Venus Protocol, a decentralized platform for borrowing, lending and earning, is official Launched VIP-129 Governance Proposal focused on migrating TUSD contracts on BNB Chain.
Venus Protocol migrates TUSD contracts on the BNB Chain
The migration behind VIP-129 involves reducing the existing TUSD market and providing support for the new TUSD native contract on Venus.
goals that an offer It is planned to be achieved including the deployment of a new market with a new TUSD contract based on the BEP-20 as the new native token. It will start to depreciate or reduce the existing market that uses the old BEP-20 TUSD contract, or TUSD_OLD.
Finally, a successful vote and implementation of the VIP-129 protocol will lead to changes in the Venus protocol. All borrowing, supply and leverage of existing TUSD will be temporarily suspended for the existing TUSD Market, and the market will be renamed TUSDOLD.
Moreover, the XVS distribution in TUSDOLD will be set to zero, while the distribution will migrate to the new TUSD Market, and it will be set at 12.5 XVS per day. XVS is the ruling symbol for the Venus Protocol.
The old vTUSD market will be upgraded and renamed Venus TUSDOLD. The reserve factor in the old TUSD will be set to a maximum (100%), and the collateral factor will be halved (55%).
Security and cost implications
With the new market and the original TUSD contract, Gauntlet Network partners Using the Venus protocol by joining the BNB chain to manage market risks, improve capital efficiency, and simulate the protocol recommendations of Venus.
In line with this, the Gaulet network suggested setting up specific setups so that the new market would have sufficient liquidity. They include a guarantee factor of 0%, a reserve factor of 25%, a borrowing ceiling of NT$600,000, and a supply ceiling of NT$1,000,000.
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To ensure sufficient security, the integration of the old vTUSD and new vTUSD markets will be tested in a simulated environment to verify functionality.
Moreover, to avoid the effects of lack of liquidity, an initial liquidity of $10,000 will be provided as pre-market liquidity. This measure will also help protect against possible attacks on empty pools, which have been observed in other lending protocols.
Prior to this scheduled migration, TUSD borrowers are advised to repay TUSDOLD Loans to avoid liquidation.
Meanwhile, Venus Protocol also said that Binance, in cooperation with the Tusdio team, will soon launch a swap from TUSD to TUSD_OLD during the Venus TUSD_OLD market miniaturization period.