Digital Assets: Floki Partners with Venus Protocol, a Lending Protocol on BNB Chain

Floki is now officially partnered with one of the biggest lending protocols on the BNB chain, Venus Protocol.

Venus claims it is “the leading lending and borrowing protocol on the BNB chain as well as the second biggest DeFi protocol on the chain after top BSC DEX PancakeSwap.”

Venus provides “a simple-to-use crypto asset lending and borrowing solution that allows users to directly borrow against collateral at high speed while losing less to transaction fees.”

Venus will be “integrating FLOKI in their Isolated Money Markets, thereby allowing FLOKI holders on the BNB chain to borrow a basket of other isolated markets cryptocurrencies while using their FLOKI tokens as collateral.”

This is “a significant partnership for Floki.”

With a TVL of $1.35 billion and an 84% market share of the BNB chain lending TVL, Venus is a key DeFi player and one of the biggest DeFi platforms in the industry.

Floki is focused on working on the BNB chain and continues “to build and seek out strategic partnerships that benefit Floki holders, the overwhelming majority of whom have a preference for the BNB chain.”

This partnership further “enhances the utility value of the FLOKI token as it allows FLOKI token holders to easily access liquidity without having to sell their tokens.”

The FLOKI integration process on Venus “has started, and this is expected to be finalized in March after which Floki holders will be able to seamlessly lend and borrow on Venus while using their FLOKI tokens as collateral.”

As noted in the update, Venus Protocol is “an algorithmic-based money market system designed to bring a complete decentralized finance-based lending and credit system onto Binance Smart Chain.”

Venus enables users “to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies.”

This creates “a secure lending environment where the lender receives a compounded interest rate annually (APY) paid per block, while the borrower pays interest on the cryptocurrency borrowed.”

These interest rates are “set by the protocol in a curve yield, where the rates are automated based on the demand of the specific market, such as Bitcoin.”

The difference of Venus from other money market protocols is “the ability to use the collateral supplied to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that protect the protocol.”

These synthetic stablecoins are “not backed by a basket of fiat currencies but by a basket of cryptocurrencies.” Venus utilizes the Binance Smart chain “for fast, low-cost transactions while accessing a deep network of wrapped tokens and liquidity.”

As mentioned in the announcement, Floki claims it is “the people’s cryptocurrency and one of the most recognizable crypto brands in the world.”

Floki currently “has 440,000+ holders as well as a brand recognized by over a billion people due to Floki’s strong marketing partnerships including with a leading Formula 1 team and 8 international football brands.”

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