Venus (XVS) In-Depth Look (Fees and Yield Explained, How to Supply, Borrow And Mint On The Platform)
In this article, let’s explore the Venus platform in detail. We’ll look into the borrowing fees, XVS and BNB interests, and more. We’ll also be touching on how to supply, borrow, and mint on Venus.
I have documented everything for you to know what to expect as you begin using the Venus platform.
Here, you can see the Venus protocol. And here’s the MetaMask wallet on the Binance Smart Chain:
If you want to know how to set up BSC on MetaMask wallet, check out our youtube video and have your wallet set up to receive BEP20 crypto assets from the Binance exchange:
Have your MetaMask set to the BSC network so that you can use the wallet address to interact with any of the BSC decentralized applications like Venus.
Venus is one of the decentralized lending protocol on Binance, and I highly encourage you to make the most of the platform while you still can to maximize new farming strategies available at this point.
As you can see in this wallet transaction, 5 days ago I have borrowed 471 Swipe tokens, and we will be talking about the fees associated with that.
As you can see here, there’s a Supply Balance of $3,050.43.
You are able to collateralize your assets and borrow up to 75% of your Supply Balance (depends on the assets you used as collateral). But in my experience, I was able to have a borrowing limit of up to 60%. That’s $1830.26.
Under Supply Market, you can see the list of assets you have supplied.
In my case, I have supplied BNB, and here are the details. My annualized yield is shown below. You are free to collateralize any asset to grow your borrowing limit.
Under Borrow Market, you can see that I have borrowed 471 SXP.
This transaction can be reviewed on BscScan.
If you click, you can view the borrowing interests and incentives. Distribution APY is the incentive you’ll receive for borrowing tokens which is pretty amazing. Only the Venus platform has this awesome opportunity. Here, you can also see the borrow balance, borrow limit used, and more.
It’s not advisable to borrow a total amount close to your borrowing limit as that can put you in a tricky situation in terms of liquidation. If the BNB price drops dramatically or the SXP price increases significantly, that can pose certain risks when it comes to liquidation.
If I pay the interest within five days, that would cost me 0.2091 Swipe Tokens. If you want to repay the borrowed amount, I’ll be discussing that as well later in this article.
Now, let’s talk about minting or repaying the borrowed amount. (Take note that whether you supply, borrow, or mint, you’ll be receiving XVS tokens.)
How to Repay Borrowed Tokens
Quick tip: It’s best to supply more to increase your supply balance and also grow your borrowing limit. This boosts the potential of farming more tokens and is an efficient strategy for maximizing gain. However, you need to make sure that you’re repaying borrowed tokens plus the interest accrued promptly. Here’s how to repay borrowed tokens:
- Go to the Borrow Market tab.
2. Click SXP or whatever asset you’re actively borrowing and intending to repay.
3. Click “Repay Borrow”. Clicking on Max will show you how much is the full amount you owe. If you want to repay partially though, you can. Just input the exact amount you intend to repay.
4. After choosing whether you’re going to repay in full or partially, click “Repay Borrow”. The MetaMask pop-up will appear. Just confirm in your ledger and complete the transaction.
5. As soon as you clear the borrowed amount, your dashboard will be updated and your borrow balance will be back to zero.
How to Supply More XVS Tokens
- Go to the “Supply Market” tab.
2. Choose which asset you’re going to supply. You can check the same page to see which assets have balance, so you can know which one you can further stake to your account. In this case, the account has 2,439. SXP tokens that can be further added to the supply balance.
3. Click the chosen token, click “Max” or any amount you wish to supply, and then click “Supply”.
4. Confirm MetaMask notification. Wait shortly till the transaction is complete.
5. As soon as the transaction is successful, your dashboard will be updated, and as you can see, Swipe tokens are already staked. You can do the same process when supplying other tokens from your dashboard. Take note that when you’re interacting with a token for the first time, just click “Enable” when the prompt shows (as shown below) and give the smart contract permission to accept the token. Also, don’t forget to toggle the collateral when you’re adding a new token for the first time.
6. Once done, you’ll see the APY and supply balance updated. 60% of your total supply balance will be your new borrowing limit.
7. You can also check your account to see whether or not you have earned Venus tokens and decide when you should collect them. But it’s recommended to accumulate more of the rewards before you collect/harvest them as you can save some gas fees.
Those are the basic things you need to know about how to supply, borrow, and repay tokens on Venus platform. Venus is indeed a promising platform with so much potential, especially for the DeFi lending space. Take the time to learn how to use such financial tools in order to maximize your crypto asset returns.