How does XVS impact the stability of the Venus Protocol’s stablecoins?

How does XVS impact the stability of the Venus Protocol’s stablecoins?

Blog Article

XVS plays an indirect yet crucial role in maintaining the stability of the Venus Protocol’s stablecoins. While XVS is primarily a governance token, the decisions made by its holders can directly impact the protocol’s collateral ratios and the assets supported by the stablecoins. Governance decisions influence the underlying mechanics that ensure these stablecoins remain pegged to their respective values. By keeping an eye on XVS, users can anticipate how shifts in governance might affect the stability of the Venus-issued stablecoins.