More DeFi projects are emerging to address the growing need for financial services and decentralized apps as decentralized finance continues to gather traction. Lending projects are gaining popularity as demand grows. Venus (XVS) is one such undertaking.
Venus is a decentralized lending and borrowing protocol that uses the artificial stablecoin VAI to operate as an algorithmic money market. Through the network of network users, users can lend and borrow money using cryptocurrencies supported by the Venus protocol. Venus offers a user-friendly interface that enables quick and rapid collateralized cryptocurrency-based loans.
Are you curious about Venus (XVS), but aren’t sure what it’s all about or where to start? Not to worry. This manual is intended to provide you with all the information you require regarding the project and to prepare you for the easiest trading environment currently accessible.
September 8, 2023 at 12:28 pm
Updated September 8, 2023 at 12:28 pm
What is Venus (XVS)?
A DeFi lending platform called Venus (XVS) functions as an algorithmic money market, making the platform permissionless. Users can rapidly borrow and lend money thanks to this system without the need for middlemen. In this system, lenders are rewarded for offering loan services and borrowers can borrow crypto-based loans at lower rates.
Venus’s token, XVS, is a BEP-20 token because it was created and is hosted on the Binance Smart Chain. The Venus system also makes it possible to produce stablecoins known as VAI.
VAI is a BEP-20 stablecoin that is linked to the US dollar’s value. By using a wide range of supported cryptocurrencies as collateral, such as Binance Coin (BNB), USDT, USDC, Swipe (XSP), BUSD, and Venus (XVS), users of the Venus system can mint VAI. The only tokens supported on Venus are those that adhere to the BEP-20 standard.
The XVS token is utilized in network governance, where holders of the token can suggest modifications to the network and cast votes on ideas for new collateral additions, protocol changes, upgrades, and other crucial components.
How Does Venus Work?
The Venus lending protocol is available for users to use in order to borrow and lend cryptocurrency-based monies. Because of the network’s user-friendliness, it is built to determine how much of a loan a user is taking depending on the supplied collateral. In an automated market with no middlemen, users can borrow cryptocurrency funds by depositing a variety of cryptocurrencies that are compatible with the Venus protocol.
The XVS token and VAI stablecoins are key components of this design. Every XVS holder has the opportunity to vote, as well as the ability to suggest new collaterals and protocol changes. XVS is utilized for governance. Additionally, VAI stablecoins are minted using XVS. When VAI is deposited into the Venus Vault, it can be used to participate in the Venus liquidity mining program and be created using the vTokens from previously provided collateral.
Users can use any of the 16 cryptocurrencies as collateral to borrow additional coins at various allocation rates or to earn an annual percentage yield (APY) by lending money to other users. The system is set up such that everyone who has assets within the protocol and is a part of the network can earn an APY. The level of public interest in a certain cryptocurrency affects the APY rate. In addition to lending their money and minting the network’s decentralized currency, holders can use the profit they produce as collateral for loans.
WHO ARE THE FOUNDERS OF VENUS? (HISTORY OF VENUS)
The Swipe project development team, under the direction of Joselito Lizarondo, designed and created the Venus protocol. The Venus lending protocol was created by the same team that created Swipe, a company that issues cryptocurrency debit cards worldwide.
With three primary use cases, Venus (XVS) is a relatively recent initiative in the DeFi industry that was introduced in 2020. Venus was designed to make it possible to produce VAI stablecoins, support collateralized loans, and reward providers of the protocol’s supported collateral assets. Holders have complete control over the network and its token because no XVS coins were pre-mined for programmers or the Venus team.
WHAT MAKES VENUS UNIQUE?
While there are other lending platforms on the market, Venus stands out from the competition because to a few distinctive features. Venus provides quick loans with cheap transaction costs and excessive collateral. Venus can operate at a fast rate of speed and handle loans and transactions that happen virtually instantly because of Binance Smart Chain support.
The first lending protocol, Venus, allows users to access loan markets for Ripple’s XRP, Bitcoin (BTC), Litecoin (LTC), and many other well-known cryptocurrencies while also allowing users to source liquidity. Instead than depending on central authority and credit checks, which are required when applying for a loan from a bank or other financial institution, users can access liquidity for individual loans by submitting collateral.
Venus uses price oracles, which deliver real-time data feeds from cryptocurrency marketplaces, to guarantee that pricing information is accurate. As a result, consumers can always get the best prices and transparent insight into the cryptocurrency market.
What Gives Venus Value?
Venus’ technical prowess, the technology used to develop the protocol, use cases, and the project’s applicability all contribute to its worth. The network’s and its supporting assets’ usability and functionality have a significant impact on the intrinsic value. However, XVS’s inherent value frequently differs from its market value.
Since the cryptocurrency market is so unpredictable, XVS is frequently affected by trend reversals and is prone to drastic adjustments. The activities of the development team, upgrades and updates, roadmap advancements, mergers and alliances, as well as other significant news and events, are just a few of the many variables that affect Venus’ market value.
Venus is an important project because it is relevant, i.e., it may be used at a time when the DeFi industry is rapidly developing to meet the expanding need for decentralized financial services and goods.
