What is Venus BUSD (vBUSD)?
As an algorithmic money market platform, the Venus Protocol incorporates a fully decentralized financial-based lending and credit ecosystem onto the BNB Smart Chain. Venus provides the network with collateral that may be borrowed by promising over-collateralized coins, allowing users to utilize their cryptocurrencies. This establishes a safe lending ecosystem in which the borrower pays interest and the lender earns a yearly compounded interest rate for each block. The network sets such lending rates in a curve yield, where they are regulated depending on the demand of a certain market.
Venus distinguishes itself from previous protocols because it can create synthetic stablecoins that safeguard the protocol using the market collateral in addition to borrowing other assets. The stablecoins are supported by a cryptocurrency basket rather than a basket of fiat money.
The vToken contract serves as a means of integrating any asset into the Venus Protocol. This contract represents balances sent to the protocol in a manner that complies with the EIP-20 standard. Venus BUSD (vBUSD) is a BUSD stablecoin turned into a vToken. You can view the latest movements in the vBUSD price on the Venus BUSD price chart above.
Use Cases of vBUSD
As vBUSD token is a vToken, it has three main functions:
- vBUSD can be used for earning interest through the exchange rate of vTokens;
- vBUSD can be used as collateral;
- vBUSD can be used to interact with the protocol, i.e., it can be used to borrow, repay or liquidate a borrow, and so on.
Don't forget to check the Venus BUSD price chart above. It features the current and the previous BUSD price.
Who Founded the Venus Protocol?
Joselito Lizarondo, a well-known entrepreneur, investor, and philanthropist, founded the Venus protocol. Joselito is a successful venture capitalist and blockchain advisor who also founded Swipe in 2018. After $1 billion in crypto transactions via Visa and millions of users, he sold it to Binance in 2020. Following his latest innovation with Swipe, Joselito founded Venus.
