The Binance Intelligent Network (BSC) rose rapidly to prominence in 2021 as high transaction costs and congestion on the Ethereum (ETH) network forced small investors to seek cheaper alternatives.
One of the best options for earning at BSC is Venus (XVS), which is an algorithmic money market and artificially stable currency protocol that provides a lending and lending solution for the decentralized financial system (DeFi).
Daily chart of XVS / USDT. Source: TradingView
Data from Cointelegraph Markets and TradingView show that the price of Venus jumped 3000% during the first two months of the year, going from a low of $ 3.20 on January 1 to a record high of $ 103 on February 19, and then corrected dollars. 35.25 March. At the time of writing, the XVS is priced at $ 98.
Traders are looking for stable profits with less risk
When comparing different protocols across blockchain networks, Venus is the biggest competitor to Ethereum Maker (MKR) and its stackcoin DAI. In addition to being able to deposit security for profit, users can also borrow against the security by minting VAI stablecoin, an artificial BEP-20 token attached to a value of $ 1.
Users who prefer to have most of their wallet in stable currency can purchase VAI and place it in the Venus vault to generate 19.91% revenue at the time of writing.
Those who want to become more involved in society can purchase the XVS token, which is a control token for the Venus protocol and allows token holders to vote on changes in the ecosystem, such as adding new types of guarantees or regulating product improvements.
The list of tokens supported by the protocol continues to expand, and many tokens are already available to users to generate revenue. Currently supported currencies include Ethereum, Binance Coin (BNB), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), XRP and Cardano (ADA).
The return offered by the protocol varies on average from 4% to 10%, with the payout equal to the rate. Although the amount earned on Venus is less than many crops, users do not have to worry about periodic loss or devaluation of the protocol and delete the revenue.
Defense data show that Venus is currently BSC’s highest ranked DeFi platform for total locked value, with a $ 7.8 billion security currently in the protocol.
Total insurance value on Venus. Source: Defistation
Compared to DeFi platforms across all blockchain networks, Venus is ranked eighth behind its main competitor from Ethereum Curve, which currently has a TVL of $ 6.47 billion.
The influx of institutional and individual investors into the cryptocurrency ecosystem increased in 2021, and this trend is likely to continue in the foreseeable future.
Despite Berlin’s upgrade this week to the Ethereum network, fees are still high, leaving the door open for competing networks and protocols that want to expand the user base.
Venus is well positioned to grow further as people increasingly leave the old financial system in search of higher profits and light capital flows.