ETH Mainnet Market Emission Adjustment
Summary
After the first 2 months of Venus ETH Mainnet deployment, the protocol has achieved the following metrics:
- Total Supply: $190M
- Total Borrows: $82M
The objective of this proposal is to adjust emissions on the ETH Mainnet as new markets are onboarded and existing markets begin to stabilize. The adjustments are as follows:
Table 1: Market reward adjustments
| Pool | Market | Proposed Monthly Allocations | Adjustment |
|---|---|---|---|
| Core | WETH | 1,125 (-375) | -25% |
| Core | WBTC | 3,375 (-1,125) | -25% |
| Core | USDT | 3,375 (-1,125) | -25% |
| Core | USDC | 3,375 (-1,125) | -25% |
| Core | crvUSD | 1,500 (-500) | -25% |
| Core | FRAX | 600 (-200) | -25% |
| Core | sFRAX | 600 (-200) | -25% |
| Core | TUSD | 200 (200) | 100% |
| Core | DAI | 500 (500) | 100% |
| Curve | CRV | 375 (-125) | -25% |
| Curve | crvUSD | 375 (-125) | -25% |
| LST ETH | WETH | 18,333 (0) | 0% |
| LST ETH | wstETH | 3,600 (-1,200) | -25% |
| LST ETH | weETH | 0 (0) | 0% |
| Total | 37,333 (-5,400) | -13% |
Details
The suggested changes aim to gradually balance rewards for existing markets while avoiding significant shifts in market APYs. The ultimate goal is to establish optimal market size and emission levels without causing substantial changes in APYs.
Additionally, to facilitate the onboarding of new assets, a new base reward allocation will be implemented to incentivize initial liquidity. The base rewards will be determined based on the new market’s size across the ETH Mainnet and its participation in the lending ecosystem.
The three levels for monthly rewards are as follows:
- Low (200 XVS): Less than $50M in market size.
- Mid (300 XVS): More than $50M but less than $100M in market size.
- High (500 XVS): More than $100M in market size.
Note: Incentives may vary based on partnerships and market conditions.