Decentralized exchanges or automated market makers are an integral part of the cryptocurrency market. They provide one of the first use cases of the blockchain technology by breaking the autonomy of centralized exchanges in the market. While the blockchain technology advocates for freedom in the form of decentralization, a major chunk of crypto holders utilizes centralized exchanges like Binance and Coinbase. Thus, the advent of decentralized exchanges was necessary as the use of cryptocurrencies was against the fundamental beliefs.
There has been an influx of DEXs in the market but there is little scope for further innovation. While the DEX segment is dominated by projects like Uniswap, there are also lesser-known projects which solves some of the problems with the technology. Today, we will discuss one such project – Venus.
What is Venus?
Venus is essentially a decentralized exchange which is a version of traditional exchanges but running on the blockchain technology. Decentralized exchanged offer greater freedom and lesser costs to users. Venus is also a synthetic stablecoin protocol apart from being an automated market maker. The stablecoin of the platform, VAI, offers users shelter from the infamous volatility of the crypto market. However, the native token, XVS is responsible for governance and voting purposes.
Venus is a project of Swipe and is based on Binance Smart Chain. Being a project of BSC, Venus has plenty to offer to its users – for example, it has a good scalability and offers lower transaction costs as well as higher speed. Venus is also the first project to allow its users to access liquidity through the lending markets for Bitcoin, Ethereum and other cryptocurrencies. Liquidity can also be accessed very easily as users do not have to go through credit checks. This helps Venus solve the lack of liquidity, a problem that often plagues decentralized exchanges.
Future outlook
Venus has some features that sets it apart from other lesser-known decentralized exchanges; however, the sector continues to be dominated by other DEXs. This poses challenges for Venus when it comes to its future outlook. Nonetheless, the project is considered to have good potential in the long run.
At the time of writing, Venus token stands at a price level of $29.63. The price has been declining in the daily timeframe. According to the estimates of Wallet Investor, XVS token is expected to be operating at a price level of $55 in a year’s time. The price is expected to reach $175 in five years’ time. Digital Coin Price is also bullish on Venus and estimates a price of $103 by 2026.
