Messari: Affected by BNB price drop, the total value of Venus assets in the second quarter fell by 12% quarter-on-quarter

Messari released the Venus report for the second quarter of 2023, which stated that Venus achieved interest income growth for the fourth consecutive quarter, reaching $11.5 million, bringing in $2.3 million for the DAO and $9.2 million for depositors. After the U.S. Securities and Exchange Commission (SEC) charged Binance, the price of BNB fell, causing the total value of Venus to drop by 12% month-on-month; due to the adjustment of interest rate parameters, borrowing rates increased, and user activity in the second quarter declined. Active borrowers and active borrowers The number of depositors decreased by 9% and 10% MoM, respectively. By the end of Q2, the attacker’s position was about 10% away from being liquidated (available in BNB at ~$220). USDC and USDT loan interest expense in the second quarter was $1.3 million, and depositor yield was formed after approximately 11,000 BNB (as BNB price depreciated). At the end of Q2, there was still $647 million worth of liquidity available for lending, with BTC and BNB combined accounting for 76% of that value. The high utilization rate of stablecoins is largely due to the huge positions held by the BSC Token Hub attackers, accounting for 59% of the total outstanding USDT debt and 64% of USDC debt. Furthermore, since the liquidation events involving CAN, XVS and LUNA in 2021 and 2022, a significant portion of outstanding loans has remained outstanding. Specifically, at least 95% of BTC loan balances, 24% of BUSD balances, and 29% of ETH balances are outstanding and currently undercollateralized. Excluding the debts of the BSC Token Hub attackers, Venus currently has $83 million in bad debts in the protocol. In total, these debts amounted to $238 million, almost half of the total outstanding loans on Venus. In addition, in the second quarter, Venus’ venture fund successfully repaid 1437.5 ETH and 90.3 BTC, with a total value of about $5 million.