Description
This VIP allocates June 2026 Prime rewards on BNB Chain across the USDT and wBNB markets, introducing wBNB as a Prime reward market for the first time alongside USDT, in place of U for this month.
Proposed Changes
1. Prime Rewards Allocation — June 2026
This allocation outlines the distribution of Prime Rewards on BNB Chain for June 2026, based on available funds. The allocation is retroactive, redistributing revenue generated through May 2026.
Allocation Strategy
In May 2026, Venus generated $139.7K in reserves revenue. Of this amount, $27.9K (20%) is allocated to Prime and will be distributed as rewards in June 2026.
Proposed allocation strategy:
- Allocate ~$25K in Prime rewards, while maintaining a 10% buffer for market price fluctuations and to avoid full depletion.
- Rewards will be split 50/50 between the USDT and wBNB markets, with speeds adjusted to allocate ~$12.5K to each market’s supply side.
- This is the first month including wBNB as a Prime reward market, temporarily in place of U. The intent is to migrate BNB liquidity from the legacy native-BNB (vBNB) market into the ERC-20 wBNB market, which offers stronger composability (E-mode, protocol integrations). The U market is set aside this month and will be revisited in coming months.
- Focusing rewards on the supply side helps strengthen liquidity and create conditions for lower borrow rates. In contrast, rewarding both sides tends to create arbitrage opportunities, artificially inflating activity and driving up borrow rates for other users.
This allocation is an estimate based on token prices at the time the reserves were collected. Actual allocations may vary due to price changes between collection and conversion into Prime reward tokens.
Analysis
All the data presented below can be found on the Venus Prime dashboard.
Prime markets — Activity, reserves and rewards
USDT Market:
- Overall USDT supply declined from $222.1M to $204.7M (-7.8%), with borrowing easing from $127.8M to $119.1M (-6.8%).
- Prime user supply fell from $66.0M to $44.9M (-32%) and Prime borrowing from $28.6M to $22.6M (-21%), a sharper pullback than the broader market driven by a few large positions unwinding. USDT remains the largest Prime market by participation.
- USDT reserve revenue rose from $37.9K to $39.4K (+4.1%) MoM and remains the dominant revenue contributor.
wBNB Market (first inclusion):
- Overall wBNB supply grew from $60.0M to $70.2M (+17.0%) and borrowing from $10.3M to $11.8M (+14.6%), expanding organically without incentives.
- wBNB rewards are introduced to accelerate migration of BNB liquidity out of the legacy native-BNB market into the ERC-20 wBNB market. wBNB itself contributed only ~$1.5K in May reserves (≈1% of total), so this is a deliberate bootstrap, not a revenue-based inclusion.
- Prime participation in wBNB is minimal today — Prime supply held roughly flat at ~$0.9M across 18 Prime users; supply-side rewards aim to seed a Prime supplier base. A ~$12.5K/mo allocation against a ~$0.9M Prime base is a high incentive rate by design, to be tapered as liquidity migrates.
Implementation
- Adjust the USDT Prime reward speed on BNB Chain to distribute ~$12.5K to USDT suppliers over June 2026
- Set the wBNB Prime reward speed on BNB Chain to distribute ~$12.5K to wBNB suppliers over June 2026 (first inclusion)
- Maintain a 10% buffer to absorb price fluctuations between revenue collection and Prime reward conversion
Summary
If approved, this VIP will:
- Allocate ~$25K in June 2026 Prime rewards on BNB Chain, split 50/50 between USDT and wBNB suppliers (~$12.5K each)
- Introduce wBNB as a Prime reward market for the first time alongside USDT, temporarily in place of U
Voting options
- For — Execute this proposal
- Against — Do not execute this proposal
- Abstain — Indifferent to execution