The market capitalization of Venus is calculated by multiplying the quantity of XVS coins in circulation by the currency’s current market price. The market capitalization of a cryptocurrency also establishes its position in the market and its domination.
Other Technical Data
At the start of the project, 30 million XVS tokens were preminted. Pre-minted coins will be given to Venus liquidity providers, Binance Launchpool stakers, and Binance Smart Chain awards over the course of a four-year period.
The system will determine the collateral factor when users deposit any of the supported cryptocurrencies to apply for a loan. Every cryptocurrency in the system has a unique percentage for its collateral component, which displays the maximum amount borrowers can borrow based on their collateral. Some cryptocurrencies have a 60% collateral element, however others might have a higher or lower amount.
HOW IS THE VENUS NETWORK SECURED?
Venus is a network that runs on Binance Smart Chain and was designed to adhere to BEP-20 standard protocols. Parallel to Binance Chain, Binance Smart Chain uses Proof of Staked Authority to secure hosted protocols like Venus.
PoSA is a hybrid consensus technique that employs elements of both the Proof of Stake and the Proof of Authority protocols since it mixes two different protocols.
The Venus network uses automation to safeguard the liquidation since any collaterals that fall below a 75% loan-tovalue ratio are automatically liquidated to maintain the proper level of collateralization.
HOW TO USE VENUS
Users can lend and borrow cryptocurrency using the Venus lending DeFi platform based on collateralization. The core function of the Venus platform is to enable automated decentralized lending services where lenders can obtain an annual percentage yield (APY) for the supported cryptocurrencies in exchange for their deposited funds.
Additionally, users can mine XVS for liquidity and produce over-collateralized stablecoins (VAI) using Venus. Venus enables quick and immediate transactions, which eliminates the need for credit checks or centralized authorities like banks and makes borrowing money effective and efficient.
HOW TO CHOOSE A VENUS WALLET?
The sort of wallet you choose will probably depend on what you want to use it for and how much you need to keep. Since XVS is a BEP-20 token, it may be stored in any wallet that supports Binance Smart Chain.
The most secure way to store bitcoins with offline storage and backup is with hardware wallets, also known as cold wallets, like Ledger or Trezor. They can be more expensive and may require more technical expertise. As a result, they might be more suited to holding more XVS for more seasoned users.
Software wallets are an additional choice that are both free and simple to use. They might be custodial or non-custodial and can be downloaded as desktop or smartphone apps. With custodial wallets, the service provider is in charge of managing and backing up the private keys on your behalf. Non-custodial wallets keep the private keys on your device using safe components. Although useful, they are thought to be less secure than hardware wallets and may be better suited to people with less experience or lower amounts of XVS.
Online wallets, also known as web wallets, can be accessed from a variety of devices using a web browser and are also free and simple to use. However, they are regarded as “hot wallets” and might not be as secure as hardware or software alternatives. You should pick a trusted company with a solid reputation who has experience in security and custody because you are probably entrusting the platform to manage your XVS. They are therefore best suited for people who hold fewer coins or engage in more frequent trading.
When you select our secure platform as your storage option, buying and selling XVS, as well as exchanging it for any other cryptocurrency, can be done in a matter of seconds.
Users can stake any of the supported tokens, such as BNB, and mine XVS while earning rewards for network involvement with Venus’ liquidity mining system. Venus is dependent on staking for network security and transaction verification instead, as Binance Smart Chain uses a hybrid Proof of Stake technology.
21 validators are required by Binance Smart Chain, which also protects the Venus network, to monitor and validate transactions by carrying out duties and establishing consensus.
The project Venus is important in the developing field of decentralized finance. The desire for decentralized financial services is growing, which is why initiatives like the Venus lending protocol are gaining popularity. Venus eliminates problems with cumbersome procedures when obtaining loans from a central authority and enables individuals to lend and borrow cryptocurrency with ease.
Venus has the potential to become one of the most well-liked lending systems on the market due to its advantageous collateral features for the many supported cryptocurrencies and the possibility to stake and earn APY based on deposited funds.
Begin your voyage to Venus right away by joining the crypto revolution!
Investors that believe in the potential of DeFi and lending systems with decentralized infrastructures may find Venus to be a worthwhile investment. Venus may improve in value over time if DeFi services and goods get more traction, which might make it a worthwhile investment.
The main application of XVS is in network governance, where holders can suggest and decide on modifications that affect the entire protocol. Additionally, XVS can be staked for mining liquidity and used to create VAI stablecoins.
Due to the significant market volatility, the price of Venus is subject to rapid adjustments. Numerous individual circumstances may have an impact on Venus, leading to significant price fluctuations in a relatively short amount of time. On the Kriptomat exchange, you may monitor real-time Venus prices and begin trading Venus (XVS).
The popularity of the Venus platform and the demand for governance rights over it, in addition to more conventional factors like market mood, the movement of assets on exchanges, and the overall health of the economy, have an impact on the price of XVS.
The current Venus price is 4.640986 €.
Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions.
(Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)