The outstanding debts from early 2021 will not be carried over into 2022.
Venus Quashes Final Debts
Venus Protocol is preparing steps to restructure the final outstanding debts from their Spring 2021 exploits. The protocol plans to reallocate $15 Million of its collateral fund reserves and treasury funds to help recover the final outstanding debts 1925.43833 BTC and 5966.275601 ETH.
The ramifications from the exploit have come to a head as the original debt payment plan has had to be redesigned. The new solution to the debt plan was announced in the Venus Weekly Update from October 11. The Venus’ native token XVS has not maintained a price consistent with the basis of the plan which forced action by Venus.
“To avoid having to use more XVS than initially planned, Venus will use 15,000,000$ of the project’s collateral fund reserves and previously accumulated Treasury Funds and buyback XVS from the open market to stimulate price action and encourage our community and long time holders and supporters,” the update reads.
The restructure is due during quarter four of 2021 and the Venus team hopes it will quash any further debts remaining from their Spring exploits. The exploits have left a long lasting effect on the Venus community in which its team has undergone a facelift and the XVS token has witnessed a roller-coaster journey. Hopefully, the debt satisfaction will prove a necessary revival for the protocol.
Despite all the rigmarole, Venus remains the second largest decentralized finance (DeFi) protocols on Binance Smart Chain. The stats from DappRadar show a robust ecosystem. Venus maintains over $2.79 Billion in Total Volume Locked and a Market Capitalization over $858 Million. The XVS token price currently sits at $28.50, down from an all-time high of $147.02 in May 2021.
Please see the Venus Update for exact details on the debt distribution.
About Venus Protocol
Venus Protocol is a decentralized marketplace for lenders and borrowers with borderless stablecoin. Venus is one of the largest algorithmic money market and synthetic stablecoin protocols on Binance Smart Chain. The Binance-backed protocol became famous around the DeFi following their hint of a massive incoming burn by founder Joselito and its Venus Reward Token VRT rewards for XVS token holders.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.