Binance Adds Venus Protocol [XVS] to Its DeFi Platform

Cryptocurrency exchange, Binance announced the addition of a new project called Venus Protocol [XVS], which is dubbed as a money market and stablecoin DeFi platform on Binance Smart Chain. With this, Venus becomes the fourth project on Binance Launchpool. The official blog post read,

“Users will be able to stake their BNB, BUSD and SXP tokens into separate pools to farm XVS tokens over 30 days using the new Launchpool format, with farming starting from 2020/09/29 0:00 AM (UTC). Please note that you will not receive XVS rewards for staking tokens in the XVS pools prior to the farming start time.”

Binance Makes a Big Step into the DeFi Space

Following this announcement, the CEO of the Malta-based exchange commented,

“Binance makes a big step into the DeFi space, aiming to combine the world of centralized finance (CeFi) and its centralized exchange with DeFi’s. Our initiatives to not only support DeFi projects and developers but to also bridge the CeFi and DeFi ecosystems through Binance Smart Chain (BSC). Venus’s money market and stablecoin issuance platform can bring DeFi access and yield to CeFi users to a larger extent.”

• Venus for Voting in Governance Decisions

Venus is building a DeFi money market platform exclusively on Binance Smart Chain. The protocol essentially aims to offer digital asset lending and generation of synthetic stablecoins backed by a basket of various BEP-20 assets. XVS will be primarily used for voting in governance decisions which includes product improvements, integration of new collateral, and changes in platform parameters, among others.

Venus’s native token, XVS will then be listed on Binance’s Innovation Zone and open trading for XVS/BTC, XVS/BNB, XVS/BUSD, and XVS/USDT trading pairs from 6th October. Notably, the trading space called ‘Innovation Zone’ created by the exchange to filter DeFi token trader based on their risk appetite. This was primarily deployed due to the shortcomings of many projects that hit the popularity but soon faded out. For instance, the bizarre DeFi episode of boom and bust with YAM, or the Sushiswap’s Founder swapping his entire SUSHI holdings into Ethereum.

Besides, the Venus project will support three core features, according to Binance Research. Firstly, over-collateralized lending will enable users to borrow assets whose value is 75% or lower than that of the assets provided. Users will also be able to earn interest by supplying supported collateral assets to the protocol. Thirdly, the project will let users mint VAI, the protocol’s default synthetic stablecoin pegged to the value of 1 USD.

Additionally,  6,000,000 XVS, 20% of the total token supply, that are allocated to the platform’s Launchpool token reward system. The Farming Period is set to last from the 29th of September to the 29th of October. Notably, in terms of staking, no upper limit has been set.