Venus Protocol Project Insight: A Binance Smart Chain Money Market


Venus Protocol launches Nov. 24, deploying the first money-market platform on the BSC that offers users lend, borrow and earn features.

Venus Protocol

Venus is a money market protocol exclusive for the Binance Smart Chain (BSC). Venus Protocol aims at providing lending and borrowing services to the BSC, competing with Ethereum based decentralized apps (Dapps), Compound”,  “Aave,” and ” Cream.” 

Venus Protocol will allow users to lend, borrow and mint assets. Users can generate (mint) $VAI tokens, Venus Protocol’s synthetic stablecoin pegged at $1.00

For a more technical explanation, I recommend reading the Venus whitepaper which can be found HERE

Venus Protocol aims to support these three core features:

“Over collateralized” lending where users can borrow assets of which the value is 75% or lower than the supplied assets.

Earn interest by supplying supported collateral assets to the protocol. 

The ability to mint VAI, the protocol’s default synthetic stablecoin pegged to the value of $1.00

Governance Token $XVS

Venus Protocol’s  $XVS native token will act as a governance token. Holders of $XVS can vote on all kinds of initiatives ranging from adding new assets for collateral to changing parameters on the contract. $XVS can be bought but users can also earn $XVS on the platform through ecosystem mining.


When sifting through this data, there is solely one key thing that sticks out, which is a common theme for most governance tokens. For Venus to incentivize users to provide liquidity through lending and borrowing, they allocate “mining rewards” for users who interact with the lending and borrowing features on their protocol. While this is very beneficial to the platform as it creates a means of distributed governance tokens while bootstrapping liquidity and bringing in new users, it creates a high inflationary token. In the case of Venus, there are 18,500 Venus minted per day for the next four years.

Allocation of the remaining tokens is as follows: 

  • 35% to the Lending Pool, or to users who receive interest by depositing assets for others to borrow
  • 35% to the Borrowing Pool, or to users who borrow assets and pay interest to the platform
  • 30% to the Stablecoin Pool, or to users who mint VAI on the platform.

Start Earning on the Mainnet

The Venus Protocol Mainnet has launched on the BSC on November 24th 2020, allowing users to earn $XVS by supplying and borrowing the following assets which in turn can be used for minting $VAI stablecoin;

  • Swipe (SXP)
  • Binance Coin (BNB)
  • Venus (XVS)

Community Growth Strategies of Venus:

Venus is building a great community on the BSC and keeps building their community with various methods and incentives such as:

  • Conducting AMAs with other Binance Smart Chain projects.
  • Regularly publishing content and news related to the De-Fi money market.
  • Hosting and participating in De-Fi and blockchain conferences, workshops, and meetups.
  • Partnering with existing Binance Smart Chain protocols.
  • Publishing weekly updates in Medium.
  • Actively communicating with the public via social channels.
  • Creating Governance pools.
  • Launching campaigns surrounding liquidity incentives.
  • Adding new collateral to encourage more communities to participate in the protocol.


Venus protocol is the first lending and borrowing platform on the BSC, endorsed by the Binance Launch Pool

Its successful launch on both Binance launch pool and Pancake-Swap where users could stake/earn the $XVS token helped to get visibility for the project.

The future is just starting with the recent launch of their main net, unleashing all of the protocol’s potential. Venus has the first movers advantage in BSC money markets, being the first project to launch lending and borrowing.

All and all this is a project to keep your eyes on.

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