The Venus platform operates as a decentralized marketplace for lenders and borrowers alike. It describes itself as “the money market and synthetic stablecoin platform”. The protocol aims to offer a comprehensive lending and credit system to the Binance Smart Chain, the blockchain it is built upon, as well as facilitate the minting of synthetic stablecoins. Venus also hopes to bring features of traditional finance to decentralized protocols and allow users to benefit from the secure lending environment provided by the platform.

Since it is built on the BSC, as such, all of Venus Protocol assets are BEP20 standard tokens. It features a comprehensive stablecoin functionality and aims to enable anyone to leverage collateral. This includes supplying collateral, earning interest on it, borrowing against it, and minting stablecoins.

XVS is the Venus Protocol native token. It is used as a governance token on the platform. XVS can be earned via the Binance LaunchPool project, or alternatively, it is distributed as a reward for liquidity provision.

What are Venus’ key features and how does it work?

The Venus Protocol is designed from and therefore has a similar architecture to Compound and MakerDAO. Some of its key features include the ability to rapidly borrow a variety of stablecoins, and other cryptocurrencies, without requiring a credit check. Lenders on the platform can supply collateral to the network that can be then be borrowed by pledging over-collateralized cryptocurrencies. Within this framework, lenders receive compounded interest rates on their loans, whilst borrowers pay interest on their borrowings. Interest rates are determined via a curve yield that automizes the rate based on current market demand.

Venus differs from other money market protocols since many different types of collateral supply are supported on the platform. Once a user has deposited funds, they are stored in smart contracts that can be withdrawn from at any point. In return for the collateral deposited, Venus issues vTokens that can be used to reclaim the original collateral from the smart contracts. To borrow assets on the protocol, a user must over-collateralize their intended loan value. Each coin has a collateral ratio between 40% and 75%. The ratio determines the value of the collateral a user can borrow. As an example, if a coin has a collateral ratio of 50%, then a borrower can be lent up to 50% of the amount of collateral that they have deposited. In order to get the original collateral back, a user needs to pay back the amount borrowed, plus any interest owed.

VAI is the protocol’s default stablecoin, however, Venus allows other stablecoins to be created via platform governance. Stablecoins can be minted by leveraging the vTokens a user receives in exchange for depositing collateral. Stablecoins can also be assigned specific parameters which can be proposed by and changed via the protocol governance. This includes parameters such as maximum supply, collateral ratio, amongst others.

Where can you buy Venus (XVS)?

XVS is available for trading on the following CEXs and DEXs listed here. The most popular platforms with the highest liquidity are MEXC Global, Binance, and Bithumb. The price of XVS will vary depending on the choice of exchange and overall market conditions. For up-to-date and historic data for XVS market price, please view the price charts on this page.