Venus —— A Money Market and Stablecoin DeFi Platform based on BSC
- Venus is building a Decentralized Finance (DeFi) money market platform on Binance Smart Chain to enable digital asset lending and generation of synthetic stablecoins backed by a basket of various BEP-20 assets.
- The project aims to support three core features:
- Over-collateralized lending where users can borrow assets whose value is 75% or lower than that of the assets supplied.
- Earn interest by supplying supported collateral assets to the protocol.
- The ability to mint VAI, the protocol's default synthetic stablecoin pegged to the value of 1 USD.
Venus is building an algorithmic money market protocol that is exclusively on Binance Smart Chain to enable lending and borrowing of assets, as well as generation of synthetic stablecoins.
The collateral provided to Venus will be represented by vTokens (such as vBTC) which will enable users to redeem the underlying collateral as well as to borrow against it. Interest rates in the protocol are based on the utilization of a specific market with a yield curve to determine the final rates.
The protocol will also enable the minting of VAI, which is the first synthetic stablecoin on Venus that aims to be pegged to 1 USD. VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI.
Venus is governed by its native token XVS, which allows holders to participate in voting on various platform initiatives such as adding new collateral, changing parameters, initiating product improvements, and more.
The governance of the protocol is entirely controlled by XVS community members, since the Venus founders, team members and other advisors do have any XVS token allocations.
According to the initial platform setting, 79% of the total XVS token supply will be allocated for Ecosystem Mining and be distributed as follows:
- 35% to the Lending Pool, or to users who receive interest by depositing assets for others to borrow.
- 35% to the Borrowing Pool, or to users who borrow assets and pay interest to the platform.
- 30% to the Stablecoin Pool, or to users who mint VAI on the platform.
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.
The Venus Protocol is managed and upgraded by XVS token holders using three different components. XVS token, management module (Governor Alpha) and Timelock. Together, these contracts allow the community to propose, vote, and implement changes through the management functions of vToken or unitroller. Recommendations can include changes, such as adjusting the interest rate model to increase support for new assets.
XVS is a BEP-20 token that allows owners to delegate voting rights to any address, including their own addresses. Changing the owner's token balance will automatically adjust the delegate's voting rights.
Each asset supported by the Venus Protocol is integrated through the vToken contract, which is an EIP-20 compatible representation of the balance provided to the protocol. By minting vToken, users earn interest through the exchange rate of vToken, which increases the value relative to the underlying assets and gains the ability to use vToken as collateral.
vToken is the main way to interact with the Venus protocol; when users mint, redeem, borrow, repay the loan, liquidate the loan, or transfer vToken, the vToken smart contract will be used to do so.