Messari: Affected by the decline in BNB prices, the total value of Venus assets in the second quarter decreased by 12% quarter-on-quarter

ChainCatcher news, Messari released the Venus report for the second quarter of 2023, which pointed out 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 dropped, causing the total value of Venus to decrease by 12% quarter-over-quarter; due to adjustments in interest rate parameters, borrowing rates increased, leading to a decline in user activity in the second quarter, with the number of active borrowers and active depositors decreasing by 9% and 10%, respectively. By the end of the second quarter, the attackers' positions were about 10% away from liquidation (with BNB available for liquidation at a price of around $220). The interest expense for USDC and USDT loans in the second quarter was $1.3 million, with depositor yields forming approximately 11,000 BNB (following the depreciation of BNB).

As of the end of the second quarter, there was still $647 million in liquidity available for lending, with BTC and BNB accounting for 76% of that value. The high utilization of stablecoins largely came from the massive positions held by BSC Token Hub attackers, which accounted for 59% of the total outstanding USDT debt and 64% of the USDC debt.

Additionally, a significant portion of the outstanding loans has remained unpaid since the liquidation events involving CAN, XVS, and LUNA in 2021 and 2022. Specifically, at least 95% of the BTC loan balance, 24% of the BUSD balance, and 29% of the ETH balance remain unpaid and currently under-collateralized. Excluding the debts of BSC Token Hub attackers, there are currently $83 million in bad debts within the Venus protocol. Overall, these debts amount to $238 million, nearly half of the total outstanding loans on Venus. Furthermore, in the second quarter, Venus's risk fund successfully repaid 1,437.5 ETH and 90.3 BTC, with a total value of approximately $5 million. (source link)