Venus V3 Roadmap (draft for comments)

[Venus_protocol]

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:

1. 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.
2. 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.
3. To support the development of the above work, some basic functions need to be implemented on the protocol side, such as supporting vXVS voting.
4. 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:

1. 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.

2. 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.

3. 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.

4. 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:

1. Based on the status quo of Venus, several feasible solutions have been proposed and discussed by the community.
2. In the design of the specific plan, Defi experts and consultants’ opinions are fully introduced.
3. Form the design of the Venus new economic model through community voting
4. 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:

1. Leveraged farming
2. Flash loans
3. 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).

Thanks!

Venus team

2021.6.23

[xvstothemoon]

Happy to know that my idea for separating borrow limits from collateral limits has been kept in review, I think it will be the ideal move going forward keeping in mind the low market caps of XVS & SXP.

Going Forward:

1. VIP-29’s implementation needs to be aligned with the community. I understand that Binance ecosystem members are conducting this process now, but there are some pressing concerns from long-time users and XVS holders about the implementation time-frame within this discussion forum. I urge you to review them and make VIP-29 an open-ended road to recovery whereby XVS holders have a say in the minting and dilution of the very token they hold.

2. I know that although JL is not a part of the Venus team anymore, but he mentioned that those who got liquidated on XVS & SXP on 17/18 May will be compensated. I understand that VIP-29 is important to improve the collateral situation of the platform, but investor confidence is even more important. The damage caused by the platform manipulation on 17 May is not only limited to the underwater wallets, but also to the huge amounts of losses faced by the community members who helped bring Venus to where it is today. It is important to restore this faith in the protocol, there are enough funds in reserves/treasury to deal with this, and new tokens can also be minted to compensate the losses

[Undead8]

Wait, is Venus turning into a serious and professional project? My only disappointment is that there will be less entertaining drama and fake promises of giveaways in the future.

[Marcus]

I am writing to propose a new triple-token-dynamics for Venus (XVS, VRT, VENUSNFT)

New token design:

XVS tokenomics:

XVS supply interest rate increase to 12% for 9 months, slowly reduce back to 8-9% after 9 months. Announce gradual reduction of collateral ratio of XVS to below 60%, at the same time also clarify that such measure will only be implemented when the market is stabilizing (upwards). This also alleviates any potential market risk that VIP29 might bring to the market while handling bad debt (although personally think there isn’t such a risk).

Increase voting weight of XVS that is not used as collateral by 10%

XVS cannot be borrowed from VENUS.

VRT tokenomics:

VRT unlocks a higher rewards for supply side and a lower interest rate for borrowing if paying interest in VRT (implementations discussed later).

When a user holds more than 20% of VRT in their portfolio supplied to VENUS the supply interest APY will increase by 30%. VRT supply interest APY 2.5%. Maths as followed, $100 of asset supplied to VENUS at 10% interest rate yields $10 a year. With VRT, the yield would be $80*13%+$20(VRT)*2.5%=$11.9, assuming price of assets stays constant. This encourages users to swap and deposit VRT when they deposit assets.

Borrowing rates will also get a 15% discount when holding 20% VRT or higher. The discount can only be activated while selecting to pay interest in VRT (specific mechanics discussed below).

If holder at any moment, has their VRT percentage dropped lower than 20%, the above mentioned rewards and discount will remain for 5 extra days. Then it will be disabled until VRT balance is above 20% of total asset again.

Liquidator’s VRT: Liquidator, when receiving liquidation assets, 20% of such asset will be distributed as VRT to encourage restake of such assets.

VRT replenish function, adding a function on VENUS APP to automatically replenish VRT to 22% of total asset using staked asset to swap for VRT.

When user stakes VRT, and holds 20% or more in staked assets, XVS voting weight increase by 10%.

VRT collateral rate for borrowing set at 40%, VRT cannot be borrowed from VENUS.

Tokenomics of VENUSNFT:

Each NFT other than being a piece of art, also can act a “license” to unlock different borrowing caps. I can add more specifics in 3 days.

This adds another layer of security for the protocol. If any party aims to take a loan on an intention to create bad debt and damage Venus Protocol, they first have to purchase an NFT that allows a huge borrowing cap to happen, and as such NFT is very rare and all would have found their owner that needs them, it is close to impossible for another attack on the protocol.

Regarding borrowing protocol revamp, there are several points.

I suggest rewards of all supply side to be earned in kind. (Supply BTC yield in BTC, Supply BNB earn BNB, Supply ETH earn ETH, so on)

Other than setting XVS and VRT collateral ratio when the market situation stabilizes, both tokens will receive a borrowing cap for borrowing using XVS and VRT as collateral.

Removing SXP’s function for using as collateral for borrowing.

