[BNB Chain] - [Ethereum] Prime Adjustment Proposal - Q1 2025

Summary

This document provides an updated assessment of Venus Prime’s performance and recommends adjustments to its reward distributions for the new quarter. The primary goal is to align incentive allocations with each market’s latest contribution to protocol reserves while sustaining protocol growth and user participation.

BNB CHAIN

Relative Contribution to Protocol Reserves

• USDT: 66%
• USDC: 25%
• BTCB: 2%
• ETH: 5%

New Reward Distribution Proposal

• USDT: 55% (+5%)
• USDC: 30% (0%)
• ETH: 10% (‑5%)
• BTCB: 5% (0%)

3-Month Reward Distribution Recommendations

• USDT: 396,000 (+133,500)
• USDC: 216,000 (+58,500)
• ETH: 21.38 (‑8.86)
• BTCB: 0.38 (‑0.04)
• Total rewards for 3 months: $720K.

Details and Considerations

These recommendations factor in token prices, volumes, and reserves observed at key protocol milestones over the last quarter. Token prices are based on the January 1, 2025 snapshots, and the protocol’s reserve contributions have been recalculated accordingly.

Deployment Performance

Vault Growth

Data from: Venus Protocol Dashboard

The staked XVS amount increased from 6.4M to 7.1M, an absolute growth of 700K (+11%) since the program’s launch. In the last quarter, the staked amount has stabilized above 7M, likely due to the program reaching its Prime user capacity. This trend will be closely monitored to validate the impact of increased rewards for this quarter.

User Activity

Data from: Venus Protocol Dashboard

Cumulative supply has reached $4.2B, while cumulative borrows stand at $1.6B, highlighting the program’s significant contribution to protocol activity and user engagement.

Adjustment Recommendations

Prime Budget Details:

• Average Monthly Revenues for the last 2 years: $1,059,121
• Average Monthly Allocation for Prime: $211,824
• Remaining Budget: $369,673
• Proposed Monthly Rewards: $240,000

This analysis sets the reward levels to ensure sustainability for at least 12 months under current conditions, balancing user engagement and protocol growth.

Table 1: Proposed Quarterly Rewards

Token	Current Rewards	New Rewards Proposal	Difference
USDT	262,500	396,000	+133,500
USDC	157,500	216,000	+58,500
ETH	30.24	21.38	-8.86
BTC	0.41	0.38	-0.04

Total rewards in USD: $720,00

Table 2: Proposed Monthly Reward Distribution Change

Token	Reserve Contribution	Current Proportion Proposal	New Proportion Proposal
USDT	66%	50%	55%
USDC	25%	30%	30%
ETH	5%	15%	10%
BTC	2%	5%	5%

Upon completion of this three-month period, the Venus team will conduct another performance review to determine whether further adjustments are required.

ETHEREUM

Relative Contribution to Protocol Reserves

• WETH_LiquidStakedETH: 85%
• WBTC_Core: 1%
• USDC_Core: 6%
• USDT_Core: 7%

New Reward Distribution Proposal

• WETH_LiquidStakedETH: 85%
• WBTC_Core: 3%
• USDC_Core: 6%
• USDT_Core: 6%

3-Month Reward Distribution Recommendations

• WETH_LiquidStakedETH: 11.36 (-4.42)
• WBTC_Core: 0.01 (-0.02)
• USDC_Core: 2,700 (+450)
• USDT_Core: 2,700 (+450)
• Total rewards for 3 months: $45,000

Details and Considerations

These recommendations factor in token prices, volumes, and reserves observed at key protocol milestones over the last quarter. Token prices are based on the January 1, 2025 snapshots, and the protocol’s reserve contributions have been recalculated accordingly. This ensures the proposal accurately reflects current market conditions.

Deployment Performance

Vault Growth

Data from: Venus Protocol Dashboard

The XVS vault grew from 393.7K to 637.7K, an absolute increase of 244K (+62%) since launch. The decline in the last quarter is likely due to reduced rewards as bootstrap incentives ended. Nonetheless, the protocol is working to increase ETH Mainnet revenues and, with it, Prime reward levels.

User Activity

Data from: Venus Protocol Dashboard

Cumulative supply grew to $190.3M, while cumulative borrows rose to $155.9M. This increase in volume for users reflects strong user engagement driven by Venus Prime incentives.

Adjustment Recommendations

• Average Monthly Revenues since deployment: $53,000 (average)
• Average Monthly Allocation for Prime: $10,600
• Remaining Budget: $38,400
• Monthly Prime Rewards: $15,000

This analysis sets the reward levels to ensure sustainability for at least 12 months under current conditions, balancing user engagement and protocol growth.

Table 1: Proposed Quarterly Rewards

Token	Current Rewards	New Rewards Proposal	Difference
WETH_LiquidStakedETH	15.78	11.36	-4.42
WBTC_Core	0.0461	0.0142	-0.0219
USDC_Core	2,250	2,700	+450
USDT_Core	2,250	2,700	+450

Total rewards in USD: $45,000

Table 2: Proposed Monthly Reward Distribution Change

Token	Reserve Contribution	Current Proportion	New Proportion Proposal
WETH_LiquidStakedETH	85%	85%	85%
WBTC_Core	1%	5%	3%
USDC_Core	6%	5%	6%
USDT_Core	7%	5%	6%

Upon completion of this three-month period, the Venus team will conduct another performance review to determine whether further adjustments are required.

Conclusion

Venus Prime continues to deliver meaningful user engagement and revenue growth on Ethereum Mainnet. Implementing the updated reward distribution for the next three months will better align incentives with each token’s reserve contribution, optimizing the program’s performance. No additional transfers are required, as the Income Allocator and Token Converters manage distribution automatically. A new performance review will follow after this three-month period to determine if further adjustments are needed.