Summary
As part of the multichain expansion, Venus Protocol aims to create an active and engaging community on Arbitrum by introducing an incentive structure that rewards both liquidity providers and borrowers.
Key points of the plan:
- Market Emissions: 25,500 XVS will be allocated to the first quarter as liquidity incentives.
- XVS Vault Base Rewards: 4,500 XVS will be allocated quarterly for the Arbitrum vault, with an additional 10% from the protocol reserves on Arbitrum from the previous quarter as per tokenomics starting from Q4.
- Bootstrap Liquidity on Uniswap: 1,500 XVS and 5 ETH will be used to provide liquidity on Uniswap.
- Multichain Development Grants: 3,000 XVS allocated for community-driven multichain and cross-chain expansion.
Incentive Structure
In the first quarter of Venus Protocol’s multichain deployment, the distribution of XVS emissions across is aligned with competitive TVL distributions.
Table 1: XVS monthly distribution
Chain/Quarter | Month 1 | Month 2 | Month 3 | Total | Distribution (%) |
---|---|---|---|---|---|
Arbitrum Markets | 8,500 | 8,500 | 8,500 | 25,500 | 85 |
Arbitrum XVS Vault | 1,500 | 1,500 | 1,500 | 4,500 | 15 |
Total | 10,000 | 10,000 | 10,000 | 30,000 |
Table 2: XVS monthly distribution per market
Pool | Market | M1 Allocation | M2 Allocation | M3 Allocation | Total Allocation | Distribution (%) |
---|---|---|---|---|---|---|
Core | ARB | 425 | 425 | 425 | 1,275 | 5 |
Core | ETH | 425 | 425 | 425 | 1,275 | 5 |
Core | BTC | 850 | 850 | 850 | 2,550 | 10 |
Core | USDT | 850 | 850 | 850 | 2,550 | 10 |
Core | USDC | 850 | 850 | 850 | 2,550 | 10 |
LST ETH | wstETH | 850 | 850 | 850 | 2,550 | 10 |
LST ETH | weETH | 850 | 850 | 850 | 2,550 | 10 |
LST ETH | ETH | 3,400 | 3,400 | 3,400 | 10,200 | 40 |
Total | 8,500 | 8,500 | 8,500 | 25,500 | 100 |
Table 3: Proportional distribution for supply and borrow
Pool | Market | Supply | Borrow |
---|---|---|---|
Core | ARB | 40% | 60% |
Core | ETH | 40% | 60% |
Core | BTC | 40% | 60% |
Core | USDT | 40% | 60% |
Core | USDC | 40% | 60% |
LST ETH | wstETH | 100% | 0% |
LST ETH | weETH | 100% | 0% |
LST ETH | ETH | 30% | 70% |
- This incentive structure may be adjusted based on market conditions, as well as continuous analysis and results.
XVS Vault Base Rewards
Venus Protocol will maintain its commitment to the XVS vault rewards, for the new Arbitrum vault deployment. Each quarter, a base reward of 4,500 XVS will be allocated to vault rewards, with an additional 10% of the protocol reserves added from the third quarter onwards.
Table 4: XVS Vault Base Rewards for Arbitrum (XVS)
Quarter (2024) | Rewards |
---|---|
Q1 | 4,500 XVS |
Q2 | 4,500 XVS |
Q3 | 4,500 XVS + 10% of Q2 Reserves |
Q4 | 4,500 XVS + 10% of Q3 Reserves |
Details
The emissions schedule was calculated based on the market proportions on the Ethereum Mainnet. Furthermore, the allocation weights were distributed based on market performance on ETH in terms of Market Size and Total Borrow Amounts.
Uniswap Bootstrap Liquidity
With the new XVS vault to be soon enabled on Arbitrum for Venus Prime and Governance, this proposal aims to provide liquidity with 1,500 XVS and 5 ETH to seed a pair on Uniswap and ensure a smooth start. This Uniswap liquidity pool will be available on Mainnet for users and partners to participate in.