What is Venus?
This blog post will cover:
- What is Venus?
- Where did Venus come from?
- What are the advantages of Venus?
- What are the disadvantages of Venus?
- How to buy Venus on SimpleSwap?
What is Venus?
Venus (XVS) is the native governance token of the Venus decentralized marketplace. This platform is created to provide lending and borrowing tools for DeFi. The XVS token is built on Binance Smart Chain. XVS holders have a voting right and can take part in the decision-making process on the Venus platform. The total supply of XVS is 30,000,000.
Where did Venus come from?
The launch of the Venus protocol was announced in September 2019. The original developers of Venus is Swipe. They had a goal to create a community-governed platform that provides solutions for the DeFi ecosystem. Everyone who holds XVS has a say in the decisions connected to the future of the Venus platform.
What are the advantages of Venus?
The developers’ team calls this project “the most decentralized finance product of the blockchain space”. Probably, this is the biggest advantage of this protocol. It makes a lot of unique features available.
- Participation in a decision-making process
The XVS token gives its owner an opportunity to actively participate in the life of the Venus platform.
- Solutions for a crypto lending mechanism
Users are able to make loans without credit checks, region restrictions, and central authority that makes all the decisions.
- No tokens allocated to the team
Everyone receives tokens on the same basis independently from a founder status.
The Venus Protocol has a great potential of developing into a real network. Now it has around 71,000 users. The team is proposing improvements that give participants more freedom. For example, delegated voting will become available. It will add vXVS, the representation of original XVS, to the platform to enable those whose tokens are staked to participate in voting.
- Low fees and high speed
These things are extremely significant for users. It helps to believe that the Venus protocol will have a future.
What are the disadvantages of Venus?
- The absence of risk management in the past
This is the biggest drawback of the project. For example, in May 2021 we witnessed a massive liquidation, the price fell by 77.6%. About the week before that XVS showed its All Time High $147.02. It is considered that it happened as a result of price volatility. This incident was evaluated as a price manipulation and, the drastic drop in the price of Bitcoin that led to more FUD (Fear, Uncertainty, Doubt). The team has already announced that they will put their efforts into creating a more reliable system.
- Developing protocol
Venus is changing constantly, this may bring up some bugs and mistakes. Therefore users have to be prepared to face some difficulties from time to time but, the new team is taking all the steps to ensure this won't happen again.
How to buy Venus on SimpleSwap?
In case after reading this article you’ve decided to become a member of the Venus community, you will need some XVS tokens. SimpleSwap is happy to help you! Please follow these instructions below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select Venus in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient's Address. XVS will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
We hope we answered your questions and brought an understanding about the XVS token and the Venus platform. Thank you for reading this article.