Summary
This document provides an updated assessment of Venus Prime’s performance and recommends adjustments to its reward distributions for the new quarter. The primary goal is to align incentive allocations with each market’s latest contribution to protocol reserves while sustaining protocol growth and user participation.
Relative Contribution to Protocol Reserves
- USDT: 66%
- USDC: 25%
- BTCB: 2%
- ETH: 5%
New Reward Distribution Proposal
- USDT: 55% (+5%)
- USDC: 30% (0%)
- ETH: 10% (‑5%)
- BTCB: 5% (0%)
3-Month Reward Distribution Recommendations
- USDT: 396,000 (+133,500)
- USDC: 216,000 (+58,500)
- ETH: 21.38 (‑8.86)
- BTCB: 0.38 (‑0.04)
- Total rewards for 3 months: $720K.
Details and Considerations
These recommendations factor in token prices, volumes, and reserves observed at key protocol milestones over the last quarter. Token prices are based on the January 1, 2025 snapshots, and the protocol’s reserve contributions have been recalculated accordingly.
Deployment Performance
Vault Growth
Data from: Venus Protocol Dashboard
The staked XVS amount increased from 6.4M to 7.1M, an absolute growth of 700K (+11%) since the program’s launch. In the last quarter, the staked amount has stabilized above 7M, likely due to the program reaching its Prime user capacity. This trend will be closely monitored to validate the impact of increased rewards for this quarter.
User Activity
Data from: Venus Protocol Dashboard
Cumulative supply has reached $4.2B, while cumulative borrows stand at $1.6B, highlighting the program’s significant contribution to protocol activity and user engagement.
Adjustment Recommendations
Prime Budget Details:
- Average Monthly Revenues for the last 2 years: $1,059,121
- Average Monthly Allocation for Prime: $211,824
- Remaining Budget: $369,673
- Proposed Monthly Rewards: $240,000
This analysis sets the reward levels to ensure sustainability for at least 12 months under current conditions, balancing user engagement and protocol growth.
Table 1: Proposed Quarterly Rewards
| Token | Current Rewards | New Rewards Proposal | Difference |
|---|---|---|---|
| USDT | 262,500 | 396,000 | +133,500 |
| USDC | 157,500 | 216,000 | +58,500 |
| ETH | 30.24 | 21.38 | -8.86 |
| BTC | 0.41 | 0.38 | -0.04 |
Total rewards in USD: $720,00
Table 2: Proposed Monthly Reward Distribution Change
| Token | Reserve Contribution | Current Proportion Proposal | New Proportion Proposal |
|---|---|---|---|
| USDT | 66% | 50% | 55% |
| USDC | 25% | 30% | 30% |
| ETH | 5% | 15% | 10% |
| BTC | 2% | 5% | 5% |
Upon completion of this three-month period, the Venus team will conduct another performance review to determine whether further adjustments are required.
Conclusion
Venus Prime continues to deliver meaningful user engagement and revenue growth. Implementing the updated reward distribution for the next three months will better align incentives with each token’s reserve contribution, optimizing the program’s performance. No additional transfers are required, as the Income Allocator and Token Converters manage distribution automatically.