London, UK – Venus Protocol, a leading decentralized lending platform, has announced a significant increase in its daily active users, reporting a 71.6% quarter-over-quarter growth in Q2 2025. This surge in user engagement comes alongside the launch of its new "Afterburn" program, designed to allocate a portion of its BNB Chain revenue towards XVS token burns, aiming to enhance token value.
The Q2 performance metrics, highlighted in a tweet by Messari, indicate robust growth across key areas. Besides the substantial rise in daily active users, the protocol also saw a 9.3% increase in Total Value Borrowed and a 25.9% uptick in BTC-backed collateral. These figures underscore Venus Protocol's expanding activity and adoption within the decentralized finance (DeFi) ecosystem.
The newly introduced "Afterburn" program, executed via Venus Improvement Proposal (VIP) 515 on June 17, 2025, earmarks 25% of the protocol's revenue generated on the BNB Chain for quarterly XVS token burns. This initiative is a governance-driven mechanism, directly linking protocol performance to the supply dynamics of its native XVS token. The funding for these burns is sourced entirely from the protocol’s operating income.
XVS serves as the governance token for Venus Protocol, enabling holders to participate in crucial decisions regarding the platform's future. The "Afterburn" program is anticipated to create a deflationary pressure on the XVS token supply, potentially boosting its value and incentivizing greater participation in the protocol's governance.
Venus Protocol operates as an algorithmic money market and synthetic stablecoin platform, primarily built on the BNB Chain. It allows users to lend and borrow various crypto assets and mint stablecoins. The protocol has been actively expanding its reach, integrating with multiple blockchain networks including Ethereum, Arbitrum, and zkSync, and managing over $1.9 billion in Total Value Locked (TVL) across all supported chains as of June 2025. The strategic implementation of the "Afterburn" program is a testament to the protocol's commitment to sustainable growth and community-driven value creation.