This update outlines a renewed vision for Venus as an omnichain money market.
Since the origin of this proposal, LayerZero has grown substantially, alongside the Venus protocol, and there is now an exciting opportunity to expand the scope of the proposed integration.
It is proposed that Venus integrates LayerZero in three phases; LayerZero Labs will provide unmatched technical support to the Venus team throughout the integration process.
Part 1: Firstly, it is proposed that the Venus DAO adopts LayerZero’s OFT standard for its native stablecoin VAI along with its governance token XVS.
As VAI has repegged since our original proposal, the opportunity to expand the stablecoin’s native functionality cross-chain has been unlocked. Integrating VAI and XVS as OFTs will ensure that tokenholders can move their tokens seamlessly across chains (horizontal composability across L1s and L2s) allowing for wider distribution of Venus’s native tokens, greater liquidity into the protocol, and an improved user experience.
Notable examples of omnichain fungible-tokens live and in production include stablecoins such as $MIM, $USDO, $agEUR, $crvUSD, $UXD, and other tokens like $CRV, $BTC.b, $CAKE, and $AURA.
Part 2: The Venus DAO integrates a cross-chain governance module powered by LayerZero. This will ensure that the Venus DAO can aggregate votes from across multiple chains and settle and execute DAO decisions in one place. As the protocol expands to more ecosystems, an inclusive, secure, and usable governance system is imperative.
LayerZero Labs was the first team to build and open source a fully omnichain governance module with gas abstraction and DAO configuration functionality.
Part 3: Finally, the Venus protocol integrates LayerZero to realize the omnichain money market vision– the first ever implementation at scale across DeFi! This integration would allow users to borrow against collateral located on other chains. By doing this, Venus will further cement its position as an innovative and industry leading protocol, providing new and exciting use cases for users.
We look forward to hearing the community’s response before taking this to Snapshot!