Venus protocol defi yield strtegies

Venus Protocol is an algorithmic and decentralized marketplace built on the BNB Chain. They offer crypto lending and borrowing. Changpeng “CZ” Zhao, Binance CEO, called it a mix between MakerDAO and Compound.

Furthermore, they have VAI, its stablecoin. Above all, their most recent news is the addition of UST and LUNA markets to its protocol. As a result, their TVL should receive a massive boost. Therefore, in this article, you will discover 3 yield strategies to use Venus Protocol.

What is Venus Protocol? 

Venus Protocol is a community-driven finance platform that has an option to mint VAI, a BEP20 token. Other lending and borrowing protocols don’t offer this. On top of this, it is also possible to stake stablecoins already in your possession. For example, Tether, BUSD, DAI, or USDC. 

Venus Protocol TVL

Source: DeFi Llama

Venus Protocol is a platform that allows for lending and borrowing. Lending digital assets will earn you rewards in the form of interest or yield. On the other hand, you can borrow crypto here as well. But, now you pay interest to the platform. It is the brainchild of Joselito Lizarondo. He is the CEO and co-founder of Swipe (SXP). 

However, this is not where the buck stops. Although VAI pegs to the US dollar, the protocol backs it with various stablecoins. On top of that, other crypto assets are also part of this backup. This makes VAI the first decentralized BEP20 stablecoin to do so. It offers a fast and cost-effective money market. 

More About Venus Protocol

Moreover, there is one more thing that makes the VAI special. The collateral that you supply to the protocol is not only used to borrow. You can also mint VAI with it. You can use the vTokens for this. The protocol gives these to you in return for the underlying collateral you hold in the protocol.

Thereafter, you can borrow as much as 50% of your collateral value. To clarify, collateral that you deposited on the platform from your vTokens. With this, you can mint VAI. Just keep in mind that you need to connect your wallet. Currently, you can use MetaMask and Trustwallet.

3 Yield Strategies on Venus Protocol

There are various yield strategies that you can follow on Venus Protocol. We picked 3 and show them to you and explain how they work. And this includes one strategy with low risk. After you read this, you should be able to start your strategies.

Note: Always do your research and never use more money than you can afford to lose.

1. A Simple Supply of Assets.

This strategy is easy to follow and has low risk. You supply assets to Venus Protocol and earn rewards. The rewards are your APY, see the picture below to get an idea of what they are. Furthermore, you will also receive XVS, a native BEP20 token.

Depending on which cryptos you supplied, the yield is 0.13% (SXP) to 38.43% (DOT). These yield percentages vary from day to day. To clarify, the risk is a smart contract risk in the protocol. On the other hand, the protocol can become undercollateralized. In this unlikely event, you have the risk of liquidity.

Venus Protocol APY

Source: Venus Protocol

2. Supply Assets, but Borrow Other Assets and Farm Them.

The risk of this strategy is medium to high but it is a bit more difficult to put in place. However, this is a good strategy if you want to keep more control over the supplied assets. On the other hand, your exposure to the borrowed assets becomes limited.

For example, you like to keep your XVS, SXP, and UST. The next step is to supply them to the platform. Now you can borrow DOGE and BNB and farm it on PancakeSwap for 19.34% APR. See the picture below.


Source: PancakeSwap

With this strategy, PancakeSwap gives you LP tokens that you can invest in again. Furthermore, on Venus Protocol, you receive both supply and borrow APYs. Note that these APYs change constantly. So, check each token carefully before you start this strategy.

The risk with this strategy lies in a liquidation risk. To clarify, your borrowed assets value increases fast against the supplied assets. In other words, your XVS, SXP, and UST lose value against the USD fast. This may exceed your borrow limit and as a result, you get liquidated.

3. Leverage Your Supply and Borrow Multiple Assets

This strategy has a medium to high-risk factor. This strategy means leveraging your supply to borrow tokens on the protocol. To clarify, you want to earn supply and borrow rewards. 

For example, you supply LTC and borrow SXP. The SXP you swap for more LTC. Now you supply more LTC. Keep repeating the whole process. As a result, you have a leveraged position in LTC. 

Your risk is once more a liquidation risk. However, by using a pair of stablecoins, you can reduce this risk. After all, they peg to the same price.

On the other hand, Venus Protocol has more options to offer. In December 2021, they had a ‘Mission to Venus’. This involved extra APY and XVS holders shared revenue. Lasting for 120 days, this is set to end in April 2022. This was to introduce their new XVS Vault with more than $1 million rewards.

Also, they offer an easy-to-use prediction platform where every 5 minutes and 15 minutes, there are BNB and Ethereum predictions respectively. Furthermore, Bitcoin predictions every 24 hours.

Venus Protocol

Source: Venus Prediction

In addition, in February 2022 they launched a $1 million grant program. Developers can give it a go and improve the platform. 


To sum up, Venus Protocol has some unique and interesting features. They offer solid yield, with varying risk levels. You can take out loans without a lengthy waiting time. An attractive option in the DeFi field. The team has also come up with plenty of ideas and options to attract new users. It’s no wonder that they are traveling on a successful road.

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