Venus is a synthetic stablecoin protocol and algorithmic money market that operates exclusively on the Binance Smart Chain (BSC).
This platform provides a user-friendly solution for lending and borrowing crypto assets within the decentralized finance (DeFi) ecosystem. Users can borrow directly against collateral with impressive speed and reduced transaction costs. Additionally, Venus allows users to swiftly mint VAI stablecoins by depositing at least 200% collateral into the Venus smart contract.
VAI tokens are synthetic assets that adhere to the BEP-20 standard, maintaining a consistent value equivalent to one U.S. dollar (USD), while XVS tokens, also BEP-20-based, are meant for governance within the Venus protocol. These governance tokens empower holders to vote on various changes such as introducing new types of collateral, modifying parameters, and planning protocol enhancements.
The governance of Venus is entirely in the hands of the XVS community. The protocol ensures that its original creators, team, and advisors have no allocation of XVS tokens.
Who Founded Venus (XVS)?
The Venus project is being developed by the team behind Swipe. The overarching aim of the Venus project is to achieve complete decentralization through community-driven governance. There has been no pre-mining for the team, developers, or founders, which means that XVS holders have complete authority over the trajectory of the Venus Protocol.
What Sets Venus (XVS) Apart?
Venus stands out due to its rapid transaction speeds and minimal transaction fees, directly attributable to being built on Binance Smart Chain. It's the first platform allowing users to tap into lending markets for cryptocurrencies like Bitcoin (BTC), XRP, Litecoin (LTC), and others, providing real-time liquidity thanks to its near-instant transactions.
Users seeking liquidity through the Venus Protocol can obtain loans without undergoing credit checks, simply by engaging with the Venus decentralized application (DApp). With no centralized authority, users aren’t limited by location, credit scores, or other restrictions, and they can access liquidity by providing the necessary collateral.
The funds for these loans come from a pool contributed by Venus users, who earn a variable annual percentage yield (APY) in return for their participation. These loans are backed by over-collateralized deposits from borrowers on the platform.
To prevent market manipulation, the Venus Protocol relies on price feed oracles, including those from Chainlink, to deliver accurate and reliable pricing data. The integration of the Binance Smart Chain allows the protocol to access these price feeds more cost-effectively and efficiently, thereby lowering the overall expenses of the system.
How Many Venus (XVS) Tokens Are in Circulation?
Venus has a capped supply of 30 million XVS tokens, with a little over 4.2 million circulating as of November 2020.
Venus was among the first platforms to host a Launchpool event on Binance, enabling users to earn XVS by staking assets like Binance Coin (BNB), Binance USD (BUSD), and Swipe (SXP) tokens. From the total supply, 20% (equivalent to 6 million XVS) was dedicated to the Binance Launchpool, and the token was shortly listed on the Binance spot exchange.
The project did not involve any pre-sale or private sale, and the team has no token allocation. However, 1% of the total supply (300,000 XVS) is reserved for Binance Smart Chain ecosystem grants. The remaining 23.7 million XVS tokens will be unlocked gradually over four years as they are mined by users engaging with the Venus protocol.
According to the project’s white paper, 35% of daily XVS rewards are allocated to borrowers, another 35% to suppliers, and the final 30% to VAI stablecoin minters.
How is the Venus (XVS) Network Kept Secure?
The security of the Venus network is ensured by the Binance Smart Chain, which functions parallel to Binance Chain. It is compatible with the Ethereum Virtual Machine (EVM) and remains operational even if the Binance Chain experiences downtime or issues.
The Binance Smart Chain uses a distinct consensus mechanism called proof-of-staked authority (POSA) to protect the blockchain. This hybrid mechanism integrates features of both proof-of-stake (POS) and proof-of-authority (POA). The network consists of 21 validators responsible for executing tasks and reaching consensus on recently processed transactions.
Additionally, Venus suppliers are safeguarded by automatic liquidation protocols that will liquidate a borrower’s collateral if it drops below 75% of the borrowed amount, thereby reimbursing suppliers early to uphold the minimum collateralization ratio.
Where is Venus (XVS) Available for Purchase?
As of November 2020, Venus is traded exclusively on Binance. It is available against various trading pairs, including Tether (USDT), Bitcoin (BTC), Binance Coin (BNB), and Binance USD (BUSD). Currently, there are no direct fiat options for purchasing Venus.
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