Prime Adjustment Proposal

Prime Adjustment Proposal


This document evaluates Venus Prime’s performance following two 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: +103% (from $60,671,616 to $155,426,778)
    • Borrow: +606% (from $9,511,982 to $39,935,010)
  • Relative contribution to protocol reserves
    • BTC: 4%
    • ETH: 21%
    • USDC: 26%
    • USDT: 49%
  • New reward distribution proposal:
    • BTC: 5% (-17%)
    • ETH: 25% (+1% )
    • USDC: 30% (+14%)
    • USDT: 40% (+2%)
  • 3-month reward distribution recommendations:
    • BTC: 0.79 ( -2.48)
    • ETH: 72.39 (+9.04)
    • USDC: 225,000 (+133,006)
    • USDT: 300,000 (+74,000)
      • Total rewards for 3 months: $750,000



  • The following analysis considers token prices and volumes at key block numbers: 32599510 (pre-Prime) and 35135060 (post-Prime).

Deployment Performance

Graph 1: XVS Vault Staked Amount

  • After the launch of Venus Prime, the average monthly deposits increased from approximately 56,824 to 325,418 (+472.67%).
  • One user withdrew and moved to cold storage 600k XVS during the week of the release.
  • The net vault amount showed an improvement post-launch, with a growth of approximately 5.15%, compared to a decline of about 3.20% in the preceding period.

Graph 2: Cumulative Users Minting and Borrowing Volume

  • The graph displays a significant increase in both minting and borrowing volumes, especially after November 23, highlighting the impact of the Prime reward release. Minting volumes increased from $47,655,512 to $72,944,361, and borrowing volumes rose from $19,737,323 to $45,619,908 within a week.

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 727.08 6.47 $19,567,814 $174,052
ETH 10,225.99 949.57 $15,872,595 $1,473,905
USDC 2,640,468.84 1,416,199.25 $2,640,844 $1,416,401
USDT 22,591,739.76 6,448,017.18 $22,590,362 $6,447,624
Grand Total 25,243,161.68 7,865,172.47 $60,671,616 $9,511,982

Table 2: User Balance After Prime (Block number: 35135136)

Token Supply Token Amount Borrow Token Amount USD Supply Amount USD Borrow Amount
BTC 1,140.00 99.87 $53,978,852 $4,728,722
ETH 9,555.00 7,173.88 $24,827,065 $18,581,795
USDC 6,669,784.02 4,866,847.10 $6,671,062 $4,867,780
USDT 69,923,535.60 11,752,299.14 $69,949,799 $11,756,713
Grand Total 76,604,014.62 16,626,420.00 $155,426,778 $39,935,010

Table 3: User Token Balance Change After Prime

Token Increase in Supply Amount Increase in Borrow Amount
BTC 57% 1444%
ETH -7% 655%
USDC 153% 244%
USDT 210% 82%
Average 103% 606%
  • These tables show a considerable increase in both supply and borrow token amounts after the introduction of Prime, amplifying yields and creating more use cases for users to increase their positions.

Adjustment Recommendations

Table 9: Current monthly reward distribution and relative revenue performance

Token Token Rewards Current Proportion Revenue Proportion
BTC 1.09 22% 4%
ETH 21.12 24% 21%
USDC 30,664.72 16% 26%
USDT 75,333.25 38% 49%
  • Total rewards in USD: $212,301

Table 10: Proposed monthly reward distribution change

Token New Proportion Proposal Token Rewards
BTC 5% 0.26
ETH 25% 24.13
USDC 30% 75,000.00
USDT 40% 100,000.00
  • Total rewards in USD: $250,000

This new change aims to adjust rewards for eligible users based on the current total budget for Prime, which is estimated to be $1,600,097. The plan takes into account the average monthly protocol reserve allocation for Prime, which is estimated to be $93,985. Considering an estimated increase of 5% in allocation each month due to protocol growth, this amount is expected to be sustainable for more than 14 months. However, future adjustments will be made to further fine-tune and optimize Prime rewards for eligible users

The proposal is to use this configuration for the next 3 months. After this timeframe, a new performance evaluation will be conducted to keep improving the effectiveness of the program.

With this, it is required to send the token amounts for each market to finance the next 3 months of the program.

Table 11: Proposed 3-month budget

Token Token Rewards
BTC 0.79
ETH 72.39
USDC 225,000.00
USDT 300,000.00


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.


Venus prime is very cool with better features


Very details , thanks team

it has to be attract more whale via advertise.
very big amount of interest they are gaining.
i support this proposal because venus prime became a game changer for venus protocol

I would like to see continued coordination and an increase in the number of users and TVL.

1 Like

Very interesting and clear, I couldn’t wait to exercise Venus prime !!

Very clear. Thanks for this proposal! Venus prime is key for the protocole. Let’s do the adjustments :+1:

1 Like

I love this proposal :slight_smile: as Stablecoin Prime user i vote FOR!! :slight_smile:


I fully support this approach. we must focus on current indicators and redistribute interest based on market indicators. This way we can stimulate user demand for polar assets and attract even more assets.
thanks for the review.

I’m just thinking why we would like to lower the btc rewards so much. It seems to be a really huge difference.

Despite see btc going (PRIME)down… its based on revenue soo i hope next quarter we able to raise the revenue and would love to see BNB at Prime… since its one of the best revenue for Venus,

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I think the current Prime Adjustment Proposal needs changing

A 75% cut in reward distribution for BTC is too much at this time!

A good APR for BTC is a BIG marketing tool and is essential to bring more users, liquidity and income to Venus

After the introduction of Prime, we have seen considerable increases in both supply and borrow, with extra 53M worth of BTC, which is almost 10 X that of USDC, 2X more than ETH, and almost equal to the same amount of USDT

This new BTC supply results in MORE borrow of USD which gives MORE income to Venus and stablecoin suppliers

A new change is needed to balance the reward distribution between the stablecoins. USDC received 16% of reward compared to 38% for USDT - but also we need a fair balance between stable coins and BTC/ETH

The new proposal has a 70/30 split between stable and BTC/ETH, with ETH getting 5X more than BTC after that split

Perhaps it would be better at this early stage to have a 64/36 split between stable and BTC/ETH, and a fair share for BTC - something like:

BTC: 12%
USDC: 26%
USDT: 38%

My 2 cents

Thanks for the reply!

This approach was considered, but the decision to reduce BTC rewards is in line with the relative increases shown in Table #3 and the protocol reserve participation as seen in Table #4.

The rationale for adjusting the USDC rewards is to incentivize users to increase their supply and borrow positions in a market responsible for 26% of the protocol’s reserves (for prime users).

Additionally, although BTC has significant supply participation, it lacks borrow use cases, resulting in relatively low protocol reserve participation.

Thanks for your reply, and your hardwork creating your proposal.

The significant increase in the supply of BTC, while not contributing directly with an increase in BTC borrow, does fuel borrow of stable which contributes to the protocol.

However, there is good rationale to increase Stablecoin supply, the recent high borrow rates for USDC in particular is an unfair burden on borrowers.

It will be interesting to see the overall effect of any reduction in BTC rewards, and the relative supply/borrow in stable and BTC.