Since its inception in 2020, the community-driven Venus Protocol has successfully offered an autonomous and non-custodial utility for supplying liquidity and collateralization of digital assets. In that time, community feedback and data analysis have charted a path toward improving the protocol’s performance.

After 2 years of remarkable growth in which Venus at one point became the most transacted in its category, this Venus Request for Comment (VRC) proposes community approval for upgrading the protocol across numerous areas as outlined below.

We’re pleased to present Venus V4, the next generation of features to advance DeFi. In particular, Venus V4 improvements address three key areas: risk management, decentralization, and user experience.

Risk Management >Isolated Markets: opens the door to sustainably onboard many more assets than what Venus Protocol currently supports. >Stable Interest Rate Borrowing: Offers a new financial instrument for stable rate loans across all markets. >Risk Management Upgrades: Provides a mechanism for shortfall coverage, as well as a stability fee to keep VAI pegged. >Bonds: a new primitive and mechanism for refinancing of protocol insolvencies

Decentralization >Governance: faster interest rate parameter modifications, new role assignment, fine-grained pausing of specific actions within specific markets, and longer governance intervals for contract upgrades and role reassignments. >Price Feed Redundancy: Adds the capability for multiple price feed oracles to be supported on the same asset as a fallback measure to eliminate a single point of failure.

User Experience >Integrated Swap: Integration with external DEX’s enables one-click borrow and repay. This lets any user borrow or lend any asset of their choice without already having it in their wallet, while on the back end a portion of DEX fees goes towards Venus Protocol.

Read all about it in our Community post: https://lnkd.in/gjQXH56B

Since its inception in 2020, the community-driven Venus Protocol has successfully offered an autonomous and non-custodial utility for supplying liquidity and collateralization of digital assets. In that time, community feedback and data analysis have charted a path toward improving the protocol’s performance.

After 2 years of remarkable growth in which Venus at one point became the most transacted in its category, this Venus Request for Comment (VRC) proposes community approval for upgrading the protocol across numerous areas as outlined below.

We’re pleased to present Venus V4, the next generation of features to advance DeFi. In particular, Venus V4 improvements address three key areas: risk management, decentralization, and user experience.

Risk Management >Isolated Markets: opens the door to sustainably onboard many more assets than what Venus Protocol currently supports. >Stable Interest Rate Borrowing: Offers a new financial instrument for stable rate loans across all markets. >Risk Management Upgrades: Provides a mechanism for shortfall coverage, as well as a stability fee to keep VAI pegged. >Bonds: a new primitive and mechanism for refinancing of protocol insolvencies

Decentralization >Governance: faster interest rate parameter modifications, new role assignment, fine-grained pausing of specific actions within specific markets, and longer governance intervals for contract upgrades and role reassignments. >Price Feed Redundancy: Adds the capability for multiple price feed oracles to be supported on the same asset as a fallback measure to eliminate a single point of failure.

User Experience >Integrated Swap: Integration with external DEX’s enables one-click borrow and repay. This lets any user borrow or lend any asset of their choice without already having it in their wallet, while on the back end a portion of DEX fees goes towards Venus Protocol.

Read all about it in our Community post: https://lnkd.in/gjQXH56B