Prime Adjustment Proposal - Q2 2024

Prime Adjustment Proposal


This document evaluates Venus Prime’s performance following 5 months of deployment. It proposes adjustments to its distribution, focusing on aligning more closely with each market’s contribution to protocol reserves. The changes are designed to more accurately reflect market dynamics and user participation.

  • User participation increase after obtaining a Prime token:
    • Supply: +305% (from $136,949,388 to $555,100,249)
    • Borrow: +400% (from $31,673,624 to $158,482,905)
  • Relative contribution to protocol reserves
    • BTC: 0.2%
    • ETH: 4.7%
    • USDC: 38.2%
    • USDT: 56.9%
  • New reward distribution proposal:
    • BTC: 5% (0%)
    • ETH: 15% (-10% )
    • USDC: 40% (+10%)
    • USDT: 40% (0%)
  • 3-month reward distribution recommendations:
    • BTC: 0.72 (-0.07)
    • ETH: 71.35 (-1.04)
    • USDC: 300,000 (+75,000)
    • USDT: 400,000 (+100,000)
      • Total rewards for 3 months: $1,000,000



  • The following analysis considers token prices and volumes at key block numbers: 32599510 (pre-Prime) and 37463959 (6 months, post-Prime).

Deployment Performance

Graph 1: XVS Vault Staked Amount

  • Overall Performance Improvement in Net Vault Amount: The net vault has increased by an average of 9% each week. This has led to consistent growth for XVS staked, rising from $6.5 million to $7.1 million, an increase of 8.3% during the initial six months of Prime.

Graph 2: Cumulative Users Minting and Borrowing Volume

  • The introduction of prime rewards led to a strong growth in platform activity, with the cumulative supply increasing by approximately $1.35 billion and the cumulative borrow by approximately $691 million.

Table 1: User Token & USD Balance Before Prime (Block number: 32599510)

Token Supply Token Amount Borrow Token Amount USD Supply Amount USD Borrow Amount
BTC 1,157.91 6.93 $82,594,375 $494,399
ETH 12,273.88 1,873.83 $44,776,300 $6,835,903
USDC 4,373,735.74 13,486,056.70 $4,374,169 $13,487,975
USDT 5,204,387.83 10,855,603.49 $5,204,070 $10,854,942
Grand Total 9,591,555.35 24,343,540.95 $136,949,388 $31,673,624

Table 2: User Balance After Prime (Block number: 37463959)

Token Supply Token Amount Borrow Token Amount USD Supply Amount USD Borrow Amount
BTC 4,522.46 53.81 $322,590,979 $3,838,017
ETH 29,515.44 10,561.31 $107,675,121 $38,528,673
USDC 20,097,744.90 46,803,521.45 $20,099,735 $46,808,155
USDT 104,731,272.50 69,305,980.73 $104,734,414 $69,308,060
Grand Total 124,863,055.29 116,120,117.29 $555,100,249 $158,482,905

Table 3: User Token Balance Change After Prime

Token Increase in Supply Amount Increase in Borrow Amount
BTC 291% 676%
ETH 140% 464%
USDC 360% 247%
USDT 1912% 538%
Average 676% 481%

The Prime program has resulted in an average supply and borrow increase of 305% and 400%, respectively. Prime users have increased their supply positions from $136,949,388 to $555,100,249 and their borrow positions from $31,673,624 to $158,482,905.

Adjustment Recommendations

Table 9: Current quarterly reward distribution and relative revenue performance

Token Current Rewards Current Proportion Revenue Proportion
BTC 0.79 5% 0%
ETH 72.39 25% 5%
USDC 225,000 30% 38%
USDT 300,000 40% 57%

Table 10: Proposed quarterly rewards

Token New Rewards
BTC 0.72
ETH 71.35
USDC 300,000
USDT 400,000
  • Total rewards in USD: $1,000,000

*Note: The new rewards will follow the previous distribution pattern, as the change will impact revenue starting from Q2 2024. This will be considered in the next quarterly adjustment.

Table 11: Proposed monthly reward distribution change

Token New Proportion Proposal
BTC 5%
ETH 15%
USDC 40%
USDT 40%

This change aims to adjust rewards for eligible users based on the current total budget for Prime, estimated at $1,619,897. By taking into account the average Prime allocation over the last six months ($234,806), this budget is expected to be sustainable for over 12 months. However, future adjustments will be made to further refine and optimize Prime rewards for eligible users.

The proposal is to implement this configuration for the next three months. After this period, a new performance evaluation will be conducted to continue improving the program’s effectiveness.

Thanks to the release of the income allocator and token converters, the reward amounts are already on the Prime Liquidity Provider contract, so no transfers are needed.


The Venus Prime program has shown impressive performance, significantly increasing user engagement and market participation. The proposed adjustments are evaluated based on the program’s performance and are optimized for user rewards and protocol growth.


Increase of Prime rewards to $1M for next 90 Days!! Approved! :partying_face: :boom:

1 Like

To one million dollars in 90 days :star_struck::star_struck::star_struck::star_struck::heart:

I did some maths, showed them to my mom, and she said… heck yeah!!
And I tend to agree with my mom! :blush::metal:


In Q1/2024 Venus achieved excellent results and now it brings us these benefits, it’s great to be a Prime user. :sunglasses:

The Prime Adjustment Proposal is a clear example of innovation and adaptability in action. The Venus Prime team’s ability to assess and adjust the reward distribution demonstrates a commitment to excellence and sustainable growth. It is particularly impressive to see how the introduction of the Prime token has resulted in a massive increase in user participation, indicating strong confidence in the platform. This kind of proactivity and attention to market needs and behaviors not only benefits current users but also positions Venus Prime as a leader in its field, ready to attract new users. Congratulations to the team for their hard work and forward-thinking vision!

I think Venus Prime is a project that is actually contributing to the growth of TVL and the number of long-term XVS holders.
Therefore, I think it would be better to increase the allocation more and make it an attractive project to attract more attention from others. :grinning:

Rly cool🤟 $1M for the next 90 days🤩 I’m down🤟

I think it’s time to build, if you haven’t started doing so already.
I’m totally taken with this proposal.


Good proposal, I hope more and more people will pay attention to VENUS PRIME


I am suggesting that we increase the percentage allocation that goes to the xvs vault from the revenue from 10% to 20%. As we increase the allocation to the other assets that vault prime will benefit from. I strongly suggest that the allocation to vault be increased for this second quarter (Q2).

The vault stakers, whether prime or no prime, should be given more reward, and they are the governance folks.


Thanks for the comment. I think it’s a good idea to review the allocations :+1: