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TVL $91MAPY 0.66%low riskUpdated Feb 1, 2025

Venus WBNB

Supply Wrapped BNB to Venus Protocol to earn yield. WBNB enables BNB usage in DeFi smart contracts requiring ERC-20 compatible tokens.

ProtocolVenus
Networkbsc
SymbolVWBNB
CategoryMoney Markets
Underlying Assets
WBNBBNB
Contract Address0x6bca74586218db34cdb402295796b79663d816e9

What is Venus WBNB?

Venus WBNB is a lending market for Wrapped BNB on Venus Protocol. While native BNB is the gas token, WBNB is the BEP-20 wrapped version used throughout DeFi applications. The WBNB market serves users who already hold wrapped tokens from DEX trading, liquidity provision, or other DeFi activities.

How Venus vToken Model Works

The vWBNB market operates using Venus's interest-bearing token system:

  1. Deposit WBNB and receive vWBNB tokens at the current exchange rate
  2. The vWBNB/WBNB exchange rate increases as interest accrues from borrowers
  3. Your vWBNB quantity stays fixed while underlying value grows
  4. Redeem vWBNB to receive original WBNB plus earned interest
WBNB vs BNB: Venus offers both native BNB (vBNB) and wrapped WBNB markets. WBNB is more convenient for users already holding wrapped tokens, while native BNB avoids the wrapping step. Both track the same underlying value.

What Assets Are Involved

Supply Asset: WBNB (Wrapped BNB) - BEP-20 wrapped version of native BNB Receipt Token: vWBNB - Venus interest-bearing deposit token Equivalence: 1 WBNB = 1 BNB (unwrappable at any time)

WBNB is commonly held from:

  • DEX trading on PancakeSwap and other AMMs
  • Liquidity provision in AMM pools
  • DeFi protocols requiring BEP-20 tokens
  • Cross-protocol yield strategies
  • Token swaps and aggregator transactions

Why Supply WBNB on Venus?

For users already holding WBNB from DeFi activities, depositing directly to Venus avoids unnecessary unwrap/wrap transactions. The market offers yields comparable to native BNB with the convenience of BEP-20 compatibility. Venus's deep liquidity ensures competitive rate discovery.

Risk Disclosures

Smart Contract Risk: Venus contracts are audited and battle-tested, but vulnerabilities remain theoretically possible. Wrapper Risk: WBNB is a simple 1:1 wrapper contract. While wrapper contracts are generally low-risk, any issues with the WBNB contract could affect holders. Utilization Risk: High BNB/WBNB demand during volatile markets can push utilization high, temporarily limiting withdrawals. Oracle Risk: Venus relies on Chainlink price feeds. Oracle issues could affect market operations. Market Fragmentation: Liquidity is split between BNB and WBNB markets, though arbitrageurs generally keep rates aligned. BNB Chain Risk: The network's validator set and consensus mechanism differ from Ethereum's, with associated security tradeoffs. Governance Risk: Venus DAO can modify parameters affecting the WBNB market. Correlation Risk: WBNB value tracks BNB, which correlates with Binance exchange performance and broader crypto markets.
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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