Venus Protocol releases V4 whitepaper, introducing isolated pools to enhance scalability

ChainCatcher news, the lending protocol Venus Protocol on BNB Chain has released the Venus V4 whitepaper, which improves risk management, decentralization, and user experience.

In terms of risk management, Venus V4 introduces Isolated Pools, aimed at addressing the drawbacks of building protocols using a single liquidity pool, adding scalability to the largest liquidity protocol on BNB Chain. Venus isolates the risk of assets from the protocol's core pool; it introduces an isolated environment for assets whose volatility is much lower than that of traditional cryptocurrency assets, rather than being overly volatile; by introducing new funding pools, the risk management and functionality of each pool can be customized for any given asset class or profile.

The isolated pool system is based on the PoolRegistry contract. It maintains a directory of independent lending pools, allowing the creation and registration of new pools, and provides getter methods to obtain pool details. To add new markets to existing lending pools, the PoolRegistry deploys the JumpRateModelV2 or WhitePaperInterestRateModel contracts, deploying upgradable VTokens for the market before obtaining approval from the market's head accountant. (source link)