Venus Protocol's Liquidity Hub Brings Yield Earning and Borrowing Together
Venus Protocol has introduced a new feature called Liquidity Hub, which allows users to earn yield on their stablecoin deposits while using them as collateral to borrow.
The Liquidity Hub works by allocating deposited stablecoins across multiple yield sources, issuing share tokens that remain fully usable within Venus's lending markets. These share tokens, vhUSDT and vhUSDC, accrue yield in the background and serve as collateral with an 80% collateral factor.
In addition to integrating real-world assets through a partnership with Centrifuge on September 24, Venus Protocol has been expanding its offerings by allowing users to borrow against conventional financial instruments. The protocol's market position is strong, with a total value locked that has ranged between $1.4B and $2.8B over recent quarters.