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 Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of total interest payments and liquidation penalties distributed to liquidity providers on Venus. This metric represents the primary yield earned by users for supplying assets to the protocol across various lending markets. Supply-side fees are calculated as the difference between the total interest and liquidation fees paid by borrowers and the portion retained by the protocol as revenue.

## 2. Data sources

- **Blockchain events**: `AccrueInterest`, `LiquidateBorrow`, `NewReserveFactor`, and `MarketAdded` events from `vBNB`, `VBep20Delegate`, `VToken`, and `PoolRegistry` contracts, plus `LogCollectRevenue` events and `getOverallTokensData` function calls from `FluidLiquidity` and liquidity resolver contracts, covering BSC, Ethereum, Arbitrum, Base, and 4 other chains
- **External data**: End-of-day price feeds for the underlying assets and exchange rate data for vTokens

## 3. Step-by-step calculation

### Component A: Core lending interest tracking

- **Purpose**: Captures the total interest paid by borrowers in Venus lending markets
- **Logic**: `AccrueInterest` events are parsed from `vBNB`, `VBep20Delegate`, and `VToken` contracts. The interest accumulated since the previous accrual is extracted for each lending market. These amounts are associated with specific underlying assets using metadata from `MarketAdded` events emitted by `PoolRegistry` contracts.
- **Key fields**: `interestAccumulated` (interest quantity), `address` (market identification)

### Component B: Liquidation incentive tracking

- **Purpose**: Captures the fees generated from liquidating undercollateralized positions
- **Logic**: `LiquidateBorrow` events are parsed from `vBNB`, `VBep20Delegate`, and `VToken` contracts. The amount of collateral seized is multiplied by the current exchange rate to determine the gross fee in terms of the underlying asset. A standard 10% liquidation incentive is applied to the seized amount to determine the total fee generated by the liquidation event.
- **Key fields**: `seizeTokens` (collateral amount), `vTokenCollateral` (asset identification), `exchange_rate` (vToken to asset conversion)

### Component C: Protocol revenue and Venus Flux allocation

- **Purpose**: Identifies the portion of fees retained by the protocol to isolate the supply-side share
- **Logic**: Protocol revenue is calculated by applying reserve factors to the total interest tracked in Component A. `NewReserveFactor` events are used to identify the historical and current reserve factors for each market. For liquidations, 50% of the liquidation fee (representing 5% of the seized value) is allocated to the protocol. For Venus Flux, fees are calculated as the daily change in the accumulated revenue tracked by the liquidity resolver, adjusted for any revenue collections captured via `LogCollectRevenue` events from `FluidLiquidity` contracts. This value is classified entirely as protocol revenue, resulting in zero supply-side fees for that specific product.
- **Key fields**: `newReserveFactorMantissa` (protocol take rate), `amount` (revenue quantity), `revenue` (accumulated revenue)

### Component D: Supply-side fee aggregation and USD conversion

- **Purpose**: Normalizes supply-side earnings to USD and aggregates by time
- **Logic**: Supply-side fees are calculated as the total fees from Components A and B minus the protocol revenue from Component C. Calculated amounts are normalized by decimal precision based on asset metadata. Values are multiplied by end-of-day price feeds for the respective assets and aggregated into daily totals using UTC day boundaries.
- **Key fields**: `timestamp`, `fees`, `revenue`, `price_usd`

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

Portion of fees distributed to service providers or supply-side participants.

VenusXVS

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown