What is Venus (XVS)?
Venus (XVS) is a DeFi lending platform that works as an algorithmic money market, which makes the lending platform permissionless. This mechanism enables users to instantly borrow and lend without intermediaries. In this system, borrowers can borrow crypto-based loans at lower fees, and lenders are incentivized to provide loan services.
Venus is built and hosted on the Binance Smart Chain, which means that its token, XVS, is a BEP-20 token. The Venus system also enables the minting of stablecoins called VAI. VAI is a BEP-20 stablecoin and it is pegged to the value of the US dollar. The Venus system allows users to mint VAI with a great array of supported cryptocurrencies as collateral, including Binance Coin (BNB), USDT, USDC, Swipe (XSP), BUSD, and Venus (XVS). All tokens that are supported on Venus are BEP-20 standard tokens.
The XVS token is used in network governance where XVS holders can propose changes to the network and vote on propositions regarding adding new collaterals, the protocol, upgrades, and other important elements.
How Does Venus Work?
Users can access the Venus lending protocol to borrow and lend cryptocurrency-based funds. The network is user-friendly, so it is designed to calculate the amount of the loan a user is taking based on the deposited collateral. Users can borrow crypto funds by depositing multiple cryptocurrencies supported on the Venus protocol with transparent and low fees within an automated market with no intermediaries.
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In this architecture, VAI stablecoins and the XVS token play a major role. XVS is used for governance, and every XVS holder has voting rights, and the right to propose changes to the protocol and new collaterals. XVS is also used to mint VAI stablecoins. VAI can be minted using the vTokens from previously supplied collateral and can also be deposited into the Venus Vault to earn interest by participating in the Venus liquidity mining program.
Users can deposit any of the 16 cryptos as collateral to borrow more cryptocurrencies with different allocation rates or earn an APY for lending funds to other users. The system is designed so that all network participants who hold their funds within the protocol can earn an APY. The APY rate is determined by the general interest in certain crypto. Holders can then use the profit they make as collateral for loans, while they can also mint the network’s decentralized coins and lend their funds.
Who Are the Founders of Venus? (History of Venus)
Venus protocol was founded and developed by the Swipe project dev team, led by Joselito Lizarondo. Swipe is a global issuer of cryptocurrency debit cards, while the same team designed the Venus lending protocol to satisfy the need for DeFi protocols.
Venus (XVS) launched in 2020 and is a relatively new project in the sector of DeFi with three core use cases. Venus was created with the idea of enabling the minting of VAI stablecoins, collateralized loans, and incentivizing suppliers of collateral assets supported by the protocol. No XVS coins were pre-mined for developers or the Venus team, so holders have full control over the network and its token.
What Makes Venus Unique?
Venus is not the only lending platform in the market, but certainly has some unique qualities that help the project stand out among similar networks. Venus offers fast loans with low transaction fees and over-collateralization. Thanks to Binance Smart Chain support, Venus can achieve high speed and enable almost instant transactions and loans.
Venus is the first lending protocol to enable users to reach loan markets for Ripple’s XRP, Bitcoin (BTC), Litecoin (LTC), and a great number of other popular cryptos while users can also source liquidity. Users can source liquidity for individual loans by depositing collateral, instead of relying on central authorities and credit checks that are mandatory when taking out a loan from a bank or a financial institution.
To ensure that pricing data is relevant, Venus uses price oracles that provide real-time data feeds from cryptocurrency markets, so users can always get the best prices and transparent insight into the crypto market.
What Gives Venus Value?
Venus value is drawn from its technical capacity, the technology used to create the protocol, use cases, and the relevance of the project. The intrinsic value greatly depends on the functionality and utility of the network and its accompanying assets. However, the intrinsic value often doesn’t match the market value of XVS.
Due to the volatility of the cryptocurrency market, XVS is subject to radical changes and is affected by frequent trend reversals. The market value of Venus depends on a great number of factors, which include the activity of the dev team, upgrades and updates, roadmap developments, mergers and partnerships, and other important news and events.
Another thing that makes Venus a valuable project is its relevance, i.e., the use of Venus in times when the DeFi sector is rapidly evolving and developing to satisfy the growing need for decentralized financial services and products.
How Many Venus (XVS) Coins Are There in Circulation?
