Venus Protocol Weekly Update W29/2021

Venus Protocol Weekly Update W29/2021

Dear Venus Community,

This week we were glad that we talked with a few talented developers and hopefully they will soon join us to recover our development capacity. Meanwhile, we kept pushing hard on the good trajectory.


A lot more time was spent in consideration and discussion of the token economy. While the conclusion was to focus our priorities on XVS as the primary token for our protocol, we are now confirming the final use plan for VRT with our community deputies, and will publish it to the wider community next week.


XVS Vault

As mentioned last week, a dedicated “Vault” to encourage XVS staking and governance is being discussed and developed.

The draft proposal about it is also done and being discussed around the community deputies. We target to publish it to the community for comments next week as well.

New Token Markets & Risk Assessment Framework

After MATIC was added last week, CAKE was proposed in the community forum as well.

Venus risk framework has been published, which introduced a systematic approach to setup or adjust the risk factors for new and existing assets. Based on this framework, preparation for CAKE is close to finish and it will be proposed soon.

Waive Redemption Fee

The redemption fee waiving was widely welcomed by the community and other projects. It was proposed as VIP-32, but the voting window was missed by lacking enough voting weights. It will be proposed again and expected to queue and execute next week.

While this fee is being waived, the new Venus protocol’s income model is also discussed within the community deputies and dev team. We expect this to be published for comments together with the XVS Vault design.


The dev team will continue to work on the XVS Vault feature. Meanwhile, other changes we want to introduce:

More Tokens to Be Added

Based on the published Risk Assessment Framework, we expect to add several more tokens onto the lending markets. As part of V3, we will enhance the risk management logic in the protocol as well in Q3, after which more tokens will be added at a higher speed.

Improve Interest Rate Curve Model

This was mentioned in Week 28 as well. We moved ahead with a mechanism to set up different interest rate curve models (e.g., Jump Rate Curve with different parameters) for different assets , based on the criteria similar to risk assessment. We expect to publish the models for the first batch of tokens in a week or two.

Meanwhile, it is also expected we will apply a special curve for XVS, the curve will cause the current XVS borrowers to pay much heavier interests to encourage them to pay them back. We urge the other dependent protocols to pay close attention and adjust accordingly.

Upgrade of the Guardian Management

We started to upgrade some guardian addresses with multi-signature via Gnosis Safe contracts. We also heard that Binance Wallet may release a new multi-signature tooling based on Threshold Signature Scheme. We look forward to eventually migrating to the more convenient tools.

Transaction History on UI

Venus UI will show the past transaction history for the connected wallet. This provides a more convenient way to check the history.

Shortfall Recovery

This is also being worked on as mentioned in the last week. Please refer to the same section from the Week 28 update.