Newsletter – May 2023

Welcome to the May edition of the Venus Community newsletter! The Venus team is bringing you the latest updates and developments from the Venus ecosystem. In this month’s newsletter, we’ll highlight some of the exciting new features and partnerships that have been announced, and share important community news and events. Whether you’re a longtime Venus user or just getting started, there’s plenty to discover in this month’s edition, so read on to learn more!

Featured News

Coming Soon: Defi Summer Pool Party!

Exciting news from Venus Protocol! There’s an upcoming ‘Isolated’ pool party that will be soon introduced. The community is eagerly anticipating the arrival of these new pool members, and everyone is invited to join the celebration. Welcome aboard to the new additions to the Venus Protocol family! Stay tunedfor the latest updates!

Twitter AMA: initiative for Venus

May 2nd, 2023, an AMA (Ask Me Anything) session was held with Native to discuss their proposal to deploy a new in-app swap fully owned by Venus. Participants had the opportunity to learn more about the proposal and ask questions about it. 

By leveraging Native’s free infrastructure, Venus would get 100% of swap fees, leading to more revenue for Venus and lower swap fees for the community. Stay tuned to know the progress of this proposal!

More news from Venus Protocol!

Venus Protocol and BSC News launched “The Seed Phrase Hunt”

BSC News and Venus Protocol have organized “The Seed Phrase Hunt,” a competition where participants can compete in 12 challenges and have the opportunity to win up to $10,000 in cryptocurrency. Here’s how you can participate:

  1. Each day, a clue will be released hinting at a set of tasks to be completed. By completing these tasks, participants will earn the ability to mint an NFT in the form of a Key. The goal is to collect all 12 Keys to unlock the chest and reveal the seed phrase to a wallet containing $10,000.
  2. The event will run from May 22nd to June 6th, with a new clue being released every weekday. To claim the keys quickly, it is recommended to follow @BSCNews and enable post-notifications. Only the fastest participants will be able to claim the $10,000 prize.

Code4arena and Venus Protocol Auditors Contest

Venus Protocol and Code4arena partnered in an open competition for Smart Contract Auditors offering a total prize pool of $90,500 USDC. The contest, consisting of various categories and corresponding prize amounts, specifically focused on the security of the Venus Isolated Pools. Isolated Pools will provide independent collections of assets with customized risk management configurations, allowing users to manage risk, allocate assets, and earn yield more effectively. By utilizing multiple isolated pools, the protocol will reduce the potential impact of asset failures on overall liquidity. For more information about the contest, you can check on Twitter.

Meet the Venus Community Lead with BSC Economy

Venus Protocol co-hosted an AMA with the BSC Economy team, where our Community Lead, Danny Cooper, shared the latest news about Venus and the progress of the upcoming new features, and 50 lucky winners shared a total prize pool of $1,000 in XVS. To be eligible for the giveaway, participants needed to complete all the tasks in the TaskOnXYZ campaign. The AMA event has now ended, but participants may still be able to claim their rewards if they completed the necessary tasks. To learn more about the details of the campaign, please visit this link

Gauntlet Risk Parameter Updates May 2023

Throughout the month of May, Gauntlet produced three risk analysis reports.  The first suggestion pertains to the Value at Risk (VaR) metric, which quantifies the potential capital that could be at risk during periods of market stress, such as liquidation cascades or deviations of stablecoins from their peg. The Liquidation at Risk (LaR) metric assesses the capital that could be at risk due to liquidations during market distress. It also considers liquidation risk in categories like Broad Market Downturn and Broken Correlation, based on historical data.

The second suggestion from Gauntlet involves proposing adjustments to the interest rate parameters for various tokens on the Venus Protocol. These adjustments are based on data-driven evaluations of the performance of these assets in the crypto markets. 

Lastly, Gauntlet’s recommendations for different tokens on the Venus platform are as follows: SXP, TRXOLD, TRX, WBETH, XVS, and DAI. These recommendations reflect Gauntlet’s assessment and guidance for managing these specific tokens within the Venus platform.

Gauntlet has also created a Telegram channel called “[Venus Market Alerts from Gauntlet]” to enhance accessibility and transparency for the community. The the channel is open to everyone and aims to streamline communications by providing market alerts. These alerts will cover various indicators such as pool utilization, large user positions, liquidation, and concentration risks. Those interested in staying informed about the protocol’s health are encouraged to subscribe to the channel here.

Venus Community

Venus Stars Activities around the globe

In May, the Venus Stars community had a bustling month with a variety of online events, including AMAs, workshops, and ‘Learn with Venus’ lessons. Additionally, our ambassadors represented Venus at in-person meetings worldwide, connecting with local communities. These activities strengthened relationships, shared knowledge, and promoted collaboration. We appreciate our ambassadors’ dedication to raising awareness about Venus, both online and offline.

