Venus Protocol (Ticker: XVS) is an algorithmic money market and synthetic stablecoin protocol built on the Binance Smart Chain (BSC).
- The Venus Protocol is governed by its native cryptocurrency XVS which can mined ( farmed) by Liquidity Providers (LPs), protocol borrowers, and stablecoin minters.
- Users can mint VAI, the protocol's default synthetic stablecoin pegged to the value of 1 USD.
- Through over-collaterized lending users can borrow assets whose value is 75% or lower than that of the assets supplied.
The Venus Protocol (XVS) is designed to be a user friendly cryptocurrency asset lending and borrowing protocol. It enables users to directly borrow against collateral at high speed while losing less to transaction fees. In addition, Venus allows users to mint VAI stablecoins on-demand within seconds by posting at least 200% collateral to the Venus smart contract.
VAI tokens are synthetic BEP-20 token assets that are pegged to the value of one United States dollar (USD), whereas XVS tokens are also BEP-20-based, but are instead used for governance of the Venus protocol, and can be used to vote on things such as adding new collateral types, changing parameters, and organizing product improvements.
The Venus protocol is being developed by the Swipe project team.
The project launched on the Binance Launchpool on September 29, 2020. This enabled users to farm XVS by staking different assets including Binance Coin (BNB), Binance USD (BUSD) and Swipe (SXP) tokens. A total of 20% of the total supply was allocated to the Binance Launchpool.
Venus’ main distinction is its high speed and extremely low transaction costs, utilizing the Binance Smart Chain. The protocol is the first to enable users to access lending markets for Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), and other cryptocurrencies to source liquidity in real-time.
Customers sourcing liquidity using the Venus Protocol do not have to pass a credit check and can quickly take out a loan by interacting with the Venus Decentralized application (DApp). Since there are no centralized authorities in place, users are not restricted by their geographic region, credit score, or anything else, and can always source liquidity by posting sufficient collateral.
These loans are provided from a pool contributed by Venus users, who receive a variable Annual percentage yield (APY) for their contribution. These loans are secured by the over-collateralized deposits made by borrowers on the platform.
To avoid market manipulation attacks, the Venus Protocol utilizes price feed oracles, including those from Chainlink to provide accurate pricing data that cannot be tampered with. The protocol can access the price feeds at a lower cost and with better efficiency, reducing the overall cost footprint of the system.
- BakerySwap (BAKE)
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