Venus Protocol: Bringing DeFi to the masses

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Achiev­ing mass adop­tion seems like it requires going down the road of cen­tral­iza­tion. How­ev­er, projects like the Venus Pro­to­col show that it’s quite pos­si­ble to bring DeFi to the mass­es by strik­ing a bal­ance between the secu­ri­ty of decen­tral­iza­tion and the ease of use cen­tral­ized ser­vices offer.

The first algo­rith­mic mon­ey mak­er to launch on the BNB Chain, Venus Pro­to­col put Binance’s blockchain net­work on the map. Brad Har­ri­son, the CEO of Venus, said that it was the first dApp to launch on BNB Chain and has remained one of the most pop­u­lar projects on the blockchain since.

Speak­ing to Cryp­tonites’ Alex Fazel at the Paris Blockchain Week, Har­ri­son said that the Venus Pro­to­col was cur­rent­ly the most pop­u­lar project on BNB Chain, with its trans­ac­tion vol­ume exceed­ing that of Ethereum.

The goal of the project was to bring decen­tral­ized finance to more peo­ple. To achieve that, Har­ri­son believed that Venus need­ed to strike a bal­ance between the free­dom of decen­tral­iza­tion and the con­ve­nience of cen­tral­iza­tion. This is why Venus chose to launch on BNB Chain instead of on a larg­er blockchain with a big­ger net­work effect like Ethereum.

Anoth­er major rea­son Venus decid­ed to launch on the much small­er and less­er-known BNB Chain was to make it more acces­si­ble to a larg­er num­ber of users.

“I call Ethereum the Bev­er­ly Hills of blockchain.”

Har­ri­son explained that while devel­op­ers in Europe and North Amer­i­ca were most­ly build­ing on Ethereum, the rest of the devel­op­ing world was focus­ing on BNB Chain — which is where Venus decid­ed to be.

Binance’s blockchain now has one of the biggest rates of user adop­tion out of any net­work, sur­pass­ing its larg­er and old­er com­peti­tors both in terms of trans­ac­tion counts, trans­ac­tion vol­umes, and TVL.

How­ev­er, he real­izes that there are sac­ri­fices when using what is essen­tial­ly a per­mis­sioned, cen­tral­ized network.

“It comes with tradeoffs.”

And while some might raise con­cerns over just how “decen­tral­ized” a BNB Chain project real­ly is, Har­ri­son said that both Venus and BNB Chain were work­ing on becom­ing more decen­tral­ized. There are things hap­pen­ing behind the scenes that will make BNB Chain more secure and less reliant on cen­tral­ized ser­vices, he told CryptonitesTV.

That hasn’t stopped users from onboard­ing to Venus. Har­ri­son said that the major­i­ty of its users want a ser­vice that’s effec­tive, easy to use, and that saves them mon­ey — and Venus checks all the boxes.

To attract more users to the plat­form, Venus is work­ing on intro­duc­ing new ser­vices, includ­ing sta­ble yield and under­col­lat­er­al­ized loans. The project is posi­tion­ing itself to be able to cater both to insti­tu­tions and retail investors it believes will flock to the cryp­to mar­ket in the com­ing months.

“It’s a mat­ter of time when we’ll be talk­ing about liq­uid­i­ty in terms of tril­lions, not bil­lions. DeFi is here to stay.”

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