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About Venus (XVS)
Key Points
- Venus is an algorithmic money market and synthetic stablecoin protocol on Binance Smart Chain (BSC).
- VAI tokens are synthetic BEP-20 tokens pegged to USD, while XVS tokens are for governance and voting.
- The protocol enables fast and low-cost lending and borrowing with high-speed transactions.
- Users can mint VAI stablecoins on-demand with at least 200% collateral.
- XVS tokens are used for governance, and the community has total control.
Founders and Governance
- The Swipe project team developed Venus, aiming for decentralization through community governance.
About Venus: Empowering the Future of Lending
Venus (XVS): A Comprehensive Overview
Venus is a pioneering algorithmic money market and synthetic stablecoin protocol, debuted exclusively on the Binance Smart Chain (BSC) ecosystem.
The protocol pioneers a seamless crypto asset lending and borrowing solution within the decentralized finance (DeFi) ecosystem, empowering users to borrow against collateral with unprecedented speed while minimizing losses to transaction fees. Furthermore, Venus enables users to mint VAI stablecoins on-demand in mere seconds by posting a minimum of 200% collateral to the Venus smart contract.
VAI tokens are synthetic BEP-20 token assets that are meticulously pegged to the value of one U.S. dollar (USD), thereby maintaining a stable parity. Conversely, XVS tokens, also built upon the BEP-20 standard, serve a distinct purpose, facilitating governance of the Venus protocol and empowering holders to cast votes on pivotal decisions, including the integration of novel collateral types, parameter adjustments, and the implementation of product enhancements.
The governance of the protocol is entirely entrusted to the XVS community members, as the Venus founders, team members, and advisors do not hold any XVS token allocations, thereby ensuring a truly decentralized and community-driven decision-making process.
The Visionaries Behind Venus (XVS): Meet the Founders
The development of the Venus project is being spearheaded by the esteemed Swipe project team. The paramount objective of Venus is to attain true decentralization through a community-driven governance model. Notably, there are no pre-mined tokens allocated to the team, developers, or founders, thereby empowering XVS holders with absolute authority to chart the course of the Venus Protocol.
Unveiling the Distinctive Characteristics of Venus (XVS)
Venus’ paramount advantage lies in its exceptional speed and remarkably low transaction costs, a direct consequence of being built upon the Binance Smart Chain. Notably, the protocol pioneers the provision of lending markets for Bitcoin (BTC), XRP, Litecoin (LTC), and other cryptocurrencies, facilitating real-time liquidity sourcing via its near-instant transaction capabilities.
Through the Venus Protocol, customers can seamlessly access liquidity without undergoing a credit check, and swiftly obtain a loan by interacting with the Venus decentralized application (DApp). The absence of centralized authorities ensures that users are not bound by geographical constraints, credit scores, or any other limitations, and can always tap into liquidity by posting sufficient collateral.
These loans are sourced from a collective pool contributed by Venus users, who in turn receive a variable annual percentage yield (APY) for their participation. Notably, these loans are collateralized by the over-collateralized deposits made by borrowers on the platform, ensuring a robust level of security.
To mitigate the risks of market manipulation attacks, the Venus Protocol leverages price feed oracles, including those from Chainlink, to provide tamper-proof and accurate pricing data. By harnessing the capabilities of the Binance Smart Chain, the protocol can access these price feeds at a significantly lower cost and with enhanced efficiency, thereby minimizing the overall cost footprint of the system.
Venus (XVS) Coin Circulation: Understanding the Total Supply
Venus boasts a capped total supply of 30 million XVS tokens, with a circulating supply of approximately 4.2 million XVS tokens as of November 2020.
Venus pioneered the concept of Launchpool on Binance, thereby enabling users to cultivate XVS by staking a diverse array of assets, including Binance Coin (BNB), Binance USD (BUSD), and Swipe (SXP) tokens. Notably, a substantial 20% of the total XVS supply (6 million) was earmarked for the Binance Launchpool, with the token subsequently being listed on the Binance spot exchange platform.
The project’s token distribution is notable for its lack of pre-sale or private sale, and the team’s absence of token allocation. Instead, a mere 1% of the total supply, equivalent to 300,000 XVS, is set aside for Binance Smart Chain ecosystem grants. The remaining 23.7 million XVS tokens will be incrementally unlocked over a four-year period, as they are mined by participants utilizing the Venus protocol.
As outlined in the project’s white paper, the daily XVS rewards are allocated in the following manner: 35% are distributed to borrowers, 35% to suppliers, and the remaining 30% are reserved for VAI stablecoin minters.
The Security Mechanisms Underpinning the Venus (XVS) Network
The Venus network is underpinned by the Binance Smart Chain, a blockchain that operates in tandem with the Binance Chain. Notably, BSC is EVM-compatible, ensuring seamless interoperability, and is designed to maintain functionality even in the event of Binance Chain downtime or technical issues.
Binance Smart Chain employs a distinctive consensus algorithm, known as proof-of-staked authority (POSA), to ensure the integrity of its blockchain. This innovative mechanism seamlessly blends elements of both proof-of-stake (POS) and proof-of-authority (POA) to create a hybrid consensus model. At its core, POSA relies on a network of 21 carefully selected validators, who are entrusted with the critical tasks of executing operations on the Binance Smart Chain and achieving consensus on recently validated transactions.
Beyond this, Venus suppliers are safeguarded by automatic liquidation mechanisms,
which trigger the instantaneous sale of collateral assets when the borrower’s
collateral value dips below 75% of their outstanding debt, thereby ensuring
suppliers receive timely reimbursement and maintaining the minimum
collateralization ratio.
Acquiring Venus (XVS): A Comprehensive Guide to Exchanges and Trading Platforms
As of November 2020, Venus is exclusively listed on the prominent exchange platform, Binance. It is paired with four prominent digital assets: Tether (USDT), Bitcoin (BTC), Binance Coin (BNB), and Binance USD (BUSD). Notably, there are no direct fiat on-ramps available for purchasing Venus at present.
Discover the ease of purchasing Bitcoin and other cryptocurrencies using your credit or debit card with our straightforward guide.
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