Venus Protocol Enhances Price Resilience with Binance Oracle Price Feeds

Decentralized finance (DeFi) has emerged as a revolutionary technology that promises to democratize finance, enabling people to access financial services without intermediaries. One of the key pillars of DeFi is price feeds, which ensure that autonomous applications like Venus can safely offer users collateralization of assets at fair market value. However, price feeds can be vulnerable to various risks, such as extreme market conditions or malicious manipulation.

To address this challenge, DeFi protocols increasingly turn to price feed redundancy, which involves using multiple price feeds to ensure accuracy and resilience. Venus Protocol, the leading lending and borrowing platform on BNB Chain, is a pioneer in this approach and  has recently announced a new implementation of Binance Oracle price feeds in addition to its existing Chainlink Oracle integration.

By having several price sources and measures in place to detect an abnormality, Venus aims to be resilient during times of extreme volatility and against malicious parties. Binance Oracle’s integration with Venus underscores the importance of price feed redundancy in DeFi and the need for reliable and secure oracle services.

This integration is a part of the Venus v4 protocol upgrade which adds new and innovative features to the already consolidated core money markets and vaults. The Venus v4 upgrade will introduce a new Isolated Markets feature, which will allow users to lend and borrow different assets in isolated markets without affecting the core markets. The Binance Oracle feeds will support most of the 20 initial new markets.

The Binance Oracle integration is a result of the Venus customization development work realized by the Binance Oracle team for the integration of various new price feeds. To facilitate the Binance Oracle integration, the Venus community has proposed VIP 107 and VIP 114, which involve payment of BUSD 2,550.00 to Binance Cloud On Chain Technologies Limited for the development work and a transfer of 100 BNB from the Venus Treasury to the Binance Oracle for gas consumption.

The new Binance Oracle implementation in Venus Protocol is a significant step towards enhancing price resilience and security in DeFi. The integration of multiple trusted price feed providers like Binance Oracle and Chainlink is crucial to ensure that Venus can offer users collateralization of assets at fair market value even during extreme market conditions or malicious manipulation attempts. 

With the Venus v4 protocol upgrade, the Isolated Markets feature, and the support of Binance Oracle, Venus Protocol is poised to offer its users a robust and secure DeFi ecosystem further strengthening its position as the leading Money Market protocol in the BNB Chain DeFi Ecosystem.

Venus Protocol is accessible through our website, and the Dapp. For the latest news and events, you can visit Venus Community. For latest updates you can visit our Twitter and our Telegram Announcement Group. We also have a global community on Telegram and Discord.

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