Blender
DeFiExchanges & BrokersNews

Binance Introduces Venus Protocol – A New Decentralized Stablecoin System

A new project known as Venus Protocol has been introduced by the well-known digital currency exchange Binance. This is basically, according to Binance, a decentralized stablecoin system that has been built on the Binance Smart Chain. According to the Chief Executive Officer (CEO) of Binance Changpeng Zhao (CZ), the Venus Protocol can be viewed as a mixture of two DeFi protocols MakerDAO (MKR) and Compound (COMP).

Start Trading

Algorithmic-based Money Market Platform

Featured on Binance Smart Chain, this algorithmic-based money market platform has been developed for bringing DeFi experience to users of the Binance exchange. The Venus Protocol is set to bring a lending platform based on decentralized finance (DeFi) on the Smart Chain for users of the exchange.

Users can leverage the Venus Protocol for staking their coins such as Binance Coin (BNB), Binance Stablecoin (BUSD), and SXP tokens. Through staking, they will be able to claim XVS tokens. XVS rewards will not be given to users until the start time of farming, the company said.

📰  Now More Than $11 Billion In Assets Are Locked Across DeFi Protocols

Furthermore, the exchange has also announced the listing of XVS that will occur on the 6th of October. Initially, Binance has said to launch four trading pairs for the XVS token. These are against Bitcoin (BTC), BNB, BUSD, and the Stablecoin Tether (USDT).

Another task that this newly-introduced money market platform will perform is to mint VAI a decentralized stablecoin on the Smart Chain. Binance further explained the minting of VAI in the announcement:

“VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI. The collateral provided to Venus will be represented by vTokens (such as vBTC) which will enable users to redeem the underlying collateral as well as to borrow against it.”

A Big Step into the DeFi Space

Commenting on this, the founder and CEO of Binance Changpeng Zhao said that this is a big step taken by Binance into the decentralized finance (DeFi) space.

📰  Cordite Society Launches First Digital Currency XDC on the Public Corda Network

CZ said that their purpose is to bridge the gap between two ecosystems DeFi and CeFi. “Venus’s money market and stablecoin issuance platform can bring DeFi access and yield to CeFi users to a larger extent,” he added.

vpn

MubaShar Nawaz

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close