[BNB Chain] Adjust Prime Rewards Allocation for Feb-2026

Venus Governance Venus - Governance Discussions
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Overview

This proposal outlines the allocation of Prime Rewards on BNB Chain for February 2026, based on available funds. The allocation is retroactive, redistributing revenue generated through Jan 2026.

Allocation Strategy

In January 2026, Venus generated $276.2K in reserves revenue. Of this amount, $55.2k (20%) is allocated to Prime and will be distributed as rewards in February 2026.

Proposed allocation strategy:

  • Allocate $46K in Prime rewards, while maintaining a 20% buffer to account for recent significant market price fluctuations and to avoid full depletion.
  • Rewarding only the stablecoin market USDT by adjusting speeds to allocate the full $46k attributed this month exclusively to USDT suppliers.
  • 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. The current Prime budget stands at $65.72k.

Analysis

All the data presented below can be found in the Venus Prime dashboard.

Prime markets - Activity, reserves and rewards

Stablecoin Markets (USDT, USDC)

  • USDT supply increased by 17.39%, while USDC supply declined slightly by 2.56%.
  • USDT borrow increased by 28.32%, while USDC borrow increased by 10.00%.
  • Reserves revenue for USDT increased by 20K, whereas USDC reserves revenue only increased by 2K.
  • This means despite the incentive given to USDC, it did not really increase the supply amount, which led us to think if it will be more attractive if we distibute 100% of the reward to USDT can bring benefit or have more of Venus user benefiting.
  • Despite incentives to USDC, the supply did not increase. Therefore, we are adjusting the distribution to allocate 100% of rewards to USDT to benefit more users and maximize overall participation.
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