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 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:
Depositing Assets: Users deposit cryptocurrencies into lending pools.
Earning Interest: Lenders earn interest on their deposited assets.
Borrowing Assets: Users can borrow supported cryptocurrencies by providing sufficient collateral.
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.
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