Questions directed on Venus Protocol were responded to by CEO Joselito Lizarondo during an AMA held over the Venus Protocol Telegram platform. The session which transpired last March 31st is now transcribed into a written format below for everyone’s reference:
JL: Okay great.
The channel is now muted.
Thanks everyone, sorry for the delays, today has been a very busy packed day. But glad to connect with the community so we can share some updates and answer some questions about recent announcements and Venus overall.
We have recently announced that Venus v2 is “almost ready” and that it has a bunch of packed upgrades that we believe will help make Venus stronger in the long run as a protocol..
We have Venus Fees (Which is Venus Origination Fees from the v2 roadmap) that will enable markets to have borrow and supply fees of a very modest 0.01%. For those using the protocol as intended this fee of 1 basis point will be a non-factor. For those who are using Venus as a trading mechanism (like Auto Farm) which have created billions of loans and redemptions will have fees that will be accrued to reserves.
Moving forward, once this is implemented, we plan to run periodic proposals to use these reserves gained from Venus Fees to do buy backs of XVS and burns from Swipe Swap. This will be all decentralized and will require a propsoal and voting, but that is the overall plan for this
In regard to Venus Reward Token (VRT); the way this will be distributed will be the following:
a) First all vXVS holders (whether on Venus or holding in their own wallets) will receive a 1000 to 1 airdrop to start. We have not determined the time or block number yet, but we plan to do it very soon. More details on this will be announced when its ready.
b) Thereafter, we plan to add VRT as an ADDITIONAL token to be farmed by using Venus. So there will be a market speed for each market to earn VRT as well similar to earning XVS today, but you will get both tokens. VRT will not have a max supply. (Similar to TFUEL), unless Governance changes that in the future, which it can.
c) After there are trading markets for VRT, we will slowly lower the emissions of XVS so that the planned 4 year farming stretches out longer to benefit the liquidity for the protocol while not lowering current APYs.
VAI peg. Yes this has taken longer than we expected to fix, but the proposals for VAI liquidations and VAI mint fees will most likely solve this issue. If there are any accounts that are under water, we will liquidate those accounts ourselves by buying VAI and liquidating those bad actors at Swipe’s expenses.
VAI liqudiations and VAI mint fees will, by market dynamics, get the peg to as close to as $1 if not more, but this is not financial advice, just us doing macroeconomic views on this topic.
Any statement made today, are my opinions, not financial, investment, or trading advice in any capacity.
Now that the agenda is done, I will go through a series of AMA questions. I will randomly pick the first one, who will win $1,000 in XVS.
Q: #AMA In nutshell, what is the next vision for Venus protocol?
JL: Congrats (@JessiSam), you are the winner. The next vision is to ship out v2 proposal upgrades, polish the frontend of the app.venus.io interface to make it fast, sleek, and feature packed. Thereafter, we will continue to work with the community on upgrades and proposals such as vXVS voting, different yield cures, more markets added, partnerships, etc.
Q: #AMA Will holders in Binance also get an airdrop of VRT?
JL: At this time, we do not plan to support XVS, just vXVS. But this may change, and those final details are being worked on now. For now, no, but let’s see.
Q: #AMA Can we think Venus as a future decentralised bank where investors are foundations and consumers at the same time, enabling credit cards, a global payments app, and a lending platform granting a profitable passive income?
JL: Venus is a decentralized money market. Eventually we will have fixed rate lending and supplying available. But overall, from a core, it’s a “defi bank” that runs on BSC exclusively.
Q: #AMA How secured is your smart contracts code, did you ever audit it via any third party? What has been the biggest challenge you’ve faced in Venus Protocol department?
JL: Primarily, we use battle tested code as a base that has numerous audits from the forks we use. New code that we ship out must get auditted internally and then by CertiK. We are now adding Binance Security team as an additional layer of review before we ship out proposals in production.
Q:#AMA with buybacks and burns what could be the time between $XVS burns?
JL: This will be by proposals and be adhoc. Anyone can put up a proposal to do this as well. Example:
I have enough XVS or have enough XVS delegated to me and I want to propose this week we do a $10m buy back and burn.
I would deploy the proposal, pick which market i would grab that $10m from (Like lets say BNB), then make a command to buy it from Swipe Swap to then burn.
Q:#AMA What use case will VRT have in addition to reducing venus inflation? Something related to the next points of the roadmap such as venus DEX or fixed rate markets? Maybe incentives on APY if you hold VRT as on Curve?
JL: Yes overall as stated before we want to lower the inflation rate of XVS so that less XVS hits the market, but at the same time enhance APYs. We do this by combining factors as shown below:
We add VRT, which is an additional APY
We reduce XVS, which by supply and demand economics, should have a higher price, which will already enhance the base APYs
We also can adjust base APY’s for all markets so that there are stronger base incentives.
Many flexible proposals can be done, but we are on the right track.
Q:#AMA What’s the interaction between $XVS and $SXP ? What’s the benefit to hold both ?
JL: Overall we see Swipe becoming a strong AMM as its key features, besdies being a crypto-banking (CeFi) infrastructure. and Venus becoming the strongest lending protocol and earning protocol. Each will have its own platform and protocol and we are growing the team to support both in the long runs.
Q: #AMA Why provide VRT the same role as XVS for governance?
JL: VRT has no governance features, it will just be to reward users (Like TFUEL). We will be creative here and think of staking mechanisms as well for VRT.
Q: #AMA Will Venus always stay on BSC?
JL: Yes, always. It’s exclusive to BSC.
Q: #AMA Would an incorporation of ERC20 network put a “safenet” in case BSC has higher fees after the Ethereum update?
