Venus Protocol
Features of Venus Protocol
- Enables users to borrow cryptocurrencies and stablecoins without credit checks and instant origination directly on BNB Chain.
- Users can deposit their stablecoins and cryptocurrencies to earn profits from lending on Venus.
- Users who have collateral will receive back vToken, which is a token representing their assets deposited into the Venus platform. For example, if you mortgage 1 BTC, you will receive 1 vBTC. vToken is a unique token that can be used to receive back the collateral the user has provided.
- Venus Protocol is controlled by Venus Token (XVS), a governance token designed to ensure community fairness and user benefits. In addition, Venus also launched VAI Token – an algorithmic Stable Coin pegged to a value of $1 and users can Mint Vai tokens using vTokens from the underlying collateral they obtained when providing grant previous assets to the protocol.
Currently, Venus Protocol supports many assets as you can see in the image below, users can directly access to experience this platform.
Mechanism of action
Essentially, Venus Protocol attracts users to pledge their assets to the platform to increase liquidity for the project. In return, users can both hold those assets to receive interest, as well as use these assets as collateral and borrow up to 75% of their asset value. This is a way to rotate capital quickly in the Defi market.
For example: A user depositing $1000 USDT into Venus can borrow up to $750.
You can think of Venus Protocol as a permissionless lending environment. First, it allows BNB Chain users with idle cryptocurrency to provide collateral to the network. Second, users who need more can borrow by collateralizing overcollateralized cryptocurrency. Lenders then receive interest compounded annually, while borrowers pay interest on their respective loans on the platform.
Core Team
Venus Protocol was founded by a project development team from global crypto credit card issuer Swipe, with the launch of Venus (XVS) in 2020.
From the beginning, it aimed to bridge the gap between traditional finance and DeFi on BNB Chain. Currently, Brad Harrison is an active person in Venus Labs and has had many recent AMAs with projects on BNB Chain and upcoming with Binance on December 8, 2022.
Tokenomics
Basic information about XVS token
- Ticker: XVS
- Blockchain BNB
- Token type: Governance.
- Contract 0xcF6BB5389c92Bdda8a3747Ddb454cB7a64626C63
- Circulation supply 14,491,959
- Total supply 29,745,110
- Maximum total supply 30,000,000
Allocation
- Ecosystem Mining: 79%.
- Binance Launchpool: 20%.
- BNB Ecosystem: 1%.
Distribution Calendar
Token Use Case
Users can vote on a number of protocol-related issues, including improvements, adding new tokens to the protocol, adjusting interest rates, and reserving distribution schedule delegations. Venus Protocol also plans to build a product called Venus Vault that will allow users to lock up governance tokens to improve the protocol’s risk protection and staking reward distribution.
Exchanges
You can trade Venus on exchanges like Binance, Gate.io, CoinEx, and Pancakeswap. Popular Venus trading pairs on the market include XVS/USDT, XVS/BNB and XVS/BTC.
Venus Protocol Project Information Channel
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Website: https://www.venus.io/
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Twitter: https://twitter.com/VenusProtocol
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Medium: https://medium.com/@Venus_protocol
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Discord:
Summary
Venus Protocol on BNB Chain is one of the strategic Defi platforms of wizard CZ as he announced that Binance is investing in DeFi on a large scale. The strong community and core team working actively throughout the downtrend season is clear evidence of the ambition to bring traditional financial values and products to the decentralized playing field by revolutionizing it thanks to Blockchain technology. . Let’s look forward to Venus Protocol’s new products as well as the explosion of Defi in the near future.