WHITEPAPER
The VENERA Whitepaper introduces the first concept of a Proof-of-Work asset backed stablecoin. VENERA was created for Web3 utility fundamentalists, privacy advocates and those who always strive for more. In essence the ecosystem fuses the privacy features and fungibility of Cryptonote, the scalability and programmability of the EVM, DJED derived stablecoin collateral mechanism and innovative VAPL (Venera Accelerated Payment Layer).IntroductionVenera is a privacy focused proof-of-work based cryptocurrency that enables a whole ecosystem to derive from it. VEN is the native asset on the Venera Blockchain, while wVEN is planned to launch on EVM compatible blockchains as a one-to-one analog. The Venera Dollar token USDV will launch on the same transparent blockchains and will be backed by native VEN assets with a minimum ratio of 4:1. The deployment of USDV is highly dependent of the underlying VEN price, in order to be able to launch earlier, the VeneraDEX exchange enforces a floor price. Third party exchanges may trade at a different price causing a risk to the stability of the stablecoin therefore such listings will take place once the market establishes significant liquidity above the floor price.TokenomicsWe kept tokenomics simple and with future plans in mind. The maximum supply is 96,000,000 VEN coins, with 7,500,000 or approximately 7.81% of the total supply minted at launch to fund a variety of incentives controlled by The Vault. The supply inflation curve is consistent in order to keep a proportionate advantage to all adopters.
Presented below is the emission curve of Venera:
The VaultThe Vault holds the 7,500,000 VEN coins allocated to various incentives. This is partitioned as follows:
5% Liquid Asset
50% Staking Pool
25% Development
10% Collateral Reserve
10% Reward Incentives
Liquid Assets: the amount of unlocked liquid coins available for immediate use.Staking Pool: the amount of assets allocated as rewards for stakers.Development: the amount of locked assets that can be mobilised to fund development.Collateral Reserve: the amount of locked assets used to stabilize USDV in a worst case scenario depeg.Reward Incentives: the amount of liquid assets used to actively fund community incentives, different from the 10% mining block fee.MiningAnyone with a laptop, desktop, phone or dedicated mining rig can mine Venera and earn VEN coins. The more hashing power a user contributes to the network, the mining reward increase proportionally.
Block time: 60 secondsAlgorithm: RandomXThe miner block rewards account for 70% of the block rewards and 30% are partitioned for (1) funding stablecoin collateral, (2) staking rewards and (3) social incentives, each accounting for 10%.StakingStaking in Venera is a simple process to lock coins for a predetermined period of time and earn yield passively. This feature is exclusive to the Web Wallet where users can lock their coins for up to 360 days for a maximum return of 20%.Stablecoin Collateral MechanismOnce the Venera stablecoin pegged to the US dollar launches on EVM blockchains, it enables users to mint and redeem USDV. The backing is provided by locking VEN as collateral. The target ratio is 4:1 to ensure stability even in extreme market conditions, with a maximum ratio if 8:1, point at which no more VEN can be locked as collateral. To incentivise users to become collateral providers the yield for this action increases if the current ratio lowers. If the ratio drops below 4:1, collateral providers can no longer redeem their locked VEN until the reserve achieves a healthy ratio again. This approach is similar to the DJED framework implementation, however Venera does not plan to use a 3 asset model and additionally provide the possibility of borrowing against locked assets to enable users to stay liquid.For example:Minting:Since 1 VEN = $0.01, and 1 USDV requires $4 in collateral:
• You need 400 VEN to mint 1 USDV
• (400 VEN × $0.01 = $4 → meets 400% collateral ratio)Those 400 VEN are locked in the protocol, and cannot be used or withdrawn until:
• You burn the USDV you minted
• OR reserve ratio is high enough to allow partial withdrawalsRedeeming:To redeem:
• You burn 1 USDV
• You get back 400 VEN from the system
Or less, if the system adjusts for:
• Fees
• Reserve ratio dipsThe stability of the stablecoin is directly correlated to the robustness of the pricing oracle in terms of data availability and data delivery speed. To prevent exploits caused by sudden price moves, a moving average is used to diminish any potential value extractions resulting in a net protocol loss.Web3 Gap filled by VeneraVenera primarily merges 3 market demands: interoperability, privacy and speed. It is this trilogy that sets Venera apart. Innovating is not always about being the fastest blockchain, at the cost of privacy, or being the most versatile at the cost of decentralization. VEN offers high grade privacy, at the cost of speed. USDV offers speed and versatility at the cost of some privacy, however, the ecosystem as one unit, offers a high level of excellence in all 3 metrics mentioned.This project is the first of its kind, despite some similarities to other projects, the fundamentals are unique. Venera provides a robust Proof-of-Work backed stablecoin, with strong privacy and optional privacy on EVM blockchains.Long Term VisionThe market constantly changes, grows and matures. The Venera Project is committed to its core values and adapt to new market opportunities with a conservative approach. One project will never be able to do it all, and dilluting its few excellement core elements with new attempts at reinventing the wheel are beyond the developers' risk tolerance.Key Targets of the ProjectSecure store of value:
• Protect existing value
• Secured by algorithms, not peopleAlternative Payments:
• Peer-to-Peer payments
• Private payments
• Efficient & affordable invoicingReward Involvement:
• Incentivise direct engagement
• Contributor reward programsDeFi Integration:
• Interoperability with leading ecosystems
• Build and develop on existing DeFi infrastructure
