Venus is an algorithmic-based money market system on the BNB Chain that offers a DeFi-based lending and credit mechanism.

The traditional lending and borrowing processes are temporary solutions to help two parties receive their expected benefits like interest and cash, respectively. However, the authorities overlooked the problems and limitations that emerged from this system. On the positive side, the world is moving to decentralized finance (DeFi) that provides everyone equal access to lending and borrowing processes where creditors and debtors can use cryptocurrencies. Today, one of the rising DeFi projects is stepping towards a new and advanced solution as a decentralized money market bringing benefits to the entire globe—Venus. 


Venus was launched in 2020 with Joselito Lizarondo leading the Swipe project development team, a reputable issuer of cryptocurrency debit cards. The project team saw the rising need for DeFi protocols that pushed them to develop Venus. Two years later, Venus became a relevant project that continuously bring value to the community.

What is Venus?

Venus is an algorithmic-based money market system on the BNB Chain that offers a DeFi-based lending and credit mechanism. It ensures a secure lending environment where lenders receive annual compounded interest paid per block while borrowers are obliged to pay for borrowing a cryptocurrency.

The protocol sets the interest rates in a curve yield following the demand for a specific market. Venus is also different from other money market protocols because of its additional advantage to the community: the capability to mint synthetic stablecoins with over-collateralized positions. Additionally, it currently has a $1 billion worth of market size, more than $300 million of borrowing transactions, and almost $700 million of total liquidity.

Supplying Assets

The users of Venus Protocol can bring any supported cryptocurrencies or digital assets to the platform for different purposes like collateral for loans, supply liquidity, earning APY, or mint synthetic stablecoins. In this process, the users can become lenders enabling them to make demand-based interest rates. Lenders do not have to worry about their assets because they are pooled in smart contracts that allow them to withdraw their supply whenever they want to. Users are also eligible to get vTokens that can be used to redeem the supplied collateral or to hedge against other assets.

Borrowing Assets

Venus’s users can borrow any supported cryptocurrencies, stablecoins, or digital assets on the platform by pledging collateral. Borrowers should follow the determined collateral ratios the protocol provides under the Governance process. Once the supplied assets are in, users can borrow depending on the collateral ratio. However, a liquidation event will occur if the collateral value declines below the corresponding limitations.

There will be compound interest rates in every block, and users are not obliged to pay monthly. However, for the collateral to be returned, the borrower must pay back the original balance and compound interest to Venus.

Synthetic Stablecoins

The users holding VAIs, synthetic stablecoin priced at $1, were allowed to mint it by using vTokens from the collateral supplied to the protocol. VAI serves as the default stablecoin of Venus that was synthetically designed through Governance, enabling it to be added as a proposal.

Synthetic stablecoins follow pricing methods based on market forces, a basket of collateral, and safety mechanisms that will encourage the market to maintain its peg to the fiat currency it synthesizes. Users with the native tokens of Venus are eligible for creating proposals regarding improving established parameters for synthetic stablecoins. The parameters open for changes include max supply, interest rate, collateral ratio, and penalty ratio. Lastly, users can redeem vUSD in exchange for other assets by using the Swipe Wallet of the Venus platform.

Venus Token (XVS)

XVS is the governance token of the Venus Protocol. It is not allocated to any founder, team, or developer as it was designed as a fairly launched cryptocurrency. The community can only earn tokens in the Binance LaunchPool project or by providing the protocol liquidity.

The Venus token has a total supply of 30 million, with 20% of it being given to the Binance LaunchPool project. Users can earn it by mining the six million supply together with 300,000 XVS allocated to ecosystem grants. Its remaining supply can be mined in the protocol for an estimated four years. Lastly, the XVS is distributed based on liquidity mining, where 35% of daily rewards are given to borrowers, 35% to suppliers, and 30% to stablecoin minters.


Venus puts its community at the center, giving it the power to control. The miners of the Venus tokens are responsible for making decisions about the protocol because there are no pre-mining activities conducted for the team, developers, and its founders. A member must have 300,000 XVS to create a proposal, and it should reach at least 600,000 XVS quorum for approval.

The community should be aware of Venus’ governance features, which will benefit them. It includes the addition of new cryptocurrencies and stablecoins, adjusting variable interest rates, fixed interest rates for synthetic stablecoins, voting on proposals, and delegating protocol reserve distribution schedules. There are also four processes regarding the approval or rejection of proposals that the community must be familiar with, starting from its creation to the final decision.

What Makes Venus Different?

There are many lending platforms in the market, but Venus stands out for many factors. The community can loan fast at low transaction fees and over-collateralization. Binance Smart Chain supports Venus, enabling the project to provide such advantages. Additionally, Venus reached an achievement by being the first lending protocol to give users the ability to reach loan markets for the top cryptocurrencies such as Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), and others. Price oracles are also incorporated in Venus, providing real-time data from cryptocurrency markets. All its features not only benefit the users but also ensure the safety of their assets.


Decentralized finance is an emerging sector with growing demand and global adaptation. Its rising needs became evident, inspiring the project team to design Venus that gives advanced solutions. Venus grew and sustained its key differences from other lending platforms in just two years. The project continued to bridge the gaps using technological advancements, making it one of the most valuable projects today.