Welcome to the June 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 be highlighting some of the exciting new features and partnerships that have been announced, as well as sharing 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!
New alliances are landing on Venus
Great news from Venus Protocol! With the arrival of the Isolated Markets, the community has been welcoming various projects that will join the #DeFiSummerSlam Among them were: Biswap, Helio, Floki, Stader Labs, Beefy Finance, ANKR, PStake finance, and more to come. Stay tuned for the latest updates!
ISOLATED MARKETS STADER LABS and RACA AMA CAMPAIGN
Venus Protocol and Stader Labs had the opportunity to discuss the future of this partnership and the benefits it will bring to users of both projects in more than 7 languages, 6 of them on Telegram communities where more than 500 users attended. The event for the global community was held on Twitter Space in order to share all the advances with the users of both projects. More than a 1.000 listeners joined for this Q&A session full of informative content. If you want to listen to the recording, it is available here.
Venus Protocol and Raca carried out a campaign with 3 communities, to talk about the isolated markets in view of the alliance established by both. These spaces served to discuss the future of this association and the benefits it will bring to our users. All attendees had a chance to win amazing prizes in their communities.
A special integration arrived on Venus
New feature release: All users can now supply to Venus markets and repay loans with ANY asset in their wallet that has a liquidity pool on PancakeSwap. This upgrade aims to enhance the supply and repayment processes, allowing users to utilize a token separate from the underlying asset by exchanging them on PancakeSwap. Security measures such as audits, simulations, and testnet deployment have been conducted and this highly expected integration was finally implemented through VIP-131 so Venus users can now take advantage of the simplified repayment and supply using a different token.
Venus Protocol and FlashFlow integration!
Announcing the integration of Venus Protocol, the largest lending protocol on the BNB Chain, with FlashFlow, a decentralized margin trading protocol using flash loans. This collaboration brings $1.1 billion in liquidity to FlashFlow, creating a synergistic partnership. The integration enhances the capabilities and liquidity pool of FlashFlow, providing increased opportunities for users of both protocols. The Venus Community is excited about this development.
More news from Venus Protocol!
Last call: “TUSD Contract Migration on BNB Chain”
TrueUSD is migrating the contract of its stablecoin TUSD on the BNB Chain from the previous BEP20 contract to a new one. The Venus Protocol team has been working closely with TrueUSD, BNB Chain and Binance to facilitate a smooth migration for its users. Therefore Binance implemented a simple conversion tool and Venus encouraged users of the protocol to pay off their active TUSDOLD loans and take the necessary steps in advance of the market deprecation. If you want to read the official Binance release on this topic, you can read it here.
Binance Supports BETH-to-WBETH Conversion on BNB Smart Chain
In their ongoing efforts to expand the ETH staking ecosystem, Binance has introduced a new feature that allows users to convert their BETH (Binance Ethereum) holdings to WBETH (Wrapped Ethereum) at a 1:1 ratio on the BNB Smart Chain (BSC). By enabling this conversion, Binance is providing an efficient way for users to manage their Ethereum assets. Here we show you the step by step you need.
Risk Parameter Updates from Gauntlet 2023-06-07
These recommendations by Gauntlet aim to address specific areas such as supply cap, position adjustments, interest rates, and risk monitoring to optimize performance and risk management within the respective protocols for XVS, TRXOLD, SXP, BUSD, and BNB.
- Increase the supply cap from 1,000,000 to 1,300,000.
- TRXOLD & SXP:
- Allow users to make adjustments to their positions.
- Follow up with parameter recommendations for Interest Rate (IR) to reduce borrowing.
- BUSD & BNB:
- Continuously monitor market conditions.
- Provide risk-off recommendations as necessary.
Gauntlet Risk Parameter Updates recommendations 2023-06-20
Gauntlet has provided several recommendations for adjustments to various parameters in the Venus protocol. The recommendations include raising the supply cap for XVS to 1,500,000, raising the base multiplier for TRXOLD to 1.0 and increasing the borrow APR, raising the base multiplier for SXP to 0.30 and increasing the borrow APR, decreasing the collateral factor for BETH to 0.50 and setting the borrow and supply cap to 0, raising the borrow cap for WBETH to 550 from 200, and raising the supply cap for WBETH to 800 from 300. These adjustments aim to optimize the protocol’s performance and align the parameters with market conditions.
