Swipe has revealed more details around the new DeFi platform called Venus Protocol. Venus is a decentralized finance (DeFi) platform on Binance Smart Chain for lending and borrowing via the minting of synthetic stablecoins. Here we will take a look at what is Venus, and explore XVS token’s use cases. Developed by Swipe, it looks like Venus Protocol will be Binance’s answer to having an MakerDAO-like product on Binance Smart Chain.

We can already see that Binance is heavily pushing the platform’s release, announcing new launchpools, where users can stake BNB, SXP, or BUSD to start earning XVS tokens.

What is Venus (XVS)?

At its core, Venus is an algorithmic money market protocol for BEP-20 assets, which are native Binance Smart Chain tokens. This means Venus is a DeFi lending platform, where users can lock up supported crypto assets as collateral and borrow, by minting VAI.

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VAI is the protocol’s default stablecoin which is pegged to the value of 1 USD. Users will also earn interest on any crypto assets they supply to the protocol. Given that Venus is on Binance Smart Chain, the protocol will be able to leverage BSC to offer cross-chain DeFi. Such as supporting BTC, USDT, USDC, BNB and SXP from launch.

Decentralized governance… Venus will be governed by XVS holders. Proposals could be around adding new collateral options, product improvements, or changing parameters such as fees. XVS is a BEP-20 token and has a total supply of 30,000,000.

  • 79% of XVS’s total supply will be distributed by ecosystem mining, an initiative to reward users of the protocol. This should result in a very fair token distribution.

Collateral represented by vTokens… The decision to issue vTokens to represent the underlying collateral mirrors DeFi protocols such as Aave or Curve on Ethereum. For instance, this will support the future release of automated yield aggregators and robo-advisors on Binance Smart Chain. Expect to see follow up vault products like Yearn Finance on BSC!