ETH Mainnet Emission Adjustment

Summary

After the first 2 months of Venus ETH Mainnet deployment, the protocol has achieved the following metrics:

• Total Supply: $190M
• Total Borrows: $82M

The objective of this proposal is to adjust emissions on the ETH Mainnet as new markets are onboarded and existing markets begin to stabilize. The adjustments are as follows:

Table 1: Market reward adjustments

Pool	Market	Proposed Monthly Allocations	Adjustment
Core	WETH	1,125 (-375)	-25%
Core	WBTC	3,375 (-1,125)	-25%
Core	USDT	3,375 (-1,125)	-25%
Core	USDC	3,375 (-1,125)	-25%
Core	crvUSD	1,500 (-500)	-25%
Core	FRAX	600 (-200)	-25%
Core	sFRAX	600 (-200)	-25%
Core	TUSD	200 (200)	100%
Core	DAI	500 (500)	100%
Curve	CRV	375 (-125)	-25%
Curve	crvUSD	375 (-125)	-25%
LST ETH	WETH	18,333 (0)	0%
LST ETH	wstETH	3,600 (-1,200)	-25%
LST ETH	weETH	0 (0)	0%
Total		37,333 (-5,400)	-13%

Details

The suggested changes aim to gradually balance rewards for existing markets while avoiding significant shifts in market APYs. The ultimate goal is to establish optimal market size and emission levels without causing substantial changes in APYs.

Additionally, to facilitate the onboarding of new assets, a new base reward allocation will be implemented to incentivize initial liquidity. The base rewards will be determined based on the new market's size across the ETH Mainnet and its participation in the lending ecosystem.

The three levels for monthly rewards are as follows:

• Low (200 XVS): Less than $50M in market size.
• Mid (300 XVS): More than $50M but less than $100M in market size.
• High (500 XVS): More than $100M in market size.

Note: Incentives may vary based on partnerships and market conditions.