3 minute reading
Building in the Bear Market [Venus Protocol]
Venus Protocol is an algorithm based money market running on the BNB Chain. It allows users to borrow and lend cryptocurrencies in a decentralized and secure way. There are no procedures in Venus Protocol. The user can start using the cryptocurrency wallet by connecting it to Venus Protocol. It also owns and controls the protocol with the native governance token XVS, which can be staked in the Venus Protocol Vault. Another advantage for users is that they can minted VAI, the stable token of Venus Protocol, in exchange for their collateral.
The concept of bear market, which is one of the terms frequently encountered in financial markets, is used to give information about the direction (trend) of the cryptocurrency market. A bear market is defined as a period of time when supply is greater than demand, confidence is low, and prices are falling. It is very difficult to understand when this market will end and when the lowest price will come. Global news, economic data, traditional market movements and investor psychology determine the situation. It is a slow and unpredictable process.
After the bull market period in 2020, cryptocurrencies entered the bear market effect. Wars, shrinkage in world economies, bad data from the global side, collapses in crypto ecosystems and cryptocurrency exchanges triggered the bear market. This slow and unpredictable process, which will be used for future developments and integrations, turned into a great opportunity for Venus Protocol.
In this period, which focuses on the topics such as optimizing the risks, improving the user experience, providing new products, are gathered under the following headings:
Venus Protocol Vaults
Venus Protocol’s safes that pass security audits offer high APR. While users receive high rewards for the XVS they keep in the vault, they also have a say in the management of the protocol. The user who meets the conditions can start new VIPs and each user can vote on administrative decisions. Currently, 6.4 million XVS are held in these vaults.
The new interface of the application
Every user wants a faster, easier and more understandable application. Venus Protocol has developed a user friendly interface in this direction. With this published interface, users can see the instant rewards, the status and risks of their assets in a much more understandable and faster way, and they can easily access the products within the protocol.
New Oracle services
Oracles are services used to securely supply real world trusted data to smart contracts. It is critical that Venus Protocol access real world data and assets at instant prices. Alongside the data from Chainlink, the Pyth network has also been integrated to support Venus Protocol, and Binance is also among the data providers at Oracle. In this way, the ability to access price data and intervene in liquidation processes was optimized.
https://chain.link/ - https://pyth.network/
Venus Stars is a program that aims to drive the adoption of Decentralized Finance (DeFi) and more specifically the Venus Protocol. It has a purpose to carry out various activities in three areas: education, information and guidance. The aim is to make it easy for every user to access all the information they need to understand the Venus Protocol. In this way, the user will use the products within the protocol and will make his investment more effective. For this purpose, the program was activated.
Deal with the Gauntlet
Venus Protocol has officially signed a contract with Gauntlet Networks risk management services. Understanding and reducing risk within the protocol is very important. Gauntlet’s simulations will provide optimum risk parameters and make proposals on necessary changes for risks. As a result, this agreement was concluded, in which capital efficiency will be optimized and necessary actions will be taken to prevent losses.
Integration of the app into Binance
Millions of cryptocurrency users use the Binance app. The integration provides access to the Venus Protocol directly from the Binance App. After connecting the Binance DeFi Wallet, the user can easily transfer funds from Binance Spot Wallet to Venus Protocol and start using the protocol.
XVS emissions reduced
Venus Protocol distributes rewards in the form of XVS emissions. These XVS rewards negatively affect the price, especially in the bear market. To avoid this situation, Venus Protocol has reduced XVS emissions by 50% of their current rate.
Vai stability fee
Venus Protocol has developed a stability fee for the unstable state of Vai. This measure to stabilize and keep Vai close through market dynamics brought a stabilization fee. An initial interest of 1% will be applied for the printing of vai. The rate will be determined prospectively by the management . This floating rate will encourage more minting when demand is high and VAI’s price is above $1, and will discourage minting when demand is low and VAI’s price is below $1.
There are many products and processes in Venus Protocol. Users used to use exchanges to exchange cryptocurrencies while accessing these products and had to take their assets out of the protocol. This resulted in more fees paid and more time spent. Agreement with PancakeSwap brought swap feature into the app. Users can trade their assets without leaving the protocol.
As a part of the changing world and financial system, Venus Protocol is not content with these innovations and continues to evolve. 2023 will continue to be a very bright year for Venus Protocol.
This image provides information about the new developments of Venus Protocol.
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