What is Venus (XVS)

I. Project Introduction

1. What Is Venus?

Venus is a decentralized finance (DeFi) platform built on the BNB Chain. Operating as an algorithmic money market protocol within EVM-compatible networks, it integrates similar functionalities from platforms such as Maker and Compound. On the Venus platform, lenders can earn token yields by providing loans, while borrowers can use $XVS and various other digital currencies as collateral to apply for loans.

2. How Does Venus Work?

Venus allows users to easily borrow and lend cryptocurrencies, with loan limits calculated based on collateral. The process is transparent, features low fees, and operates without intermediaries. The VAI stablecoin and XVS token are key elements. XVS is used for platform governance and the minting of VAI. Users can mint VAI using vTokens generated from collateral and deposit VAI back into the platform to earn interest. Participants can use 16 supported cryptocurrencies as collateral for borrowing, earn APY through lending, and use earned profits as collateral for further loans or to mint decentralized currency.

3. Who Founded Venus?

The Venus project was launched in 2020 by the Swipe project team. In May 2021, a large-scale liquidation event occurred due to the abuse of the Swipe OTC system, resulting in a total loss of $77 million. Subsequently, Swipe was isolated from the Venus resources team, the old OTC business was closed, and the original Venus team and management underwent a restructuring. The Swipe team no longer participates in project management. The professional backgrounds of the new team members have not been disclosed.

4. Venus Tokenomics

XVS is the governance token of the Venus Protocol. Holders can stake XVS to obtain voting rights and participate in protocol decision-making, including adding new collateral types and adjusting platform parameters. They also benefit from staking rewards within the Venus ecosystem. To incentivize XVS staking, Venus Protocol provides additional rewards in the form of base rewards, which are transferred every six months from the XVS distributor to the XVS vault storage and distributed at a rate of 308.7 XVS per day.

The Venus protocol reserves mainly consist of accumulated lending fees. The distribution model for these reserve earnings divides income into three main parts:

1) Treasury Reserve (60%): Used to fund community-driven projects and necessary expenses for the continuous operation of the protocol.

2) XVS Vault Rewards (20%): Used to buy back XVS, which is subsequently distributed through vault rewards.

3) Venus Prime Token Program (20%): Used to boost the APY for eligible users in specific markets through organic rewards.

Other income streams include liquidation penalties and potential revenue generated from future product launches. The earnings from these streams are distributed as follows:

1) Treasury Reserve (80%)

2) XVS Vault Rewards (20%)

5. Timeline of Key Milestones

2020: Venus Protocol is launched.

May 2021: A liquidation event causes a loss of $77 million; the Swipe team ceases participation in project management.

January 2024: Venus Protocol announces deployment to Ethereum, Arbitrum, zkEVM, and opBNB networks.

February 2025: THENA proposes a "soft merger" with Venus Protocol to create a "DeFAI Super App" on the BNB Chain; the plan is currently awaiting approval from the Venus DAO.

II. Token Information

Token name:Venus(XVS)

III. Related Links