Venus Protocol officially launched its DeFi lending platform on Binance Smart Chain. And in just 5 hours, the protocol locked up enough value to become the largest lending pool for Binance Coin (BNB).
What is Venus Protocol?
Venus is a decentralized money market for lenders and borrowers, living on Binance Smart Chain to take advantage of low network fees and high scalability. The platform enables users to lock up crypto assets as collateral to mint a synthetic stablecoin VAI. Furthermore, the DeFi protocol features community governance by holders of its native XVS token. Currently, XVS tokens can be farmed by liquidity suppliers, protocol borrowers, and stablecoin minters. Essentially, you can deposit capital to earn interest along with farming XVS!
Currently, users can deposit the following BEP-20 assets:
- Swipe (SXP)
- Binance Coin (BNB)
- USDT (USDT)
- USDC (USDC)
- BUSD (BUSD)
- Venus (XVS)
How to participate in liquidity mining?
You can start using Venus Protocol by following these steps:
- If you’re new to Binance Smart Chain, you will need to add the network to your MetaMask wallet. You can read through our tutorial of creating a MetaMask wallet for BSC here.
- Make sure you have some BNB in your wallet to pay for gas fees.
- You will need one or more of the supported cryptocurrencies listed above in your wallet. If you don’t have any, you can acquire them via Pancakeswap or Binance Exchange.
- Open up app.venus.io, make sure you’re logged into your wallet.
- Select the asset you want to deposit.
6. Enter the amount and click supply to sign the transaction.
And you’re now farming XVS tokens!
Currently, these are the early days for Venus Protocol so we would recommend supplying funds with a long term outlook. If you want to learn more, check out our in depth DeFi tutorial for using Venus Protocol. It contains several strategies for borrowing and lending to maximize your yield. In the coming weeks, we should see releases around their governance, developer documentation, which will unlock a lot of new use cases for VAI stablecoin.