There are currently XVS in circulation out of a total of XVS. Venus has a limited supply of XVS tokens, which means that no new XVS should be minted after the total supply is exhausted unless otherwise determined through democratized network governance. The finite total supply acts as an anti-inflation mechanism and potentially makes XVS a good long-term store of value.
The number of XVS coins in circulation multiplied by the current price of XVS in the market equals the market cap of Venus. The market cap determines the rank of cryptocurrencies and also defines the market share and dominance.
Other Technical Data
There were 30 million XVS tokens pre-minted at the inception of the project. The amount that was pre-minted will be distributed over the course of a four-year period to Venus liquidity providers, Binance Launchpool stakers, and Binance Smart Chain grants.
When users deposit any of the supported cryptocurrencies to take a loan, the system will calculate the collateral factor. The collateral factor shows the amount borrowers can take based on their collateral, while every crypto in the system has a different percentage for its collateral factor. While some cryptos have a 60% collateral factor, others may have a greater or a smaller percentage.
How is the Venus Network Secured?
The Venus network is hosted on Binance Smart Chain and is developed to fit the characteristics of BEP-20 standard protocols. Binance Smart Chain runs parallel with Binance Chain and secures Venus and other hosted protocols through the use of Proof of Staked Authority.
PoSA combines two different protocols, which makes it a hybrid consensus mechanism that uses qualities of both Proof of Stake and Proof of Authority protocols.
The liquidation on the Venus network is secured through automation, as all collaterals that dip below 75% in comparison with the amount they borrowed, are automatically liquidated to regulate the ratio of collateralization.
How to Use Venus
Venus is a lending DeFi platform that allows users to lend and borrow cryptocurrency based on collateralization. The primary role of the Venus platform is to enable automated decentralized lending services where lenders can earn an APY based on their deposited funds for supported cryptocurrencies.
Venus can also be used to mint over-collateralized stablecoins, VAI, and users can mine XVS for liquidity. Venus allows fast and instant transactions, which makes taking a loan effective and efficient with no need for credit checks or centralized authorities such as banks.
How To Choose a Venus Wallet?
As a BEP-20 token, XVS can be stored in any wallet that supports Binance Smart Chain and the type you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of XVS for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of XVS or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your XVS, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your XVS tokens without hassle. Storing your XVS with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling XVS, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Venus enables liquidity mining based on a system where users can stake any of the supported tokens, like BNB, and mine XVS while earning incentives for network participation. Venus otherwise depends on staking for securing the network and verifying transactions, as Binance Smart Chain relies on a hybrid Proof of Stake protocol.
Binance Smart Chain, which also secures the Venus network, depends on 21 validators to oversee and validate transactions by executing tasks and reaching consensus.
Venus is a relevant project in the emerging sector of decentralized finance. With the rising demand for decentralized financial services, projects like the Venus lending protocol are becoming more popular. Venus solves issues with lengthy processes when taking out loans through a central authority, and allows users to seamlessly lend and borrow crypto.
Thanks to favorable collateral factors for different supported cryptocurrencies, and the ability to stake and earn APY based on deposited funds, Venus has the potential to become one of the most popular lending systems in the market.
Join the crypto revolution and start your Venus journey today!
Is Venus a valuable investment?
Venus may be a valuable investment for investors who believe in the potential of DeFi and lending platforms that are based on decentralized infrastructures. As DeFi services and products become more popular, Venus may increase in value over time, which could make it a valuable investment.
What is XVS used for?
XVS’ primary use is in the network governance that allows holders to propose and vote on changes that are relevant to the entire protocol. XVS can also be staked for liquidity mining and used for minting VAI stablecoins.
How to buy Venus?
Buying XVS is as easy as visiting Kriptomat’s how to buy Venus page and choosing your preferred method of payment.
How to sell Venus?
If you already own XVS and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Venus price is susceptible to frequent changes due to the high volatility in the market. Venus may be affected by a multitude of specific factors, which result in major changes in price within a relatively short period. You can follow up with live Venus prices on the Kriptomat exchange and start trading Venus (XVS).
As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of XVS is also affected by the popularity of the Venus platform and the demand for governance rights over it.
The current Venus price is EUR.
The 24-hour trading volume of XVS is EUR. XVS is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of XVS and a max supply of XVS.
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