Venus 2021 Roadmap Update

Venus Protocol, a leading money-market protocol on the Binance Smart Chain, is unrelenting in its quest to push the limits of users’ experience beyond what is deemed possible. The protocol recently updated its roadmap to optimize its utility further.

Introduction To The Venus Protocol

Venus protocol is a decentralized money market and stablecoin platform built on the Binance Smart Chain (BSC). Presently, the protocol has more than 18,000 users and a Total Value Locked (TVL) close to $2 billion. Venus is one of the leading lending and borrowing protocols on the BSC and in DeFi as a whole.

2021 Roadmap Update

Though Venus Protocol’s mainnet and core benefits already deliver top-notch utility to users, the project is continuously innovating. The team wants to implement these innovations into the Governance model of Venus. Let us delve in and look at the plans the protocol has in store for its users in 2021.

  • Venus Origination Fees 

Farming networks have leveraged Venus for large transactions and loan originations. This led to daily transactions worth billions of dollars. With this, the team believes that Venus loan origination should include a transaction fee. This means that creating and redeeming a loan will now have a small fee attached as charges. Essentially, deposits and withdrawals from the protocol will attract fees.

The fee will be equivalent to 0.01% of the trading amount. The implementation of this will boost the protocol’s reserves by as much as $100,000 in daily fees. The administration can use these daily fees to give out rewards to its users, conduct buybacks, etc without affecting the average borrower and supplier. Additionally, Venus fees can be customized to individual markets.

  • Cardano (ADA) & Venus

The adoption of ADA has increased in recent months and Venus has capitalized. Cardano has become the fourth most prominent crypto asset in the market based on market cap. ADA’s trading volume has also increased and gained support from many exchanges. These catalysts and alongside others have necessitated the proposal to add the cryptocurrency, ADA, to Venus’ money market. 

  • Increase In Collateral Factors Of Qualified Assets

The team plans to propose a VIP tier that will increase the loan collateralization factor from 60% to 80%. This would enable users to benefit more from the value of their digital assets. Thye work of the platform’s liquidators ensures that users have no trouble with the fundamentals. Presently, Venus liquidations have undergone successful tests, with millions in liquidations working well to secure the protocol.

  • vXVS Delegated Voting 

Presently, staked XVS in the protocol are not qualified to vote for proposals. The proposed upgrade will ensure that users utilize their vXVS, which represents staked XVS in the protocol, for inclusion in Governance votes. 

  • Venus Decentralized Exchange 

The proposed Venus DEX will be an order book-based exchange that will promote high-frequency trading while introducing market maker incentives to traders. 

  • Venus Reward Token 

The Venus Reward Token (VRT) is intended to be the protocol’s liquidity incentive token. The intention is to make XVS more scarce and valuable. This is achieved by reducing the emission rate of XVS, and creating more governance-based reward programs. This proposal, if approved, will increase the supply of VRT to about 30 billion with over 8 billion earmarked as an airdrop to existing holders of XVS. 

  • Fixed-Rate Markets

Venus is also working to introduce fixed-rate lending. Protocols such as Aave have already developed these markets and Venus plans to follow suit. The team plans to introduce fixed-rate markets where buyers and sellers know upfront how much they will earn and pay in interest. Having this information ahead of time gives both parties a sense of assurance. 

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