Venus

Venus is the protocol that builds a decentralized Finance (DeFi) platform on the Binance Smart Chain.

What is Venus?  

  • Venus is an algorithmic money market and synthetic stablecoin protocol launched exclusively on Binance Smart Chain (BSC).
  • The Venus network is secured by the Binance Smart Chain, a blockchain that runs in parallel to the Binance Chain. BSC is compatible with the Ethereum Virtual Machine (EVM) and is capable of running even if the Binance Chain goes offline or encounters issues.
  • XVS tokens are BEP-20-based and used for governance of the Venus protocol, and can be used to vote on adjustments—including adding new collateral types, changing parameters and organizing product improvements.
  • The governance of the protocol is entirely controlled by XVS community members, since the Venus founders, team members and other advisors do have XVS token allocations.
  • Venus’ main strength is its high speed and extremely low transaction costs, which are a direct result of being built on top of the Binance Smart Chain. The protocol is the first to enable users to access lending markets for Bitcoin (BTC), XRP Litecoin (LTC) and other cryptocurrencies to source liquidity in real-time, thanks to its near-instant transactions.

Key Metrics

TickerXVS
Token NameVenus
Token Type/ProtocolBEP-20
Total Token Supply30,000,000 XVS
Current Circulating Supply See Coinmarketcap
Market CapitalisationSee Coinmarketcap
Token Creation DateNovember 2020
Can it be mined?Yes

Who is behind Venus?

The development of the Venus project is being undertaken by the Swipe project team.

The main goal of Venus is to achieve decentralization through community governance. There are no pre-mines for the team, developers or founders, giving XVS holders total control over the path the Venus Protocol takes.

What is the purpose of Venus?

To provide a simple-to-use crypto asset lending and borrowing solution to the decentralized finance (DeFi) ecosystem, it enables users to directly borrow against collateral at high speed while losing less to transaction fees.   

Insight

  • Venus was one of the first platforms to conduct a Launchpool on Binance, which allowed 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 (6 million XVS) was allocated to the Binance Launchpool, and the token was listed shortly after being on the Binance spot exchange platform.
  • The project had no pre-sale or private sale. The team also has no token allocation.
  • 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.

Risks

  • The way it is currently implemented, Venus is unable to effectively use different collateral factors to manage risk across supply assets with different risk profiles. This is because the VAI Mint Rate ignores all other collateral factors. This implementation needs to be fixed so minting VAI follows the same collateral factor rules as borrowing.assets, and a risk assessment process, put in place to continually determine optimum collateral factor levels for each asset.
  • The cryptocurrency market is extremely volatile and hard to predict in the long term so researching the fundamentals and progress of Venus is an essential task before deciding to invest any amount of funds for the long term with the aim of holding for months or years. When analyzing the price of Venus to form a price prediction for the short or long term, taking both technical and fundamental analysis into account is essential.

News and Updates

  • Binance Smart Chain (BSC) has rapidly risen to prominence in 2021 as high transaction costs and congestion on the Ethereum (ETH) network led smaller-size investors to search for cheaper alternatives. One of the top choices to earn a yield on the BSC is Venus (XVS), an algorithmic money market and synthetic stablecoin protocol, that provides a lending and borrowing solution for the decentralized finance (DeFi) ecosystem.
  •  XVS is ranked 137th cryptocurrency globally and the current price is A$34.08. This represents a +86% increase since 20 July 2021. 

Community & Whitepaper Links

Disclaimer: 
All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.  

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