Proposal: Liquidity Management budget Increase (XVS/BNB).

Summary

This proposal aims to request an increase in liquidity managed by our Liquidity Manager (Skynet Trading) in order to support the XVS/BNB trading pair on Binance. Specifically, we seek to allocate an additional $500,000 in XVS and $500,000 in BNB to ensure robust liquidity on the XVS/BNB Pair which is at risk of being delisted. This effort is crucial to maintain the listing of the BNB/XVS pair on Binance and to enhance trading efficiency and the market presence of Venus Protocol.

Objective

The primary objective is to secure and enhance liquidity for the XVS/BNB pair on Binance, Venus’s principal CEX partner. By increasing the liquidity, we aim to:

• Ensure Continuity: Prevent the delisting of the XVS/BNB pair on Binance.
• Enhance Trading Efficiency: Reduce slippage and improve the trading experience for users.
• Boost Market Confidence: Strengthen investor confidence in the stability and liquidity of XVS.
• Increase Visibility: Elevate Venus Protocol’s profile in the DeFi ecosystem.

Liquidity Strategy and Budget Allocation

The proposed liquidity allocation is as follows:

Binance: $500,000 in XVS and $500,000 in BNB

This allocation will support balanced liquidity and enable efficient trading and arbitrage opportunities on Binance, thus enhancing the overall market presence and stability of the XVS/BNB pair.

Governance and Control

To ensure the Venus community retains full control over the deployed assets, the following governance measures will be in place, as previously outlined in our forum, Snapshot, and VIP proposals:

Community Oversight

Liquidity will remain accessible by the Venus Treasury and can be withdrawn if a governance proposal requesting its return is submitted and approved.

Conclusion

This proposal seeks the approval of the Venus community to allocate an additional $500,000 in XVS and $500,000 in BNB to the XVS/BNB pair on Binance. By enhancing liquidity, we aim to ensure the pair remains listed, improve trading efficiency and boost investor confidence in Venus Protocol.

We urge the community to support this initiative, recognizing its strategic importance for the continued growth and stability of the Venus ecosystem.