<p>Crypto exchange <a href="https://www.theblockcrypto.com/linked/65586/binance-domain-name-china">Binance</a> has unveiled a new “decentralized” stablecoin system called Venus.</p> <p>The <a href="https://venus.io/">system</a> is built on the Binance Smart Chain and will mint the decentralized stablecoin called VAI, <a href="https://research.binance.com/en/projects/venus">backed by</a> a basket of various BEP-20 tokens (BEP-20 is Binance's token standard). The Venus protocol can be seen as a mixture of MakerDAO and Compound, said <a href="https://www.theblockcrypto.com/linked/72725/binance-lists-maker-and-dai-tokens-amid-defi-boom">Binance</a> CEO Changpeng “CZ” Zhao.</p> <p>"VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI," said Binance. "The collateral provided to Venus will be represented by vTokens (such as vBTC) which will enable users to redeem the underlying collateral as well as to borrow against it."</p> <p>Using the Venus protocol, users <a href="https://www.binance.com/en/blog/421499824684901037/Binance-Launchpool-Introduces-Venus-Protocol?ref=JLI1VBLA&amp;utm_source=BinanceTwitter&amp;utm_medium=GlobalSocial&amp;utm_campaign=GlobalSocial">will also be able to stake</a> their Binance coin (BNB), Binance stablecoin (BUSD), and Swipe (SXP) tokens into separate pools to farm Venus (XVS) tokens, beginning Tuesday. <a href="https://www.theblockcrypto.com/linked/6590/binance-adds-more-fiat-coin-trading-pairs">Binance</a> will then list XVS into the Innovation Zone on October 6 and open trading for XVS/BTC, XVS/BNB, XVS/BUSD, and XVS/USDT pairs.</p> <p>The protocol is developed by Swipe Wallet, which <a href="https://www.theblockcrypto.com/linked/66078/binance-aims-to-create-one-of-the-worlds-largest-blockchain-based-travel-agencies">Binance</a> acquired earlier this year for an undisclosed amount. Binance said the protocol removes “current pain-points” of Ethereum, such as network congestion and high transaction fees, as it is built on the Binance Smart Chain.</p> <p>Binance <a href="https://www.theblockcrypto.com/post/36611/binance-planning-to-launch-venus-similar-to-facebooks-upcoming-cryptocurrency-libra">first revealed</a> a project called Venus last August. At the time, <a href="https://www.theblockcrypto.com/linked/72029/binance-not-authorized-malaysia-financial-regulator">Binance</a> said Venus would be a "regional version of Libra." </p>