This proposal outlines the allocation of Prime Rewards on BNB Chain for July 2026, based on available funds. The allocation is retroactive, redistributing revenue generated through June 2026.
Allocation Strategy
In June 2026, Venus generated $172.4K in reserves revenue. Of this amount, $34.5K (20%) is allocated to Prime and will be distributed as rewards in July 2026.
Proposed allocation strategy:
- Allocate $32K in Prime rewards while maintaining a buffer for market price fluctuations and to avoid full depletion.
- Rewards will be split 50/50 between the USDT and wBNB markets, with speeds adjusted to allocate $16K to each market’s suppliers.
- This continues the same strategy as June — rewarding the USDT and wBNB supply markets.
- Focusing rewards on the supply side 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 eased from $204.7M to $192.3M (-6.1%), while borrowing held roughly flat at ~$119.3M (+0.1%).
- Prime user supply declined from $44.9M to $38.2M (-14.9%) — a notably milder pullback than last month’s -32%, suggesting the large-position unwind is stabilizing. Prime borrowing rose from $22.6M to $25.6M (+13.5%), and the Prime supplier count held steady (246 → 245). USDT remains the largest Prime market by participation.
- USDT reserve revenue eased from $39.4K to $36.2K (-8.3%) MoM but remains the dominant revenue contributor, justifying half of Prime rewards.
wBNB Market
- wBNB deposits held firm and grew in token terms — end-of-month supply rose from ~97.3K to ~102.8K WBNB (+5.7%). The lower USD figure ($70.2M → $57.2M) reflects the decline in the BNB price over the period, not a withdrawal of deposits.
- Prime participation continued to build: Prime suppliers grew from 14 to 47 and Prime-held supply from ~$0.9M to ~$4.1M, confirming the market is attracting a healthy Prime supplier base.
- wBNB reserve revenue remains minimal (~$1.3K in June), consistent with a market still early in its growth. The ~$16K/mo reward is a deliberate supply incentive, to be tapered as the Prime supplier base deepens.