With the expansion of the DeFi market we see new projects and solutions being launched on a regular basis. One of these projects is Venus (XVS). This platform has been growing as a money market protocol that makes it easier for users to lend and use digital assets.
However, the details of these project are not so clear to most crypto users. This is why we are going to share with you all the information you should have about this platform that runs on top of the Binance Smart Chain (BSC) blockchain network.
This is not the first project to be released on the BSC blockchain. There are dozens of other crypto and DeFi solutions that have been growing over the last few months. With the expansion of the solutions offered by the Binance ecosystem, it might be possible for users to get access to several new solutions on top of the Binance Smart Chain.
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
Venus describes itself as a decentralized marketplace for lenders and borrowers with stablecoins. The main characteristics of this platform include its scalability, its decentralization and the adoption of the BEP-20 standard.
This is considered to be the first decentralized stablecoin that is built on top of the Binance Smart Chain. Users can start earning interest on their coins based on the market demand. FOr example, it is possible to deposit coins such as Tether (USDT), Binance USD (BUSD), Binance Coin (BNB) and others and earn rewards.
Through this platform, users can get access to a wide range of assets. Moreover, users can tokenize their own digital currencies and receive vTokens.
The platform is now offering a wide range of services that make it easy for individuals to get access to decentralized finance solutions. Some of the solutions include the following:
As we mentioned before, users can easily tokenize their assets. Everything can be done through the Binance Smart Chain and receive portable vTokens. In this way, users can move them around as they desire, to cold storage or transfer them to other users.
Users are also able to get access to instant liquidity on the Venus platform. By using the vTokens as collateral, participants can borrow from the Venus Protocol instantly and without trading fees. It is also worth mentioning that there is no slippage and everything can be handled directly on-chain.
You can start earning interest on your assets. For example, if you deposit Tether (USDT) you could get an APY of 5.69% at the time of writing. However, you can also deposit many other virtual currencies.
The project focuses mostly on stablecoins. You can borrow Venus (XVS), USD Coin (USDC), Tether (USDT), Binance USD (BUSD), Binance Coin (BNB) and also many other digital currencies.
These other coins include the largest digital assets in the market such as Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). Users that hold the XVS digital asset get higher APY rates on their deposits. Thus, the project promotes its virtual currency as well.
The XVS digital asset became one of the largest virtual currencies in the world. The coin moved from just $2 in November to over $80. A few days ago. This shows the large demand that there is in the cryptocurrency market for these types of projects. Nowadays, this virtual currency is the 112th largest in the world.
Venus allows users to mint VAI stablecoins on-demand in just seconds. However, they have to deposit at least 200% collateral on the Venus smart contract. The VAI tokens are basically BEP-20 tokens that are pegged to the U.S. dollar.
The XVS digital asset is the one used to handle the governance protocol of the platform. Users can vote on different proposals that would change the way in which the protocol works. For example, it might be possible to vote on new collateral types or change parameters and organize product improvements.
It is worth taking into consideration that Venus creators didn’t have XVS allocated to them. That means that the entire community is responsible for voting for the different proposals. In this way, the project can move forward always relying on its users.
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