Venus is a money market protocol designed and forked from Compound and MakerDao that lives on the Binance Smart Chain. This makes Venus a uniquely and completely decentralized platform, from its governance to its stablecoins.
The structure of the protocol is the reason that Venus is one of the most profitable DeFi projects when compared to others. Learn more about this newly launched DeFi.
Distribution and Mobility
In projects like Compound and MakerDao, control is prioritized to stakeholders and private equity funds while limiting distribution capabilities. Venus, however, has no allocation or pre-distribution terms, creating a fair-token disbursement. The XVS token or vToken can also move freely from cold storage to other users or be hedged against other assets.
Other protocols also limit the mobility of earning assets. For example, if someone wanted to mint stablecoins using their assets they would need to move it into a smart contract with no earning benefit for those assets.
Using a synthetic stablecoin (VAI), Venus protocol allows for greater accessibility of assets as well as benefits. Locked collateral can earn interest, be borrowed, and minted into stablecoins instantly. VAI is backed by collateral of various stablecoins and cryptocurrencies, making it decentralized as well.
Binance Chain Capabilities
Another feature of Venus is its network. Leveraging on the Binance Smart Chain (BSC) works similarly to the Ethereum smart contract with two very important differences: low fees and fast transactions.
As one of the biggest protocols on BSC, Venus hosts a wide variety of cryptocurrencies and stablecoins as assets. And with its high TVL (total value locked) of $273 million (at the time of writing) against its low MarketCap also makes its interest rates on lending high and borrowing rates low.
Precautions Through Community Governance
Safety is also a large part of its functionality. It is ensured through its voting community of governance. One goal of the community is to keep the supply under control at 30 million every 4 years, which might change to 8 years at the next voting session. The addition of coins will also be decided in a community vote. Lastly, the platform holds a reserve of assets and is controlled by the governing body of users.