Venus Reveals Airdrop Specifics (Including an NFT and $VRT)
Correction: Venus will be conducting the snapshot for the airdrop on May 15th, with the distribution finalized by the 24th.
Venus is going to be conducting an airdrop on $XVS token holders on May 15th. I wrote a post introducing Venus a few weeks ago, but it is an application on Binance Smart Chain that allows you to borrow against your collateralized assets.
Currently, there are two main tokens on the platform:
- $XVS: the reward token for providing assets to the platform, which doubles as the governance token of the platform
- $VAI: a $DAI clone, that is minted in the same fashion (proposals are underway to fix the issue with $VAI pegging)
This airdrop on May 15th will introduce a third token to the ecosystem, $VRT. VRT will become the new reward token for the platform, and then XVS will be strictly for governance.
1000 VRT per XVS will be airdropped to XVS holders. This includes XVS in wallets, and net XVS that you have locked in Venus (vXVS).
The airdrop will also include an NFT for users that hold at least 10 XVS, or xXVS.
In addition to the airdrop announcement, the founder of Venus, Joselito (who also founded Swipe), tweeted about a potential burn of 10 million XVS, or 30% of the total supply.
Venus is decentralized, so $XVS holders would have to hold a vote and agree on the burn, but knowing how this typically goes: I don't see a burn not going through.
This has caused some pretty intense price action today:
I can't say if now is a good time to buy, I think in the immediate future there will always be price fluctuations that will work for and against you, but I'm still pretty bullish on XVS long-term.
If we compare $AAVE and $XVS:
XVS has one fifth of the market cap, and half of the fully diluted market cap. The 10 million XVS burn would mean that the total XVS supply will drop from 30 million down to 20 million, further reducing the fully diluted market cap.
Anyway, it is to be seen. I went ahead and picked some more up today because I've been meaning to, and getting an NFT sounds pretty neat.
Unfortunately, I managed to purchase at around the exact top at $123, but my original XVS purchases were in the $40 range, which keeps me average pretty low still.
Remember to always do your own research before buying, and remember the additional risks that come with borrowing against your collateralized assets. Waking up at 4 AM after that 8bn BTC liquidation and being at a 98% credit limit was not fun.
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