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Venus, a high -level decentralized loan protocol with more than $ 2.3 billion in total locked value (TVL), launches a deflation strengthening mechanism on the BNB – Venus Afterburn chain. This initiative presents quarterly burns from BNB, the native token of the BNB chain and one of the 3 best cryptocurrencies by market capitalization.
What is Venus Afterburn?
Venus afterburn is a native BNB burning mechanism, where 25% of Venus’ protocol revenues on the BNB channel – previously allocated to the Treasury – is now used for quarterly tokens burns. Based on the figures of 2024, this would amount to around 9,900 BNB (about $ 6 million).
Venus generates most of its income from the loan, with more than 90% of income from the BNB channel. In 2024, the loan of the activity motivated by Binance Launchpools generated several million dollars in revenues. Participation in Launchpools requires temporarily marking BNB, which creates a borrowed BNB request and encourages users to contract loans via Venus.
Consequently, the launch of Venus Afterburn will improve both the attractiveness of the launch and the income of the protocol, leading to an increase in BNB burns, which will have a positive impact on the economy of the token. In other words, the highest APRs in the launch encourage users to borrow more on Venus, which increases the income from the protocol and widens the volume of BNB Burning. This reduces the supply to BNB, making the assets more attractive for long -term holders.
Crypto burn is the permanent traffic elimination process, reducing the total supply.
Key advantages for BNB
- BNB Booster: Each unit won triggers a BNB burn, strengthening value and sustainability of the protocol.
- Long -term alignment: Supports BNB holders by increasing the value of assets and encouraging continuous liquidity, especially in Launchpools.
- Burning gamification: Monthly rankings to reward the main contributors and markets reaching burn targets, which stimulates community engagement.
- Liquidity support: BNB Chain Foundation will regularly add liquidity to Venus, strengthening its ecosystem role.
Key advantages for XV
In addition to the benefits for the BNB channel, the Venus ecosystem also benefits from significant advantages, including key advantages for the native token of the protocol, XVS:
- Stronger token utility: Recurrent BNB burns increase the usefulness of the Venus protocol, connecting the XV to a positive and growth -focused ecosystem, because XVS is used to reward loan and loan activity.
- No emission dilution: Income used for burns, no new XVS has struck – protecting inflation holders.
- Governance control: Burns has only implemented after the proposal to improve Venus (VIP), audit and community vote – allowing XVS holders to control the protocol changes by vote in mind.
- Liquidity growth: The increase in Liquidity of BNB and the loan leads higher costs and TVL, strengthening the role of XVS as a governance token.
- Market visibility: Supported by the BNB chain campaigns, XVS wins wider recognition, deeper announcements and a higher trading volume.
- User engagement: “Burns” incentives and rankings stimulate the platform and long-term retention of users.
About Venus
Venus is a leader leader for the loan and crypto loan, with more than $ 2.3 billion on TVL. It works on several blockchains, including the BNB, Ethereum, Opbnb, Arbitrum One, Zksync, Optimism, Base and Unichain chain. The platform offers a sequence of user-friendly and in-depth features for a transparent interaction with a wide range of loan markets, with more than 70 available markets, making it one of the most complete loan platforms.
Venus is distinguished by its solid security standards, having undergone several audits by Certik, Peckshield and other trusted companies. With a safety score of more than 91 Certik, Venus ranks among the ten main loan and loans projects, ensuring the safety and reliability of its ecosystem.
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