Large BNB Customer Withdraws over 21 Million BUSD Deposits from Venus

03/02/2023 10:32 • Tech Ticker • 162 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. 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

Interpret the above information:

The message provides crucial information on a withdrawal event that occurred on March 2nd involving a large BNB customer (0xd1… c86b) who withdrew around 21.56 million BUSD deposits from Venus. The withdrawal took place at 15:57, and the data displayed on the chain demonstrates the impact of the transaction on Venus.

The screenshots shared by Twitter users elucidate that the BUSD deposit rate on Venus drastically soared by over 20%, thereby indicating that the withdrawal amounted to a significant sum of the total BUSD deposits held by the platform. Additionally, the negative loan rate approached 30%, providing evidence of the potential severe implications triggered by the withdrawal.

The message implies that this withdrawal event has led to significant repercussions on Venus, requiring further interpretation. Although the volume of the withdrawal is not directly stated in the message, it equates to around 3% of the total funds that Venus holds in BUSD deposits. This withdrawal can decrease the amount of BUSD available to Venus users, resulting in increased demand and higher deposit rates. Hence, the 20% surge in BUSD deposit rate recorded after the transaction could result in an increase in the cost of borrowing BUSD on Venus.

Furthermore, the negative loan rate approaching 30% is a crucial indicator of the excess demand for US-dollar liquidity on the platform. This high demand pressures lenders into offering a higher rate to attract lenders, which could lead to long-term problems for Venus as high loan rates discourage demand and increase the rate of delinquencies for loans.

In conclusion, the withdrawal of 21.56 million BUSD deposits by a BNB customer from Venus has resulted in a significant impact on the BUSD deposit rate and negative loan rate approaching 30%. This event highlights the importance of monitoring deposit and borrowing rates, which can influence the overall performance and sustainability of the platform.

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Large BNB Customer Withdraws over 21 Million BUSD Deposits from Venus

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

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