Apr 18, 2021 06:32 UTC
Apr 18, 2021 at 06:32 UTC
The total value locked in Venus flew to a record $11.1 billion as DeFi operators flock to the stage in search of attractive yields. BSC has quickly increased to prominence in 2021 as high transaction costs & mobbing on the ETH network ran smaller-size investors to search for inexpensive alternatives.
One of the highest choices to make a yield on the BSC is Venus (XVS), an algorithmic money market & artificial stablecoin protocol that delivers a lending & copying solution for the DeFi ecosystem.
Data from TradingView & Cointelegraph Markets displays that the price of Venus hurled 3K% in the first 2 months of the year, going from a short of $3.20 on January 1 to an all-time high of $103 on February 19 before modifying to $35 on March 25. At the time of writing, XVS price is trading for $98.
Traders pursue stable yield with fewer risk
When likening dissimilar protocols crossways blockchain networks, the highest competitor for Venus on the Ethereum network is Maker & its DAI stablecoin. Sideways from being talented to deposit collateral to make a yield, operators can also borrow in contradiction of their collateral by minting the VAI stablecoin, an artificial BEP-20 token that is attached to the value of one U.S. dollar.
Operators who favor to hold an important portion of their collection in a stablecoin can acquisition VAI & deposit it in the Venus vault to make a 19.91% yield at the time of writing.
Those wanting to get more complicated in the community can purchase the XVS token, which is the ascendency token for the Venus protocol & allows token holders to vote on variations to the ecosystem, like adding novel collateral types or organizing product developments.
The list of tokens reinforced by the protocol endures to enlarge, with numerous of the top tokens previously available for operators toward earn a yield. Presently supported coins comprise Polkadot (DOT), Ethereum, Litecoin (LTC), Binance Coin (BNB), Chainlink (LINK), XRP & Cardano (ADA).
Yields obtainable by the protocol are on average between 4% & 10%, with pays paid out in the similar procedure as the collateral staked. Though the amount made on Venus is inferior than on numerous of the yield farming choices, users do not necessity to concern about temporary losses or the value of the protocol token falling & removing their gains.
Data from Defistation displays that Venus is presently the top-ranked DeFi stage on the BSC by total value locked, with $7.8 billion in collateral presently deposited on the protocol.
When likened to DeFi stages crossways all blockchain networks, Venus positions 8th behind its chief Ethereum competitor Curve, which presently has $6.47 billion in TVL.
The movement of institutional & retail investors into the cryptocurrency ecosystem has chosen up in 2021 & this tendency is probable to continue for the predictable future.
Notwithstanding this week’s Berlin promotion to the ETH network, fees are quite high & this leaves the door open to rival chains & protocols observing to enlarge their userbase.
Venus is well-positioned to understand additional development as people progressively flee the legacy financial system in search of advanced yields & easy capital mobility.