Venus Protocol (“Venus”) is an algorithmic-based money market system designed to bring a completely decentralized finance-based lending and credit system onto Binance Smart Chain. Venus enables users to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies.
Venus creates a secure lending environment where the lender receives a compounded interest rate (APY) paid per block while the borrower pays interest on the cryptocurrency borrowed. These interest rates are set by the protocol in a curve yield, where the rates are automated based on the demand of a specific market, such as Bitcoin.
The Venus Protocol, to start, will enable users to mint VAI (VAI), a synthetic stablecoin based on the price of $1 USD, by using the vTokens from the underlying collateral that they have previously supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI.
Stablecoins on the Venus Protocol can be synthetically designed through governance and added as a proposal. VAI will be the protocol’s default stablecoin and can be minted collateral already pledged in Venus. These stablecoins will not have yield curves that determine their interest rates, which in other protocols are known as stability fees. Interest rates will be determined by the governance process within the Venus Protocol.
The Venus Protocol is governed by the Venus Token (XVS), which is designed to be a “fair launch” cryptocurrency. There are no founder, team, or developer allocations, and the XVS can only be earned through the Binance LaunchPool project or by providing liquidity to the protocol.
Who are the founders of Venus (VAI)?
The Swipe project development team, under the direction of Joselito Lizarondo, designed and created the Venus protocol.
What is Venus (VAI) used for?
Borrow cryptocurrencies and stablecoins with no credit check and fast origination directly on Binance Smart Chain. Users who want to borrow any of the supported cryptocurrencies, stablecoins, or digital assets from Venus must pledge collateral that will be locked on the protocol.
Supply cryptocurrencies and stablecoins and earn a variable APY for providing liquidity to the protocol that is secured by over-collateralized assets.
Mint stablecoins from your supplied collateral that can be used at over 60 million locations worldwide through the Swipe platform and more.
Users can vote on decisions that beneficial to them. Voting is controlled by the Venus Token, a governance token designed to be a fair launch distribution for the community.
How is Venus (VAI) unique?
Venus is not the first protocol to help bridge these gaps between traditional financial lending and decentralized protocols on top of blockchains. There have been protocols that have achieved this with billions of dollars in assets locked into them. However, these protocols are primarily built on Ethereum, which has become costly, slow, and has caused pain points in the user experience.
The difference between Venus and other money market protocols is the ability to use the collateral supplied to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that protect the protocol.
These synthetic stablecoins are not backed by a basket of fiat currencies but by a basket of cryptocurrencies. Venus utilizes the Binance Smart chain for fast, low-cost transactions while accessing a deep network of wrapped tokens and liquidity.
Venus will enable anyone to utilize a high-speed and low transaction cost blockchain by leveraging Binance Smart Chain to supply collateral, earn interest on that collateral, borrow against that collateral, and mint stablecoins on-demand within seconds. These solutions all happen directly on the blockchain and may be utilized using a GUI.
At its core, Venus has been designed to enable community control. Since there are no pre-mines for the team, developers, or founders, the protocol will be controlled by those who decide to mine Venus Tokens. To create a proposal, a proposer will need 300,000 XVS, and the proposal must reach a minimum 600,000 XVS quorum to be approved.
How many Venus (VAI) coins are in circulation?
Venus has a market size of $ 1,264,731,026.94 and a total liquidity volume of $ 805,624,281.82.
Venus Protocol will rely on market forces, a basket of collateral, and safety mechanisms to maintain its peg to the fiat currency it is designed to synthesize. As an example, VAI will originally maintain a peg of 1:1 per VAI: USD. The market is encouraged to maintain this peg so that programmatic mechanisms designed to protect it will not be initiated by the protocol.
If there comes a point where VAI or another synthetic stablecoin loses its peg value, the protocol can use the governance process to initiate the price adjustment module. This module will enable the change of parameters within the stablecoin system on Venus to disattach the peg and create a change in supply and demand to bring the stability back to its original peg.
How is the Venus 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 (VAI)?
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 (VAI)?
The PTPWallet platform supports many cryptocurrencies, with Venus soon to 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 its own mobile wallet app.