[IDEA] XVS New Tokenomics

discuss new tokenomics to solve old problems (demand to buy ):

  • Stop distributing XVS. Fixed supply 12,500,000 XVS.
  • Borrowers must buy XVS to pay interest.
  • Lenders provide liquidity to receive interest in XVS.
  • XVS holders get revenue share.
  • What problem can be solved?
  • Avoid inflation for XVS.
  • Create demand to buy XVS.
  • When borrowers borrow more, they buy more XVS and vice versa.
  • Unsolvable problem?
  • How to calculate interest on XVS?
    For example, if you borrow 1BNB, how much % is the interest calculated by XVS?

I think the xvs in the vault should boost interest rates, maybe in tiers. Fixed apy vaults would be nice, time locked vaults with better apy’s. Good controlled balancing between inflation and deflation is the best choice in my opinion, then we are more flexible in different market conditions. And after some time, when we have many unique wallets and very high TVL, xvs should become very scarce.

Who is in need of buying XVS right now?

If XVS is designated as the interest payment method for Borrower, won’t this complicate the process and reduce the number of Borrowers?

If the income of Protocol increases, the dividend will increase.
If Protocol’s service is attractive, it will be possible for investors to buy XVS and stake their money in the XVS Vault.

If Protocol’s service becomes more attractive, organizations will buy XVS to vote for the listing of any crypto asset on the Lending Service.

As described above, if the service becomes more attractive and income increases, there will naturally be an incentive to buy and hold XVS.

XVS should no longer be supplied to the market.
If we supply it, we will give them the opportunity to sell it.


  1. why not continue to make the Borrower’s payment repayment on the borrowed crypto asset?
  2. why not make incentive payments to Borrower, interest payments to Lender and dividends to XVS Vault to BNB and VAI instead of using XVS?

Let me explain more clearly:

  • Lender:
  • Sell XVS to receive interest on loans. (high daily selling volume)
  • Buy XVS for cheap speculation when the loan volume increases so that they can sell for profit (borrowers need to buy XVS to repay the loan → demand increases).
  • Borrower:
  • Buy XVS to repay the loan. (high daily purchase volume)
  • Buy XVS for cheap speculation. (borrowers will pay less when the market goes up)
  • Holders of XVS:
  • Buy XVS to get the right to vote and share in revenue.
  • Sell XVS for profit (very small amount compared to staking amount).

(@masamune )

  1. why not continue to make the Borrower’s payment repay on the borrowed crypto asset?

-(complex): the borrower pays with the borrowed asset, then Protocol will buy XVS from the market and then pay interest to the lender. (price difference)

  1. why not make incentive payments to Borrower, interest payments to Lender and dividends to XVS Vault to BNB and VAI instead of using XVS?

The protocol incentivizes lenders and borrowers directly with a better interest rate rather than a token distribution.

Conclusion: the ultimate purpose of tokenomics is to create daily buying demand for XVS in the market.

P/S: Uniswap did not use UNI in its system, except for voting on proposals.
UNI holders also don’t get to share in the revenue, so even though it’s the largest DEX in DeFi, the price still plummeted.

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It will raise the threshold for entry and make us lose users. I believe Venus needs to remain accessible to everyone and we should focus on building right now rather than changes to our tokenmetics

Paying interest on xvs seems like a feasible idea but it would make the protocol less attractive for some. I believe people would prefer to earn interest in their staked currency however Celsius was paying out boosted rewards in their own token is users opted in so you could analyse how it performed for them

If the price of XVS continues to fall, the holders of XVS will walk away. Venus will no longer be attractive to all investors. Who will continue to participate in voting on Venus other than the development team?

I believe the team plan to implement a liquidation tax that will be used for buy back and burns. It’s been constantly delayed though and we have already missed out on millions of revenue during this bear market :frowning:
New suggestions are welcomed but the team haven’t even delivered the previous tokenmetics and proposal. I understand your frustration but we should focus on actually delivering what’s already long over due and if that implementation don’t help, we could consider something new.

We shouldn’t be focusing on something new when the previously accepted proposal in still undelivered lol

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I think adapting to current conditions is better than following the schedule.

I think this is the best idea Venus had come up with in a long time. It shows the team has clearly been studying the issues the protocol has in 2022. I hope this gets discussed and worked over throughly over the next week’s.