By reviewing the on-chain metrics for USDT on Venus, our risk model classifies this as a conservative capital preservation play. While yields are moderate, the high safety score (87/100) prioritises principal protection.
The current APY of 2.90% is supported by a Total Value Locked (TVL) of $277,550,208. This pool is currently trading 3.3% below the category average. This yield compression often occurs in highly saturated, safer pools where capital seeks safety over returns.
Risk Context: With a Safety Score of 87/100, this liquidity pool is positioned for long-term holders seeking compound growth.
Understanding the underlying system is crucial for assessing sustainability. The 2.90% APY displayed for USDT is primarily derived from interest paid by borrowers on the Venus protocol.
When you deposit USDT, you become a liquidity provider. Borrowers pledge collateral (like ETH or BTC) to take out loans. The interest rate fluctuates based on the Utilisation Rate (currently 59.59%). With moderate utilisation, rates remain stable, ensuring liquidity is available for withdrawals.
While Venus is a reputable protocol, no yield is without risk. Based on the current Safety Score of 87/100, we recommend the following approach:
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Data Sources: Metrics sourced directly from on-chain contracts via the DeFiStar Indexer.
Disclaimer: Data is for informational purposes only. Past performance is not indicative of future results. Terms of Service apply.