Setting a borrowing cap for borrowing BTC ETH (BNB) and stablecoins while using other coins / tokens as collateral across the board. Collateral ratio at 70% for BTC ETH BNB, the rest lower than 70%. Stablecoins at 75-80%.

Set a fixed time frame for all borrowing FROM VENUS that allow the user to set themselves. When the loan expires and the user have not returned the loan, the collateral assets will used automatically for loan repayment. The priority for automatic repayment will be, Stablecoins, XVS/VRT, BTC/ETH/BNB then the rest.

When borrowing and using VRT for interest payment, the interest will be repaid from the supplied VRT automatically on a 7-day cycle.

Increase Venus reserve by 5% to set up an emergency fund for any future market risks.

From the liquidation mechanism mentioned above, the 20% asset that was swapped to VRT will also be put into the reserve emergency fund.

[WithAim]

I have an idea for liquidation that i hope can be built on and commented on.

I was thinking we could have liquidations be automatic by having nodes and bots setup for the protocol. Those that run nodes, and or bots receive rewards. We could also implement a feature that allows users who supply to receive part of those rewards; likely a variable percentage based on liquidations, by allowing funds to be used for liquidations.

[Martomoh]

My Proposal:

Supply XVS to get vXVS for voting and to mint VAI and to borrow only Stablecoin (using XVS as collateral).

Supply VRT to get VRT and to borrow altcoin (using VRT as collateral)

Holders of XVS and VRT can only be liquidated at 100%, while holders of either token will be liquidated at 85%.

Make XVS non borrowable asset, while VRT can only be borrowed if you collateralized XVS

[Venus-King]

Thanks to new team to support Venus Project. I have few ideas about Venus Roadmap.

Team —

• After old team left, the Venus Community suffer a lot about future developments of venus project. But i hope new team listen community idea and make venus great again.

• Community would like to know about team introduction and who is leading the team. Only required introduction about head of the project lead. I know venus is decentralized, but to implement the ideas and develop new functions in Venus protocol required to know the team leader who is he/she.

• Team should communicate (AMA) every month with community and take feedbacks about new developments and suggestions and ideas. This way community confidence will increase.

XVS —

• No doubt XVS is great Governance token of project (To change any parameters of the platform). The price of XVS totally affected due to recent liquidation crash. But we can get back xvs price by develop properly.

• XVS should not able to borrow and only can able to buy from exchanges. All Suppliers and Borrowers to the protocol will get rewards in VRT. But XVS and VRT suppliers only eligible get rewards in XVS. VRT and XVS supplier rewards should be High APY (like 100%) to attract the more investors.

• Voting system should consider 1 address, 1 XVS per 1 VOTE. Also XVS holder must supply his balance to protocol at least 30 days eligible to VOTE. This way we can maximum prevent to bad actors to manipulate the voting in last min. vXVS holders must be able to VOTE.

• After implement the voting system (Which is prevent the bad actors), XVS should burn according community VOTES. This way price will be sky rocket. We can get income from liquidations and buy back XVS (70%) and VRT(30%) from which we got from liquidations and burn them according to community votes. Example : If we got $100 from liquitation to protocol, We can buy 70$ worth XVS and 30$ worth VRT and burn them. We can do this every 3 months.

• Adding new coins and provide staking to them will attract more customers and more communities will join venus platform.

VRT —

• VRT act as the rewards token for Venus platform. All Suppliers and Borrowers to the protocol will get rewards in VRT and Who supply VRT to the protocol will get XVS rewards as we discussed above.

• VRT APY shoube be high (100%) to attract more investors and VRT able to supply and borrow in protocol.

• We can implement VRT use cases. I’m inspired from old White Paper which are Fees, Lottery system and also buying NFT with only VRT.

  Fees : Venus Fees are only applicable when a user is withdrawing assets from the
  protocol and when he borrow VAI or pay VAI user should pay fees in VRT.

  Games : We can implement games like currently Pancakeswap lottery system and
  predicts the price of BNB as Pancakeswap implemented games. We can earn
  income from this too and those income use for burning or future
  developments of protocol.

  NFT’s : NFT seller and buyers required VRT to make transactions. Which means a buyer
  need buy a NFT in Venus protocol he must use VRT to buy it. This way we can
  give more and more demand to VRT for bright future.

Special Requests :

As i’m investor i purchase XVS at 102$ and due to liquidations and team left price crash heavily. We are down like too much and we got only VRT (Airdrop) for this. And also we purchase VRT by saw Whitepaper and It’s roadmap. Now fud creating in telegram groups which is VRT not consider in Venus Project. This is very funny. We already lost so much price of XVS and almost all investors suffering. They have only got VRT for their XVS (Price) loss. If team have any plans to remove VRT from protocol it’s completely unhealthy to the protocol and lose trust on Venus. It’s nothing but destroy the project. I also personally invested in VRT huge amount. So to remove VRT fud we should bring VRT vaults to the Protocol ASAP and protect the VRT prices from free crash. Hope New team can understand VRT holders Pain and community issues.

