The full outbreak of DeFi has pushed the last bull market to its peak. In the continuous evolution, the DeFi field has also produced many emerging subdivisions, such as income aggregators, synthetic assets, various DeFi income tools, and RWA that have been discussed in the entire market recently.
DeFi is constantly evolving, but what remains unchanged is that DEX and lending are still the products with the highest user usage rate on the chain. Every time a new public chain is born, DEX and lending applications are the first to go online. These two sections have become indispensable infrastructure for DeFi.
The lending sector has a longer history in the crypto market. MakerDAO had a preliminary structure as early as 2014; ETHLend (AAVE before the name change) was launched on the Ethereum mainnet in 2017; Compound V1 was launched in 2018 Deployment; Venus will be officially launched on BSC in 2020. Compared with other segmented tracks in DeFi, decentralized lending protocols were deployed earlier, gathered more funds, and released more liquidity for the encryption market. They are an important cornerstone for DeFi to thrive.
Community-driven money market Venus
Venus is a community-driven decentralized protocol that provides optimal liquidity for the crypto market. Launched in 2020, Venus simplifies the user experience and delivers core functionality by combining Maker’s stablecoin minting facilities and the algorithmic currency market developed by Compound, allowing decentralized finance to thrive on BNB Chain. Venus also lowered the threshold for new users to enter DeFi and quickly became the most widely used decentralized application in Web3.
Venus is committed to becoming the most trustworthy and secure lending protocol. After multiple version updates, Venus has launched the V4 version and has been optimized in 3 key areas:
Risk Management
Venus introduces new features such as segregated pools and more complex risk parameters, and establishes risk funds and bad debt processing mechanisms designed to resist black swan effects. This once again demonstrates the Venus protocol’s ability to maintain high security and reliability in the DeFi space.
Decentralization
The governance model has been enhanced with the introduction of fast lane VIPs, role-based access control, and fine-grained suspension mechanisms.
user experience
The latest version offers an enhanced user interface, a more efficient reward system and segregated lending. Future versions of V4 will offer stable-rate lending and Venus Prime Soulbound tokens, all designed to provide a smooth user experience.
Safety is Venus’ top priority
How to ensure the security of the protocol's mechanism and assets is the primary goal of every DeFi protocol, and Venus has done enough homework on security.
Venus performs rigorous code reviews with contract auditing firms such as Certik, PeckShield, Quantstamp, FairyProof and Open Zeppelin to ensure the integrity of the system ahead of any new releases or enhancements. Venus should be the most audited project on BNB Chain. It has passed multi-party audits to ensure the security of user funds.
Venus Protocol also partners with risk control companies such as Chaos Labs, which is the first automated on-chain economic security system, enabling crypto protocols to optimize risk management and capital efficiency while protecting user funds.
Venus invests a significant monthly budget into strengthening the protocol’s security measures. This commitment is not just rhetorical but real. Venus will be decided through VIP governance voting, and the entire process is transparent and viewable. Last month, Venus spent more than $100,000 on security. This policy illustrates the Venus Protocol’s commitment to maintaining a bastion of trust and security for the service.
In terms of risk management, Venus adopts a flexible price feeding strategy that can simultaneously utilize multiple price sources, including Chainlink, Pyth Network, Binance Oracle, RedStones and TWAP oracles, to ensure the correctness of token prices. This elastic price feeding strategy not only ensures accurate price evaluation of tokens, but also paves the way for institutional investors seeking to enter the DeFi field. Such high precision and redundancy are difficult to achieve in other projects, but Venus achieved it!
Segregated pools bring more liquidity to the market
Isolated pools are a new feature in Venus V4 designed to overcome the limitations of single-core pools. Each segregated pool is an independent collection of assets with custom risk management configurations. This setup allows users to better manage risk and earn returns while also preventing the failure of one market from affecting other markets.
Isolated pools help ensure that the failure of a single asset does not impact the risk of the overall asset portfolio. In this case, the risk is limited to the specific asset affected or other assets in the same segregated pool. Because risks are segregated, cryptoassets (long-tail tokens) that are less liquid and potentially more volatile can be separated from the core pool.
One of the immediate impacts of promoting segregated pools is a surge in user engagement. Because the process of listing and listing new long-tail tokens on the segregated market is very decentralized and transparent, Venus users have a very solid and deep sense of participation.
