Incentive Model Proposal for Arbitrum Deployment

Summary

As part of the multichain expansion, Venus Protocol aims to create an active and engaging community on Arbitrum by introducing an incentive structure that rewards both liquidity providers and borrowers.

Key points of the plan:

• Market Emissions: 25,500 XVS will be allocated to the first quarter as liquidity incentives.

• XVS Vault Base Rewards: 4,500 XVS will be allocated quarterly for the Arbitrum vault, with an additional 10% from the protocol reserves on Arbitrum from the previous quarter as per tokenomics starting from Q4.

• Bootstrap Liquidity on Uniswap: 1,500 XVS and 5 ETH will be used to provide liquidity on Uniswap.

• Multichain Development Grants: 3,000 XVS allocated for community-driven multichain and cross-chain expansion.

Complete details in the forum article below.