Venus Protocol Expands to Optimism: Advanced DeFi Features on Layer 2

Popular DeFi lending protocol, Venus Protocol, has scaled its platform on Optimism Network. This is a part of the expansion plan of Venus across several blockchains. Optimism represents one of the Layer 2 scaling solutions aimed at increasing speed and reducing costs while still retaining a connection with the Ethereum mainnet. 

At first, Venus Protocol’s launch on Optimism will offer five major markets: WBTC, WETH, USDT, USDC (native), and OP. These are some of the most traded and valuable assets in crypto. Users on Optimism can now access these assets for lending and borrowing with faster and cheaper transactions. 

What’s a Venus Protocol? 

Venus is currently one of the most popular multichain DeFi lending protocols. It is known for security, with deep audits that give confidence to its users every time they deposit their assets. Governance is handled through the Venus DAO, using the $XVS token. $XVS holders can vote on protocol decisions and earn Real Yield through Venus Prime. 

According to Brad Harrison, the Head of Venus Labs, this move is a furtherance of the logical steps to be taken by Venus Protocol. He expressed his excitement, on behalf of his team, about taking their services to Optimism, which he referred to as “efficient and with a fast-growing ecosystem.” This will make DeFi more approachable and cheaper for people all over the world. 

About Optimism 

Optimism is a Layer 2 scaling solution for Ethereum, offering faster and cheaper transactions while keeping the security of the Ethereum mainnet. It is part of the Optimism Collective, which seeks to grow Ethereum’s technology and values.  

This expansion to Optimism marks a key moment for Venus, opening the door to new users and opportunities in DeFi.  

With this launch, Venus can also apply for Optimism’s Retro Funding program, which has set aside 850M OP tokens to reward developers and contributors. Venus Protocol will now benefit from the following: 

Key Benefits of Venus on Optimism: 

1. Faster Transactions: Optimism’s quick, low-cost transactions make DeFi smoother for users. 
2. Access to New Markets: Optimism has over $650 million in Total Value Locked (TVL). 
3. Better Interoperability: Optimism’s design allows easy integration with other blockchains. 
4. Ethereum Compatibility: Venus will work seamlessly with existing Ethereum infrastructure. 

After the lending markets launched, Venus would migrate its premium Venus Prime program to Optimism. In return, the program would grant additional rewards to participants for greater interaction on the chain. 

But according to Harrison, that’s just the beginning. Venus Protocol plans to deploy new features and an even more robust presence on Optimism. Today, Venus runs on Arbitrum, Optimism, ZKsync, Ethereum, opBNB, and BNB Chain.