I tested Venus Protocol, Venus (XVS) and minting VAI for a month!
Few weeks ago I set Binance Smart Chain (BSC) Wallet on Metamask to explore Venus Network and I wasn't disappointed (by Binance Smart Chain). This new chain fast and secure, focusing on decentralized digital asset exchange based on the highly performant matching engine built on distributed consensus, launched to rejuvenating the crypto ecosystem. The link above will be your guide on how to set it up so I will skip this part for now.
After giving OKEx and Litebringer the PVM trial by combat, now is time for Venus Network to come under the magnifying glass! Venus Network wants to evolve the digital asset lending by creating synthetic stable-coins as BEP-20 assets. Users can use over-collateralized leading to borrow assets, while those who supply collateral into the pool will gain interest. Venus was one of the highest rewarding projects added into the Binance Launchpool, and I farmed 7.49 XVS, which at the current price is nearly $32. Only for such a nice earning, Venus Network has the first move in today's duel, and a choice of weapon!
The Venus Token (XVS) acts as the governance token of the platform and the VAI token is the default synthetic stable-coin pegged to the US Dollar. The layout of the Venus Protocol app Dashboard is easy to understand, showing the user's supply balance, the supply market and a token overview.
During the Venus (XVS) farming through the Binance Launchpool, I farmed 7.497 tokens. After sending them from my Binance Spot wallet on Metamask, I use them as collateral supply.
At the time, the Venus (XVS) APY was 1.7% and for the sake of the experiment I also locked 0.68 Binance Coin (BNB) in the supply balance at 15.74% APY.
The APY fluctuated, but followed a descending trend, driven by the decreasing value of Venus (XVS) or Binance Coin (BNB) but as a general trend, the APY went lower and lower.
Clicking on the Borrow Market, will show the whole range of tokens available for borrowing, and the current APY.
The Mint/Repay VAI tab allows liquidity providers to mint VAI, the Venus Protocol own stable-coin. My minting limit was 31.91 VAI, based on the amount of liquidity provided as collateral. The VAI can be repaid on the same tab. Thinking about the process, it can be used to mint VAI, than use them to supply liquidity on other Binance Smart Chain platforms, such as PancakeSwap, and earn other tokens. When a certain level of reward is achieved, the VAI can be repaid and keep the "free" reward. This is just a theory and I am unsure if or how much profit can generate, however, VAI minting can be a lethal weapon in the hands of an good strategist, and a real game changer.
Under the Dashboard, the Vote tab will allow Venus (XVS) holders to use their assets to vote for governance proposals, manually or delegating the voting power to third parties. New governance proposals can be created in this tab. The earned Venus (XVS) and the option to collect can be found here.
One week after adding Binance Coin (BNB) and Venus (XVS) as collateral on the app, my earned Venus balance showed a little gain, 0.0098 XVS ($0.04), which feels such a minimal reward when compared to other platforms. Again, for the sake of the experiment I decided to keep my assets locked for another week. Venus Network was a blunt weapon, one that cannot deliver an impressive blow.
After another week, the APY was down to 3.07%, and I realized how Venus Network is failing to deliver, when Harvest Finance has over 300% APY on their native coin and SnowSwap close to 100%. The blunt sword is more like an pocket knife.
Therefore, Venus Network failed to compete in the "Trial by Combat" being disqualified from the duel as result of such low return. I collected my Venus reward, which now grew to an "amazing" 0.024 XVS, approximately $0.11. This transaction costed me about $0.04 BNB, instantly halving the reward.
At least disabling the collateral was free, and I don't even know if this step was mandatory before withdrawing my assets.
Got this calculations when I withdrew my deposits, with a breakdown of the APY I received in this 14 days trial. To be honest, I don't know what it means or how it influenced the reward, and maybe just showing how much $ I was paid will make it easier.
The assets went back in my BSC Metamask Wallet instantly and hustle free. To conclude this Trial by Combat, I paid a total of $0.50 in fees throughout the experiment, and got back $0.11 XVS and $0.35 BNB. Lets say it's even, and this trial generated only experience.
Ooohh.. Venus ... dear goddess ... the Venus coin is beautiful as you are but when it comes to rewards, Venus Network is still in the Mesozoic Period. If anyone from the team will see this, please let the Maester of the Citadel know that I demand to be sent a raven when your rewards become attractive!
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