Venus Protocol launched Liquidity Hub on August 31, allowing users to earn yield on USDT and USDC deposits while using the same assets as collateral. The system issues ERC-4626 share tokens, vhUSDT and vhUSDC, which accrue value over time rather than rebasing.
These tokens feature an 80% collateral factor, a 10% liquidation incentive, and no borrow cap. The platform automatically distributes deposited capital across Venus Core lending, Flux/Fluid markets, and Fixed-Rate Vaults based on governance settings.
On September 24, the protocol integrated real-world assets through a partnership with Centrifuge. Users can now access tokenized US Treasury yields via JTRSY and AAA-rated collateralized loan obligation returns through JAAA.
Venus Protocol operates as a decentralized money market on BNB Chain, where interest rates fluctuate based on pool utilization. The protocol's total value locked has fluctuated between $1,4 billion and $2,8 billion in recent quarters.
