Venus Protocol, the leading lending platform on BNB Chain, has partnered with Fluid to launch Venus Flux, a new unified liquidity layer designed to tackle capital inefficiency in decentralized finance (DeFi). The protocol went live on February 26, 2026, with an accompanying $1 million incentive program to drive initial adoption.
The core innovation of Venus Flux is its architecture, which integrates Fluid's connected liquidity technology to unify lending, borrowing, and trading into a single modular system. The goal is to eliminate the "liquidity trap" where capital is siloed in separate protocols, forcing users to manually bridge positions and pay gas fees across multiple applications. Flux allows a single deposit to be simultaneously utilized for lending, borrowing, leverage, and swapping.
The user experience is structured around four key pillars: Lend, Borrow, Multiply, and an embedded Swap DEX. The Lend function supplies assets into a shared, protocol-agnostic pool that automatically routes capital to optimized yield sources. Borrow utilizes Fluid's liquidation engine to target higher loan-to-value (LTV) ratios with smoother liquidation processes. Multiply automates leveraged yield farming strategies with a single click, and the native Swap DEX allows for rebalancing, executing leverage, and handling liquidations within the same interface.
Technologically, Flux introduces Smart Collateral and Smart Debt mechanisms. These allow collateral backing loans to simultaneously earn DEX trading fees, while borrowed funds can be routed into Automated Market Maker (AMM) positions to help offset borrowing costs. A unified settlement layer acts as the system's source of truth, with a Liquidity Layer that automatically rebalances funds across integrated protocols.
Leon, Venus Labs' Business Development Head, described Flux as "a leap toward more capital-efficient money markets." Fluid's CTO, Samyak Jain, stated the partnership "unlocks institutional-grade mechanics." The launch is backed by a $1 million rewards pool distributed over 60 days to users who supply stablecoins, with rewards calculated based on the amount supplied and the duration of the supply.
