Proposal: Bootstrap new markets with Protocol-Owned Liquidity (POL)

Objective

To maximize the success of recently deployed collateral assets, we propose leveraging a portion of Venus’s treasury funds on BNB to bootstrap key new markets. This initiative aims to foster Venus’s growth on chains beyond the BNB ecosystem, aligning with the platform’s multi-chain expansion strategy.

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Proposed Markets for Support

The current BNB treasury balances for the assets mentioned in this proposal are as follows:

USDC: 244,696.60 wETH: 309.96

1. Ethena Isolated Pool (Ethereum)

The recently launched collateral assets (sUSDe, USDC, PT-USDe-27MAR2025, PT-sUSDE-27MAR2025 via VIP-411 & VIP-412) require robust USDC liquidity to grow effectively. As an isolated pool, it does not benefit from the USDC liquidity in the core pool and would benefit significantly from treasury support.

Recommendation:

• Utilize 244,000 USDC from the BNB treasury wallet (0xf322942f644a996a617bd29c16bd7d231d9f35e9), and deposit the funds into the Ethena Isolated Pool.

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2. wsuperOETHb Market on Base

The upcoming launch of Origins wsuperOETHb on Base presents a significant opportunity to grow Venus’s Total Value Locked (TVL) and revenue. Bootstrapping this market with wETH will establish sufficient liquidity to support user activity, particularly looping, while mitigating liquidity challenges as seen with the Ethena market. Given the nascent stage of Venus’s deployment on Base, proactive support is crucial.

Recommendation:

• Allocate 100 wETH from the BNB treasury wallet (0xf322942f644a996a617bd29c16bd7d231d9f35e9) to Venus’s Base deployment to bootstrap liquidity.

Summary:

If passed this proposal suggests the following actions:

• Bridge 244,000 USDC from the BNB treasury to the Ethereum treasury.
• Bridge 100 wETH from the BNB treasury to the Base treasury.
• Deposit 244,000 USDC into the Ethena Isolated market on Ethereum.
• Deposit 100 wETH into the wETH market on Base.

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Expected Outcome

By strategically deploying idle treasury assets, Venus can accelerate the growth and success of these key new markets, ensuring sufficient liquidity to attract and retain users. Once these markets reach maturity, the DAO can reassess and reallocate the bootstrapped funds as needed.

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This proposal aims to align treasury asset utilization with Venus’s long-term growth objectives while fostering user confidence and liquidity in new markets.