State of Venus Q2 2024

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Network Overview

Venus’ total value locked (TVL) saw a 19% reduction to $2.2 billion in Q2. It is still up 83% year-to-date, ranking it as the sixth largest

In Q2, Venus ended the quarter with $668 million in active borrows, marking a 40% decrease from the previous quarter. While there were spikes in debt issuance throughout the quarter, the trend for new borrows gradually decreased. USDT is the most issued asset and grew 3% to $256 million. It was one of the few assets that increased QoQ, alongside ETH, which rose 47% to $117 million. The primary reason for ETH’s growth was Venus’ launch on Ethereum this April

User activity on Venus reached quarterly highs this quarter, with a notable 16% increase in deposits. April saw the highest monthly deposits of the past year, totaling 20,400. Its peak was spurred by Venus consistently offering higher APYs than other lending protocols on the BNB Chain. Withdrawals decreased by 27% QoQ, while borrow counts also dropped by 15%. That said, the rise in deposits coupled with fewer withdrawals may encourage more borrowing in the next quarter and throughout 2024. Repayment counts decreased slightly by 0.8%, indicating that fewer users are settling their loans. The shift in sentiment is likely due to increasing optimism for higher prices anticipated with the upcoming ETH ETF launch in Q3.

XVS experienced its largest drawdown of the year, declining from a March peak of $16 to $7 by the end of the quarter. Despite this, Venus remains the eighth-largest

Venus Protocol generated over $13 million in revenue this quarter. Over $3 million of revenue was derived from liquidations, including $1.6 million on the last day of the quarter. Interest revenue contributed nearly $10 million of revenue. Daily interest revenue averaged $120,000, reaching another annual peak and growing 20% QoQ. Revenue distribution includes 40% to the risk fund, 40% to the treasury, and 10% each to XVS vault and prime stakers.

XVS staking now sits at 7.4 million. This number has stayed relatively flat throughout the year despite oscillations in interest APYs.

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