Venus Protocol, launched in November 2020 on the BNB Chain, has become a leading platform in decentralized finance, offering unique opportunities for users involved in cryptocurrency lending and borrowing.
What is Venus Protocol?
Venus Protocol is an advanced lending and borrowing platform that brings traditional finance models into the DeFi sphere. It allows users to supply various cryptocurrencies to earn interest or borrow against collateral. A key innovation of the platform is VAI, a synthetic stablecoin maintaining a 1:1 peg with the US dollar. The protocol features dual interest rate models, and with the introduction of Venus V4, stable rate markets and real-time collateral evaluation systems were added.
Venus Growth and Metrics
According to the January 2025 performance report, Venus Protocol demonstrated considerable growth throughout 2024. The total value locked reached $1.9 billion, ranking it 6th among lending protocols. Net deposits increased by 58.3% to $1.69 billion, and fee generation rose 106% to $105.2 million. The protocol's reserves grew by 61.5% to $142 million, while bad debt was reduced by 99.9%.
Future Plans and Expansion
Venus Protocol's growth strategy is focused on expanding access and utility across multiple blockchain networks. The protocol’s infrastructure, powered by LayerZero's XVS bridges, facilitates cross-chain operations. Recent developments include a potential strategic merger with THENA to enhance yield opportunities and capital efficiency. Plans for 2025 include the launch of Venus V5 and support programs on Arbitrum and ZKsync-Ignite platforms.
Since its launch in 2020, Venus Protocol has established itself as a leader in DeFi lending. Through careful risk management, strategic expansion, and continuous innovation, it continues to make significant strides in the DeFi ecosystem.
