This proposal introduces Venus Yield+, a new product that goes beyond directional trading. Instead of simply betting on an asset going up or down, users can now trade relative performance between two assets — all through a single, unified position on Venus, with no manual lending or borrowing required.
Background
Today, most trading — whether on CEXs or in DeFi — is purely directional: you go long or short on a single asset against a stablecoin like USDT. But what if you believe BNB will outperform SOL, without wanting to predict whether the overall market goes up or down?
Even on centralized exchanges, there is no native way to express this view. A trader would have to open two separate positions (long BNB/USDT and short SOL/USDT), manage two sets of margin and position states independently, and manually calculate relative PnL. This is operationally complex and error-prone.
In DeFi, the friction is even greater. Expressing the same view on Venus Core today requires manually supplying one asset, borrowing another, managing collateral supply and borrows, and monitoring multiple pairs across different markets — a multi-step process that limits participation to advanced users.
Relative performance trading — betting that Asset A will outperform Asset B regardless of market direction — is a proven strategy in traditional finance, yet it has been largely inaccessible in both CeFi and DeFi due to this operational complexity.
Details
Yield+ abstracts all lending, borrowing, and swap operations behind a simple interface:
- Open a position: User selects a trading pair (e.g., BNB/ETH), deposits stablecoin collateral (USDT or USDC), and sets leverage → The system automatically borrows the short asset, swaps to the long asset, and supplies it into Venus — all in one transaction.
- Earn while you hold: Positions generate yield automatically. The long asset earns supply APY, DSA collateral earns lending yield, minus borrow APY on the short asset. When Net APY is positive, users are effectively paid to hold their view.
- Manage with flexibility: Users can increase position size, supply more collateral to improve Health Factor, partially reduce positions (25%/50%/100%), or fully exit — all from a single dashboard.
- PnL settlement: All realized profits and losses are automatically converted into the user’s chosen stablecoin (DSA). No manual claiming or harvesting required.
Key Features
- Paired positions: Long + short managed as a single unit with combined PnL and risk metrics
- Leveraged exposure: Amplify relative performance views (e.g., 2x leverage turns a 5% relative move into 10% PnL)
- Isolated risk: Each trading pair operates with its own position account and independent Health Factor — no cross-contamination between positions
- Built on Venus Core: Uses existing lending, borrowing, and liquidation infrastructure. No changes to core contracts or risk parameters. New contracts are peripheral orchestration layers, independently audited.
Phase 1 — BSC Markets
- BNB/ETH, BTCB/SOL, and additional pairs based on Venus Core market availability
- Core pool only
- Long asset must have a Collateral Factor (CF) > 0 in Venus Core
- Short asset must be available for borrowing in Venus Core
- DSA options: USDT, USDC
Action
- Deploy Yield+ contracts on BSC, enabling users to access the Yield+ feature
- Integrate Yield+ into Venus’s governance framework, ensuring all operations follow the existing governance structure
- Register default DSA collateral assets (USDC and USDT) for settlement
- Configure swap routing and flash loan support for position execution
Summary
If approved, Venus Yield+ will:
- Unlock relative performance trading for all Venus users in a single transaction
- Generate additional TVL by increasing utilization of Venus lending and borrowing markets
- Expand Venus’s product suite beyond traditional lending into structured DeFi trading products
- Maintain Venus’s security standards with no changes to core contracts and fully audited peripheral contracts
We welcome community feedback on trading pair selection, leverage limits, fee structure, and risk considerations before moving to development.