The Venus platform functions as a decentralized marketplace where both lenders and borrowers can interact. It presents itself as “the money market and synthetic stablecoin platform.” The protocol is built to provide an end-to-end lending and credit system for the Binance Smart Chain, the network it runs on, while also enabling the minting of synthetic stablecoins. Venus also aims to bring aspects of traditional finance into decentralized protocols and help users take advantage of the platform’s secure lending setup.

Because it is deployed on BSC, all Venus Protocol assets are BEP20 standard tokens. It includes broad stablecoin functionality and is designed to let anyone make use of collateral. That covers depositing collateral, earning interest on it, taking loans using it as backing, and minting stablecoins.

XVS is Venus Protocol’s native token. On the platform, XVS serves as the governance token. Users can acquire XVS through the Binance LaunchPool initiative, or it can be provided as a reward for contributing liquidity.

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

Venus Protocol is built with an approach similar to Compound and MakerDAO, so its overall design follows a comparable pattern. Key capabilities include the ability to borrow a range of stablecoins and other cryptocurrencies quickly, without undergoing a credit check. Lenders supply collateral to the network, which can then be borrowed by posting over-collateralized cryptocurrencies. In this model, lenders earn compounded interest on their positions, while borrowers pay interest on what they borrow. Interest rates are set using a yield curve that adjusts the rate based on real-time market demand.

Venus stands out among money market protocols because it supports multiple categories of collateral. After a user deposits funds, the assets are held in smart contracts that can be withdrawn at any time. For the deposited collateral, Venus issues vTokens, which users can use to recover the original collateral from those smart contracts. To take out a loan, the borrower must over-collateralize the value of the amount they want to borrow. Each supported coin has a collateral ratio ranging from 40% to 75%. This ratio influences how much a user can borrow relative to their deposited collateral. For instance, if a coin has a 50% collateral ratio, the borrower may receive up to 50% of the deposited collateral value. To retrieve the original collateral, the borrower must repay the borrowed amount along with any interest due.

VAI is the protocol’s default stablecoin, but Venus also enables governance-led creation of other stablecoins. Stablecoins may be minted by using the vTokens a user receives for depositing collateral. Additionally, governance can define specific settings for stablecoins that may be proposed and updated through the protocol’s governance process. These settings can include items such as maximum supply, collateral ratio, and others.

Where can you buy Venus (XVS)?

XVS can be traded on the CEXs and DEXs listed here. The most widely used venues with the greatest liquidity include MEXC Global, Binance, and Bithumb. XVS pricing will differ by exchange selection and broader market conditions. For the latest and historical XVS market price information, please check the price charts on this page.