Summary
This VIP bundles four protocol actions across BNB Chain:
- Update Risk Stewards parameters based on Allez Labs’ deployment recommendations, and formally onboard Allez Labs as the official Risk Steward.
- Adjust Prime Rewards allocation for March 2026, distributing $22K in rewards exclusively to USDT suppliers on BNB Chain.
- Update slisBNB parameters in the Core Pool, enabling it as productive collateral to support BNB looping strategies via Binance Wallet.
- Whitelist the Flux Flash Loan Aggregator on Venus Core’s native flash loan contract, removing the dependency on AAVE’s flash loan infrastructure.
Description
1. Risk Stewards Parameter Update & Allez Labs Onboarding
Context
The Venus Risk Stewards framework is already live, enabling routine risk parameter updates — supply/borrow caps, collateral factors, and interest rate models — to be applied without requiring a full governance cycle. This VIP updates the framework’s deployment parameters based on recommendations from Allez Labs, and formally onboards Allez Labs as the official Risk Steward.
Allez Labs’ wallet address 0xcF2c06dDd24dd92EC35f60Bab9D7f206330e2abE will be whitelisted as part of this action.
Proposed Deployment Parameters
| Parameter | Safe Delta | Debounce | Timelock |
|---|---|---|---|
| Supply Cap | 50% (5000 bps) | 24 hours | 6 hours |
| Borrow Cap | 50% (5000 bps) | 24 hours | 6 hours |
| Collateral Factors | 5% (500 bps) | 48 hours | 6 hours |
| Interest Rate Model | N/A (always timelocked) | 72 hours | 6 hours |
- Safe Delta: the maximum relative change that executes immediately without a timelock. Changes exceeding this threshold are registered on-chain and subject to the timelock period.
- Debounce: the minimum time that must elapse after the last executed update before a new update of the same type can be registered for the same market.
- Timelock: the waiting period between when a non-safe update is registered on-chain and when it becomes eligible for execution by a whitelisted executor.
For the full rationale behind each parameter, refer to the Allez Labs recommendation post.
2. [BNB Chain] Prime Rewards Allocation — March 2026
Context
In February 2026, Venus generated $143.6K in reserves revenue on BNB Chain. Of this, $28.7K (20%) is allocated to Prime and will be distributed as rewards in March 2026. This allocation is retroactive, redistributing revenue generated through February 2026.
Proposed Allocation
- Distribute $22K in Prime rewards, maintaining a 20% buffer to account for recent significant market price fluctuations and to avoid full depletion.
- Rewards directed exclusively to the USDT stablecoin supply side, with speeds adjusted to allocate the full $22K to USDT suppliers.
- Focusing rewards on the supply side helps strengthen liquidity and create conditions for lower borrow rates. Rewarding both sides tends to create arbitrage opportunities that artificially inflate activity and drive up borrow rates.
Analysis
- Prime user USDT supply dropped only 5% versus a 12% market-wide decline, and Prime user borrowing grew 11.9% despite a 32% market-wide decrease — indicating that Prime rewards are effectively retaining and attracting high-quality participants.
- USDC Prime user borrowing declined only 4% despite the broader market downturn, and the market is now net positive. This confirms that removing USDC rewards has had no material negative impact, validating the February decision to consolidate rewards on USDT.
Note: Allocations are estimates based on token prices at time of reserve collection. Actual amounts may vary. The current Prime budget stands at $29.83K.
3. [BNB Chain] slisBNB Core Pool Parameter Update
Context
To leverage Binance Wallet’s distribution channel, this proposal enables slisBNB in Venus Core so that Binance Wallet users can participate in a BNB looping strategy without leaving the wallet.
Proposed Parameter Changes (Core Pool)
| Parameter | Current | Proposed |
|---|---|---|
| Collateral Factor (CF) | 0% | 80% |
| Liquidation Threshold (LT) | 0% | 80% |
| Liquidation Penalty | 0% | 10% |
| Liquidation Incentive (LI) | 100% | 110% |
Rationale
- Moving CF/LT from 0% to 80% unlocks slisBNB as productive collateral in the Core Pool, enabling supply, borrow, and looping strategies.
- LI of 110% provides sufficient incentive for liquidators during stress conditions, improving liquidation reliability.
Risk Notes
- The increase in CF/LT to 80% significantly expands borrow power and should be monitored for slisBNB liquidity depth and liquidation execution efficiency.
- LI 110% introduces a 10% borrower penalty at liquidation, balancing protocol safety and user cost.
4. [BNB Chain] Whitelist Flux Flash Loan Aggregator on Venus Core
Context
Currently, Flux relies on AAVE as its default flash loan provider, which introduces a 0.05% fee for users. This dependency is not aligned with Venus’s brand identity and undermines the goal of providing a fully native lending experience.
Solution
Two steps are required to resolve this:
- The Fluid team updates their implementation to be compatible with Venus’s native flash loan contract
(completed) - Whitelist the Flux Flash Loan Aggregator on Venus’s end (this VIP)
Action
Whitelist the Flux Flash Loan Aggregator (FLA) at the following address on BNB Chain:
0xe620726686B480d955E63b9c7c1f93c2f8c1aCf4
This will allow Flux to use Venus Core’s native flash loan contract, eliminating the AAVE dependency and the associated fee for users.
We welcome community feedback on this approach ahead of proposing it formally through a VIP vote.