The Venus Protocol is a synthetic stablecoin and algorithmic money market protocol. Cardano is a decentralized third-generation proof-of-stake blockchain platform and home to the ADA cryptocurrency. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first-driven approach.
In honor of Augusta Ada King, Countess of Lovelace (1815–1852), widely regarded as the first computer programmer, Cardano’s cryptocurrency was named ADA. The blockchain’s PoS consensus algorithm uses ADA and awards users who take part in a stake pool as compensation for their contributions to the blockchain.
Venus X Cardano
Cardano (ADA) was incorporated as part of the Venus X Cardano Venus Protocol’s 2021 plan. The Venus protocol is hosted entirely on Binance Smart Chain and celebrated the debut of its mainnet in November 2020.
On Binance’s blockchain, the protocol creates a decentralized finance (DeFi) money market marketplace with over 18,000 users and almost $2 billion in total value locked at this time (TVL). Depending on the demand for that asset in the market, users of the protocol can lend or borrow their bitcoins to earn income.
Compound and MakerDAO have been forked to create the Venus Protocol. The first is a money market protocol, and the second is a stablecoin minting protocol. Both are Ethereum-based. Venus combines several functions into one, enabling users to use the same resources within a single ecosystem regardless of the function they employ.
The Venus Protocol can be compared to a permissionless lending setting.
vToken
vTokens are the primary means of interacting with the Venus Protocol; when a user mints, redeems, borrows, repays a borrow, liquidates a borrow, or transfers vTokens, she will do so using the vToken contract.
vToken is the certificate of ownership that provides funding to Venus. Upon depositing the supported tokens into the Venus protocol, the corresponding vToken will be automatically generated. If you want to redeem the original tokens, you can swap them back on the Venus platform.
There are currently two types of vTokens: VBep20 and VBnb. Though both types expose the EIP-20 interface, VBep20, like vADA, wraps an underlying BEP-20 asset, while VBnb simply wraps BNB itself. As such, the core functions that involve transferring an asset into the protocol have slightly different interfaces depending on the type, each of which is shown below.
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. By minting vTokens, users earn interest through the vToken’s exchange rate, which increases in value relative to the underlying asset and gives them the ability to use vTokens as collateral.
When a liquidation occurs, a liquidator may repay some or all of an outstanding loan on behalf of a borrower and in return receive a discounted amount of collateral held by the borrower; this discount is defined as the liquidation incentive.
A liquidator may close up to a certain fixed percentage (i.e., close factor) of any individual outstanding loan on the underwater account. Unlike in v1, liquidators must interact with each vToken contract in which they wish to repay a borrow 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 that they are repaying), as they are transferring funds into the contract.
Through the vToken Contracts, accounts on the blockchain provide capital (BNB or BEP20 tokens) to receive vTokens or borrow assets from the protocol.
The Venus Protocol also offers the first decentralized stablecoin, VAI, which is backed on the Binance Smart Chain by a basket of stablecoins and crypto assets with no centralized control. Venus vToken Contracts track these balances and algorithmically set interest rates for borrowers.
Who are the founders of Venus Cardano (vADA)?
With Venus (XVS) debuting in 2020, the Venus Protocol was founded by a project development team from major cryptocurrency credit card provider Swipe. Its original goal was to provide a link between conventional banking and DeFi on the BNB Chain and give customers a different application free from the problems they had on Ethereum.
What is Venus Cardano (vADA) used for?
Transfer monetary value
Similar to how cash is now utilized, the Cardano coin can be used to transmit value. Although ADA has additional uses, it is not significantly different from other cryptocurrencies like Ethereum and bitcoin.
Staking
Cardano’s PoS blockchain architecture, in which ADA is staked, aids stake pool administrators in effectively verifying transactions on the blockchain. More Cardano cryptocurrency is given as compensation to those who stake their ADA on the blockchain.
Voting
The ADA is additionally utilized during voting. In contrast to other blockchain projects, token holders vote and decide on protocol modifications in the Cardano network. Therefore, Cardano cryptocurrency owners use their ADA to vote on any new changes or developments that are suggested for the Cardano blockchain.
Create smart contracts
The Cardano blockchain’s smart contract platform is powered by ADA. The secure, decentralized Cardano blockchain will be used by programmers to build smart contracts and appsapps, and it would not be possible to carry out these transactions without a native Cardano coin.
How is Venus Cardano (vADA) unique?
The Venus Protocol integrates the creation of stablecoins and the money market into a single protocol, which can help the cryptocurrency ecosystem by releasing collateral. Furthermore, anyone who holds a cryptocurrency wallet can access these financial products because of BNB Chain’s speed and low transaction costs.
Users of the BNB Chain who have idle cryptocurrency can provide the network with collateral thanks to the Venus Protocol. Second, individuals who require more credit can borrow by pledging cryptocurrency with excessive collateral. Then, lenders get annual interest rates that have been compounded, while borrowers pay interest on their loans.
The protocol establishes the interest rates for lending and borrowing in a curve yield that changes depending on utilization. According to the needs of the particular market, such as BNB or ETH, these rates are automatically adjusted. However, the governance structure of the protocol also establishes the minimum and maximum interest rate ranges.
How many Venus Cardano (vADA) coins are in circulation?
There is currently no information about the total, circulating, or maximum supply of vADA coins.
How is the Venus Cardano vADA network secured?
The Venus Protocol has been designed to give platform users a decentralized and secure marketplace to take loans, earn interest, and mint synthetic stablecoins. The protocol runs entirely on the Binance Smart Chain, which removes current pain points on the Ethereum blockchain in terms of congestion, a lack of cross-chain compatible assets, high transaction fees, and security.
It utilizes the Controller smart contract, which is deployed on the Binance Smart Chain and is the decentralized version of a processor. This smart contract creates all the interactions between other associated smart contracts. Venus does not natively support tokens by default. It will rely on specific markets to be whitelisted within the Controller contract. Hence, it enjoys the same security benefits the Binance Smart Chain offers.
How do I buy Venus Cardano (vADA)?
The VAI token can be used for a wide range of uses, like staking and governance.
VAI tokens can be easily purchased by following the following steps.
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 VAI through your trading account.
Which Cryptocurrency Wallet Supports Venus Cardano (vADA)?
The PTPWallet platform supports many cryptocurrencies, and Venus Cardano will soon be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with a mobile wallet app.
