Venus Protocol on ZKSync Sees Massive User Growth in January

Flux has disclosed the composition of its lending rates, separating organic yields from temporary incentives. **Rate Breakdown:** - **USDT**: 1.82% base rate + 8.27% incentives = 10.09% total - **USDC**: 0.27% base rate + 5.92% incentives = 6.19% total - **U**: 0.29% base rate + 9.01% incentives = 9.30% total The base rates represent actual borrow demand and structural yield, while the larger incentive portions are bootstrap rewards that won't continue indefinitely. This transparency helps users understand which yields are sustainable long-term versus temporary promotional rates.

**Venus Flux** introduces a fundamentally different architecture from traditional lending protocols through Fluid's unified liquidity layer. **Key Innovation:** - Single deposit simultaneously backs three functions: lending positions, borrowing capacity, and DEX trading liquidity - All operations share the same liquidity pool, eliminating siloed capital **How It Works:** - Deposits flow into one shared reserve that serves multiple vaults - Borrowing demand from 30+ vaults concentrates into unified pools per asset - Higher structural utilization leads to better rates for lenders **Three Distinct Modes:** *Lend:* Standard supply with enhanced capital efficiency *Borrow:* CDP-style collateralized positions (similar to MakerDAO). Collateral stays separate as security. Smart vaults can hold DEX LP positions as collateral, earning swap fees that offset borrowing costs. *Multiply:* Automated leverage in one transaction. Example: 3x BNB exposure through automatic supply, borrow, and re-collateralization loop. **Rate Stability:** Shared liquidity absorbs individual vault demand spikes more efficiently than isolated pools, reducing rate volatility while maintaining utilization-based pricing. [Learn more about Venus Flux](http://flux.venus.io)

Venus Protocol confirmed it has **zero exposure to rsETH** and suffered no losses from a recent hack. Despite being unaffected, the protocol temporarily reduced collateral factors to 0 for several assets as a safety measure. **Assets affected:** - USDe - sUSDe - SolvBTC - xSolvBTC - USD1 - XAUM Users can still repay and withdraw these assets through the Venus UI. The protocol emphasized that **all user funds remain safe** and will announce when normal collateral factors resume.

Venus Protocol's **5th anniversary quiz contest** ends today, offering participants a final chance to compete for prizes. **Contest Details:** - 500 USDT total prize pool - Ten winners will share the rewards - Perfect scores required to qualify - Winners announced tomorrow Participants must submit all correct answers by the deadline to be eligible for the prize distribution.

**Final opportunity** to participate in Venus Protocol's $40,000 incentive program for the $WBNB pool on Merkl. **Key requirements:** - Hold at least 50 $XVS tokens in your wallet - Supply or borrow in the $WBNB pool - Program ends today (November 29, 2025) **Benefits available:** - Boosted supply rates for lenders - Subsidized borrowing costs - Share of $40,000 total rewards The 5-day program launched on November 25 and provides incentives on both supply and borrow sides of the pool. [Access the program](https://app.merkl.xyz/?search=Venus) | [Venus WBNB Pool](https://app.venus.io/#/pool/0xfD36E2c2a6789Db23113685031d7F16329158384/market/0x6bCa74586218dB34cdB402295796b79663d816e9?chainId=56&tab=supply)