I hope the new team realizes that the XVS price is vital to the Venus platform. I agree with the measures taken to cover the debt that has arisen as a result of the unfortunate event on the platform in the past period. However, the main condition for these measures to yield results is that the XVS price reaches the place it deserves.
The very weak appearance of XVS in the last 4-5 days and its inability to even react to the BTC rise worries me. I think the attitude of the new team is that if we strengthen the foundations of the platform, the XVS price will rise accordingly. While this is true most of the time but the situation is different now.
If the XVS price continues to drop, you cannot continue to sell XVS to cover the gap. You can’t close the gap unless you sell XVS. At the end of this vicious cycle, the collapse of the platform will be inevitable.
Here are some of my suggestions to remove the selling pressure on XVS:
- Now that the new team has included VRT in the game, it means there are enough VRTs to give away to supplyers as a reward for years. In this case, burning a significant part of XVS will not harm the reward mechanism of the platform.
- Offer XVS holders extra interest or returns in platform for long-term supply.
- Identify new fees that are small enough to not disturb the platform supplyers and borrowers and distribute them to XVS holders. Identify new revenue models for the Venus platform, distribute these revenues to XVS holders, and encourage holding, not selling, XVS.
- Instead of selling 3.3 million XVS to the market in 9 months, sell it to Binance or a whale at a price that will close the debt in one time, on the condition that it stays locked for 2-3 years. Allow them to sell these XVS or buy back them with platform revenues when this period expires.