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

VAI is Vai's BEP-20 native utility token and has the following use cases:
Over-collateralized minting, where users can mint VAI on Venus using vTokens from the underlying collateral that users previously provided to the platform.
Earn interest by depositing VAI into the Venus Vault and participating in the Venus Liquidity Program.
Participate in protocol governance to change VAI parameters.

Users who own Venus tokens can create proposals and change specific parameters of VAI by utilizing the on-chain governance system. These parameters include:
Maximum Supply: This determines the maximum amount of VAI that can be minted at any given time.
Interest rate: The interest rate parameter is used to control the interest fee paid by users for minting VAI. Interest payments will go directly to the Community Fund.
Collateralization Ratio: The liquidation price is controlled by the collateralization 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.