DAI

Venus is a decentralized lending protocol that allows people to lend and/or borrow crypto assets. It allows users to deposit certain tokens into liquidity pools that they can borrow from. Lenders then earn interest and rewards from the assets they deposit.

vToken is an interest-bearing token minted and burnt upon supply and withdrawal of assets on Venus market. It denotes the amount of crypto assets supplied and the yield earned on those assets. For example, when you deposit Dai, you will receive a certain amount of vDai from Venus. When you redeem it, these vDai will be disposed correspondingly.

XVS is the governance token for the Venus protocol. By supplying certain tokens, you can earn XVS from the protocols as extra rewards on top of base interest. XVS token holders can also propose and vote on changes to the Venus protocol.

Your yield basically includes two parts: 1. Interest paid by the borrowers 2. XVS rewards distributed by protocol Normally, a higher asset utilization rate can lead to a higher lending APY. XVS rewards are variable for each token based on community governance.

Here's one main risk Venus may have: Contract risk: Venus smart contracts could be hacked, or bugs in contracts could be exploited. In such cases, your assets may be lost.