Venus Protocol Unveils Sweeping Upgrades in V4 Proposal

by BSC News

November 23, 2022


The Venus Protocol V4 upgrades are comprehensive, including UI, tokenomics, new LPs and DEX integration with PancakeSwap.

Venus Protocol Community Considers Major V4 Upgrades

Venus Protocol has officially unveiled its major V4 upgrade plan to its community, proposing significant enhancements including risk management, liquidity pools, a new Decentralized Exchange (DEX) integration, stablecoin stability, stable rates and tokenomics.

The team posted a Venus Request for Comment on Nov. 22 seeking community approval for the V4 upgrades.

“We’re pleased to present Venus V4, the next generation of features to advance Decentralized Finance (DeFi). In particular, Venus V4 improvements address three key areas: risk management, decentralization, and user experience,” according to the post.

The post contains details about the array of changes to multiple aspects of the top BNB Chain lending and borrowing protocol.

Features highlighted in the post, as well as information that Venus shared with BSC News, include:

  • Risk Management: Integration of Gauntlet Network’s risk management solution, including a new Risk Dashboaord for Venus users.
  • New Liquidity/Risk Pools: Isolated Markets to introduce new tokens and users to the platform.
  • DEX Integration: Partnerships with dominant BNB Chain DEX PancakeSwap and other DEXes, so that Venus users will not have to leave the platform in order to swap tokens. This makes Venus the first protocol to provide crypto borrowing, lending and swaps from the same user interface. The Venus treasury will also receive 25% of swap fees from the DEX.
  • VAI Stability: Implementation of a Stability Fee to re-peg Venus’s stablecoin VAI, which lost its peg in 2021.
  • Stable Rate: An alternative to variable interest rates that will give users more confidence when lending and borrowing, particularly in volatile market conditions.
  • Tokenomics 3.0: The new tokenomics will uphold XVS as Venus’ core utility token, cut XVS emissions, create a new soulbound Venus Prime token, establish a threshold of $1 million in staked XVS tokens in order to access liquidation by external parties, and update the mechanics of the XVS Vault.
“We believe that the proposed changes move Venus forward in the right direction. Changes will increase scalability, provide stable rates for users, improve Governance processes and Oracle resilience, create a simplified user experience that drives fees to Venus, and improve our risk management processes,” according to the Venus Request for Comment.

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 BNB Chain. The Binance-backed protocol became famous around DeFi following their hint of a massive incoming burn by founder Joselito and its Venus Reward Token VRT rewards for XVS token holders.

To learn more about Venus Protocol, see the following resources:

Website | Twitter | Telegram | Medium

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