Binance Coin (BNB) price is trending around 8% higher on the week, enough to comfortably trade above the intraweekly resistance around the $27 mark.
Fundamental analysis: Binance launches Venus
Binance, a major crypto exchange, launched Venus – a new “decentralized” stablecoin system. The crypto exchange developed the new stablecoin on the Binance Smart Chain and plans to mint the decentralized stablecoin called VAI, supported by several BEP-20 tokens.
The new stablecoin protocol can be viewed as a combination of MakerDAO and Compound, said Binance Chief Executive Changpeng “CZ” Zhao.
“VAI is minted by the same collateral that is supplied to the protocol. Users can borrow up to 50% of the remaining collateral value they have on the protocol from their vTokens to mint VAI,” said the crypto exchange. “The collateral provided to Venus will be represented by vTokens (such as vBTC) which will enable users to redeem the underlying collateral as well as to borrow against it.”
With Venus, the users will be in the position to stake their Binance coin (BNB), Binance stablecoin (BUSD), and Swipe (SXP) tokens into individual pools to accumulate Venus (XVS) tokens, starting from Tuesday. The exchange then plans to list XVS into the Innovation Zone on October 6 and make XVS/BTC, XVS/BNB, XVS/BUSD, and XVS/USDT pairs available for trading.
The Venus system is built by Swipe Wallet, which the exchange bought earlier in 2020 for an unknown amount. Binance pointed out that the protocol eliminates “current pain-points” of Ethereum, including network congestion and high transaction costs since it’s developed on the Binance Smart Chain.
The leading crypto exchange first spoke about Venus last August. At that time, Binance referred to Venus as a “regional version of Libra.”
Technical analysis: Resistance broken
BNB/USD is trading nearly 5% on the day to total weekly gains to over 7%. Today’s move higher has helped the digital asset to trade above the resistance block between $26 – $27. A return to this area would provide a solid opportunity to invest in BNB.
A close above this area would automatically transform it into the support zone. The intraweekly resistance is located at $29, while the key monthly area of interest is around the $34 handle, which hosts a 1-year high set two weeks ago.
Digital currency exchange Binance has rolled out a new “decentralized” stablecoin protocol called Venus, to which Binance CEO Changpeng Zhao refers to as a mixture of MakerDAO and Compound. In the meantime, BNB pushed cleared resistance around $26 – $27.