Crypto exchange Binance announced a new 'decentralized' stablecoin system, called Venus.
This system is built upon Binance Smart Chain and will mint the decentralized (mint) stablecoin known as VAI, which is backed by a basket of different BEP-20 tokens (BEP-20 is the token standard of Binance).
Binance CEO Changpeng Zhao said the Venus protocol could be considered a combination of MakerDAO and Compound.
“The VAI is 'molded' with the same collateral provided for the protocol. Users can borrow up to 50% of the remaining collateral they have on the protocol from vTokens to mint VAI ”
The Binance representative added: “Collateral provided to Venus will be represented by vTokens (such as vBTC), which will allow users to buy back the underlying collateral as well as back-loan. ".
Using the Venus protocol, users will also be able to stake (bet) Binance Coin (BNB), Binance USD (BUSD), and Swipe (SXP) into separate pools to farm Venus (XVS) tokens.
Binance will list XVS on 'Innovation Zone'on 6 October and open trading for the pairs XVS / BTC, XVS / BNB, XVS / BUSD and XVS / USDT.
Venus was developed jointly by Swipe Wallet, which was acquired by Binance earlier this year for an undisclosed amount. Binance said the protocol could fix Ethereum's current dilemmas, such as network congestion and high transaction fees.
Since it is built on top of Binance Smart Chain, the above issues have all been resolved by Binance.
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