[BNB Chain] Prime Adjustment Proposal - Q3 2024


This document evaluates Venus Prime’s performance following 9 months of deployment. It proposes adjustments to its distribution, focusing on aligning more closely with each market’s contribution to protocol reserves. The changes are designed to more accurately reflect market dynamics and user participation.

User participation increase after obtaining a Prime token:

  • Supply: +209.70%
  • Borrow: +419.17%

Relative contribution to protocol reserves:

  • BTC: 1.37%
  • ETH: 10.63%
  • USDC: 26.19%
  • USDT: 61.81%

New reward distribution proposal:

  • BTC: 5% (0%)
  • ETH: 15% (0%)
  • USDC: 35% (-5%)
  • USDT: 45% (+5%)

3-month reward distribution recommendations:

  • BTC: 0.81 (+0.09)
  • ETH: 45.92 (-25.43)
  • USDC: 315,000 (+15,000)
  • USDT: 405,000 (+5,000)
  • Total rewards for 3 months: $900,000

Additional Changes:

  • Addition of 50 new Prime tokens to be released, claimable on a first-come, first-served basis for users that qualify.



The following analysis considers token prices and volumes at key block numbers: 32599510 (pre-Prime) and 40187654 (9 months, post-Prime). The token prices are considered for July 5 2024.

Deployment Performance

Graph 1: XVS Vault Staked Amount

Data from: Venus Protocol Dashboard

The net vault amount has consistently increased over the past 9 months, with an average monthly increase of approximately 1.08%. This steady growth indicates a positive response to the Venus Prime program.

Graph 2: Cumulative Users Minting and Borrowing Volume

Data from: Venus Protocol Dashboard

The introduction of Prime rewards has led to substantial growth in platform activity. Over the observed period, cumulative supply increased by approximately $2.38 billion, and cumulative borrow grew by approximately $1.05 billion. This reflects a strong positive response to the Prime incentives.

Table 1: User Token & USD Balance Before Prime (Block number: 32599510)

Token Supply Token Amount Borrow Token Amount USD Supply Amount USD Borrow Amount
BTC 1,157.91 6.93 $31,162,420 $186,534
ETH 12,273.88 1,873.83 $19,051,303 $2,908,522
USDC 4,373,735.74 13,486,056.70 $4,374,358 $13,487,975
USDT 5,204,387.83 10,855,603.49 $5,204,070 $10,854,942
Grand Total 9,591,555.35 24,343,540.95 $59,792,152 $27,437,973

Table 2: User Balance After Prime (Block number: 40187654)

Token Supply Token Amount Borrow Token Amount USD Supply Amount USD Borrow Amount
BTC 3,662.84 31.47 $213,382,975 $1,833,372
ETH 21,057.07 11,986.02 $65,961,263 $37,546,194
USDC 17,982,645.54 30,196,632.81 $17,981,385 $30,194,517
USDT 60,341,630.95 89,386,605.94 $60,303,611 $89,330,285
Grand Total 78,348,996.39 119,595,256.24 $357,629,234 $158,904,368

Table 3: User Token Balance Change After Prime

Token Increase in Supply Amount Increase in Borrow Amount
BTC 216% 354%
ETH 72% 540%
USDC 311% 124%
USDT 1,059% 723%
Weighted Average 210% 419%

The Prime program has resulted in a weighted average supply and borrow increase of 210% and 419%, respectively. Prime users have increased their supply positions from $59,792,152 to $357,629,234 and their borrow positions from $27,437,973 to $158,904,368.

Additional Changes

To further incentivize user participation, we will release 50 new Prime tokens, which will be claimable on a first-come, first-served basis for users who qualify. This initiative aims to increase user engagement and market participation. We will evaluate the performance of this new addition for future changes.

