Lending and borrowing has been redefined with the evolution of blockchain technology. Multiple platforms claim to offer decentralized lending and borrowing in an utterly decentralized atmosphere, pouring all the benefits. OK! I am ready to assume that they are offering everything they have claimed before. But, are they covering the whole population? A portion of people still find it challenging to manage these protocols and trade on them.
Therefore, we are here to offer a protocol like Venus, where you can get a platform specially designed for users like you. A secure marketplace to take loans, earn interest, and mint stablecoins. This protocol entirely runs on Binance Smart Chain, which negates the current problems on the Ethereum blockchain like- congestion in the network, lack of cross-chain compatible assets, and high transaction costs.
Venus is a scalable solution deployed on a money market that the community can control through its governance token XVS. XVS token is dispersed through a fair-launch mechanism without any founder and team allocations.
- Borrow cryptocurrencies and stablecoins with no credit check and fast origination directly on Binance Smart Chain.
- Supply cryptocurrencies and stablecoins and earn a variable APY for providing liquidity to the protocol that is secured by over-collateralized assets.
- Mint stablecoins from your supplied collateral can be used at over 60 million locations worldwide through the Swipe platform and more.
- Controlled by the Venus Token, a governance token designed to be a fair launch distribution for the community.
Fundamentals Of Venus Like Protocol
- Supplying Assets
Users can use supported cryptocurrencies or digital assets on the platform as collateral for loans and supply liquidity, and it can help them earn an APY or mint synthetic stablecoins. All users’ assets are pooled into smart contracts that can allow them to withdraw the supply at their convenience. Users will receive vToken, those who supply their cryptocurrencies or digital assets to the protocol as well; later on, they can move it to their wallet.
- Borrowing Assets
If users want to borrow any of the supported crypto, or other digital assets, they must bring collateral that will be locked in the platform. These assets are overcollateralized and will enable upto 75% of the collateral value (determined by protocol) borrowed. Once the supply of assets is completed, one can easily borrow based on the assets’ collateral ratio. It is between 40% to 75%.
- Synthetic Stablecoins
It allows users to mint VAI, a synthetic stablecoin based on the price of 1 USD, by utilizing the vtokens from the supplied underlying collateral. Users can borrow up to 50% of the remaining collateral value on the protocol from their vTokens to mint VAI. Stablecoins on the l can be synthetically designed through Governance and added as a proposal. These stablecoins will not have yielded curves that determine their interest rates, which are known as stability fees in other protocols.
- Pricing Mechanism
Since no underlying fiat reserves guarantee the value of the synthetic stablecoin on the Venus Protocol, it will rely on market forces, the basket of collateral, and safety mechanisms to maintain its peg to the fiat currency it is designed to synthesize. As an example, VAI will initially support a peg of 1:1 per VAI: USD. This system will enable two main points. A benefit to hold/buy a synthetic stablecoin or mint/borrow a synthetic stablecoin. This is determined irrespective of whether the price peg has become negative or positive due to external market conditions.
- Max Supply: The maximum number of synthetic stablecoins units can be minted at any given point to determine the synthetic stablecoins maximum supply.
- Interest Rate: The interest rate parameter controls how much interest fees the user pays for minting these synthetic stablecoins.
- Collateral Ratio: Each synthetic stablecoin will be a liquidation price. These liquidation prices are controlled by the Collateral ratio for each synthetic stablecoin.
- Penalty Ratio: If a liquidation occurs, there will be a penalty percentage you must pay the protocol. The protocol sets this penalty ratio.
What is XVS?
XVS is the native token of Venus protocol, responsible for being a “fair-launch” cryptocurrency. It can be earned only through the Binance LaunchPool project or through offering liquidity to the protocol.
What Are VTokens?
When the collateral is supplied, protocol-created pegged assets are called vTokens. vTokens represent the unit of the collateral supplied and can be used as a redemption tool. It is created and implemented by Governance processes and voted by Venus token holders.
Governance Features Of Our Protocol Like Venus
- New cryptocurrencies and stablecoins can be added to the protocol
- Variable interest rates can be adjusted for all the markets
- Fixed interest rates can be set for synthetic stablecoins
- Voting on protocol investments/proposals
- Delegation of protocol reserve distribution schedules
Our white-label and feature-packed solutions are the sure shot way to lead your company to maximum heights. We have the edge over our competitors due to the years of experience and skills in developing and delivering services with blockchain technology. Our protocol solutions offer innovative features like increased speed, flexibility, and much more, which makes our lending and borrowing platform superlative above others. Develop and launch your own protocol like Venus now by partnering with us!