Venus Protocol is an algorithmic DeFi platform on BNB Chain that enables users to lend assets, borrow against collateral, and mint a synthetic stablecoin—VAI—using over-collateralization. Interest rates adjust dynamically based on utilization, while borrowers face liquidation penalties for under-collateralized positions. The protocol integrates lending and stablecoin functions into a unified, permissionless framework.
The XVS token powers Venus’s governance and incentive model. Holders stake XVS to gain voting power over protocol upgrades and risk parameters and earn yield through the staking vault. Participation in the Venus Prime program—requiring a minimum stake and lock-up—grants additional yield boosts using protocol revenue and exclusive Soulbound reward tokens. Multi-chain expansion and proposals for token burn mechanisms aim to enhance scarcity and utility long-term.