Venus is a decentralized finance (DeFi) protocol that runs on the Binance Smart Chain. This DeFi allows users to borrow, lend, and earn interest on crypto assets.
Venus also allows users to mint synthetic stablecoins called VAIs, which are collateralized by other crypto assets. Venus uses the XVS token as its governance token.
These tokens can be used to vote on protocol changes, such as adding new collateral types, changing parameters, and organizing product improvements. Governance of the protocol is completely controlled by XVS holders, as the Venus founding team, team members, and advisors have no allocation of XVS tokens.
What is Binance Smart Chain?
Binance Smart Chain is a blockchain built by Binance, one of the largest crypto exchanges in the world. Binance Smart Chain is designed to be compatible with Ethereum, but with lower transaction speeds and fees.
Binance Smart Chain also supports smart contracts and decentralized applications (DApp), allowing developers to create and run various DeFi projects on it. Binance Smart Chain is also connected to Binance Chain, Binance's native blockchain which focuses more on crypto asset trading.
What is DeFi?
DeFi is an abbreviation for decentralized finance, which is a movement that aims to create financial services that are open, transparent and without intermediaries. DeFi leverages blockchain technology, smart contracts, and crypto to provide a variety of financial services.
DeFi gives users freedom and control, without having to rely on traditional financial institutions, such as banks, credit card companies, or governments. DeFi also provides the opportunity for anyone to participate in the global economy, without geographic, credit, or identity restrictions.
What is Stablecoin?
Stablecoins are a type of crypto whose value is tied or fixed to another, more stable asset, such as fiat currency, precious metals, or other crypto. The goal of stablecoins is to reduce the price volatility that often occurs in cryptocurrencies.
This has the potential to disrupt the use of crypto as a means of payment, store of value, or unit of account. Stablecoins can be divided into several types, such as:
Asset-backed stablecoins
This type of stablecoin uses real assets, such as US dollars, gold, or Bitcoin, as collateral to mint crypto. Examples of this type of stablecoin are Tether (USDT), Paxos Standard (PAX), and Wrapped Bitcoin (WBTC).
A crypto-backed stablecoin
This type of stablecoin uses another cryptocurrency, such as Ethereum, BNB, or XVS, as collateral to mint crypto. Examples of this type of stablecoin are DAI, VAI, and Binance USD (BUSD).
Algorithmic stablecoins
This type of stablecoin does not use any collateral, but uses an algorithm that adjusts the amount of cryptocurrency in circulation according to supply and demand in the market. Examples of this type of stablecoin are Ampleforth (AMPL), Basis Cash (BAC), and Terra (LUNA).
What is VAI?
VAI is a synthetic stablecoin created by Venus. VAI is a BEP-20 token running on the Binance Smart Chain. VAI has a value equivalent to one US dollar (USD), and is collateralized by other crypto assets held on the Venus protocol.
Users can print VAI by depositing crypto assets as collateral into the Venus protocol, with a minimum collateral ratio of 200%. Users can also burn VAI by returning VAI to the Venus protocol, and taking back the collateralized crypto assets.
VAI can be used for various purposes, such as trading, borrowing, saving, or sending money.
What is XVS?
XVS is the governance token used in the Venus protocol. XVS is a BEP-20 token running on the Binance Smart Chain. XVS can be obtained in two ways, namely:
Provide liquidity
Users can earn XVS by providing liquidity to the Venus protocol, either by lending or borrowing crypto assets. Users will earn XVS in proportion to the amount of liquidity provided.
Buying XVS on a crypto exchange
Users can buy XVS using fiat currency or other cryptocurrencies on crypto exchanges that provide XVS trading pairs, such as Binance, Uniswap, PancakeSwap, and others.
What is the Use of XVS?
XVS can be used for various purposes, such as:
Vote
Users can use XVS to vote on protocol changes, such as adding new warranty types, changing parameters, and organizing product improvements. Each XVS a user owns is equivalent to one vote.
Get flowers
Users can use XVS to earn interest from the Venus protocol, by depositing XVS into the Venus protocol. Users will earn interest proportional to the amount of XVS deposited.
Users can use XVS to trade with other crypto assets, by exchanging XVS on a crypto exchange.
How to Start Using Venus?
If you are interested in using Venus, here are some steps you should take:
Create a Binance Smart Chain wallet
You must have a Binance Smart Chain wallet to interact with the Venus protocol. You can create a Binance Smart Chain wallet by downloading and installing Binance Chain Wallet, a browser extension compatible with Binance Smart Chain.
Get crypto assets
You must own crypto assets supported by the Venus protocol, such as BNB, ETH, BTCB, USDT, USDC, XVS and others. You can get crypto assets by buying them on a crypto exchange, or transferring them from another wallet to your Binance Smart Chain wallet.
Accessing the Venus protocol
You can access the Venus protocol by visiting the official website, venus.io, and connecting your Binance Smart Chain wallet. You can also access the Venus protocol through third-party applications, such as Trust Wallet, Math Wallet, or TokenPocket.
Using Venus protocol
Once you have accessed the Venus protocol, you can start using the Venus protocol according to your wishes. You can borrow, lend, or mint VAI by depositing or withdrawing crypto assets to or from the Venus protocol. You can also earn XVS by providing liquidity to the Venus protocol.
How To Buy Crypto With Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH ), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read also:
What is Aave? DeFi Platform Pioneer
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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