Hi, I wanted to come back to this thread to further explain where the risk fund comes from. You can refer to the tokenomics page on Venus Docs to read more and verify this information.
20% of the protocol’s reserves (primarily from borrow fees) as well as 20% of the protocol’s additional income stream (this comes from liquidation penalties and other sources of income from future product releases) are currently being disbursed to the risk fund, which sits at about $26M right now.
As for what is fair compensation, we’re actively working on that, and concrete numbers and reasons will be provided in each VIP for each batch of compensations.
Regarding the BNB burn, this was done in repayment to a huge liquidation which helped to clear bad debt on Venus. You may refer to this community post to understand the reason behind the BNB burn, which was voted on by the DAO.
I believe that even after compensating users, Venus will still be able to maintain a healthy risk fund size. Furthermore, more funds will continue to flow into the risk fund from protocol revenue, which will eventually replenish and boost the risk fund. I hope this can ease your concerns, and if you have further doubts, please feel free to share them and I will definitely look into it.