Each XVS token holder can propose and vote on new siled market additions, making the Venus protocol more dynamic and directly reflective of user interests. The segregated pool has seen significant community participation since its launch this summer (total XVS staking increased by 5%), and all VIP proposals are discussed and audited.
Isolated pools do broaden additional revenue streams for users of the Venus protocol. Deposits on the Venus Protocol have increased significantly through the diversification of crypto assets in segregated pools, especially since these segregated pools extremely effectively mitigate the risks associated with price fluctuations for long-tail tokens. This gives users a safer and more diverse investment option.
Additionally, the success of segregated pools has enabled Venus and other projects to engage in deeper collaborations, including with projects in the Tron ecosystem, liquidity staking, the emerging GameFi and stablecoin space.
Isolation pools can be divided into five categories.
In the Tron space, there are Bittorrent, Wink, USDD, and TRON.
In the Gamefi field, there are Raca and Floki.
In the DeFi space, there are Ankr, Biswap, Beefy Finance, Alpaca Finance, THENA and Trust Wallet.
In addition, stablecoin protocols-Helio (HAY) and Euro stablecoin (AgEUR) have been included.
In the liquid staking category, there are pSTAKE (stkBNB), Stader Labs (BNBx), Ankr
(AnkrBNB), Synclub (SnBNB) and wBNB.
Cooperating with other projects will not only bring new users to the Venus protocol, but as more crypto assets are continuously added, the Venus protocol will have huge potential, new uses, and new income, and drive the growth of BNB Chain. And prosperity.
Venus Pime Project Empowers XVS
Venus invites more users to establish partnerships with the Venus protocol and will launch the Venus Prime program. Now, as long as you stake 1,000 XVS in Vault for 90 days, you will be eligible for Venus Prime. After the plan officially starts, users can receive 10% of the agreement revenue in proportion. An additional 10% of protocol revenue will be used for quarterly buybacks to support governance treasury rewards for XVS stakers.
The Venus protocol is undergoing some adjustments based on the latest recommendations from Code4rena and OpenZeppelin audits. Now in the fine-tuning & testing stage! The implementation date for the Venus Prime program will be determined soon, with just over 500 unique addresses currently eligible for Venus Pime.
Venus’ data remains impressive in bear market
According to data from DeFiLIama, the top five protocols on the lending track are AAVE, JustLend, ComPound, Venus, and Spark. As the number one lending protocol on BNB Chain, Venus is also a veritable leading product on the lending track on the entire chain. At its peak, Venus’ TVL reached over $7 billion. Even in a bear market, it still maintained a TVL of $567 million. This amount of funds exceeds the TVL of most public chains on the entire chain.
Data source: DeFiLIama
Data is the most intuitive expression. DeFiLIama shows that Venus’s 24-hour interest income is US$87,897, and its estimated annual income is US$29.54 million. The annualized fee received is still $29.54 million. The 24-hour deal earns $50,779, with projected annual revenue of $16.26 million. The revenue of all protocols fell to the bottom in the bear market, and Venus delivered a beautiful answer.
Data source: DeFiLIama
Venus Outlook
The next step for the Venus protocol is multi-chain deployment, starting with Ethereum, Arbitrum and Polygon zkEVM, followed by opBNB. Multi-chain deployment is something that DeFi head protocols are doing. In the future, the pattern of public chains is likely to be one super and multiple strong. So just deploying on a single public chain will obviously not be able to meet the needs of the entire market. In the future, users will be able to use Venus in a simpler and more convenient way, no matter which public chain they are using.
For the platform token XVS, the Venus protocol has once again significantly reduced daily emissions, which means that the total daily emissions are currently reduced by 75% compared to the original emissions. Lower inflation not only locks in the value of XVS, but also increases returns.
Regarding the VAI stablecoin, Venus hopes to increase its lending limit to 10 million (currently 4 million) and develop more application scenarios for it including integrating #RWA .
It can be seen that the #Venus team is actively planning, including improving protocol security, strengthening risk management, launching the Venus Prime plan, reducing the XVS inflation rate, improving VAI application scenarios, putting multi-chain deployment on the agenda, and other measures to ensure Venus can respond quickly when the bull market arrives, undertake the rapid increase in TVL, and ensure the safe operation of the protocol, thereby making all Venus users the beneficiaries of the protocol's growth.