Our Venus Stars from Türkiye represented Venus Protocol at Blockchain Economy in Istanbul. They networked with Hacken Club, BNB Chain, and OKX, and got to introduce Venus to assistants. Venus Star from Italy was present at Blockchain Week in Rome. He got the opportunity to meet promising projects and represent Venus in one of the most exciting crypto events in Europe. Our Venus Star from Mexico got the chance to participate in PlatziConf in Mexico City, the most important event of the tech industry in the region.

Venus in Türkiye

Venus in Mexico

Venus in Italy

Venus Governance

May was a very active month in terms of Governance with 1 Community Forum Proposal, 6 VIPs voted and executed and 2 Snapshots submitted to measure the community approval of improvement proposals.

Venus community has been very active and engaged in discussing various topics related to the protocol’s present and future including discussions on proposals for in-app DEX and Shortfall Repayment, among other important topics. Community members appear to be very proactive in driving the protocol’s development forward  and have been actively voting and executing VIPs, as well as Snapshots.

For more information on the Venus Improvement Proposals of this month, you can visit the Governance page

New Proposal on the Community: Higher Loan LTVs!

Venus Protocol is considering a pilot program to offer higher loan-to-value (LTV) ratios on its platform to increase borrowing demand. Many borrowers have shown interest in more capital-efficient loans, and capital efficiency is a differentiating factor for Venus compared to other DeFi protocols. 

VIP-111 BETH Market Deprecation

This VIP Proposal addresses the deprecation of the BETH market on the BNB Chain by Binance. The VIP outlines specific actions to be taken, including pausing borrowing in the BETH market, setting XVS distributions to 0, and increasing the reserve factor to 100%.

VIP-112 Risk Parameter Updates 2023-04-25

The VIP-112 Proposal changes include increasing the borrow cap to 10 million tokens and the supply cap to 12 million tokens for TRX. The collateral factor will also be increased to 0.50.

VIP-113 Transfer XVS vault Admin privilege to Governance and Update XVS Distributions APR

The XVS Vault control is being transferred to Governance to enable a more transparent and on-chain governance process. The new XVS Vault distribution APR will be set to 1,100 XVS/day, which is lower than the previous quarter’s APR due to extra XVS distributed and ongoing changes and audits.

VIP-114 Payment/Deposit to Binance Oracle

VIP-114 Proposal suggests transferring 100 BNB from Venus Treasury to Binance Oracle to pay for the gas that will be used in the Venus Binance Oracle feeds integration for a period of about 6 months.

VIP-115: Q2 2023 Payment issuance to Gauntlet

VIP-115 Proposal aims to issue a payment to Gauntlet for their market risk management services in the second quarter of 2023. For further details read the Snapshot proposal, and the Venus’ Governance page.

Snapshot Proposal: Deploy a new in-app swap fully owned by Venus

Venus Community has proposed a Snapshot Vote to gauge interest in collaborating with to implement a fully DAO-owned swap on the Venus protocol.

VIP-117: Risk Parameters Update

VIP-117, proposed by the Community Wallet, aims to update the risk parameters of the Venus protocol.

VIP-118: ETH Shortfall Repayment

VIP-118, proposed by the Dev Team, addresses the repayment of ETH shortfall in the Venus protocol. The proposal aims to take the following action: Repay the debt of 1,437.5 ETH (approximately $2.6 million) on behalf of the wallet address ‘0x7589dd3355dae848fdbf75044a3495351655cb1a’.

VIP-120: Payment Issuance to OpenZeppelin

This VIP Proposal aims to engage OpenZeppelin, a renowned provider of security products for decentralized applications, to conduct two audits for Venus.

VIP-121: BTC Shortfall Repayment

VIP-121 aims to repay a debt of 90.33 BTC, which is approximately $2.42 million. The repayments will be carried out in the order of decreasing debt.

VIP-122: Risk Parameters and Interest curve models adjustments

This  VIP aims to implement specific actions and adjustments based on the latest recommendations from Gauntlet, a platform that evaluates assets on Venus’s active markets. The proposed Risk Parameter actions involve reducing the borrow cap and supply cap to zero for SXP and TRX_OLD tokens. This action is intended to prevent new positions from being taken in these tokens.

VIP-123: Resilient Price Feeds

The Resilient Price Feeds is a proposed feature as part of the Venus V4 Upgrade. It aims to address the issue of relying on a single source for fetching asset prices from on-chain sources..

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