Summary
This document provides an updated assessment of Venus Prime’s performance on Ethereum Mainnet 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
- WETH_LiquidStakedETH: 85%
- WBTC_Core: 1%
- USDC_Core: 6%
- USDT_Core: 7%
New Reward Distribution Proposal
- WETH_LiquidStakedETH: 85%
- WBTC_Core: 3%
- USDC_Core: 6%
- USDT_Core: 6%
3-Month Reward Distribution Recommendations
- WETH_LiquidStakedETH: 11.36 (-4.42)
- WBTC_Core: 0.01 (-0.02)
- USDC_Core: 2,700 (+450)
- USDT_Core: 2,700 (+450)
- Total rewards for 3 months: $45,000
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. This ensures the proposal accurately reflects current market conditions.
Deployment Performance
Vault Growth
Data from: Venus Protocol Dashboard
The XVS vault grew from 393.7K to 637.7K, an absolute increase of 244K (+62%) since launch. The decline in the last quarter is likely due to reduced rewards as bootstrap incentives ended. Nonetheless, the protocol is working to increase ETH Mainnet revenues and, with it, Prime reward levels.
User Activity
Data from: Venus Protocol Dashboard
Cumulative supply grew to $190.3M, while cumulative borrows rose to $155.9M. This increase in volume for users reflects strong user engagement driven by Venus Prime incentives.
Adjustment Recommendations
- Average Monthly Revenues since deployment: $53,000 (average)
- Average Monthly Allocation for Prime: $10,600
- Remaining Budget: $38,400
- Monthly Prime Rewards: $15,000
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 |
|---|---|---|---|
| WETH_LiquidStakedETH | 15.78 | 11.36 | -4.42 |
| WBTC_Core | 0.0461 | 0.0142 | -0.0219 |
| USDC_Core | 2,250 | 2,700 | +450 |
| USDT_Core | 2,250 | 2,700 | +450 |
Total rewards in USD: $45,000
Table 2: Proposed Monthly Reward Distribution Change
| Token | Reserve Contribution | Current Proportion | New Proportion Proposal |
|---|---|---|---|
| WETH_LiquidStakedETH | 85% | 85% | 85% |
| WBTC_Core | 1% | 5% | 3% |
| USDC_Core | 6% | 5% | 6% |
| USDT_Core | 7% | 5% | 6% |
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 on Ethereum Mainnet. 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. A new performance review will follow after this three-month period to determine if further adjustments are needed.