Table 4: BSC Prime Token Information:

Description Quantity
Minted 500
Eligible, not minted 91
Waiting to mint 121

Adjustment Recommendations

Table 5: Current quarterly reward distribution and relative revenue performance

Token Current Rewards Current Proportion Revenue Proportion
BTC 0.79 5% 1%
ETH 72.39 25% 11%
USDC 225,000 30% 26%
USDT 300,000 40% 62%

Table 6: Proposed quarterly rewards

Token New Rewards
BTC 0.81
ETH 45.92
USDC 315,000
USDT 405,000
Total rewards in USD: $900,000

Table 7: Proposed monthly reward distribution change

Token New Proportion Proposal
BTC 5%
ETH 15%
USDC 35%
USDT 45%

This change aims to adjust rewards for eligible users based on the current total budget for Prime, estimated at $1,262,249. With the new Tokenomics V4, which increased the Prime allocation from 10% to 20%, the average protocol monthly reserves from January 2023 to June 2024 are $234,993. This budget is expected to be sustainable for over 12 months. However, future adjustments will be made to further refine and optimize Prime rewards for eligible users.

The proposal is to implement this configuration for the next three months. After this period, a new performance evaluation will be conducted to continue improving the program’s effectiveness.

Thanks to the release of the Income Allocator and Token Converters, the reward amounts are in the Converters, Prime Liquidity Provider and Prime Contract, so no transfers are needed.


The Venus Prime program has shown impressive performance, significantly increasing user engagement and market participation. The proposed adjustments are evaluated based on the program’s performance and are optimized for user rewards and protocol growth.



According to the data you provided, only 1.8M increase in the BTC borrowing, which is somewhat very low when compared with the increase of the other markets borrowing.

Shouldn’t we eliminate the prime rewards for the BTC borrowing market and give other asset a chance ?

DAI or FDUSD are worth a shot imo.


Btw me first time post here so be gentle

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Increasing BSC’s PRIME quota is not a good decision because it will dampen the original PRIME holders’ willingness to hold XVS. Although it can temporarily increase the amount of XVS pledged, it is detrimental to the overall ecological development.
I hope the DEV team can continue to maintain the 500 Venus prime quota.

Strongly oppose! PRIME should be very scarce. Arbitrary issuance of shares appears to have no value for PRIME. In that case, why do we still have to compete for PRIME qualification on ETH or ARB?


This is an audacious and bold move. I support that we should constantly carry out evaluation of the performance of the protocol and make necessary recommendations and adjust where and when necessary.

I hope the introduction of APY for the xvs pool will follow.

Thanks for a great and interesting proposal.

I’m not convinced we should increase the number of Venus Prime tokens on Bnb Chain, when there is plenty of Prime available on other chains Mainnet and ARB.

We should be mindful of how prime rewards are allocated to different markets, and not just focus purely on per market profitability.

For example, the BTC and ETH markets may not be as profitable as USDC/USDT, but the more BTC/ETH supplied, the more the USDC/USDT markets become profitable when BTC/ETH is used as collateral for USD borrow.

We may attract more supply of BTC/ETH by increasing the supply rate. Supply rates for BTC and ETH have been low and a natural way to increase the supply rate, is increase the borrow APY. We increase borrow APY by increasing the amount borrowed, and we may encourage more borrowing by increasing the Venus Prime rewards to the BTC/ETH markets.

Its a water -wheel effect, boosting one market, filters through to other markets, and increasing TVL increases overall profitability. Venus Prime is great tool to boost specific markets and reward protocol participation.

Thanks for reading

Hi All, thanks for the comments!

To address all concerns, the proposed increase in Prime Users is aimed at evaluating how new entrants affect protocol metrics. We plan to add only 50 users, representing a 10% increase in total participants, and measure the impact of this change. With this increase, APYs are not expected to see significant changes.

Prime has successfully motivated users to expand their supply and borrow allocations, greatly benefiting the protocol. If this trend continues for the new users—with an anticipated Supply increase of +209.70% and Borrow increase of +419.17%—the protocol could see significant gains. The overall goal of this proposal is to take small steps and find the optimal balance for the Prime Program.

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Hi Omar, this is a great point worth evaluating, we will look into this.

Thanks for the comment!