Venus current price is $7.76.

What is Venus?

Venus is a new algorithmic money market protocol that is launched on Binance Smart Chain. Like the other money market protocols in the market, lenders and borrowers do not need to be directly matched. In these pooled-based lending protocols, lenders provide liquidity by depositing their idle assets to earn interest while borrowers access these assets by providing collaterals. Within each money market, factors such as interest rates are determined algorithmically, based on supply and demand of each asset. Being on the Binance Smart Chain, users can access all assets listed on Binance, including high market capitalization tokens such as Ripple (XRP).

Lending Assets

Users who would like to earn interest on their idle assets can choose to deposit into the corresponding money market in the Venus protocol. Users will be issued a vToken, which is linked to their deposited asset in Venus. Users can choose to withdraw their assets and the accrued interest anytime by redeeming the vToken.

Borrowing Assets

Users can also borrow from the desired money market by providing collaterals. In the Venus protocol, users can borrow up to 75% of the collateralized value. Interest rates are determined by the supply and demand of each asset, and the compounded interest is added per block. Users can redeem their loan anytime by returning the value of their borrowed assets plus interest.

Algorithmic-Based Risk Management

The Venus protocol is set to be a decentralized lending and borrowing protocol managed by pre-set algorithms for each money market. Interest rates are calculated after each transaction, taking into account the supply and demand of each asset. For example, if an asset is low in supply, the interest rate for this asset will be adjusted higher to incentivize deposits from lenders. Automatic liquidation protocols are also in place to restore the value of each money market when the collateralized asset value falls below the borrowed value.

VAI - Venus Synthetic Stablecoin

An extra feature offered by the Venus protocol is the ability to mint synthetic stablecoins. Users can choose to mint VAI (Venus synthetic stablecoin) from the collateralized assets deposited into the Venus protocol. Up to 50% of the remaining collateralized value can be used to mint VAI. VAI is backed by the underlying collaterals in the Venus protocol to be of a value of 1 USD per VAI token. In the Venus protocol, Price Adjustment Module will be activated at appropriate times to maintain the value of each VAI at 1 USD. The main advantage of such fully backed synthetic stablecoins is that users can unlock more value from their supplied collaterals for other investments. VAI, backed by the underlying collaterals, can be traded and swapped with other assets or stablecoins to meet the users’ needs.

XVS Token

XVS is the native BEP-20 governance token of the Venus protocol. The maximum supply is 30M XVS tokens. An initial circulating supply is at 3.7M tokens. The XVS tokens are minted whenever the users interact with the Venus protocol. 79% of the total supply will be available for the users and is distributed with 35% to the lenders, 35% to the borrowers, and 30% to the stablecoin minters. XVS tokens will be used for proposing and voting on governance issues on the Venus protocol. This will take place when 10M XVS tokens are minted. As of October 2020, Swipe Token (SXP) is used as the governance token.

Governance

The Venus protocol is designed to be a fully decentralized money market protocol. There are no pre-mined tokens for the founders and developers. Therefore, the protocol is fully controlled by users holding the XVS tokens. With the XVS tokens, changes to factors such as percentage of collaterals available for borrowing, addition of new assets to the protocols, and interest rate calculation algorithm can be proposed and voted on. As of October 2020, SXP token holders can vote on governance issues on the Venus protocol. Once the Venus protocol matures with 10M XVS minted, governance control will be handed over to XVS token holders.