Venus Becomes BNB Native Burn Engine: What It Means for BNB and XVS

Venus, a top-tier decentralized lending protocol with over $2.3 billion in total value locked (TVL), is launching a deflation-boosting mechanism on BNB Chain — Venus Afterburn. This initiative introduces quarterly burns of BNB, the native token of BNB Chain and one of the top 3 cryptocurrencies by market capitalization.

What is Venus Afterburn?

Venus Afterburn is a native BNB-burning mechanism, where 25% of Venus Protocol’s revenue on BNB Chain — previously allocated to the Treasury — is now used for quarterly token burns. Based on 2024 figures, this would amount to approximately 9,900 BNB (around $6 million).

Venus generates most of its revenue from borrowing, with over 90% of income coming from the BNB Chain. In 2024, borrowing activity driven by Binance Launchpools generated several million dollars in revenue. Participation in Launchpools requires temporarily staking BNB, which creates demand for borrowed BNB and encourages users to take loans through Venus.

Accordingly, the launch of Venus Afterburn will enhance both the attractiveness of the Launchpool and the protocol’s revenue, leading to increased BNB burns, which will positively impact the token’s economics. In other words, higher APRs in the Launchpool encourage users to borrow more on Venus, which boosts the protocol’s revenue and expands the volume of BNB burning. This reduces the BNB supply, making the asset more appealing to long-term holders.Burning in crypto is the process of permanently removing tokens from circulation, reducing the total supply.

Key Benefits for BNB

• BNB booster: Every block earned triggers a BNB burn, boosting value and protocol sustainability.
• Long-term alignment: Supports BNB holders by increasing asset value and encouraging ongoing liquidity, especially in Launchpools.
• Burn-and-Earn gamification: Monthly leaderboards to reward top contributors and markets hitting burn targets, driving community engagement.
• Liquidity support: BNB Chain Foundation will steadily add liquidity to Venus, strengthening its ecosystem role.

Key Benefits for XVS

Besides benefits for BNB Chain, the Venus ecosystem also gains significant advantages, including key benefits for the protocol’s native token, XVS:

• Stronger Token Utility: Recurring BNB burns boost Venus protocol utility, linking XVS to a positive, growth-driven ecosystem, as XVS is used to reward lending and borrowing activity.
• No Emission Dilution: Revenue used for burns, no new XVS minted — protecting holders from inflation.
• Governance Control: Burns implemented only after Venus Improvement Proposal (VIP), audit, and community vote — empowering XVS holders to control protocol changes by on-chain voting.
• Liquidity Growth: Increased BNB liquidity and borrowing drive higher fees and TVL, strengthening XVS’s role as a governance token.
• Market Visibility: Supported by BNB Chain campaigns, XVS gains wider recognition, deeper listings, and higher trading volume.
• User Engagement: “Burn-and-Earn” incentives and leaderboards boost platform stickiness and long-term user retention.

About Venus 

Venus is a leading DeFi protocol for lending and borrowing crypto, with over $2.3 billion in TVL. It operates across multiple blockchains, including BNB Chain, Ethereum, opBNB, Arbitrum One, ZKSync, Optimism, Base, and Unichain. The platform offers a user-friendly and extensive suite of features for seamless interaction with a wide range of lending markets, with over 70 markets available, making it one of the most comprehensive lending platforms.

Venus stands out for its strong security standards, having undergone multiple audits by CertiK, PeckShield, and other trusted firms. With a security score of over 91 from CertiK, Venus ranks among the top ten lending and borrowing projects, ensuring the safety and reliability of its ecosystem.