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Cherri Underwood
Cherri Underwood

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Venus Protocol: DeFi Lending, Borrowing & Stablecoins on BSC

What Is Venus Protocol?

Venus Protocol

Venus Protocol is a decentralized financial platform built on Binance Smart Chain. It enables users to lend crypto, borrow against collateral, and mint the VAI stablecoin—all permissionlessly and without intermediaries.

How Venus Protocol Enables DeFi

Earn Through Lending

Users deposit supported tokens like BNB and USDT to earn yield.

Borrow Assets

Users can borrow crypto or mint VAI using their deposited collateral.

Mint VAI

VAI is a USD-pegged stablecoin generated on-demand using overcollateralized crypto assets.

Key Features

  • Non-custodial and decentralized
  • Interest-earning on supplied assets
  • VAI minting from collateral
  • Governance through XVS token
  • Efficient thanks to low BSC fees

Pros and Cons

Pros

  • No KYC needed
  • Multiple DeFi utilities in one place
  • Community-driven governance
  • Transparent and secure

Cons

  • Risk of liquidation
  • Requires understanding of DeFi
  • Smart contract risk

Why Venus Protocol Matters in DeFi

According to Forbes, DeFi platforms like Venus Protocol are democratizing access to finance globally. Its unique all-in-one approach makes it a valuable player in the DeFi space.

Guide: How to Use Venus Protocol

  1. Connect a wallet to BSC (e.g. MetaMask)
  2. Deposit supported crypto assets
  3. Enable them as collateral
  4. Borrow other tokens or mint VAI
  5. Repay to unlock your collateral

EEAT Principles in Venus Protocol

Venus reflects strong EEAT:

  • Experience: Built by DeFi experts
  • Expertise: Verified contracts and audits
  • Authority: Managed via XVS governance
  • Trust: Mentioned by Coinbase for its user-first model

FAQs

What is VAI?

A USD-pegged decentralized stablecoin minted through overcollateralization.

Do I need verification?

No, Venus Protocol is entirely permissionless.

What assets can I use?

BNB, BTC, ETH, USDT, and more.

How is interest earned?

By supplying tokens to the lending pool.

Is the protocol safe?

It’s audited but smart contract risk remains.

Who controls it?

XVS holders through on-chain voting.

Conclusion

Venus Protocol is a powerful, community-governed DeFi protocol offering lending, borrowing, and stablecoin services. With recognition from Binance, Forbes, and Coinbase, Venus is a strong example of trustless finance in action.

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