This proposal outlines the allocation of Prime Rewards on BNB Chain for August 2026, based on available funds. The allocation is retroactive, redistributing revenue generated through July 2026.
July 2026 was the first month under Tokenomics Phase II, which increased Prime’s share of reserves revenue from 20% to 40% and added a 20% share of liquidation revenue, up from 0% previously. The new revenue split took effect on-chain on 2026-07-01. At $70K, the August payout is 2.2x the amount distributed in July.
Allocation Strategy
In July 2026, Venus generated $166.6K in reserves revenue and $31.8K in liquidation revenue on BNB Chain. Under the Phase II split, $73.0K of this is allocated to Prime and will be distributed as rewards in August 2026.
Proposed allocation strategy:
- Allocate $70K in Prime rewards while maintaining a buffer for market price fluctuations and to avoid full depletion.
- Rewards will be split 70/30 between the USDT and wBNB markets, with speeds adjusted to allocate $49K to USDT suppliers and $21K to wBNB suppliers.
- This continues the same strategy as June and July — rewarding the USDT and wBNB supply markets only.
- 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 in the Venus Prime dashboard.
Prime markets — Activity, reserves and rewards
USDT Market
- Overall USDT supply eased from $191.5M to $178.6M (-6.7%), with borrowing down from $117.3M to $112.0M (-4.6%).
- Prime user supply declined from $38.2M to $36.1M (-5.4%) — a further moderation from last month’s -14.9% and the -32% before it, and this month the first time Prime supply held up better than the market as a whole (-5.4% vs -6.7%). The Prime supplier count was unchanged at 246. USDT remains the largest Prime market by participation.
- USDT reserve revenue rose from $37.2K to $39.9K (+7.3%) MoM despite the smaller supply base, reflecting higher utilisation. It remains the dominant revenue contributor, justifying the larger share of Prime rewards.
wBNB Market
- wBNB deposits continued to grow in token terms — end-of-month supply rose from ~102.8K to ~105.3K WBNB (+2.5%). The higher USD figure ($56.4M → $62.0M) mostly reflects the recovery in the BNB price over the period rather than new deposits.
- Prime participation continued to build: Prime suppliers grew from 47 to 63 and Prime-held supply from ~$4.0M to ~$5.8M (+44.7%). Prime-held wBNB supply has now grown roughly 6x in two months from a near-zero base.
- wBNB reserve revenue remains minimal (~$1.3K in July), consistent with a market still early in its growth.