Venus Protocol (@VenusProtocol): Venus Trade : A New Way to Trade Relative Performance On-Chain

Venus Trade : A New Way to Trade Relative Performance On-Chain Go long one asset, short another, all in one click. That’s Venus Trade . Venus Protocol today launched Venus Trade on @BNBCHAIN . Venus Trade is a relative performance trading product built on Venus's lending infrastructure, allowing users to express the view that one asset will outperform another, all within a single, unified position, without the complexity of managing multiple lending and borrowing positions. To execute the swaps required when opening and closing positions, Venus Trade routes trades through the Venus aggregator to external liquidity sources, with @PancakeSwap serving as the primary execution layer. A Different Kind of Trade Most on-chain trading products ask one question: will this asset go up or down? Venus Trade asks something different and, in many market conditions, something more answerable: Between two assets, which one is stronger? If a user believes $BNB will outperform $ETH , they can open a position that is long $BNB and short $ETH . The long asset does not need to rise in absolute terms, it only needs to perform better than the short. If the long asset falls 5% while the short asset falls 15%, the position is profitable. The focus shifts from market direction to relative performance, making Venus Trade particularly useful in sideways or bearish markets where picking direction is hard but differences in strength between assets remain clear. "Venus Trade expands what users can do on Venus beyond lending and borrowing. For the first time, users can express a structured view on relative performance — not just price direction, within a single position that manages the underlying complexity automatically. This is exactly the kind of product we’ve been working toward: making sophisticated strategies accessible."— Leon,Head of BD, Venus Protocol How Trades Are Executed Venus Trade is built on top of Venus’s lending system, but each position relies on swap execution to function. When opening a position, the system executes everything in a single transaction: It first takes a flash loan of the short asset Swaps it into the long asset Supplies the long asset into Venus Borrows the short asset from Venus Core to repay the flash loan. Closing or reducing a position simply reverses this process. All swaps are routed through the Venus aggregator, with PancakeSwap serving as the primary source of liquidity. As one of the deepest liquidity venues on @BNBCHAIN , @PancakeSwap helps ensure efficient execution for Venus Trade positions, with tighter spreads, lower slippage, and more stable pricing when entering and managing trades. Finally, the flash loan is repaid to Venus Core, ending the action. “PancakeSwap has built the deepest liquidity on BNB Chain, and Venus Trade shows why that matters. Pair trading at scale demands tight spreads, minimal slippage, and execution that holds up under leverage - and our pools deliver exactly that. We're proud to be the liquidity layer powering one of the most innovative trading products to launch on-chain this year." - Chef Kids, Head Chef of PancakeSwap How a Position Works Every Venus Trade position is a paired trade made up of two legs: a long asset expected to outperform and a short asset expected to underperform, always managed together as a single position. The long asset is supplied into Venus markets and earns yield continuously. The short asset is borrowed. Borrowing, swapping, and supplying all happen in one transaction, with no need to manage multiple protocols or positions separately. Before opening, users select a settlement asset: $USDT or $USDC , which acts as both the collateral backing the position and the unit in which all profit and loss is settled at close. Leverage is set at the time of opening and remains fixed for the life of the position. At 2x leverage, a 5% relative move between the two assets translates into a 10% gain or loss. The Health Factor works exactly as it does in Venus Core: above 1 is safe, below 1 can trigger liquidation. The liquidation price ratio makes that threshold concrete, it tells users precisely how far the relative price can move against them before their collateral is at risk. Both figures are visible before confirmation, so every trade is entered with full awareness of the downside. As positions grow relative to total collateral, capital utilization rises. Unused collateral stays fully liquid, it can be withdrawn at any time or used to open positions on other pairs. Each trading pair runs in its own isolated account, so a liquidation event on one pair has no effect on any other. Yield That Accrues While You Hold One of the defining features of Venus Trade is that positions generate yield while they are open. The long asset earns supply APY. The short asset incurs borrow costs. The difference, Net APY, accrues to the position automatically, with no manual claiming required. When the supply rate on the long asset exceeds the borrow rate on the short, the position generates positive carry simply by remaining open. This adds a dimension that does not exist in most directional products. Users are not only expressing a view on relative performance, they are earning yield while waiting for that view to play out. Risk and Transparency Venus Trade uses the same liquidation framework as Venus Core. If the combined value of collateral and the long position falls below the liquidation threshold, the position may be liquidated. Users can manage risk by monitoring their Health Factor, adding collateral, or reducing position size. Since both opening and closing positions involve on-chain swaps, slippage may occur. The system provides estimates before execution and allows users to set their own tolerance. Notably, Venus Trade is designed with an isolated position model, meaning each position has its own Health Factor and risk profile, independent of others. As a result, collateral management is handled on a per-position basis. Leverage amplifies both gains and losses. If the short asset outperforms the long position, the trade will incur losses. All new contracts introduced for Venus Trade have been independently audited, while Venus Core contracts, risk parameters, and liquidation mechanisms remain unchanged. Venus Trade is now live on @BNBCHAIN and available to users today. It provides a simpler way to execute relative performance strategies, bringing a traditionally complex trading approach into a single, accessible position. About Venus Protocol Venus is the leading lending protocol on the BNB Chain. Established in 2020, Venus was the first lending protocol and continues to provide the deepest lending liquidity for key assets on the BNB Chain. About PancakeSwap PancakeSwap is the leading decentralized exchange on the BNB Chain and one of the largest DEXs by trading volume across all chains. Its liquidity infrastructure serves as the swap execution layer for Venus Trade , routing all position open and close transactions through its pools.