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Large BNB Customer Withdraws 21.56M BUSD from Venus, Causing Surge in Deposit Rate and Negative Loan Rate

• Metaverse Insights • 119 views

On March 2, the data on the chain showed that a large BNB customer (0xd1… c86b) withdrew about 21.56 million BUSD deposits from Venus at 15:57 this afternoon…

Large BNB Customer Withdraws 21.56M BUSD from Venus, Causing Surge in Deposit Rate and Negative Loan Rate

On March 2, the data on the chain showed that a large BNB customer (0xd1… c86b) withdrew about 21.56 million BUSD deposits from Venus at 15:57 this afternoon. The screenshots of data shared by Twitter users show that this has made the BUSD deposit rate on Venus soar more than 20% and the negative loan rate approach 30%.

Data: A large BNB family withdrew about 21.56 million BUSDs from Venus

Interpretation of the news:


A large BNB (Binance Coin) customer recently withdrew 21.56 million BUSD (Binance USD) deposits from Venus, causing a significant surge in the BUSD deposit rate and a rise in the negative loan rate. On March 2, data on the chain revealed that the withdrawal occurred at 15:57 in the afternoon. The screenshots of data shared by Twitter users show that this has resulted in the BUSD deposit rate on Venus rising by more than 20% and the negative loan rate approaching 30%.

The withdrawal of such a significant amount of BUSD deposits suggests that the customer may have been either consolidating their funds or moving them to another platform. Venus is a decentralized finance (DeFi) platform built on the Binance Smart Chain, offering yield farming and lending services. It is considered one of the most popular DeFi platforms in the Binance ecosystem. The sudden withdrawal of such a large amount of deposits can cause an imbalance in the lending markets, which can lead to a surge in the negative loan rate. In other words, it indicates that there is less liquidity available for borrowers, which in turn causes the interest rate for borrowing to increase.

On the other hand, the spike in the BUSD deposit rate can be attributed to the sudden reduction in liquidity caused by the withdrawal. The deposit rate is the interest paid to depositors for providing liquidity to the platform. An increase in this rate can be an attractive proposition for other depositors, which can help bring back much-needed liquidity to the platform.

It is essential to note that the fluctuations in deposit and loan rates in DeFi platforms are not uncommon. The rates are determined by the demand and supply of liquidity in a particular ecosystem. Any sudden increase or decrease in liquidity can result in a fluctuation in these rates. Moreover, the DeFi ecosystem is evolving and has a long way to go before it stabilizes, so we can expect more volatility in the future.

In conclusion, the recent withdrawal of 21.56 million BUSD deposits from Venus by a large BNB customer has caused a surge in the deposit rate and a rise in the negative loan rate. These changes are a part of the natural fluctuations in the DeFi ecosystem and are not uncommon. However, the sudden withdrawal does indicate a potential shift in the customer’s investment strategy, which is noteworthy.

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