Venus crypto project
Binance first revealed a project called Venus last August. At the time, Binance said Venus would be a "regional version of Libra. But the Venus Protocol was clear to say that this wasn't the same as the open project from Binance. The VAI token is a multi-collateralized stablecoin offering cross-chain collateral with other crypto assets based in the BEP format.
We are searching data for your request:
Upon completion, a link will appear to access the found materials.
Content:
Venus.io Review 2022
You can earn rewards by staking your crypto and collateralize your assets by minting their proprietary synthetic stable coin, VAI. Their application runs on the Binance Smart Chain enabling fast transaction times and low fees. In spite of the ongoing general collapse of the crypto market, there might be reasons for optimism about the Venus Protocol token XVS price.
So, is the Venus Protocol a hit or a miss? There are a couple of laws of human progress that prevent us from thinking that Venus will be what its holders expect and hope it to be.
Those are first mover advantage and consolidation and subsequent monopoly. Monopoly is a situation in which a single company or group owns all or nearly all of the market for a given type of product or service.
We are still not sure if Venus Protocol and similar project do have a long-term future and XVS token could be worth ZERO in as the project might not exist by then.
Chances are in our eyes for that to happen. Usually these types of newer projects do extraordinary well when the overall crypto market is in the green and they outperform other better known projects by a lot. However, make sure to exit them in time as they tend to do get a beating during ranging and bear market cycles. Because it does propose a valuable service, it already built a name for itself in its niche and suffered no security breaches or other types of compromises economic, reputational etc.
The token itself does provide utility and makes sense which is not the case with many other similar projects. Venus might fail because of the fierce competition, dynamic technological field and rocket-speed developments in its niche. Another common reason this type of project fails is team issues — either the team splits or outright abandons the project. That is within the real of possibility, even in the short term period. At first glance, the use case is like a good old-fashioned retail bank.
People lend their money to the platform so other people can borrow it. The lender earns a portion of the interest and transaction fees that the borrower pays. The complex tokenomics and minting are to make it perform on a decentralized blockchain and communicate with the rest of Web 3.
Again, that was the first glance, but I immediately wondered — What happens if the value of your collateral falls below the value of your loan? You may mint up to half the dollar value of your staked assets, but what can you do with your newly minted stable coins? Buy a boat or make some home improvements? Once your collateral falls below your loan amount, you face liquidation. This contravenes the first rule of portfolio management.
NEVER take out a secured loan against one asset to speculate on another. You can end up losing both. Venus Protocol looks risky to me. The upside is a yearly percentage, modest in size compared to the potential gains of just holding the token. The downside is the risk of losing everything. Regardless, this article is about the future price of their token, not their platform.
Demand is created by investors staking their crypto assets and earning their rewards in XVS tokens. As more people borrow and lend, fees will be generated and paid to the community. Platform governance is controlled entirely by the XVS investor community. XVS tokens buy voting rights, and there was no pre-mined allocation for the founders or technical team.
This is good to see as it makes for much less centralized governance. These are all senior guys with years of crypto project experience. Swipe itself is ranked by market cap and also runs on the Binance Smart Chain. The Twitter account has a respectable thousand followers, and Venus Protocol tweets announcements several times per week.
I noticed everything is coordinated and branded professionally. The Venus blog is active and informative. The CEO, Joselito Lizarondo contributes as a writer, and there are announcements about upgrades, partnerships, and general news.
While researching this article, I have encountered an alarming amount of amateurish YouTube crypto-hyping channels. I have to assume that this low-quality shilling is not paid for by Venus Protocol. This made me nervous. Reading the latest posts on Reddit , there are stories of people losing their staked coins without notice. It seems there has been a bloodbath involving people staking and borrowing. This was very revealing and would further put me off getting involved.
The Binance wallet works well, but I also currently have all my DeFi wallets imported into my Metamask wallet. I have yet to reach an ultimate solution for a DeFi wallet — research is ongoing. As with any other altcoin, you can either buy it with crypto on an exchange, or you can swap it from a DeFi wallet on PancakeSwap.
I could find no way to buy XVS directly with fiat. I could then move it to my Binance DeFi wallet to stake it on the Venus protocol platform. The Wallet Investor algorithm has XVS descending slowly over the next few weeks, mainly due to the current downward trend.
The longer-term forecast is for a return to the all-time high by the end of , and a further doubling over the next few years. They are bearish for now but have things turning around in July. From there, the sky is their limit. If I was writing a price prediction article for Venus Protocol VSX two weeks ago, it would describe a token at its all-time high.
XVS was hit much harder than most altcoins , but it tends to recover more aggressively. From a speculative point of view, yes it seems risky, but a potentially very rewarding medium-term trade. At this stage of the game, I prefer infrastructure projects to apps. Indeed, I am tempted to swap some of my less badly affect altcoins into XVS to reap the benefits of its projected recovery. After this, I will swap them back.
If I were to stake assets on Venus Protocol, I would tend towards investing stable coins. I would then be more confident about minting VAI as my stake is very unlikely to plummet in value as I earn interest. But why would I hold stable coins when I am trying to invest in a crypto bull market? Be careful if you do invest or borrow against your crypto on the platform. Venus was supposed to be the Roman goddess of love, not the patron saint of bad ideas.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin. Tags: prediction. Torsten Hartmann has been an editor in the CaptainAltcoin team since August He holds a degree in politics and economics.
