XVS Venus

Overview of Venus

Venus is a decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrencies in a secure and efficient manner. It operates on the Binance Smart Chain (BSC), now known as the BNB Chain.

Key Features

• Lending and Borrowing: Users can supply various cryptocurrencies and stablecoins as collateral to borrow other assets. The protocol decides the interest rate based on utilization, ensuring fair pricing for users.
• Stablecoin Minting: Venus allows users to mint synthetic stablecoins (VAI) by over-collateralizing their supplied assets. This means users can borrow up to 50% of the value of their collateral to mint VAI.
• Earning Interest: Suppliers of collateral can earn a variable APY based on the market demand for the asset. Interest is earned by the block and can be used as collateral to borrow assets or to mint stablecoins.
• Governance: The Venus protocol is controlled by its native governance token, XVS, which can be staked in the Venus Protocol Vault to earn token rewards. XVS is used for voting on various matters, including governance and product improvements.
• Integration: Venus has integrated with PancakeSwap, allowing users to swap crypto directly on the Venus Protocol without needing to leave the platform.

Benefits

• Fast and Low-Cost Transactions: Venus utilizes the Binance Smart Chain for quick and instant transactions, accessing a deep network of wrapped tokens and liquidity.
• Decentralized and Secure: The protocol is permissionless and completely decentralized, ensuring that users have full control over their assets.
• Efficient Use of Collateral: Venus allows users to use the same collateral for both lending and minting stablecoins, eliminating the need to remove assets from the money market to mint stablecoins.

Pros of Venus

• Decentralization: Venus is a decentralized finance platform, offering users a high degree of autonomy and control over their financial transactions.
• High Speed and Low Fees: Built on the Binance Smart Chain, Venus provides fast transactions (as quick as 3 seconds) and significantly lower fees compared to other platforms.
• No Credit Checks: Users can borrow cryptocurrencies and stablecoins without undergoing credit checks, making it more accessible to a broader audience.
• Minting Stablecoins: Venus allows users to mint stablecoins from their supplied collateral, which can be used at over 60 million locations worldwide.
• Governance: The Venus token (XVS) gives holders voting rights, enabling them to participate in the decision-making process of the platform.
• Financial Inclusion: Venus aims to provide financial services to those who lack access to traditional banking systems, promoting financial inclusion.

Cons of Venus

• No Mobile App: Venus does not have a mobile app for Android or iOS, limiting its accessibility.
• XVS Cannot Be Borrowed: The Venus token (XVS) itself cannot be borrowed from the Venus platform.
• Over-Collateralized Architecture: The requirement for over-collateralization can be limiting for users seeking high-volume loans.
• Liquidity Modules Vulnerability: The liquidity modules of Venus might be vulnerable to certain risks.
• Past Volatility: Venus has experienced significant price volatility in the past, including a 77.6% price drop in May 2021.
• Developing Protocol: Venus is a constantly evolving protocol, which may lead to occasional bugs and difficulties.

Founders of Venus

The founders of Venus are the project development team from Swipe, a global cryptocurrency credit card issuer. Specifically, Joselito Lizarondo, who is also a founder of Binance-owned crypto wallet and debit card provider Swipe, led the development of Venus.

Investors in Venus

The specific investors in Venus are not detailed in the provided sources. However, Venus is a decentralized lending and borrowing protocol built on the Binance Smart Chain, and it operates through community-driven governance. Here are some key points about Venus's funding and structure:

• Funding: Venus did not have a pre-mine for developers or the Venus team, meaning that holders have full control over the network and its token.
• Token Distribution: The token distribution includes stages like Launchpool, Mining, and Ecosystem, with specific vesting periods and percentages for each stage.
• Initial Market Cap: The initial market cap for Venus was $24.4M, indicating the total value of available tokens in circulation at the time of the initial listing.
• Project Valuation: The fully diluted market cap (FDMC) for Venus, which includes all tokens including those locked up or restricted, is $279M, providing a comprehensive view of the project's valuation.

For more detailed information on investors and funding, it is recommended to visit the official Venus website or other reliable sources that provide up-to-date information on the project's financial backers.

Halal Status of Venus

• Halal Status: No
• Reason: Venus (XVS) is considered Haram by some sources due to its involvement in lending and borrowing practices that may not align with Shariah principles. While it offers decentralized financial solutions, its mechanisms, such as overcollateralized lending and interest-like rewards, may not be compliant with Islamic finance guidelines.