Leading cryptocurrency exchange Binance has unveiled a new decentralized stablecoin platform called Venus.
According to the official website, Venus is a decentralized finance (DeFi) money marketplace for lenders and borrowers of stablecoins. The platform is built upon Binance’s recently launched Smart Chain network, which has slowly begun to rival Ethereum.
The new platform will enable digital asset lending and the generation of synthetic stablecoins backed by a basket of various BEP-20 assets. A report by Binance research claims the projects aims to support over-collateralized lending, where users can borrow assets whose value is “75% or lower” than that of the assets supplied.
The money market platform will also allow users to earn interest by supplying supported collateral assets to the protocol. Venus will give clients the ability to mint VAI, the protocol’s default synthetic stablecoin pegged to the value of 1 USD.
Per the report, Venus will use the XVS coin as its native BEP-20 token for voting in governance decisions, product improvements, and the integration of new collateral.
According to the initial platform settings, 79 percent of the total XVS token supply will be allocated for ecosystem mining, with 35 percent distributed to the lending pool, 35 percent to the borrowing pool and 30 percent to the stablecoin pool, including users who mint VAI.
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