What is Venus crypto (XVS)?
More DeFi projects are emerging to address the increased need for financial services and decentralized apps as decentralized finance gains momentum. Lending projects are growing more popular as demand increases. Venus is one such endeavour (XVS).
Venus is a decentralized lending and borrowing protocol that uses a synthetic stablecoin, VAI, to function as an algorithmic money market. Users can use cryptocurrencies supported by the Venus protocol to lend and borrow money through the Venus protocol’s network of users.
With a user-friendly interface, Venus provides rapid and instant collateralized cryptocurrency-based loans.
Founders of Venus
The Swipe project team is the head of the Venus project’s development. Venus’ principal purpose is to create decentralization through community-based governance. There are no pre-mines for a team, developers, or founders, providing XVS holders full power on the Venus Protocol’s development route.
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What makes Venus unique
Venus’s popularity stems from its rapid transaction speed and cheap transaction costs, a direct outcome of its foundation on the Binance Smart Chain. Because of its immediate transactions, the protocol is the first one to allow users to access loan markets for Bitcoin (BTSC), XRP, Litecoin (LTC), and other cryptocurrencies to source liquidity in real-time.
Customers who use the Venus Protocol to source liquidity do not need to pass a credit check and get a loan immediately by engaging with the Venus decentralized application (DApp). Users are not confined by their geographic region, credit score, or anything else because there are no centralized authorities in existence and can always source Liquidity by posting appropriate collateral.
These loans supported a pool of Venus users who received a variable APY for their contributions. The over-collateralized deposits borrowers on the platform serve as collateral for these loans.
The Venus protocol uses rice feed oracles, such as those from Chainlink to offer reliable pricing data that cannot be altered, preventing market manipulation assaults. The Binance Smart Chain allows the protocol to acquire pricing feeds at a cheaper cost and greater efficiency, lowering the system’s overall cost footprint.
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What Should You Do With VAI?
The VAI coin is a stablecoin. In exchanges like PancakeSwap, it may be swapped for any other cryptocurrency.
Staking is another application. You can use the menu to access the Vault screen and stake minted VAI for XVS. But it is up to you.
Instead of minting VAI, you can borrow other cryptocurrencies from the Borrow Market tab. Borrowing is not interest-free, but minting VAI is. So do the arithmetic on your own.
Number of “Venus” coins in Circulation
The maximum total quantity of Venus tokens is 30 million, with just over 4.2 million in the movement as of 2020.
Venus (XVS) was one of the first platforms to host a Binance Launchpool, permitting users to farm Venus by staking various assets such as Binance USD (BUSD), Swipe (SXP), and Binance Coin (BNB) tokens. The Binance Launchpool received a total of 20% of the total supply (6 million XVS), and the token was released on the Binance spot exchange platform immediately after.
The project has no pre-sale or private sale, and the team has no token allocation, but Binance Smart Chain ecosystem grantees will receive 1% of the entire supply (300,000 XVS). The remaining 23.7 million Venus tokens will be gradually released over four years when users of the Venus protocol mine them.
According to the project whitepaper, borrowers receive 35 percent of daily XVS incentives, suppliers receive 35 percent, and VAI stablecoin minters receive the remaining 30 percent.
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Where to buy Venus (XVS)
Venus will be convenient for trading on a single exchange platform, Binance, beginning in November 2020. Tether (USDT), Binance Coin (BNB), Bitcoin (BTC), and Binance USD are all listed against it (BUSD). There are no direct fiat on-ramps to acquire Venus right now.
A Secure Network
The Binance Smart Chain, a blockchain that operates alongside the Binance Chain, protects the Venus network. BSC is agreeable with the Ethereum Virtual Machine (EVM) and can work even if the Binance Chain is unavailable or has problems.
Binance Smart Chain uses a unique consensus process known as a proof-of-staked authority (POSA) to safeguard the blockchain. This is a hybrid consensus process that incorporates elements of both proof-of-stake (POS) and proof-of-authority (POA). It’s based on a network of 21 validators in charge of completing tasks on the Binance Smart Chain and attaining consensus on recently completed transactions.
Furthermore, Venus suppliers are protected by automated liquidation procedures, which will liquidate borrowers’ collateral if it falls below 75% of their borrowed amount, reimbursing suppliers early to preserve the minimal collateralization ratio.
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Risks associated with Venus
Certik has certified Venus; however, like every other De-Fi protocol, it is not without risk. Since its inception, however, no substantial dangers have been encountered. However, you should always enter the crypto market at your own risk.
Before making any investment, we strongly advise you to investigate the protocol’s many facts and numbers. Because of the underlying smart contracts, the Crypto market is highly volatile and vulnerable to malicious attacks by attackers. As a result, you should invest what you can lose.
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Venus is the fourth project to be listed on Binance Launchpool. Users can now earn XVS by staking their BNB, BUSD, or SXP. This might also be viewed as a collaboration that will assist Venus in attracting more De-Fi users to its platform.
Venus has also developed a new technique of minting stable coins while collecting interest on your provided collateral, which was previously unavailable. This could be a significant factor in most De-Fi users migrating to the Venus protocol from Ethereum-based protocols.