Saturday, May 15, 2021

Venus (XVS) price aims for $100 amid rising TVL and surge in DeFi users

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Binance Good Chain (BSC) has quickly risen to prominence in 2021 as excessive transaction prices and congestion on the Ethereum (ETH) community led smaller-size buyers to seek for cheaper alternate options.

One of many prime selections to earn a yield on the BSC is Venus (XVS), an algorithmic cash market and artificial stablecoin protocol that gives a lending and borrowing answer for the decentralized finance (DeFi) ecosystem.

XVS/USDT each day chart. Supply: TradingView

Information from Cointelegraph Markets and TradingView reveals that the worth of Venus catapulted 3,000% within the first two months of the yr, going from a low of $3.20 on Jan. 1 to an all-time excessive of $103 on Feb. 19 earlier than correcting to $35 on March 25. On the time of writing, XVS worth is buying and selling for $98.  

Merchants search steady yield with much less danger

When evaluating completely different protocols throughout blockchain networks, the highest competitor for Venus on the Ethereum community is Maker (MKR) and its DAI stablecoin. Except for with the ability to deposit collateral to earn a yield, customers can even borrow in opposition to their collateral by minting the VAI stablecoin, an artificial BEP-20 token that’s pegged to the worth of 1 U.S. greenback.

Customers preferring to carry a good portion of their portfolio in a stablecoin should purchase VAI and deposit it within the Venus vault to earn a 19.91% yield on the time of writing.

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These wishing to get extra concerned in the neighborhood should purchase the XVS token, which is the governance token for the Venus protocol and permits token holders to vote on modifications to the ecosystem, equivalent to including new collateral varieties or organizing product enhancements.

The record of tokens supported by the protocol continues to increase, with most of the prime tokens already obtainable for customers to earn a yield. At present supported cash embody Ethereum, Binance Coin (BNB), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), XRP and Cardano (ADA).

Yields provided by the protocol are on common between 4% and 10%, with earnings paid out in the identical kind because the collateral staked. Whereas the quantity earned on Venus is decrease than on most of the yield farming choices, customers don’t want to fret about impermanent losses or the worth of the protocol token falling and erasing their beneficial properties.

Information from Defistation reveals that Venus is at the moment the top-ranked DeFi platform on the BSC by complete worth locked, with $7.8 billion in collateral at the moment deposited on the protocol.

Whole worth locked on Venus. Supply: Defistation

When in comparison with DeFi platforms throughout all blockchain networks, Venus ranks eighth behind its important Ethereum competitor Curve, which at the moment has $6.47 billion in TVL.

The circulate of institutional and retail buyers into the cryptocurrency ecosystem has picked up in 2021 and this pattern is more likely to proceed for the foreseeable future.

Regardless of this week’s Berlin improve to the Ethereum community, charges are nonetheless excessive and this leaves the door open to competing chains and protocols seeking to increase their userbase.

Venus is well-positioned to see additional development as folks more and more flee the legacy monetary system in quest of greater yields and easy capital mobility.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it is best to conduct your personal analysis when making a call.