Prev.
A new decentralized stable coin system called Venus was recently revealed by the world’s leading cryptocurrency exchange – Binance. The system supposedly has been built on the Binance Smart Chain that was launched a few weeks ago. It will mint the decentralized stablecoin called VAI, supported by a bundle of BEP-20 tokens.
Venus is a Decentralized finance money-based marketplace for lenders and borrowers of stablecoins. The platform has been generated on the Binance smart chain which is gradually becoming the second-in-command after Ethereum and competes with it at the close call. Binance research claims that the new robust project aims to support over-collateralized lending, where users can borrow assets whose value is either 75% or lower than that of assets supplied.
Source: Twitter
The platform will endow opportunities to its users to earn heightened interest by supplying backed collateral assets to the protocol. Venus will further provide the clients with the ability to mint VAI which is the touted and default synthetic stablecoin pegged to the value of 1USD.
“VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI.” The collateral provided to Venus will be represented by vTokens (such as vBTC) which will enable users to redeem the underlying collateral as well as to borrow against it,” said Binance.
Users will also be able to stake their Binance Coin or BNB, they can stake their Binance Stablecoin (BUSD) and Swipe tokens (SXP) tokens. This can be done into two separate pools to farm Venus (XVS)tokens starting Tuesday. Binance then will according to the plan list XVS into its Innovation zone, stated to be represented there on October 6th. It will then subsequently open trading pairs for XVS/BTC, XVS/BNB, XVS/BUSD, and XVS/USDT.
The protocol is developed by Swipe Wallet which was acquired by Binance earlier this year. The amount of the acquisition has been under wraps. But, the inherent design of the wallet removes the nagging pain points of the Ethereum blockchain like ever-increasing transaction fees. Binance smart Chain can be credited with the changeover, making it good enough to compete with Ethereum’s network.
Some confirmed reports also claim that Venus will utilize XVS coin as its native BEP-20 token. If it becomes the native coin, it will be used for voting in governance decisions, for further product improvements, and the necessary integration of new collateral. The initial platform settings have clearly mandated some necessary rules. 79% of the total XVS token supply will be diversified and distributed for ecosystem mining. Out of the total, 35% will be distributed to the lending pool, 35% will be allocated to the borrowing pool and 30% will be provided to the stablecoin pool which will include users who mint VAI.
Binance initially revealed some details of the project last August. At that time Binance said that Venus would be the regional version of Libra.