A Letter from Venus to BSC Community Members and Users
On April 15th, Venus upgraded Venus V2 and began to implement a new single currency revenue pool service with a rate of 0.01% for just withdrawing assets out of Venus. For example, a withdrawal of $100,000,000 out of Venus would cost a $10,000 fee. Venus is completely free for BNB markets and free for every other function such as supply, borrow, repay, and claiming rewards.
As some project parties did not make adjustments based on the rate changes, some community users reported that they were deposited into certain ecological projects. The principal of the single currency revenue pool has suffered losses due to the rate generated, which has aroused discussion and concern in the community.
Venus is a completely decentralized protocol. As early as January 15, the Venus team announced on Twitter that it had handed over the protocol to the community to make decisions and execute each step of the plan. This time, the VIP-12 solution involving the upgrade of Venus V2 has also been fully supported by the Venus community.
Looking back at the development of things, the Venus team has reminded the community in different ways 5 times. The situation is now synchronized as follows:
- On February 14, the Venus team released the “2021 Venus Agreement Development Plan”. The first part of the original text of the plan mentioned that “Venus founding fees will add a small amount of fees to create a loan and redeem a loan from the agreement (deposit/withdraw). The fee is 1 basis point, equivalent to 0.01%.”
- On March 14, Venus updated the review progress of the upgrade plan on Twitter
- On March 30, Venus announced on Twitter that the community had approved the Venus V2 upgrade plan
- On April 13, Venus announced on Twitter that it would start the upgrade on April 15th, and forwarded information about related projects to support the upgrade.
- On April 15, Venus once again shared the upgrade progress through the above social channels and stated that this fee will just be for withdrawal of non BNB assets out of Venus.
In order to help community users recover the relevant losses as much as possible, Venus is closely communicating with relevant ecological members and integrating revenue strategies, providing the greatest support from our perspective, and looking forward to our partners to come up with relatively reasonable solutions as soon as possible.
The occurrence of this incident does make us think. The DeFi world does not have a center, but when a decision is made, in order to maximize the protection of user assets from loss, we will consider the establishment of a member of the ecology involved in the future. The Ecological Co-construction Alliance welcomes as many community members as possible to join, and regularly communicate and discuss the development issues of the agreement. This will be an important direction for Venus as a lending center project.
In addition, in the face of turbulent community public opinion, some community projects emphasized that the losses were caused by “Venus changed the funding rate” when explaining to users, and avoided talking about their projects “no adjustments were made to the rate adjustments.” . Even more public opinion maliciously slandered Venus for making such a major adjustment without prompting the public. For such rumors and slanders, the Venus team recommends that community projects actively participate in the decentralized ecological co-construction alliance and pay attention to the development of the agreement in a timely manner.
We are well aware that the development of the Venus Agreement requires joint construction with relevant ecological parties. In 2021, we have more plans to propose and resolve. We look forward to receiving support from community members. Thank you!
April 21, 2021
A Letter from Venus to Community Members and Users was originally published in Venus Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.