Venus BNB (vBNB) is a cryptocurrency that operates on the Binance Smart Chain platform. The vBNB is a vToken of Venus, an algorithmic money market and synthetic stablecoin decentralized finance protocol.
vTokens are the primary means of interacting with the Venus Protocol, that is, when a user mints, redeems, borrows, repays a borrow, liquidates a borrow, or transfers vTokens, the user will do so using the vToken contract. Each asset supported by the Venus Protocol is integrated through a vToken contract, which is an EIP-20 compliant representation of balances supplied to the protocol.
Since the protocol-created pegged assets when collateral is supplied are called vTokens, they represent the unit of the collateral supplied and can be used as a redemption tool. vTokens are created and implemented by Governance processes and voted by Venus Token holders.
the price of USD 1, by using the vTokens from the underlying collateral that they have previously supplied to the protocol.
By minting vTokens, users earn interest through the vToken’s exchange rate, which increases in value relative to the underlying asset and gains the ability to use vTokens as collateral. There are currently two types of vTokens: VBep20 and VBnb. Though both types expose the EIP-20 interface, VBep20 wraps an underlying BEP-20 asset, while VBnb simply wraps BNB itself. As such, the core functions which involve transferring an asset into the protocol have slightly different interfaces.
What are Venus and its protocol?
The Venus protocol is governed and upgraded by XVS token-holders, using three distinct components; the XVS token, governance module (Governor Alpha), and Timelock. Together, these contracts allow the community to propose, vote, and implement changes through the administrative functions of a vToken or the unitroller. The Venus protocol contracts use a system of exponential math and Exponential.sol, to represent fractional quantities with sufficient precision.
Who are the founders of Venus BNB (vBNB)?
The founder of Venus BNB is Joselito Lizarondo, who is also the founder of Swipe Wallet. However, it is also safe to note that Joselito was only a head while the development of the Venus project was undertaken by the Swipe project team to achieve decentralization through community governance.
What is Venus BNB (vBNB) used for?
Developers can activate the mint function which transfers an asset into the protocol and accumulates interest based on the current supply rate. for The user receives a quantity of vTokens equal to the underlying tokens supplied, divided by the current exchange rate.
Using the redeem function, developers and users can convert a specified quantity of vTokens into the underlying asset, and return them to the user. The amount of underlying tokens received is equal to the number of vTokens redeemed, multiplied by the current exchange rate, and must be lesser than the user’s account liquidity and the market’s available liquidity.
Likewise, activating the borrow function transfers an asset from the protocol to the user, and creates a borrow balance that begins accumulating interest based on the borrowing rate for the asset.
Concerning providing liquidity and liquidation, liquidators must interact with each vToken contract in which they wish to repay and seize another asset as collateral. When collateral is seized, the liquidator is transferred vTokens, which they may redeem the same as if they had supplied the asset themselves. Users must approve each vToken contract before calling liquidate (i.e. on the borrowed asset which they are repaying), as they are transferring funds into the contract.
How is Venus BNB (vBNB) unique?
Unlike other protocols, tokens, and platforms, users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI. Users can also borrow cryptocurrencies and stablecoins with no credit check and fast origination directly on Binance Smart Chain. They can supply cryptocurrencies and stablecoins and earn a variable APY for providing liquidity to the protocol that is secured by over-collateralized assets. Likewise, they can mint stablecoins from the supplied collateral that can be used at over 60 million locations worldwide through the Swipe platform and more.
How many Venus BNB (vBNB) coins are in circulation?
Currently, there is an undefined supply of vBNB tokens in circulation.
How is the Venus BNB (vBNB) secured?
The development team, alongside third-party auditors and consultants, upholds the security of the Venus protocol as their highest priority and has invested considerable effort to create a protocol that is safe and dependable.
This process to safeguard the token ensures that all contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities.
Also, since the Venus network is secured by the Binance Smart Chain, it utilizes a unique consensus algorithm known as the proof-of-staked authority (POSA) to secure the blockchain. This is essentially a hybrid consensus mechanism that combines aspects of both proof-of-stake (POS) and proof-of-authority (POA) and is built around a network of 21 validators who are responsible for executing tasks.
Beyond this, Venus suppliers are protected by automatic liquidation measures, which will automatically liquidate the collateral of borrowers if it falls below 75% of their borrowed amount, thereby reimbursing suppliers early to maintain the minimum collateralization ratio.
How do I buy Venus BNB (vBNB)?
The vBNB token can be used for a wide range of uses, like staking and payment.
vBNB tokens can be easily purchased by following the steps below.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy vBNB through your trading account.
Which Cryptocurrency Wallet Supports Venus BNB (vBNB)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as Venus BNB (vBNB). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their vBNB wallet because it offers a simple interactive interface, making it easy for people to navigate its system.