VAI is the native decentralized stablecoin of the Venus Protocol, which can be minted and exchanged on the Venus platform built on Binance Smart Chain.

VAI is the BEP-20 native functional token of Vai and has the following use cases:
Over-collateralized minting, where users can mint VAI on Venus using vTokens from underlying collateral previously provided to the platform.
Earning interest by depositing VAI into Venus Vaults and participating in Venus liquidity programs.
Participating in protocol governance to modify VAI parameters.

Holders of Venus tokens can create proposals and change specific VAI parameters by leveraging the on-chain governance system. These parameters include:
Maximum Supply: This determines the maximum number of VAI that can be minted at any given time.
Interest Rate: The interest rate parameter controls the interest fees users pay for minting VAI. Interest payments go directly into the community fund.
Collateral Ratio: The liquidation price is controlled by the collateral ratio of each synthetic stablecoin.
Penalty Ratio: If a liquidation occurs, a penalty must be paid to the protocol. This penalty ratio is set by the protocol.