Venus (XVS)

Last updated 20/09/2022

What Is Venus (XVS)?

Venus is a synthetic stablecoin system and algorithmic money market that was introduced only on Binance Smart Chain (BSC).

The protocol brings a user-friendly lending and borrowing solution for crypto assets to the decentralized finance (DeFi) ecosystem, allowing users to quickly borrow directly against collateral while paying less in transaction costs. Additionally, by submitting at least 200% collateral to the Venus smart contract, users can instantly create VAI stablecoins on demand.

In contrast to XVS tokens, which are also BEP-20-based but are 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—VAI tokens are artificial BEP-20 token assets that are pegged to the value of one U.S. dollar (USD).

Since none of the Venus founders, team members, or any advisers have any XVS token allocations, the protocol's governance is solely in the discretion of members of the XVS community.

Since it was created on top of the Binance Smart Chain, Venus has a very high transaction speed and very cheap transaction costs. Thanks to its nearly instantaneous transactions, the protocol is the first to give users access to loan markets for Bitcoin (BTC), XRP, Litecoin (LTC), and other cryptocurrencies to source liquidity in real-time. Customers using the Venus Protocol to source liquidity do not need to pass a credit check and can instantly obtain a loan by engaging with the decentralized Venus application (DApp). Users are not constrained by their location, credit score, or anything else because there are no centralized authority in existence. They may always obtain liquidity by providing enough collateral.

Users of Venus contribute to a pool from which these loans are drawn, and in exchange, they are given a variable annual percentage yield (APY). The over-collateralized deposits that borrowers make on the platform serve as collateral for these loans.

The Venus Protocol uses price feed oracles, such as those from Chainlink, to deliver precise pricing information that cannot be tampered with in order to prevent market manipulation assaults. The protocol can access the price feeds more effectively and at a lesser cost because of the Binance Smart Chain, which lowers the system's overall cost footprint.

A little more than 4.2 million Venus tokens—which have a potential total quantity of 30 million—were in use as of November 2020.

One of the first platforms to run a Launchpool on Binance was Venus, which allowed users to stake a variety of tokens, including Binance Coin (BNB), Binance USD (BUSD), and Swipe (SXP), in order to farm XVS. The Binance Launchpool received a total of 20% of the entire supply (6 million XVS), and soon after, the token was listed on the Binance spot trading platform.

The team has no token allocation, the project had no pre-sale, and there was no private sale. However, Binance Smart Chain ecosystem grants will receive 1% of the entire supply, or 300,000 XVS. The remaining 23.7 million XVS tokens will progressively become available over the course of four years as they are mined by Venus protocol users.

The Binance Smart Chain, a blockchain that functions concurrently with the Binance Chain, protects the Venus network. BSC can continue to function even if there are problems or outages with the Binance Chain because it is compatible with theEthereum Virtual Machine (EVM).

Proof-of-staked authority (POSA), a distinctive consensus mechanism, is used by Binance Smart Chain to protect the blockchain. This consensus process essentially combines elements of proof-of-stake (POS) with proof-of-authority (POA). It is based on a network of 21 validators who execute commands on the Binance Smart Chain and establish agreement on recently completed transactions.

In addition, Venus suppliers are safeguarded by automated liquidation mechanisms, which will immediately liquidate borrowers' collateral if it drops below 75% of the borrowed amount, paying off suppliers ahead of schedule to preserve the required collateralization ratio.

Roadmap

XVS Launch

Date: September 2020

Type: Launch

XVS launched via Binance Launchpool

Venus V2

Date: April 2021

Type: Upgrade

V2 upgrade added VAI liquidation fees, VAI mint fees, Venus redemption fees, and VRT airdrop.

XVS Liquidation

Date: May 2021

Type: Large Liquidation

Large liquidations following XVS price spike which led to shortfall in the liquidation value of the seized collateral relative to the bad debt outstanding.

VIP 42 Hostile Takeover Attempt

Date: September 2021

Type: Hack or Attack

The Venus Protocol team has announced via Telegram that this vote has been canceled by the team through the "Guardian Functionality" within the Governor Alpha contracts, and the vote results will not be accepted. The team stated, "we have safety measures in place to prevent these types of hostile takeovers and we had to use them in order to protect XVS holders. This decision has been taken unanimously by the team as VIP42 would have released 3.7M XVS to an unknown bad actor."

Team

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.

Where to store Venus (XVS)

Option to keep your Venus tokens secure and offline can therefore include the leading hardware wallet providers Ledger.

Similarly, a user-friendly option to keep your $XVS secure can include MetaMask, a leading browser wallet extension popular amongst DeFi platforms and highly praised by developers. Users can integrate with the network’s Liquidity Mining pools by connecting your MetaMask wallet.

Binance Chain Extension Wallet is a Crypto Wallet for Binance Chain, Binance Smart Chain. You can send and receive funds on Binance Chain, Binance Smart Chain and cross-chain transfers between both of Binance’s blockchains. It’s currently supported in major browsers: Chrome and Firefox.

Where to buy and sell Venus (XVS)

You can Buy & Sell Venus (XVS) by heading over to the Buy Coins page of our website. Venus (XVS) is available on BC Bitcoin trading against major fiat currencies: GBP and EUR. Buying $XVS has never been easier, simply place your order and provide your wallet address. Once your payment arrives Venus (XVS) will be sent directly to your wallet.

If you choose to Sell Venus (XVS) you can send us the coins and receive a payment to your bank account. Details and valuation can be found on our Sell Coins page.

Venus (XVS) Resources:

Website: https://venus.io/

Block Explorer: https://bscscan.com/

Twitter: https://twitter.com/VenusProtocol

Medium: https://blog.venus.io/

Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.