BNB

Over $1 Billion BNB Borrowed on Venus - 500% Increase in Recent Days

by BSC News

November 30, 2022

chain

BNB coins are in hot demand –– borrowing demand has sent APYs as high as 60% on Venus Protocol.

$1B BNB Flows on Venus

Over $1 billion worth of BNB has been borrowed on Venus Protocol in the last few days. 

The massive monetary movement has sent lending Annual Percentage Yields (APYs) as high as 60%. The lending figures show a significant rise beginning on Nov. 23, with several peaks at 60% over a few days.

Source: Venus

At that time, borrowing numbers climbed nearly 500% from hovering around $200 million for weeks to rising above the $1 billion mark. The borrowing market topped out at $1.3 billion and -80% APYs. 

Source: Venus

Speculation has amassed for what could be causing the borrowing influx. The recent Nov. 25 release of Binance’s Proof of Reserves has surely put a premium on the BNB coins within the entire BNB Chain ecosystem. 

Or is it a whole lot of hot air like Dylan LeClaire opines:

Others have noted that current market conditions have increased demand for token launches. Launches are a quick and easy way to pump-and-dump tokens, causing an even more dynamic market environment. Binance Launchpad announced the initial token sale for its 29th project, Hooked, for Nov. 24 to Dec. 1. 

The Nov. 29 news that top NFT marketplace, OpenSea, has finally integrated BNB Chain should add more demand to BNB coins as the NFT ecosystem braces for the expected action.

Venus Protocol also announced its V4 protocol updated and is currently the top lending and borrowing platform on BNB Chain

What Is Venus Protocol:

Venus Protocol is a decentralized marketplace for lenders and borrowers with a borderless stablecoin. Venus is one of the largest algorithmic money market and synthetic stablecoin protocols on BNB Chain. The Binance-backed protocol became famous around DeFi following their hint of a massive incoming burn by founder Joselito and its Venus Reward Token VRT rewards for XVS token holders.

To learn more about Venus Protocol, see the following resources:

Website | Twitter | Telegram | Medium

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