Thanks for giving this opportunity, Hopefully new team consider my ideas and help the community.

[Digibear]

Tokenomics -
Xvs - governance token - already with decreased emissions schedule . Xvs is needed to vote and unlock additional APY benefits.

VRT - protocol utility token - withdrawal fees paid in VRT, APY reward token, % of withdrawal fees burnt (promote holding VRT), initial burn amounts should be allocated to a venus protocol fund as backup for developing the protocol) additional VRT single vault added to venus asap and initiate new rewards model.

Regarding voting - possible suggestion to change it to, addresses only who have been staking XVS for greater than 30days. 1 vote per address. That way, no one can game the system and big holders doesn’t matter as everyone has equal voting - just a thought.

Remove XVS borrowing immediately

Stop supplying rewards to liquidated wallets.

Initiate VIP 29 with a few modifications; instead of releasing as much XVS to the market, build the VRT market, vault, exchange listing’s and utility and supplement the financial debt of the platform with VRT fees generated. Maintaining XVS scarcity and longevity of XVS emissions.

Outline clearly in the next version of the roadmap: XVS and VRT tokenomics and how they combine to increase APY rewards, burn mechanism and protocol insurance. These are short term quick wins that will go along way.

Please introduce the new council to restore trust from the broader community.

XVS BSC validator - implement asap - rewards go to XVS holders only. It’s a venus validator - so all rewards go to XVS holders minus the cost of the validator. Initially 40% could even go to the platform debt.

[XVSHodl]

Please consider reimbursing users who got liquidated due to the oracle not working as intended. This will go far in restoring confidence in the protocol. Other protocols reimbursed their users after similar incidents.

Please consider the following during the Incident in May:

• Many people sold their tokens at a loss to avoid liquidation by repaying their loan.
• Many people sold tokens other than XVS to repay their loans to avoid liquidation.
• The exploit happened for a certain period but the price drop to $19 was due mostly to exploitation by the users and the oracle failure.
• The VIP 26 Proposal when announced caused many people to panic sell to avoid liquidation. This is the reason the proposal was canceled but the damage was done.

It is because of the above that I please request that the Venus Team realistically consider the following to be included in their compensation proposal.

• A Snapshot be taken right BEFORE the exploit took place and another AFTER issue was resolved.

• That ALL users, whether liquidated or not, be compensated from that snapshot till other snapshot

• Compensation can be done in XVS or VRT (at snapshot price) for the amount held in protocol for all tokens that got liquidated.

• The amount of XVS or VRT used to pay back those affected can be added to a burn proposal so that the market isn’t flooded with new XVS or VRT, thus not affecting the price of the tokens

If the above is asking for too much then at least consider the 1:1 XVS reimbursement option from a snapshot BEFORE the exploit took place for those that were unfairly liquidated due to manipulation of the protocol.

I just wanted to ensure that the Venus Team understands that not only liquidated people were affected but the entire community was affected due to the manipulation. Many lost a massive amount of money to avoid liquidation.

By considering the above it will go a long way in restoring faith in the team and the project and make up for massive losses incurred by Venus users. This will also ensure that people remain loyal to Venus.

Thank You

[Locke]

First and foremost fix VXVS polling and voting.
A. Remove XVS Borrowing as well as fix VAI Peg
B. XVS Vault
C. Remove XVS as a reward for borrowing and Supplying
Reward XVS to only XVS VAULT, XVS Supply, VRT Supply
D. Use VRT as reward token across board
E. Integrate an AMM or PMM (DODO utilizes it). This should target highly desired tokens or cryptocurrencies. An AMM or PMM would increase revenue through fees generated. Fees can be rewarded to:
1.Liquidity providers
2.Venus Grant program
3. Reward Supply and borrow(at a reasonable rate)
F. Build a lottery. ( the idea is to generate fees, the lucky winner(s) would share the pot of tickets bought and allocation of AMM or PMM FEES)
G. LAUNCHPAD to host IDO’s, (the idea is to generate fees and to provide our community to get in early on good projects.
H. Flash loans and fixed interest loans if possible
F. Integrate or hard fork some of Yearn finance Vaults or best yet create our own

That’s a lot of suggestions, so please take your time to consider and possibly implement. Thank you for the opportunity to contribute.

P. S
If compensation for community members (before VRT snapshot or after snapshot, honestly don’t know what timeline is ideal) is possible without collapsing the protocol let’s please look into it. Lastly review of the tokenomics of our tokens with the max cap of VRT being quite high, i believe XVS max cap needs to be reduced significantly or the rate of emission should reduce drastically. This is to make it as scarce as possible and to economically drive it’s price up(YFI token as a case study)

[Paragon]

My suggestion here’is to create room for VRT into XVS protocol in order to make the two assets Great again.

