Proposal: Fund Venus Prime Rewards on BNB Chain

Summary

Proposal to transfer funds from the Venus Treasury to the PrimeLiquidityProvider contract on BNB Chain to sustain Venus Prime reward distributions through Q2 2025.

Description

Following the Prime Adjustment Proposal – Q2 2025 [BNB Chain], Venus revenues on BNB Chain were projected to average approximately $983,563 per month. Based on these estimates, reward distribution speeds for Venus Prime markets on BNB Chain were set as follows:

• USDT: 363,000 over 90 days
• USDC: 198,000 over 90 days
• ETH: 35.11 over 90 days
• BTCB: 0.40 over 90 days

This amounts to a total of +/- $660,000 in rewards over three months at time of the original post.

In VIP-491, the following amounts were already withdrawn from the remaining Prime Budget surplus in the Treasury and sent to the PrimeLiquidityProvider contract:

• 33,000 USDT (of 363,000 USDT)
• 18,000 USDC (of 198,000 USDC)
• 3.33 ETH (of 35.11 ETH)
• 0.03 BTCB (of 0.4 BTCB)

Recently, Venus has executed several strategic risk adjustments on BNB Chain, including changes to risk parameters and the liquidation of the BNB Bridge exploiter account, in collaboration with the BNB Chain team. While these measures were necessary to protect the protocol’s integrity, they have temporarily reduced protocol revenues on BNB Chain.

Due to the current design of the Venus Prime converters, lower revenues limit the protocol’s ability to fund Prime rewards at expected levels, which may undermine incentive structures and reduce user engagement.

To maintain uninterrupted operation of the Venus Prime program through Q2 2025 and provide a small buffer for Q3, we propose transferring the remainder of the planned Q2 rewards from the Treasury to the PrimeLiquidityProvider contract.

Requested Action

Transfer the following amounts from the Venus Treasury to the PrimeLiquidityProvider contract on BNB Chain:

• 330,000 USDT
• 180,000 USDC
• 31.78 ETH
• 0.37 BTCB

This funding will ensure that Venus Prime reward emissions continue through the end of Q2 2025 and support adequate liquidity accumulation for Q3 2025.

Conclusion

Approving this funding is not just about maintaining reward distributions, it’s a strategic investment in Venus’ long-term growth on BNB Chain. By bridging the short-term gap in protocol revenues, we can preserve user confidence, sustain high levels of participation in Prime markets, and continue building momentum as market conditions stabilize.

These rewards are critical to attracting and retaining liquidity, reinforcing Venus’ position as the leading money market on BNB Chain. With prudent treasury management and proactive protocol adjustments, we are well-positioned to capitalize on the next wave of DeFi growth. Let’s keep Venus Prime strong and competitive.