Venus Passes VIP-37 Governance Proposal Adjusting SXP & XVS Collateral and Rewards

SXP and XVS collateral adjustment has been passed as well as a recalibration of reward speed after voting was completed for Venus.

By
Dardania Havolli
on
August 17, 2021
Category:
Blockchain News

VIP-37 Passes

With a new proposal ready with three changes, Venus will significantly update their protocol. The main change will affect the collateral factor of XVS and SXP, which will be reduced from 70% to 60%.

This process will be undertaken gradually with a two-step reduction of 5% each increment. 

The second change will be the new interest rate model for XVS so that borrowers will bear larger interest rates than rewards being received. Users are urged to return XVS as soon as possible to avoid incurring losses.

The final recalibration will be the reward speed, seeing XVS rewards moved from 1,500 daily to 1,000. SXP market daily XVS reward going from 500 to 300. The response on social media has been mixed.

 “You turn off comments on your tweets so that people don’t criticize you because you’re a liar and a team that doesn’t keep their word,” came the response from user @Vatansever06347.
Other responses were less accusatory and more supportive: “Starting to look much better guys, well done,” came a comment from @pennys2pounds.


Source


Who Calls the Shots?

As has become usual, the voting processes are often championed as decentralized processes whereby community members come together to make an impactful decision. 

Of course, this is not always the entire case. Often, alongside the masses of little fish moving in specific directions, there is one dominant whale whose say often has a dominant impact. 

Source

As has been pointed out by @WacowskiKarol on Twitter, the movement and sway of certain decision-makers, the stark truth is that even decentralization has inherent inequalities that are inevitable.


What is Venus Protocol

Venus Protocol is a decentralized marketplace for lenders and borrowers with borderless stablecoin. Venus is one of the largest algorithmic money market and synthetic stablecoin protocols on Binance Smart Chain.


Where to find Venus Protocol:

Website | Twitter | Medium | Telegram |

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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