He gained professional experience as a PR for a local political party before moving to journalism. Since , he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.
Related Articles Why crypto gambling is so popular these days? We have seen a strong need for better media coverage in the industry as the rise and popularity of digital currency is at an all-time high. Altcoins Journal. Torsten Hartmann January 10, By picking the right coin at the right time - click the button to learn more. Crypto arbitration still works like a charm, if you do it right! Check out Bitsgap, leading crypto arbitrage bot to learn the best way of doing it.
Torsten Hartmann. Related Articles. Why crypto gambling is so popular these days? We will be happy to hear your thoughts. Leave a reply Cancel reply. Who are We? Captain Altcoin is made up of investors and digital currency enthusiasts.
We strive to share the most reliable, interesting, and accurate information to our readers.
Venus Live Crypto Charts
Venus is building an algorithmic money market protocol that is exclusively on Binance Smart Chain to enable lending and borrowing of assets, as well as generation of synthetic stablecoins. The collateral provided to Venus will be represented by vTokens such as vBTC which will enable users to redeem the underlying collateral as well as to borrow against it. Interest rates in the protocol are based on the utilization of a specific market with a yield curve to determine the final rates. VAI is minted by the same collateral that is supplied to the protocol.
Venus Protocol: Decentralized Marketplace for Lenders & Borrowers
So, can the project get back on its feet or is it doomed to be forgotten? Some answers in this article! The Venus project is in the field of decentralized finance DeFi. In a very concrete way, it is about bringing decentralized crypto-asset lending solutions to the community. While many DeFi protocols work under the Ethereum protocol, the Venus protocol works under the Ethereum protocol. It is also the leading digital asset lending and borrowing protocol using BSC. The XVS token is the governance token of the Venus project.
Is ‘Project Venus’ Really a Competitor for Libra?
You can earn rewards by staking your crypto and collateralize your assets by minting their proprietary synthetic stable coin, VAI. Their application runs on the Binance Smart Chain enabling fast transaction times and low fees. In spite of the ongoing general collapse of the crypto market, there might be reasons for optimism about the Venus Protocol token XVS price. So, is the Venus Protocol a hit or a miss? There are a couple of laws of human progress that prevent us from thinking that Venus will be what its holders expect and hope it to be.
Venus (XVS) Price
Venus enables users to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies. This creates a secure lending environment where the lender receives a. These interest rates are set by the protocol in a curve yield, where the rates are automated based on the demand of the specific market, such as Bitcoin. The difference of Venus from other money market protocols is the ability to use the collateral supplied to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that protect the protocol. These synthetic stablecoins are not backed by a basket of fiat currencies but by a basket of cryptocurrencies.
Binance Launches Venus Project
Venus attempts to solve value variances and inflation throughout world economies through its stablecoin platform. As an ecosystem of stablecoins, the public chain technology that supports Venus allows for cross-border transactions that will allow for the implementation and development of new stablecoins that can be used anywhere the Venus project is supported. Venus has the potential to unify the world and its economies as we know it. There are millions throughout the world that have limited to no access to modern technology, but equipping a poor population with assets of any kind provides them the opportunity to develop a financial identity, even if it is through their paper wallets. While there are several hurdles to address before total technological and financial equality becomes a reality, the Venus project provides a first step and a further call-to-action to lessen the global tech disparity.
The Verdict — What is Venus protocol crypto Protocol? You can earn rewards by staking your crypto and collateralize your assets by minting their proprietary synthetic stable coin, VAI. Their application runs on the Binance Smart Chain enabling fast transaction times and low fees.
The Venus lending protocol on Binance Smart Chain was almost taken over before the original project management team intervened and stopped the plot, but raised a huge question about how to decentralize. The Venus Project has a decentralized governance mechanism that allows token holders to vote to decide on issues related to the protocol. To do this, Team Bravo said it will spend 1. This proposal was later passed with 1. However, the number of addresses voting in favor is only 16, while the addresses are up to 39, indicating that a small number of users with large ownership of XVS tokens colluded to empower Team. Although knowing the content of the above proposal is not in the long-term interest of the project, as well as clearly showing that Team Bravo used money to buy votes, the unilateral action to intervene and cancel a proposal was abandoned.
Venus is a digital platform for trading decentralized digital assets. It is relatively unique in its functionality and architecture. As a result, it offers some special features as a lending and borrowing marketplace. It uses a stable coin that is borderless, and thus, decentralized. The significant benefits that Venus offers are almost instantaneous transactions and a significantly lower fee charged for transactions. The platform aims to provide access to high liquidity for various cryptocurrencies. Thus, it lacks centralized control.
As required by the Venus protocol, the value of the borrowed funds must always be lower than the value of the collateral provided. Soon, however, cryptocurrency market prices plummeted, resulting in many people not having enough loan collateral value. However, many of those who borrowed on the Venus protocol did not repay their loans in a timely manner, choosing to keep their newly acquired tokens and default on their loans. The agreement then worked as expected to liquidate the remaining collateral.
It does not disturb me.
He is very grateful for the assistance in this matter, I would also like something you can help?