Venus is an algorithmic money market and synthetic stablecoin protocol launched exclusively on Binance Smart Chain (BSC). The protocol offers a user-friendly solution for crypto asset lending and borrowing within the decentralized finance (DeFi) ecosystem, allowing users to borrow directly against collateral with high speed and reduced transaction fees. Additionally, Venus enables users to mint VAI stablecoins on-demand in seconds by providing at least 200% collateral to the Venus smart contract. VAI tokens are synthetic BEP-20 token assets pegged to the value of one U.S. dollar (USD). In contrast, XVS tokens are also BEP-20-based but are used for the governance of the Venus protocol, allowing users to vote on changes—such as adding new collateral types, modifying parameters, and organizing product enhancements. The governance of the protocol is solely controlled by XVS community members, as the Venus founders, team members, and other advisors do not have any XVS token allocations.

The Venus project is being developed by the team behind the Swipe project. The primary objective of Venus is to achieve decentralization through community governance. There are no pre-mines reserved for the team, developers, or founders, which grants XVS holders complete control over the direction the Venus Protocol pursues.

Venus' primary advantage lies in its high speed and extremely low transaction costs, attributable to its foundation on the Binance Smart Chain. The protocol is notable for being the first to allow users to access lending markets for Bitcoin (BTC), XRP, Litecoin (LTC), and other cryptocurrencies, providing real-time liquidity through its near-instant transactions. Users seeking liquidity through the Venus Protocol are not required to undergo credit checks and can swiftly secure a loan by utilizing the Venus decentralized application (DApp). The absence of centralized authorities means users face no restrictions based on geographic location, credit score, or other factors, enabling them to access liquidity by offering adequate collateral. These loans are sourced from a pool contributed by Venus users, who are rewarded with a variable annual percentage yield (APY) for their participation. The loans are backed by the over-collateralized deposits from borrowers on the platform. To safeguard against market manipulation, the Venus Protocol employs price feed oracles, including those from Chainlink, to deliver accurate and tamper-proof pricing data. Leveraging the Binance Smart Chain, the protocol gains access to these price feeds efficiently and at a reduced cost, thereby lowering the overall operational cost.

Venus has a maximum total supply of 30 million XVS tokens, with just over 4.2 million XVS tokens in circulation as of November 2020. Venus was among the first platforms to conduct a Launchpool on Binance, enabling users to farm XVS by staking various assets including Binance Coin (BNB), Binance USD (BUSD), and Swipe (SXP) tokens. A total of 20% of the total supply (6 million XVS) was allocated to the Binance Launchpool, and the token was listed shortly thereafter on the Binance spot exchange platform. The project did not conduct a pre-sale or private sale, and the team has no token allocation. However, 1% of the total supply (300,000 XVS) is reserved for Binance Smart Chain ecosystem grants. The remaining 23.7 million XVS tokens will be gradually unlocked over a four-year period as they are mined by those utilizing the Venus protocol. According to the project white paper, 35% of daily XVS rewards are distributed to borrowers, 35% to suppliers, and the remaining 30% to VAI stablecoin minters.

The Venus network is secured by the Binance Smart Chain, a blockchain operating in parallel with the Binance Chain. BSC is compatible with the Ethereum Virtual Machine (EVM) and can function independently, even if the Binance Chain is offline or experiences issues. Binance Smart Chain employs a unique consensus algorithm known as proof-of-staked authority (POSA) to secure the blockchain. This is a hybrid consensus mechanism that incorporates elements of both proof-of-stake (POS) and proof-of-authority (POA). It is structured around a network of 21 validators who are responsible for performing tasks on the Binance Smart Chain and reaching consensus on recently processed transactions. Additionally, Venus suppliers are protected by automatic liquidation measures, which automatically liquidate the collateral of borrowers if it falls below 75% of their borrowed amount—thus reimbursing suppliers early to ensure the maintenance of the minimum collateralization ratio.

As of November 2020, Venus is available for trading on a single exchange platform: Binance. It is listed against Tether (USDT), Bitcoin (BTC), Binance Coin (BNB), and Binance USD (BUSD). Currently, there are no direct fiat on-ramps for purchasing Venus. For guidance on buying Bitcoin and other cryptocurrencies with your credit or debit card, refer to our straightforward guide.