Overview

Venus Protocol introduces native ERC-4626 vaults, bringing standardized, composable yield vaults to the Venus ecosystem. This integration represents a significant advancement in making Venus's yield-bearing markets more accessible and composable within the broader DeFi ecosystem.

Understanding ERC-4626

ERC-4626 is a tokenized vault standard designed to unify how yield-bearing assets are deposited, managed, and withdrawn in DeFi protocols. It builds on the ERC-20 token standard and introduces a consistent interface for vaults that accept a specific asset (like USDC) and issue shares representing ownership in the vault.

The primary goal of ERC-4626 is standardization—allowing developers to integrate with vaults without needing to understand their internal mechanics. Functions like deposit, withdraw, mint, and redeem, follow predictable behaviors across all compliant contracts.

In essence, ERC-4626 makes it easier for users to earn yield on their assets and for protocols to plug into vaults in a reliable, composable way—enhancing both usability and interoperability across the DeFi ecosystem.

Reference: https://eips.ethereum.org/EIPS/eip-4626

Contract Summaries

The implementation of the Venus ERC-4626 vaults consists of two core smart contracts:

1. VenusERC4626Factory.sol - The factory contract for deploying standardized vaults

• Deploys individual vaults for individual vTokens via BeaconProxy
• Ensures deterministic addresses using CREATE2
• Managed by Venus Governance

2. VenusERC4626.sol - The vault logic implementing ERC-4626 functionality

• ERC-4626-compliant mint, deposit, redeem, and withdraw functions
• Integrates with Venus vToken interest accrual
• Handles reward distribution (e.g., XVS)

Development

Prerequisites

• NodeJS - 12.x
• Solc - v0.8.25 (https://github.com/ethereum/solidity/releases/tag/v0.8.25)

Installing

yarn install

Run Tests

yarn test

npx hardhat coverage

REPORT_GAS=true npx hardhat test

• To run fork tests add FORK=true, FORKED_NETWORK and one ARCHIVE_NODE var in the .env file.

Deployment

npx hardhat deploy

• This command will execute all the deployment scripts in ./deploy directory - It will skip only deployment scripts which implement a skip condition - Here is example of a skip condition: - Skipping deployment script on bsctestnet network func.skip = async (hre: HardhatRuntimeEnvironment) => hre.network.name !== "bsctestnet";
• The default network will be hardhat
• Deployment to another network: - Make sure the desired network is configured in hardhat.config.ts - Add MNEMONIC variable in .env file - Execute deploy command by adding --network <network_name> in the deploy command above - E.g. npx hardhat deploy --network bsctestnet
• Execution of single or custom set of scripts is possible, if:
  • In the deployment scripts you have added tags for example: - func.tags = ["MockTokens"];
  • Once this is done, adding --tags "<tag_name>,<tag_name>..." to the deployment command will execute only the scripts containing the tags.

Dry Run / Forked Deployments

To simulate what contracts would be deployed on a given network the deployment scripts support running on a forked network. To run the deployment scripts on a forked network the HARDHAT_FORK_NETWORK env variable needs to be set.

For example

HARDHAT_FORK_NETWORK=ethereum npx hardhat deploy

Deployed Contracts

Deployed contract abis and addresses are exported in the deployments directory. To create a summary export of all contracts deployed to a network run

$ yarn hardhat export --network <network-name> --export ./deployments/<network-name>.json

Source Code Verification

In order to verify the source code of already deployed contracts, run: npx hardhat etherscan-verify --network <network_name>

Make sure you have added ETHERSCAN_API_KEY in .env file.

Hardhat Commands

npx hardhat accounts

npx hardhat compile

npx hardhat clean

npx hardhat test

npx hardhat node

npx hardhat help

REPORT_GAS=true npx hardhat test

npx hardhat coverage

TS_NODE_FILES=true npx ts-node scripts/deploy.ts

npx eslint '**/*.{js,ts}'

npx eslint '**/*.{js,ts}' --fix

npx prettier '**/*.{json,sol,md}' --check

npx prettier '**/*.{json,sol,md}' --write

npx solhint 'contracts/**/*.sol'

npx solhint 'contracts/**/*.sol' --fix



MNEMONIC="<>" BSC_API_KEY="<>" npx hardhat run ./script/hardhat/deploy.ts --network testnet

Documentation

Documentation is autogenerated using solidity-docgen.

They can be generated by running yarn docgen

Compound Fork Commit

https://github.com/compound-finance/compound-protocol/tree/a3214f67b73310d547e00fc578e8355911c9d376

Links

• Website : https://venus.io
• Twitter : https://twitter.com/venusprotocol
• Telegram : https://t.me/venusprotocol
• Discord : https://discord.com/invite/pTQ9EBHYtF
• Github: https://github.com/VenusProtocol
• Youtube: https://www.youtube.com/@venusprotocolofficial