This proposal outlines the allocation of Prime Rewards on BNB Chain for October 2026, based on available funds. The allocation is retroactive, redistributing revenue generated through September 2026.
Allocation Strategy
In September 2026, Venus generated $144.0K in reserves revenue and $2.0K in liquidation revenue on BNB Chain. Under the Tokenomics Phase II split, $58.0K of this is allocated to Prime and will be distributed as rewards in October 2026.
Proposed allocation strategy:
- Allocate $50K in Prime rewards while maintaining a buffer for market price fluctuations and to avoid full depletion. The budget is lower than September’s because August’s unusually heavy liquidation month, which contributed roughly a third of the September budget, did not recur; reserves revenue itself edged up slightly.
- Rewards will be split 80/20 between the USDT and U markets, with speeds adjusted to allocate $40K to USDT suppliers and $10K to U borrowers.
- The market set is unchanged from September: USDT on the supply side and U on the borrow side. U borrowing continued to grow in its first rewarded month, and USDT remains the largest single revenue contributor.
- Focusing rewards on a single side of each market 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 decreased from $201.1M to $190.2M (−$10.8M, −5.4%) on a monthly-average basis, while borrowing rose from $121.3M to $132.1M (+$10.7M, +8.9%), lifting utilisation from 60.3% to 69.4%.
- Prime user supply declined from $60.4M to $47.9M (−20.7%), while the Prime supplier count rose from 223 to 239, indicating the decline came from a small number of large positions rather than broad Prime exits.
- USDT reserve revenue rose from $40.9K to $49.6K (+21.4%) MoM on higher utilisation and remains the dominant revenue contributor, justifying the majority of Prime rewards.
U Market
- Overall U supply grew from 26.4M to 28.1M U (+1.7M U, +6.4%), while borrowing rose from $14.2M to $17.5M (+$3.3M, +23.1%) and utilisation from 53.8% to 62.2%.
- Prime user borrowing rose from $5.8M to $10.8M (+$5.0M, +86%) in the first month of borrow-side rewards, with the number of Prime U borrowers rising from 15 to 49.
- U reserve revenue rose from $4.1K to $5.6K (+37.1%), a second consecutive month of growth, supporting continued borrow-side rewards on U.