Venus Protocol Guide on BNB Chain

Venus is the leading lending protocol on BNB Chain, but how do you start lending or borrowing without facing unexpected liquidations?

TL;DR

You'll learn to connect a wallet, supply assets, borrow, and mint VAI.
Avoid risks like liquidations, overborrowing, and scams.

Context

Venus Protocol is a decentralized money market (lending protocol) that lets you supply crypto assets to earn interest, borrow against collateral, and mint VAI, a decentralized USD-pegged stablecoin. It's relevant for its high TVL and low fees on BNB Chain. Risks: Liquidation if collateral value falls, variable rates, and potential smart contract issues, despite audits.

Prerequisites

A wallet compatible with BNB Chain (MetaMask, Trust Wallet, or WalletConnect).
Some BNB for gas fees.
BEP-20 assets to supply (transfer from Binance if needed).

Step by step: How to start using Venus Protocol

Go to the official site: [app.venus.io](https://app.venus.io).
Click "Connect Wallet" in the top corner.
Select your wallet and approve the connection. Switch to BNB Chain if needed.

💡 Tip: Add BNB Chain in MetaMask (RPC: https://bsc-dataseed.binance.org/). 4. To supply assets: Go to the "Core" section or main markets. 5. Choose an asset, enter amount, and enable as collateral if you plan to borrow. 6. Approve the token and confirm the supply. ⚠️ Security: Always check health factor after operations. 7. To borrow: Ensure collateral is enabled. 8. Select the asset to borrow, enter amount (within available limit). 9. Confirm the transaction. 💡 Tip: Keep borrow below 70-80% of limit for safety margin. 10. To mint VAI: Go to VAI section, enter possible amount based on collateral, and confirm.

**Optional (advanced)**: Stake XVS in the vault for governance and rewards.

Security checklist

⚠️ Use only app.venus.io (bookmark it). ⚠️ Never share seed phrase or private key. ⚠️ Revoke old approvals via tools like bscscan.com/tokenapprovalchecker. ⚠️ Start with small amounts. ⚠️ Monitor your position on Venus dashboard. ⚠️ Use hardware wallet for large amounts. ⚠️ Check audits on docs.venus.io. ⚠️ Avoid suspicious social media links.

Common errors and how to avoid them

**Insufficient collateral → Liquidation**: Monitor health factor; add collateral if below 1.5.
**Supplying risky asset → Losses**: Choose stable or established assets; review rates.
**Connecting to fake site → Fund theft**: Type URL manually or use bookmark.
**Low gas → Failed transaction**: Keep enough BNB in wallet.

Practical examples

Simple supply: 1000 USDT. Earn variable interest (e.g., 5% APY), use as collateral to borrow ~600 USDT equivalent.
Borrow: With 1 BNB (~600 USD) collateral, borrow 300 USDT. Pay low interest, gas ~0.001 BNB.

Quick comparisons

Advantages vs. Aave: Much lower gas fees on BNB Chain, integrated VAI minting.
Disadvantages: Fewer markets than Ethereum, concentrated chain risk.

Brief editorial opinion

Venus provides a solid and accessible way to lend and borrow in DeFi on BNB Chain, with integrated features like VAI. Suitable for intermediate users, but requires constant risk monitoring.

Resources

[Official Venus Documentation](https://docs.venus.io) [Venus Article on Binance Academy](https://academy.binance.com/en/articles/what-is-venus-protocol) [Data on DeFiLlama](https://defillama.com/protocol/venus) [Access Venus from Binance App](https://www.binance.com/en/support/faq/how-to-use-venus-protocol-mini-program-on-binance-app-d819fe89673749b4b905734a7e45f3a7)

Next step

[Essential Lending DeFi Security](/en/guides/lending-defi-security)

Venus allows lending and borrowing while keeping full control of your funds. With caution and monitoring, you can earn yields or access liquidity efficiently on BNB Chain.