Venus Protocol Oracles Audit
OpenZeppelin conducted an audit of the Venus Protocol Oracles, specifically the Resilient Oracle, Binance Oracle, Bound Validator, Chainlink Oracle, Pyth Oracle, and TWAP Oracle contracts, from May 8th to May 23rd. No critical, high, or medium-severity issues were found. However, two low-severity issues were identified and resolved. The audit also highlighted minor issues such as coding style inconsistencies and unnecessary type casting, which were addressed in pull requests. The Venus team acknowledged recommendations regarding code layout but did not implement them due to potential complications. Overall, the audit report showcases the effective functioning of the Venus Protocol Oracles, with the identified issues being of low severity and promptly resolved. You can read the full report here.
Venus Protocol SwapRouter Audit by OpenZeppelin
At expOpenZeppelin conducted an audit of Venus Protocol’s SwapRouter took place from May 15th to June 1st, 2023. The scope of the audit encompassed several contracts in the VenusProtocol/venus-protocol repository, including SwapRouter.sol, RouterHelper.sol, IRouterHelper.sol, IVBNB.sol, IVtoken.sol, and others.Venus SwapRouter is an adaptation of the PancakeSwap V2 PancakeRouter, broadening user interactions by integrating Venus markets. This allows operations like supplying collateral and repaying debt with tokens different from the underlying asset, by utilizing PancakeSwap to exchange tokens for the required asset before executing supply or repay operations. The SwapRouter contract relies on a collection of supporting libraries to ensure correct interactions with PancakeSwap V2 pools. Find out more here.
Timely and permanent Education
June was a great month for Venus Protocol, concerned that the community is up to date and aware of each available function and its benefits, various educational articles have been created on our blog that expands on the operation of each of these proposals. Below we present a summary of each of them and the link where you can get more information.
Venus Protocol: Pioneering Resilient Price feed oracles for enhanced security and reliability
In the rapidly evolving world of blockchain technology, ensuring the security and integrity of smart contracts is paramount. Recognizing this, Venus Protocol has demonstrated an unwavering commitment to security by engaging top-tier auditing firms in the crypto sector. This significant update includes interactions with Chainlink Oracle, Binance Oracle, PythOracle, and Automated Market Makers (AMMs) like PancakeSwap. Given the potential risks associated with third-party interactions, Venus Protocol has taken the recommendation of constant monitoring of these third parties to heart, aiming to mitigate any side effects that may occur when unexpected changes are. See the full article here.
Introducing Venus Prime Token
Venus Prime allows users to significantly increase their yields in supply and borrow markets. Stakers that meet the requisites will receive a non-transferable Venus Prime Token linked to their account, which boosts annual percentage yields (APYs) across selected markets. Unlike traditional approaches, Venus Prime utilizes the protocol’s revenue for a sustainable rewards program. The program incentivizes user engagement, liquidity, and the overall success of the Venus ecosystem. If you want to read more about this exciting proposal, you can do it here.
VAI Stable and Predictable
Before delving into the mechanics of VAI, it is important to understand the basics of stablecoins. Put simply, stablecoins refer to digital currencies whose value is tied to that of another asset, frequently the U.S. dollar, with the aim of mitigating the volatility inherent in cryptocurrencies. There are different ways in which issuers back stablecoins. In the case of Venus, the protocol allows liquidity suppliers to use their crypto assets as collateral to mint VAI in a decentralized way by interacting with the smart contract
That means that VAI is a decentralized stablecoin overcollateralized by crypto assets and specifically anchored to the U.S. dollar. It is designed as a safe haven asset within the volatile crypto markets and primed to play a crucial role on the BNB Chain DeFi ecosystem and beyond. Let’s explore some of the potential use cases for VAI here:
Unlocking Opportunities: Discover Venus Protocol´s Improved Vaults
In this post, we are excited to share the significant enhancements that have taken place in the Venus Protocol’s Vaults. With the introduction of VIP-127, Venus Protocol is improving the user experience while prioritizing transparency, accessibility, and community engagement. Let’s dive into the details and explore how these changes encourage participation while improving the user journey on Venus Protocol.
As part of Venus Protocol’s commitment to providing a cutting-edge DeFi experience, the Vaults have undergone important upgrades; look here the details.
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Venus Stars Activities around the globe
In June, as usual, our communities around the world enjoyed a variety of online events, including workshops, informative briefings, classes in our #LearnWithVenus section and much more. But not everything stayed in the digital realm, our ambassadors represented Venus in face to face meetings in some corners, 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.
