LONDON, ENGLAND / ACCESSWIRE / June 2, 2021 / November 2020 saw the birth of a stunning new money market. CEO and founder of Swipe, Joselito Lizarondo, announced Venus protocol, one of the most decentralized, if not the most decentralized, money market and the first collateral loan platform provided on the Binance Smart Chain (BSC), enabling users of the protocol to borrow and supply collateral onto the platform without central authority or control.
Venus is an algorithm-based platform explicitly designed to bring decentralized finance- based lending and credit system power to the Binance Smart Chain. In return, the Binance Smart Chain offers a scalable, low-cost, and secure ecosystem for users and provides Venus with a profound network of covered tokens and high liquidity pools.
Venus has taken full advantage of the many benefits of the Binance Smart Chain to offer unique features to its users that makes the protocol better than other money market protocol in finance. For example, users can supply the native tokens in Venus’ dual-coin set up as collateral; the collateral earns interest while it is in use and will enable users to borrow other assets or mint new native VAI or XVS tokens.
The world of traditional lenders can be challenging to navigate for most borrowers; not only do borrowers need to provide provable income, outstanding credit, and a host of other factors that validate the reason for borrowing in the first place.
“Venus helps in bridging the gap between traditional financial lending and decentralized protocols on top of blockchains. It enables anyone to utilize a high-speed and low transaction cost blockchain to supply collateral, earn interest, borrow against that collateral, and mint stablecoins on-demand within seconds.” – Joselito Lizarondo, Founder of Venus Protocol and CEO of Swipe.
Venus Protocol to reveal a whole new set of features
Venus isn’t resting on its oar; with 70,000 users already signed on to the platform, Venus released a recent roadmap detailing its upcoming developments to the forum.
Venus will offer a new Venus Reward Token (VRT), which will serve as the liquidity inducement token for the Venus protocol. The VRT will serve as a unique deflationary measure for the regular native token XVS, reducing the emission rate and maintaining its value by making the coin scarcer.
The volatility of the crypto markets makes it difficult for lenders to maintain a fixed lending rate, which often causes significant problems for the borrower. Variable lending rates and yield curves can sometimes cause loan interest to rise sharply, invalidate collateral or wipe out the entire borrowed amount. Venus Protocol will be the money market to offer fixed rates, using liquidity mining and their tokens to maintain loan interests.
Finally, Venus will allow users to vote on polls using staked XVS; the polling feature is like MakerDAO’s polling, signaling to users and Venus’ team the shape a proposal should take before launching. Though the polling will not apply to all submissions, anyone with enough XVS can start their polls. Venus will unveil the first XVS poll, a proposal on how much XVS should be burned out of the reserve.
These various planned developments are aimed at boosting user experience on the Venus protocol. The rise of Blockchain technology has brought the advent of DeFi platforms and services much like Venus that allow users more governance and focus on community efforts. No DeFi embodies these two principles as much as Venus Protocol does. With its unique framework that synthesizes stakeholders, engages participants, and provides a decentralized money market, Venus Protocol is undoubtedly an outstanding leader in the DeFi space.
Stay up-to-date with the latest news from Venus:
Venus Community: https://community.venus.io/
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