Lenders deposit funds into Venus and receive interest payments from borrowers (supply-side fees).

Venus is a non-custodial lending protocol built on BNB chain. Venus was founded by Joselito Lizarondo and launched in 2020.

XVS tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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Venus

Venus | Data breakdown

# Venus Earnings Methodology

## 1. Overview

Earnings measures the net value retained by the Venus protocol after all token incentives are subtracted from the protocol revenue. Protocol revenue is primarily generated through a portion of the interest paid by borrowers and a share of liquidation penalties. This metric includes contributions from both the core lending markets and Venus Flux. Earnings reflect onchain profitability across the protocol's multi-chain deployment, representing the net surplus after accounting for user distribution costs.

## 2. Data sources

- **Blockchain events**: `AccrueInterest`, `LiquidateBorrow`, `NewReserveFactor`, and `MarketAdded` events from `vBNB`, `VBep20Delegate`, `VToken`, and `PoolRegistry` contracts, plus `LogCollectRevenue` events from `FluidLiquidity` contracts and ERC-20 `Transfer` events from `XVS` distributor and store contracts, covering BNB Chain, Ethereum, Arbitrum, Base, Unichain, and 3 other chains
- **External data**: End-of-day price feeds for native assets, supplied assets, and the XVS reward asset

## 3. Step-by-step calculation

### Component A: Interest revenue tracking

- **Purpose**: To calculate the protocol's share of interest paid by borrowers
- **Logic**: `AccrueInterest` events are parsed from `vBNB`, `VBep20Delegate`, and `VToken` contracts to extract the total interest accumulated. This value is multiplied by the reserve factor, which is tracked via `NewReserveFactor` events from the same contracts. The reserve factor represents the percentage of interest redirected to the protocol treasury rather than the liquidity providers.

### Component B: Liquidation revenue tracking

- **Purpose**: To calculate the protocol's share of fees generated during liquidations
- **Logic**: `LiquidateBorrow` events are parsed from `vBNB`, `VBep20Delegate`, and `VToken` contracts. The revenue is calculated by multiplying the amount of seized collateral by the current exchange rate and applying a fixed 5% protocol fee. Specific transactions associated with known exploits are denylisted and excluded from this calculation.

### Component C: Venus Flux revenue tracking

- **Purpose**: To capture revenue generated through the Venus Flux integration
- **Logic**: Daily revenue is determined by calculating the daily change in uncollected revenue reported in state call data from `FluidLiquidity` contracts. This delta is added to the value of actual revenue collections captured from `LogCollectRevenue` events.

### Component D: Operating expenses (Token incentives)

- **Purpose**: To track the value of XVS incentives distributed to users
- **Logic**: ERC-20 `Transfer` events are tracked from specific protocol distributor and store addresses, including the `XVSStore` and various `XVSPriceGrader` or `XVSDistributor` contracts. Transfers to internal protocol addresses and known exploiter addresses are excluded to prevent double-counting and data distortion.

### Component E: Final aggregation and USD conversion

- **Purpose**: To normalize all components to USD and calculate net earnings
- **Logic**: Revenue components from interest, liquidations, and Venus Flux are summed and normalized by asset decimal precision. Expenses (token incentives) are similarly normalized and converted to USD using end-of-day price feeds. Earnings are calculated by subtracting total expenses from total protocol revenue. Daily granularity is maintained using UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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