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Venus, a leading decentralized lending protocol with a total value lock (TVL) of over $2.3 billion, is launching a mechanism to increase deflation with its BNB chain Venus Afterburn. The initiative will showcase BNB’s quarterly burns, the native token of the BNB chain, and one of the top three cryptocurrencies by market capitalization.
What is Venus Afterburn?
Venus Afterburn is a native BNB burning mechanism, with 25% of Venus Protocol’s revenue for the BNB chain (formerly allocated to the Ministry of Finance) currently being used for quarterly token burns. Based on the 2024 figures, this amounts to around 9,900 BNB (approximately $6 million).
Venus generates the majority of its revenue from borrowing, with over 90% of its revenue coming from the BNB chain. In 2024, borrowing activities driven by Binance LaunchPools generated millions of dollars in revenue. You will need a temporary staking BNB to participate in LaunchPools. This creates demand for borrowed BNBs and encourages users to obtain loans via Venus.
Therefore, the launch of Venus Afterburn will improve both the appeal of LaunchPool and the revenue of the protocol, leading to an increase in BNB Burns, which will have a positive impact on Token’s economy. In other words, a higher APR in LaunchPool encourages users to borrow more on Venus. This increases the revenues of the protocol and increases the volume of BNB Burning. This reduces the supply of BNB and makes the assets more attractive to long-term holders.
Combustion in crypto is the process of permanently removing tokens from the circulation and reducing total supply.
Important Benefits of BNB
BNB Booster: All blocks acquired trigger BNB burns, increase value and cause sustainability of the protocol. Long-term Integrity: Support BNB holders by increasing asset value and promoting continuous liquidity, particularly with LaunchPools. Burn-and-earn Gamification: With monthly leaderboards, top contributors and markets achieve burn goals and promote community engagement. Liquidity Support: The BNB Chain Foundation steadily adds fluidity to Venus and strengthens the role of ecosystems.
Important Benefits of XVS
In addition to the benefits of BNB chaining, the Venus Ecosystem also gains significant benefits, such as the protocol’s native tokens and the important benefits of XVS.
More powerful token utility: As XVS is used to reward lending and borrowing activities, the BNB Burns Boost Venus Protocol utility links XV to a positive growth-driven ecosystem is repeated. No emissions dilution: revenue used for burns, no new XVs have been created – protect holders from inflation. Governance Control: Burns was implemented only after Venus Improvement Proposal (VIP), Audit, and Community Voting – Grants XVS Holders the authority to control protocol changes through on-chain voting. Liquidity Growth: Increased liquidity and borrowing of BNBs will increase fees and TVL, enhancing the role of XVS as a governance token. Market Visibility: Supported by BNB Chain Campaigns, XV will gain wider recognition, deeper listings and higher trading volumes. User Engagement: “Burn and Earn” incentives and leaderboards boost platform stickiness and long-term user retention.
About Venus
Venus is the leading Defi protocol for Crypto’s lending and borrowing, exceeding $2.3 billion on TVL. It works on multiple blockchains, including BNB Chain, Ethereum, Opbnb, Arbitrum One, Zksync, Optimism, Base, Unichain, and more. The platform offers user-friendly and extensive features for a wide range of lending markets and seamless interactions, with over 70 markets available, making it one of the most comprehensive lending platforms.
Venus stands out for its strong security standards that have been audited multiple times by Certik, Peckshield and other trusted companies. With a security score above 91 from Certik, Venus is ranked one of the top 10 lending and borrowing projects, ensuring the safety and reliability of its ecosystem.
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