Venus (XVS): What is it?

Venus is an algorithmic virtual currency and synthetic stablecoin network available exclusively through Binance Smart Chain (BSC).

The protocol enables users to borrow crypto assets against collateral directly rather than losing money on transaction fees, thus simplifying and enhancing the decentralized finance ecosystem (DeFi). A minimum of 200% collateral to the Venus smart contract is required to mint VAI stablecoins instantly on-demand.

VAI tokens represent synthetic token assets backed by USD, whereas XVS tokens serve as governance tokens, and can be used to vote on adjustments – including adding new collateral types, changing parameters, or organizing product improvements.

As a community-controlled protocol, XVS token allocations are not distributed to the Venus founders, team members, or other advisors.

Founders:

As part of the Swipe project team, the Venus project is being developed. By using community-based governance, Venus aims to achieve decentralization. A Venus Protocol TEAM, DELIVERERS, and FOUNDERS are not subject to any premines. Therefore, XVS holders have complete control over the evolution of the protocol.

New features are coming to the Venus Protocol

Venus isn’t letting up despite the platform’s 70,000 users; a roadmap outlining upcoming developments has been posted to Venus’ forum.

 To support Venus’ blockchain protocol, it will issue a new token, the Venus Reward Token (VRT). With the VRT, the regular native token XVS will experience deflationary pressure, lowering its emission rate and stabilizing its value through a limited supply.

Lenders often face significant difficulties providing fixed lending rates due to the volatility of crypto markets. The loan interest rate and yield curve can change over time, invalidating collateral and removing the entire amount borrowed. With their tokens and liquidity mining, Venus Protocol will offer fixed rates on a money market.

As a final feature, the users can vote on polls using staked XVS; it works similarly to MakerDAO’s polling to give users and our team feedback on a proposal’s shape before we launch. Anyone with enough XVS can start their polls, even if the polling does not apply to all submissions. XVS will be the first poll involving the amount of XVS that should come from the reserve, which Venus will announce.

Being Unique:

As a result of being built on the Binance Smart Chain, one of Venus’ main strengths is its high speed and extremely low transaction costs. Users can now source liquidity in real-time through the protocol, thanks to the near-instant transactions, by lending Bitcoin (BTC), XRP, Litecoin (LTC), and other cryptocurrencies.

Through this Protocol, customers can source liquidity without a credit check and can take out loans directly through the Venus decentralized application (DApp). In the absence of any centralized authorities, users can obtain liquidity no matter where they are or what their credit score is and can always post sufficient collateral to get liquidity.

Venus users contribute the money into a pool, which is used to provide loans with variable interest rates. Borrowers’ deposits on the platform are used to secure these loans.

This Protocol uses price feed oracles, including those from Chainlink, to ensure that pricing data cannot be tampered with to avoid market manipulation attacks. The protocol can access the price feeds for a lower cost and more efficiently because of Binance Smart Chain, which results in a reduced footprint.

Why it is so valuable?

Among the properties that make XVS valuable are its technical capacity, the technology used for development, and the relevance of the project. A network and its associated assets have intrinsic value based on their functionality and utility. Although the intrinsic value is often lower than the market value, XVS has great market potential.

Cryptocurrency markets are volatile, so XVS is subject to drastic fluctuations and reversals of the trend often. The value of Venus is highly dependent on many factors, including the development team’s activity, upgrades and revisions, roadmap developments, mergers and partnership announcements, and other important updates.

The appeal of Venus is also its appropriateness, i.e., its ability to meet the growing need for decentralized financial services and products at a time when the sector is rapidly evolving.

Is it Secured?

A parallel blockchain called the Binance Smart Chain secures the XVS network. Despite issues with the Binance Chain, BSC is compatible with the Ethereum Virtual Machine (EVM) and can continue running.

A proof-of-staked authority-based consensus algorithm secures the blockchain via the Binance Smart Chain. There are several aspects of both proof-of-stake (POS) and proof-of-authority (POA) included in this hybrid consensus mechanism. Based on the Binance Smart Chain, is based on a network of 21 validators who verify recent transactions by reaching consensus.

In addition, XVS suppliers enjoy automatic liquidation methods, which will automatically liquidate the collateral of borrowers if it falls below a minimum collateralization ratio – thus reimbursing suppliers early to maintain this minimum.