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).

governance

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Lending

Venus

Venus | Data breakdown

# Venus Expenses Methodology

## 1. Overview

Venus expenses represents the total USD value of XVS token incentives distributed by the Venus protocol across its multi-chain lending platform. This metric captures the protocol's operational costs for incentivizing user participation in lending and borrowing activities. The calculation aggregates XVS token distributions from official Venus reward distributor contracts across BSC, Ethereum, Arbitrum, and zkSync Era networks, converts them to USD values, and aggregates them daily.

## 2. Data sources

The calculation relies on the following raw data sources:
- **BSC token transfer events**: Parsed `Transfer` events for XVS tokens from Venus distributor contracts on Binance Smart Chain
- **Ethereum token transfer events**: Parsed `Transfer` events for XVS tokens from Venus distributor contracts on Ethereum mainnet  
- **Arbitrum token transfer events**: Parsed `Transfer` events for XVS tokens from Venus distributor contracts on Arbitrum
- **zkSync Era token transfer events**: Parsed `Transfer` events for XVS tokens from Venus distributor contracts on zkSync Era
- **End-of-day price feeds**: Daily XVS token price data for USD conversion
- **Token metadata**: XVS token decimal configuration for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Raw XVS incentive extraction

- **Purpose**: Identify and extract all legitimate XVS token reward distributions from Venus protocol contracts across multiple chains
- **Logic**: The system filters token transfer events by specific Venus distributor contract addresses on each blockchain network. On BSC, transfers originate from the XVS distributor contract (`0xfd36e2c2a6789db23113685031d7f16329158384`). On Ethereum, transfers come from three distributor contracts: core (`0x134bfdea7e68733921bc6a87159fb0d68abc6cf8`), curve (`0x8473b767f68250f5309bae939337136a899e43f9`), and LST (`0x7a91bed36d96e4e644d3a181c287e0fcf9e9cc98`), plus the XVS store contract (`0x1db646e1ab05571af99e47e8f909801e5c99d37b`). On Arbitrum, transfers originate from the rewards distributor core contract (`0x53b488baa4052094495b6de9e5505fe1ee3eac7a`) and XVS store (`0x507d9923c954aad8ec530ed8dedb75bfc893ec5e`). On zkSync Era, transfers come from the rewards distributor core contract (`0x7c7846a74ab38a8d554bc5f7652ecf8efb58c894`) and XVS store (`0x84266f552756cbed893b1ffa85248cd99501e3ce`). Each transfer must involve the chain-specific XVS reward token address.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `token_address` for XVS token verification, `value` for transfer amounts, and `from_address`/`to_address` for contract filtering

### Component B: Data filtering and validation

- **Purpose**: Remove invalid transactions and prevent double-counting of reward distributions
- **Logic**: On BSC specifically, the system excludes transfers to the XVSStore contract (`0x1e25cf968f12850003db17e0dba32108509c4359`) to avoid double-counting scenarios. Additionally, three specific problematic transaction hashes are excluded: an internal transaction (`0xf5f7bf1544b9262c155636455798c6ad01f1ec4504525997fbee7e6e247e33fa`), an XVS clawback internal transaction (`0xf43966308d84af1ec3d58da914435282bb6272d5b4141349bf22588eb2054d25`), and an exploiter claim transaction (`0xe0bd2a910b50942e6292a5072454704655d725007167f5c148ac9731417e5a7e`). The system also applies distinct selection to prevent duplicate entries from the same log event.
- **Key fields**: `to_address` for exclusion filtering, `transaction_hash` for specific transaction exclusions

### Component C: USD conversion and decimal correction

- **Purpose**: Convert raw XVS token amounts to standardized USD values for consistent reporting
- **Logic**: Raw token transfer amounts are first corrected for XVS token decimals to convert from the smallest token unit to whole token amounts. The corrected amounts are then multiplied by end-of-day XVS token prices to derive USD values. This conversion uses the token's metadata to determine the appropriate decimal places and applies the price conversion based on the transfer's date.
- **Key fields**: `amount` (converted from `value`), with decimal correction and USD price multiplication applied

### Component D: Daily aggregation and business categorization

- **Purpose**: Aggregate individual token transfers into daily totals with proper business line classification
- **Logic**: All transfers are truncated to daily timestamps using the transfer's block timestamp. Each record is classified under the 'Lending' business line with 'lending' market sector and business segment identifiers. The version is set to 'v1' for all Venus protocol activities. Chain identification preserves the original blockchain network names.
- **Key fields**: `timestamp` (daily truncation), `timestamp_grain` (set to 'day'), `chain_id`, `business_line`, `market_sector_id`, `business_segment_id`, `product_id` (null), and `version`

### Final aggregation

- **Combining components**: The individual USD-converted XVS transfers are aggregated by day and chain, summing all reward distributions that occurred within each daily period
- **Currency conversion**: XVS token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to ensure accurate token quantity calculations
- **Time aggregation**: All transfers are grouped by daily boundaries based on block timestamps, with forward-filling applied to ensure continuous daily data coverage
- **Final calculation**: The sum of all USD-converted XVS token incentive distributions per day represents the Venus protocol's daily expenses for user incentives. The `token_incentives` field is renamed to `expenses` in the final output to reflect the business meaning of these distributions as operational costs

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

Total project operating and incentive expenses.

VenusXVS

Expenses

Expenses

Competitive landscape

Chain breakdown