Crypto platform Venus Protocol saw a governance vote pass that could have led to a hostile takeover. However, the original team stepped in and stopped it. The lending protocol project runs on Binance Smart Chain( BSC). The malicious takeover attempt appeared first on The Block.
The project was initially compound and Maker Dao’s (Ethereum projects). It has a decentralized governance system in which its holders vote on the changes to the protocol.
What was The Reason for Voting?
The project proposal is meant to form an aside team called Team Bravo. The team was thought to ensure sustainable increased high Venus (XVS) price for its members.
For this to happen, Team Bravo needed to be at the same voting and funding capability level as the original team(The Swipe Project Team). This is why the voting took place. The proposal won with over 1.29 million votes.
It asked for a 1.9 million XVS ($60.8million) allocation in funding for five years. The proposal also provides incentives for token holders to support it. The promise to give 900k XVS($29million) was made in the proposal to those who voted in favor.
But as of now, the venus protocol has less to dish out, and more support is being hustled for its projects. Voting in favor of the project will bring a stop to the project. However, this showed that whoever was behind the address had unfair control over the process.
Therefore, the original team cut the whole proposal shortly after it was passed. It is termed as an attempt to overrule the XVS community’s governance.
Venus(XVS) protocol
Venus(XVS) is a decentralized Marketplace for Lenders and Borrowers. Its protocol asset XVS is bound by synthetic BEP-20 token standard running on BSC for secure fast and low transaction costs.
The venus protocol offers DeFi lending and borrowing solutions on BSC. It allows users to borrow funds using Venus tokens XVS as collateral. The governance of this protocol is purely on XVS community members.
Currently, the total supply of XVS is 30 million tokens, with over 11 million XVS in circulating supply. Its current price at the time of writing was $33.32.
Venus Project
The Venus Project is an organization that recognizes the important connection between global resource mismanagement and problems. Problems like war, climate change, poverty, and hunger.
So the venus project comes in to provide solutions as a response to these challenges. It attempts this by using both science and technology.
However, these problems are still byproducts of a more significant issue. This is because a lot of these issues connect. Therefore, short-term planning with a timely return on investment is needed.
Most recently, the venus protocol faced massive liquidations of over $200 million. However, a subsequent crash following price spikes caused this. this provided users with collateral to borrow greater amounts of funds such as bitcoin and Ethereum.
Venus has been in bad debt of over $95 million worth of bitcoin. This means it will not be able to collect the dues from users.