[BNB Chain] ETH E-Mode group, Treasury Hub Migration and U FRV Cap

Proposals
1

This proposal bundles three changes on BNB Chain: a new ETH E-Mode group for WBETH holders, moving the Treasury’s stablecoins into the Liquidity Hub, and more room for the U Hub to allocate into the Fixed Rate Vaults.

ETH E-Mode

WBETH is staked ETH, so its price tracks ETH closely. Today, borrowing ETH against WBETH in the Core Pool is treated like any other pair and is limited to an 80% collateral factor. The new ETH E-Mode group recognizes that the two assets move together and allows more borrowing for this one pair:

  • WBETH — collateral only, at a 90% collateral factor and a 93% liquidation threshold, with a 4% liquidation bonus
  • ETH — borrow only

With 10,000 USD of WBETH, a user in the group can borrow up to 9,000 USD of ETH, compared with 8,000 USD in the Core Pool today.

Treasury deposits into Liquidity Hub

The Treasury holds USDT, USDC and U, partly idle and partly supplied to the Core Pool. This proposal moves those balances into the matching Liquidity Hubs, so the Treasury holds Hub shares and earns the same yield as any other Hub depositor. No tokens are swapped, and the shares stay with the Treasury. Amounts are fixed at a recent snapshot; income the Treasury receives afterwards stays where it is.

U Hub Fixed Rate Vault cap

The U Hub can currently place at most 50% of its assets into the Institutional Fixed Rate Vaults. This proposal raises that limit to 90%, while keeping the overall ceiling of 5,000,000 U. For a Hub holding 4,000,000 U, the Fixed Rate Vaults could receive up to 3,600,000 U instead of 2,000,000 U. This only adds room; it does not move any funds by itself. The USDT and USDC Hub limits are unchanged.

Summary

If approved, this VIP will:

  • Launch an opt-in ETH E-Mode group that lets WBETH be used as collateral at 90% to borrow ETH
  • Move the Treasury’s USDT, USDC and U, including its Core Pool positions, into the Liquidity Hubs
  • Raise the U Hub’s Fixed Rate Vault limit from 50% to 90% of Hub assets, keeping the 5,000,000 U ceiling
  • Leave Core Pool risk parameters and supply caps unchanged

More detail is available in the VIP proposal and simulation and the E-Mode technical article.

We welcome community feedback on this proposal ahead of submitting it for a VIP vote.

4 Likes
2

Allez Labs supports the ETH E-Mode group as proposed.

What it enables. Venus has no correlated eMode group for ETH. On BNB Core, a wBETH/ETH loop is capped at 5x (80% CF), the proposed group allows for 10x leverage with a 3.2% buffer to liquidation.

Core Pool ETH E-Mode
Collateral factor / liquidation threshold 80% / 80% 90% / 93%
Max loop leverage 5x 10x
Yield on equity at max leverage (90-day avg) 5.9% 10.3%
wBETH/ETH price drop before liquidation 0% 3.2%

Note: The eMode is opt-in only, and existing positions are unchanged unless opting in.

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Risk overview

  • Oracle. Since Oct 2025, Venus has used an on-chain exchange rate as the oracle for wBETH making the oracle robust to market price fluctuations.
  • Liquidation buffer. With the new eMode configuration, the gap between CF and LT is 3 points compared to 0 in the non-eMode group
  • Depth. ~4k wBETH ($12M) can be sold into ETH within 2% price impact. We recommend keeping the supply cap at 13,000 wBETH, which leaves ~2,950 wBETH ($8.7M) of headroom. ETH available liquidity will limit growth before the wBETH cap does.