Venus Protocol

Venus Protocol is a decentralized finance protocol that allows users to supply and borrow assets on the BNB Chain. Learn about its features, risks, governance, and …

Venus Protocol

Venus Protocol is a decentralized finance (DeFi) platform operating on the Binance Smart Chain (BSC). It serves as a money market that enables users to lend and borrow cryptocurrencies.

Core Functionalities:

• Lending: Users can lend their crypto assets to the platform's liquidity pools and earn interest on their deposits.

• Borrowing: Users can borrow cryptocurrencies by providing collateral in the form of other crypto assets. The amount borrowable is determined by the value of the collateral.

• Synthetic Stablecoin (VAI): Venus introduced VAI, an algorithmic stablecoin pegged to the US dollar. Users can mint VAI by over-collateralizing their crypto assets.

How Venus Works:

1. Depositing Assets: Users deposit cryptocurrencies into lending pools.

2. Earning Interest: Lenders earn interest on their deposited assets.

3. Borrowing Assets: Users can borrow supported cryptocurrencies by providing sufficient collateral.

4. Minting VAI: Users can mint VAI by over-collateralizing their crypto assets.

Key Features:

• Decentralization: Venus operates autonomously without intermediaries.

• Permissionless: Anyone can participate in lending, borrowing, and minting VAI.

• Over-collateralization: Borrowers must maintain a certain collateral-to-loan ratio to prevent liquidation.

• Liquidation: If a borrower's collateral value falls below a certain threshold, their position can be liquidated.

• Governance Token (XVS): Venus has a native governance token, XVS, which grants holders voting rights on protocol decisions.