Venus Protocol’s Decentralized Stablecoin, Via, Launches on Binance Smart Chain; Forked From Compound & MakerDAO

On September. 28, Binance announced the launch of Venus Protocol, an algorithmic money market platform that allows borrowing of over-collateralized loans, lending, and generation of new synthetic stablecoins, VAI. According to a tweet by Joselito Lizarondo, founder of Swipe Wallet and Venus Protocol, the BSC-based platform is a fork from Compound (COMP) and Maker (MKR).

Venus does not include any VC pre-mined tokens or team allocation funds in a bid to fully decentralize the project. The VAI token is a multi-collateralized stablecoin offering cross-chain collateral with other crypto assets based in the BEP-20 format.

The platform allows over-collateralized lending with 75% or lower of the assets supplied on the Venus Protocol and interest-earning on collateral supplied. Users can also stake their vTokens (e.g., vETH) to mint VAI stablecoin, which is pegged to the dollar at a ratio of 1:1. The statement from Binance reads,

“VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI”.

The protocol is, however, governed by its governance token, XVS, which allows users to vote on issues on the platform such as adding collateral assets, initiating product developments, and major changes on Venus. At the start, Swipe wallet’s native token, SXP, will be used for governance “until there’s enough quorum of XVS mined to be sufficiently decentralized,” Lizarondo said.

A total of 20% of the mined XVS tokens will be allocated to the Binance launch pool, 1% to the Binance Chain Ecosystem, and the rest will be distributed to the miners. A total of 30 million XVS governance tokens will be mined by May 2024. Miners will be able to stake their Binance Coin (BNB), Binance USD stablecoin (BUSD), and Swipe’s SXP tokens to receive XVS tokens.

Binance also announced the XVS trading pairs would be listed in its Innovation zone, including the XVS/BTC, XVS/USDT, XVS/BUSD, and XVS/BNB pairs.

In September 2019, BEG reported Binance’s Venus project launch as a government-friendly replacement of Facebook-led stablecoin, Libra. But the Venus Protocol was clear to say that this wasn’t the same as the open project from Binance.

The post Venus Protocol’s Decentralized Stablecoin, Via, Launches on Binance Smart Chain; Forked From Compound & MakerDAO first appeared on BitcoinExchangeGuide.

Blockstream’s Liquid Network Launches Its First Decentralized Exchange, TDEX

  • Blockstream’s Liquid welcomes Bitcoin on DeFi with a new decentralized exchange, TDEX, launched on Monday.
  • The DEX introduces a fixed price strategy and atomic swaps to provide liquidity on the exchange.
  • However, TDEX is not natively built on the Bitcoin blockchain.

Blockstream announced its entry into the DeFi ecosystem with the launch of its decentralized exchange, TDEX. The exchange, built by Sevenlabs, a consultancy and licensing firm dealing with crypto, launched its Open Alpha Phase on September 7, 2020.

TDEX launches on Liquid network

According to the statement at launch, TDEX will leverage atomic swaps allowing users to send faster transactions and decentralize the exchange altogether. Atomic swaps is a peer-to-peer exchange network being tested on Bitcoin that allows direct exchange of crypto without the need for a central party like an exchange.

These atomic swaps will be used on TDEX, replacing the widespread Automated Market Makers (AMMs) used on Ethereum-based Uniswap DEXs. The swap protocol, TSWAP, will harness the benefits of ad-hoc atomic swaps allowing two parties to trade without the need for a third party directly.

This ensures the trades are settled without the risk of having a faulty AMM giving users total control of the trading activities. Speaking on the launch of TDEX, CEO of Sevenlabs, Claudio Levrini said,

“TDEX leaves to the liquidity provider full control on using a fixed price strategy or add external price feeds and custom trading logic.”

Can Liquid’s TDEX outshine Uniswap?

Blockstream CEO, Adam Back, has once and again professed his undying love for Bitcoin as the top functioning crypto project. At the launch of the Liquid-based TDEX platform, Back said the exchange would increase the number of DeFi projects on Bitcoin’s second layer platform. He said,

“TDEX is an exciting example of the increasing number of DeFi solutions emerging on Liquid — or as we like to call it, LiFi.”

Several competitors stand in the way of Liquid reaching the top, starting with Uniswap, which currently trades over $150 million daily in ERC-20 tokens swaps. Wrapped BTC (wBTC) or BTC on Ethereum, has grown into the most extensive “form of BTC” due to the growth of DeFi products. Currently, wBTC held on ETH is more than the combined total of BTC held in its layer two protocols such as Liquid Network and the Lightning Network.

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Polkadot (DOT) Is Now Fully Decentralized After Community Governance Removes Web3 Foundation Admin Rights

Polkadot (DOT), a blockchain aiming at scalability, security, and connecting other blockchains, is now fully decentralized following a successful vote through community governance. The majority sees the blockchain drop admin rights by Web3 Foundation to introduce a token governance system on the platform.

A tweet sent out at 8.03 AM GMT, Gavin Wood, co-founder of Parity Technologies, lead developer of Polkadot, confirmed the transition to a permissionless network at block #799,302 opening up a new governance future for the community.

The enacted governance proposal introduces an improved “community governance system,” which allows DOT holders to vote and influence decisions on the development of the Polkadot blockchain directly. The governance system also enables the community to vote on changes on the DOT token, such as the recent redenomination proposal of the genesis tokens.

The permissionless blockchain also dropped the admin rights held by Web3 Foundation, making the blockchain fully decentralized. To fully release the blockchain to the community, the vote also struck off the “Chain Candidate 1 (CC1)” tag for its mainnet network.

From Permissioned to Permissionless

After being in the works for the past three years, the Polkadot mainnet finally launched in May, limiting some features to agents and the admin. This permissioned proof of stake (PoS) blockchain allowed Web3 Foundation to take charge of the blockchain in case of a problem or maintenance issue on a newly launched mainnet.

Over the weeks, the community governance has gained more power from the admins through the proof of stake, with nearly 200 validators currently controlling half the DOT supply.

In 2020, the developers and Web3 Foundation have taken massive strides in ensuring the blockchain becomes decentralized. Chainlink selecting to build on Polkadot (only after Ethereum), the development of a Bitcoin Parachain that brings BTC and BTC-backed assets on Polkadot and the launch of staking services – supported by Coinbase and Bison Trails – shows a bright future for the blockchain, Gavin said.