With the establishment of the Venus working group and the arrival of more outstanding talents in key positions, the work of the Venus project will be back on track very soon, focusing on the goal of building Venus into the best liquidity protocol on the Binance Smart Chain.
To achieve this goal, we have listed the essential tasks for Venus at the moment and plan to complete them in the second half of 2021.
Of course, the worklist for the second half of 2021 announced this time is just a preliminary idea. We hope that the final Venus V3 roadmap will fully consider the community’s opinions and achieve these goals with the joint efforts of the Venus core team and the community so that Venus can focus again on the first goals of the liquidity protocol.
In our opinion, Venus’s work focus in the second half of 2021 should include four major areas: DAO governance structure, scientific risk mechanism, optimization of economic models and development of new businesses. Each area contains a myriad of goals:
1. Establishment and operation of DAO governance structure
We will regard Venus’ DAO governance as an important work throughout the second half of the year. This work determines how the Venus core team, community, consultant team, and other collaborators will think about and select the most favorable development plan in the future. And put it into practice, the specific work it contains will include:
- Explore and establish a DAO governance structure suitable for Venus, including but not limited to proposal discussion, initiation and voting procedures, governance committee formation, operation and supervision, governance scope and division of labor, DAO budget system, etc. In the design process of the above architecture, on the one hand, we will learn from the DEFI project with good practices in DAO. On the other hand, we will fully accept community opinions and allow the community to participate in the design of the DAO architecture.
- After clarifying the above structure, we will start the practical exploration of DAO together with the community, including forming a formal governance committee and recruiting members, beginning the budget mechanism, and beginning to try to promote the realization of the proposal by DAO.
- To support the development of the above work, some basic functions need to be implemented on the protocol side, such as supporting vXVS voting.
- The advancement of other important tasks will also be one of the conditions for the smooth development of DAO governance, such as designing and implementing the new Venus token economic model and determining what tokens and methods the community members will use for project governance.
2. Establish a more scientific risk mechanism
A safe and stable risk prevention and control mechanism is the foundation of DEFI. To prevent the recurrence of the problems we’ve had in the past and to prevent any risks that might have not yet been exposed, we will adopt a more scientific risk control mechanism. The specific work involves:
- Quickly fix existing problems, including but not limited to:
Stop issuing loan rewards to attackers addresses
Cancel the borrowing function and loan rewards of XVS
Use a more reasonable interest rate curve
Optimize the existing liquidation mechanism, including raising the liquidators’ requirements, allocating part of the liquidation proceeds to a protocol risk management fund, etc.
Introduce two levels of risk factors, and modify the current borrowing assets Collateral factor rates and liquidation threshold to adopt a unified parameter method to eliminate the two risk parameters of asset borrowing rate + liquidation threshold.
For example, users can borrow up to 50% of a collateralized asset value of tokens after supplying them to the protocol. But only when the value of the borrowed asset is greater than 70% of the collateral factor will it trigger Liquidation.
Form a scientific and transparent review mechanism for lending currencies and risk parameters. For example, before introducing new loans and collateral, adjusting market borrowing rates, lending rates, and other risk parameters, use more scientific methods to evaluate and ensure the transparency of the process.
Cooperate with a professional defi consulting team to conduct stress tests on the system’s security from time to time; introduce excellent DeFi professionals from outside to the governance committee to serve as consultants, and provide professional opinions in subsequent proposals involving platform security.
3. Explore a more reasonable economic model
An excellent DeFi token economic model needs to balance the growth, sustainability, risk prevention and control of the Defi protocol. The importance of this balance is superior to the individual interests of any stakeholder. Once this balance point is eventually reached, all Venus users, coin holders, and partners will benefit from Venus in the long term. Therefore, the determination of Venus’s new economic model will affect all aspects of the protocol. The work-related to it includes:
- Based on the status quo of Venus, several feasible solutions have been proposed and discussed by the community.
- In the design of the specific plan, Defi experts and consultants’ opinions are fully introduced.
- Form the design of the Venus new economic model through community voting
- Gradually realize the creation of the new economic model in products and agreements, and observe the practical effects
4.Open up new business directions
The DeFi evolution is growing, and Decentralized Finances took the world of crypto by surprise! Although the hype has cooled down a bit recently, Venus needs to focus on the existing primary business, meet the more prosperous user needs, and develop new businesses to keep growing. The next applications we will look into are:
- Leveraged farming
- Flash loans
- Institutional business
In the second half of the year, we will choose one or several application scenarios to expand and find new business growth points for Venus. We believe that the new business needs to synergize with the existing business, which can help Venus move closer to a top liquidity protocol. Based on the above considerations, we believe that we should abandon the DEX development plan planned by the previous team and focus on the area we are good at, which is also the most critical infrastructure for DeFi and BSC.
In the choice of new business development direction, we will also rely on the judgment of the governance committee and refer to the recommendations of professional consultants.
After reading the above content, you may think that some key issues are not included. And as we said before, the above are only our preliminary ideas, and we also look forward to hearing the community views and constructive suggestions on Venus V3.
Please post your comments below this article in the Venus Governance Forum or to the global community deputy (Danny) (TG: @CrYpToLoGiC_010) in the Venus Protocol Telegram channel or to Wang Dayou, the Asia-Pacific community deputy ( TG:@wangdayou6).
Finally, we have also noticed that there have been heated discussions about the Venus token economic model in the community recently, which is also our key concern in V3. Regarding the economic model of Venus, including the use scenarios and mechanisms of XVS, VRT, NFT, we are open to listening to the community’s ideas. If you have excellent ideas and suggestions for this, you can also contact our community deputies or Venus team community manager Terrence(TG:@Terrence_venus).