Venus is planning a new DeFi update on BNB Chain on February 4.
The release signals the introduction of additional protocol-level changes within the Venus ecosystem on BNB Chain.
XVS Info
Venus Protocol is a decentralized finance (DeFi) platform on the BNB chain, functioning as both an algorithmic money market and a synthetic stablecoin protocol. It is essentially an amalgamation of features found in Ethereum’s Compound (a money market system) and MakerDAO (a stablecoin creation system). Developed by the team at global cryptocurrency credit card issuer Swipe, Venus provides a bridge between traditional finance and DeFi, while bypassing the issues typically associated with Ethereum-based platforms.
Venus’ core functionality encompasses lending, borrowing, and minting synthetic stablecoins. Users post their cryptocurrency as collateral to the platform, allowing them to earn compound interest or borrow against their collateral. Borrowing requires additional collateral to guarantee the security of the loan. The protocol uses dynamic interest rates based on market demand, such as using BNB or ETH. This demand-driven mechanism means that the interest rates of lenders and borrowers are automatically adjusted. Additionally, the Venus Protocol also allows users to mint their native stablecoin, VAI, against their collateral. This minting mechanism uses vTokens, which represent the collateral deposited by the user (for example, depositing USDT would earn vUSDT). With these vTokens, users can create VAI, which maintains a peg to the US dollar but can still experience fluctuations in supply and demand.
XVS, or Venus (BEP-20 standard), is the governance token of the Venus protocol. It allows token holders to have a say in the development and settings of the platform. This means that holders can vote on vital decisions, such as adding new tokens to the protocol, interest rate adjustments, or changes to distribution schedules. The governance structure guarantees community autonomy over the evolution of the protocol, with no initial pre-mines for developers or founders. The protocol also plans to introduce the Venus Vault, allowing users to lock their XVS tokens, further strengthening the security of the protocol and receiving staking rewards.
