Venus

Lending

Venus is a money market protocol that allows users to lend and borrow assets permissionlessly.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Venus is the premier lending platform to supply and borrow BNB Chain assets with an easy to use interface.
What we like less
The protocol's poor risk framework has resulted in accumulation of significant bad debt (>$77M) relative to their total value locked (TVL).
What it means for you
Venus is the top money market platform to earn interest on your crypto assets on the BNB Chain given higher interest rates from ongoing token emissions.

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Information
Exploit/Hacks
One
Info
Key Metrics
  • TVL: $1.7B (Rank #16)
  • TVL Ranking by Lending: #4
  • Blockchain: Binance, Ethereum
  • Chain TVL
    • Binance: $1.71B
    • Ethereum: $1.29M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; CertiK audited in December 2020
  • Public team promotes accountability
  • One mitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one minor governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Secured lending market that uses a combination of isolated and cross-collateral pools depending on the individual asset serves to reduce risk
  • Solid controls in place to prevent risky borrowing
  • Solid mechanisms in place to ensure healthy liquidations
  • Robust methods to accrue protocol reserves
Things to know about Venus

How Venus works

Venus consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Venus borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Venus are driven by market supply and demand. To facilitate this activity, Venus issues vTokens to lenders that reflect accruing interest on the underlying token.

How Venus makes money

Venus currently charges a reserve factor that allocates a share of borrowers' fees to the protocol. Each supported asset has a reserve factor that determines how much goes into the reserve.

How you make money on Venus

You earn lending fees on Venus by depositing your idle crypto assets to be used by borrowers looking for leverage. Venus also offers ongoing protocol incentives in its native XVS token to bootstrap demand for certain assets.

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Venus Pools
Venus BTC Lending
0%
Yield
$868M
TVL
Risk
C
Protocol
Venus
Chain
BNB Chain
Venus ETH Lending
0.9%
Yield
$127M
TVL
Risk
C
Protocol
Venus
Chain
BNB Chain
Venus USD Lending
9.2%
Yield
$58M
TVL
Risk
C
Protocol
Venus
Chain
BNB Chain
Venus USD Lending
9.1%
Yield
$19M
TVL
Risk
C
Protocol
Venus
Chain
BNB Chain
Venus USD Lending
9%
Yield
$645K
TVL
Risk
C
Protocol
Venus
Chain
BNB Chain

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