I have invested Much in Xvs and Vrt.

Referred many new investors into it so don’t let My team down on This

Make Xvs and VRT Great again

[Reziel]

Resume the “BNB Validator Program” project as soon as possible.

Any actor that deposits its BNB on venus could obtain the role of co-validator of BSC, thus
generating 45% APY (that’s what Joselito said back in the days).

But in order to get access to this program, you would have to hold XVS on a ratio yet to be defined.

Example, let’s take 2:1 XVS/BNB. I can stake 10 BNB @45% APY only if I provide 20 XVS to the protocol. 200 XVS for 100 BNB and so on etc…

Would attract a lot of liquidity to the protocol, fees and revenue and XVS value would skyrocket.

[Ben]

For my idea to work, you have to create a marketplace where you can exchange and create or improve existing NFTs.

The VRT token will be the only currency usable on the marketplace.

To create a basic NFT without enhancement you will need to use VRTs which will then be burned during the transaction.

Once the NFT is created in exchange for VRT you can choose what type of boost you want to give to your NFT:

• More reward in XVS when lending or borrowing. (Common NFT: + 1% APY, Rare NFT + 1.5% APY, Legendary NFT + 2% APY)
• More VRT reward when lending or borrowing. (Common NFT: + 2.5% APY, Rare NFT + 5% APY, Legendary NFT + 10% APY)
• Lower costs when using Venus. (Common NFT: -10%, Rare NFT -25%, Legendary NFT -50%)
• Reduced borrowing rate. (Common NFT: -1%, Rare NFT: -1.5%, Legendary NFT: -2%)

To create 1x rare NFT you need 10x common NFT.
To create 1x legendary NFT you need 10x rare NFT. (= 100 common NTF to create a legendary NFT).

Users who participated in the original NFT airdrop will randomly receive Common NFTs or more rarely Rare NFTs. The Legendary NFTs will have to be created ONLY by burning Rare NFTs.

---

According to my idea, the VRT token should be distributed as a second reward in every vaults with the XVS token in order to boost the rates of return (APY) when lending or borrowing on Venus.

The NFTs would finally have an interest as well as the VRT which despite a stock which increases quickly would see itself burned in a consequent way each time an NFT is improved from common to rare or from rare to legendary or when someone is buying an empty NFT that has to be improved.

[Ben]

We could also split rewards between XVS holders and BNB holders in order to incentive users to stake XVS into Venus.

[farukss]

I think that VRT should be removed from the ecosystem in order for the Venus protocol to continue on its way in a healthy way. No need to imagine, as long as XVS and VRT exist together they will share the same demand pool and VRT will simply steal from XVS’ market value. VRT will not bring new investors to the system and will decrease the value of XVS.
While the market value of the Venus platform was measured by the market value of XVS, it will now be measured by the sum of the market values ​​of XVS and VRT. In this case, only XVS will lose where VRT does not contribute anything.
Realistically, as long as VRT exists, XVS will have trouble getting back to its old glory days at full speed. Investors holding VRT will gain from VRT and lose at the same rate from the slow increase in XVS.
My suggestion is to remove VRT from the ecosystem, cancel or reduce the burning of XVS, and rebuild the ecosystem completely on XVS. Thank you.

[Kelosi]

Thanks for informing the community. However, I think that the promises made should be kept in order for the Venus coin to be adopted better and regain its former power. This is essential for this trust. Like burning 10 million coins. In addition, a CEO who will be appreciated by the entire industry should be announced as soon as possible.

[johnchen]

我们是来自中国的支持者，首先我们希望，Venus越来越好，我的建议是
1.加大xvs的护城河，更多的缩减xvs的流通，提高vrt的比例，作为奖励，同时，对于锁定xvs和vrt的用户给予丰富的奖励。
2、对于未来的方向，需要给我们社区的力量，让我们感受到社区的力量，

[Smoke]

The burn does nothing right now and won’t affect anything in the future if Venus doesn’t survive. It comes from the non-circ supply. Swipe burned a ton that way and look at them now.

[XVSHodl]

VRT’s role is to make XVS more scarce, so everything you said goes against why VRT was created. VRT MUST STAY and must serve as the reward token so that XVS can remain scarce. Simple really.

[Joris]

XVS must have a incentive to hold and accumulate.
A small portion of the paid interest should flow to vXVS holders / stakers, with a buy back of XVS or by giving stakers a portion of the interest.
(Waves does this with NSBT, have a look at that)
I f you ask me, I would say the interest rates need to be higher, 3% minimum.

If we can’t make Vai a stable coin, I think it would be better to fase out Vai.
There is no purpose using Vai, because it stops people lending stable coins.

(Altho I hold VRT from airdrop, I don’t see a use case for VRT at this moment. I would understand if this coin would be fased out)