One of our LATAM Venus Star represented Venus Protocol in the first meet-up done in Chile by Binance. Roberto networked with some crypto enthusiasts from the southern country and got to introduce Venus to assistants with the aim of making alliances on the continent and providing support for the future of #DeFi. Also, our Latin American ambassador, JR, had the opportunity to attend and represent Venus Protocol at the Endeavor event in Buenos Aires, Argentina, where he was able to connect with the local community, as well as investigate the various cases of Argentinian startups and their role in the region, how they managed to be there and the challenges they face day by day at a technological level
Venus in Chile
Venus in Argentina
June was a very active month in terms of Governance with 1 Community Forum Proposal, 14 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.
VIP-124 Risk Parameters Adjustment for BUSD is LIVE
The VIP involves adjusting the risk parameters for BUSD (Binance USD).
VIP-125 Risk Parameters Adjustment for XVS
The VIP involves making adjustments to the risk parameters for XVS (Venus Protocol’s native token) based on the recommendations provided by Gauntlet in their latest risk parameters update.
VIP-126 Price Feeds Configuration for Isolated Markets
This VIP proposes configuring the price feeds for Venus Resilient Oracle for the upcoming markets on Venus Isolated Markets.
VIP-127 Vaults Upgrade
The VIP-127 proposes an upgrade to the three vaults in Venus: XVS Vault, VAI Vault, and VRT Vault.
VIP-128: Add WBETH Market to the Venus Core pool
This VIP 128 proposes adding a new market in the Core pool for the token WBETH (wrapped Binance ETH). This action is a continuation of the BETH token deprecation and rebranding to WBETH, as previously discussed in VIP-111.
VIP-129 TUSD Contract Migration
VIP-129 involves the migration of the TUSD contract on the BNB Chain. The proposed actions include deploying a new market with the new BEP20 TUSD contract, deprecating the current market with the old TUSD contract, adjusting XVS distribution and factors for the old market, upgrading the legacy vTUSD market, and adding a new market with recommended initial settings. These actions aim to ensure a smooth transition to the new TUSD contract while maintaining the functionality and stability of the Venus protocol.
Snapshot Proposal: Update to Venus Protocol Tokenomics (3.1)
This Snapshot proposal aims to revise Venus Tokenomics to address the unequal distribution of income between rewards and treasury reserves. The key highlights of the proposed changes include redistributing protocol reserve revenue allocation, redistributing liquidation, and product development distribution, doubling XVS vault rewards, and adjusting Venus Prime program rewards. The expected outcomes are increased treasury reserves, sustainable reward emission rates, sustainable Venus Prime rewards, and maintaining an attractive APR for XVS Vault stakers. The proposal is based on an analysis of the current tokenomics, past changes, market dynamics, and trends. The detailed proposal can be found in the original forum post.
VIP-130: Risk Parameters Adjustment
VIP-130 proposes risk parameter adjustments based on recommendations from Gauntlet Network. The adjustments aim to fine-tune the risk parameters for each asset, ensuring they align with Gauntlet Network’s recommendations. Users are encouraged to review the details and participate in the voting process.
VIP-131: Add PancakeSwap integration for simple repay and supply using a different token
VIP-131 proposes the addition of PancakeSwap integration to simplify the supply and repayment processes in Venus.
VIP-132: Risk Parameters Adjustments
VIP-132 is a re-launch of VIP-130, which faced an execution block due to a definition problem caused by a white space in the command that Venus Comptroller couldn’t recognize.
VIP-133: Enable Tokenomics v3.1 and Allocate Legacy XVS Rewards to the XVS Vault
This VIP-133 aims to ratify the proposal that was previously approved by a Snapshot vote. The proposal suggests revisiting and optimizing the income distribution for Venus Protocol due to market changes and the protocol’s evolving needs.
VIP-134: Isolated pools: deployment stage 1
This VIP proposal introduces Isolated Markets to Venus Protocol, focusing on the creation of the Stablecoins pool. The purpose is to expand lending capabilities and enhance risk management by isolating assets into separate pools. The Stablecoins pool will include HAY, USDT, and USDD tokens.
VIP-135 Increase WBETH Supply Cap
This VIP proposal suggests increasing the WBETH supply cap from 800 to 4000 to address the rapid depletion of the cap. Gauntlet believes that the increased cap is justified due to WBETH’s liquidity, conservative risk measures, price parity with BETH, and potential value for Venus. Gauntlet will monitor the situation and provide further recommendations on July 5.