JL: No, BSC will always be competitive, even when ETH2 ships, you can believe that Binance will ship out an upgrade to compete. (Not Investment Advice)
Q: #AMA What’s the strategy will be applied to burn XVS?
JL: Create a propsosal and make a decision which market (or markets) to deduct from to buy back and burn from Swipe Swap.
Q: #AMA The next update includes faster and better interface for Venus Protocol?
JL: V2 wont. its an on-chain proposal upgrade. As far as our main interface goes, yes we have been working around the clock to give it a massive facelift and faster/smoother flow. (Like our communtiy based version, but with the backing of Swipe/Venus/Binance)
Q: #AMA Will #Dash be included ever?
JL: If its proposed and added, possibly. We want to create a community guideline for coins to be added via consensus. This will be a work in progress.
Q: #AMA do we have to withdraw our funds on V1 to put in on V2? Is it safer to do so ?
JL: No, the core contracts are not changing, it’s just a proposal upgrade.
Q: #AMA greetings from Argentina !! As the beneficiary of the project, charge interest when minting vai .. thank you very much from now on!!
JL: It’s coming ASAP.
Q: #AMA Any plans inthe near future to add other tokens to be provided as collateral?
Q: #AMA What are the plans to help spread the adoption of VAI? It is an important part of Venus but seems to have been largely ignored
JL: It’s a baby, have patience and it will go on its course in due time.
DAI was around for years before it got to where it is today, same with Maker.
Oh before, I continue, one other point I forgot to mention.
We plan to finally distribute the 3x XVS rewards for vSXP holders in April. We apologize this is taking so long, but there were some logistics behind it we needed to conclude. Thank you and sorry for this delay, but it’s not something we forgot.
Q:#AMA are there any plans to add the ledger connection (direct, without metamask) option in the near future on the Venus protocol?
JL: We plan to really refine our frontend to support more wallets, more flexibility, more details, and smoother/faster interactions. This was completely re-done and will be ready in the near future.
Q: #AMA Are Venus going to develop a DEX ?
JL: We are still working on a full order book DEX for Venus, this has shifted to a lower priority for now.
Q: #AMA What will the utility of VRT be? Why will people buy it from the people rewarded? Thx
JL: No different that TFUEL, but to reward all markets in Venus after the airdrop is done.
Q: #AMA How to handle the bad det and how to handle the black swan about VAI?
JL: This was answered before, but there are only a few accounts who abused VAI, we are aware of them, and we can easily liquidate them ourselves at our expenses when that time comes, while allowing the keepers/liquidators go after the profitable ones. We are here to help keep bad actors out, even at our own costs.
Q: #AMA When will Airdrop start? Thanks.
JL: We will announce this when ready. It could be anytime, we may just announce tomorrow that the airdrop is done. Not saying it one way or another, but make your preparations to mint vXVS by supplying your XVS into the market ahead of time would be my best advice here.
Q: #AMA What are the requirements to access the « VIP » status allowing users to increase qualified assets borrow factor from 60 to 80%, will it be the only difference between them and standard users ?
JL: Once v2 is done, we will re-propose the increase for qualified assets to let users get better leverage. We are going to propose 75% this time though not 80%.
Okay, I am going to open the chat up for a minute and see if any other question come through.
Okay let me mute again
Q: #AMA Hi @JoselitoLizarondo the 3x sxp reward is on binance account, right? Any preparation we need to do? The launchpool was on binance, that’s why I am asking
JL: No, this was just for users who supplied SXP to Venus during the first 7 days of mainnet.
Q: #AMA What is the difference between XVS and vXvs
JL: XVS is the underling token for vXVS. You mint and burn vXVS when you supply/withdraw XVS from Venus.
Q: #AMA Can we at least get an ETA for V2? Soon is not really an answer.
JL: Sorry thats the answer that is available. No other details.
Q: #AMA XVS borrowing is closed for a handful of people and has an insane Yield rate. What is Swipe doing about dealing with that rate
JL: This is a fundamental change that needs to occur to stay consistent. Currently, as everyone knows, market speed (which determines the reward per market) is split between borrow and suppliers. There is a borrow cap in place, so no one can maliciously borrow large amount of XVS and make proposals, they need real skin in the game, which means to buy or earn it.
While the APY is high for the borrow market in XVS due to the security, the security out weighs people wanting a piece of the cake at the moment. Those lucky individuals, were early users, who took advantage of the borrow cap. It was a FCFS basis. The good thing is almost ALL, and especially the largest one, is re-compounding back to the protocol from what on-chain data shows, so there is “dump” from it.
For us to make this change, we would need to evaluate what changes need to be made to all markets, and not hard code something just for XVS. So this is being evaluated, but since its not.a security concern, and more just people upset that they aren’t getting a larger piece of the pie, its not a fundamental problem. But we are still going to evaluate options, just not on the top of the todom pole.
Q: #AMA Why would someone want to buy VRT? What will be the buying force / utility for the token to not just be dumped by all those farming?
JL: Please research https://coinmarketcap.com/currencies/theta-fuel/ thanks
Q: #AMA When will be fixed claim fee on Venus protocol?
JL: Its part of v2
Q: #AMA When Swipe AMA
JL: In the near future.
Q: #AMA Will VAI liquidations be voted for first
JL: Its part of the v2 upgrade.
Q: #AMA How is the audit going?
JL: Good, still work that needs to be done in parallel.
Q: #AMA What is the timeline for implementing V2
JL: None at this time, just soon.
Q: #AMA What about the Venus Reserves
JL: Venus Reserves are not being used for cover VAI liqudation issues.
They will be used for buy back and burns and other community incentives/protections.
Okay everyone, thanks for listening. Take care.