Proposal: Bootstrapping New Markets with Protocol-Owned Liquidity (POL)

Proposals
1

Objective
To maximize the success of recently deployed collateral assets, we propose leveraging a portion of Venus’s treasury funds on BNB to bootstrap key new markets. This initiative aims to foster Venus’s growth on chains beyond the BNB ecosystem, aligning with the platform’s multi-chain expansion strategy.

Proposed Markets for Support

The current BNB treasury balances for the assets mentioned in this proposal are as follows:

USDC: 244,696.60
wETH: 309.96

  1. Ethena Isolated Pool (Ethereum)

The recently launched collateral assets (sUSDe, USDC, PT-USDe-27MAR2025, PT-sUSDE-27MAR2025 via VIP-411 & VIP-412) require robust USDC liquidity to grow effectively. As an isolated pool, it does not benefit from the USDC liquidity in the core pool and would benefit significantly from treasury support.

Recommendation:

  • Utilize 244,000 USDC from the BNB treasury wallet (0xf322942f644a996a617bd29c16bd7d231d9f35e9), and deposit the funds into the Ethena Isolated Pool.

2. wsuperOETHb Market on Base

The upcoming launch of Origins wsuperOETHb on Base presents a significant opportunity to grow Venus’s Total Value Locked (TVL) and revenue. Bootstrapping this market with wETH will establish sufficient liquidity to support user activity, particularly looping, while mitigating liquidity challenges as seen with the Ethena market. Given the nascent stage of Venus’s deployment on Base, proactive support is crucial.

Recommendation:

  • Allocate 100 wETH from the BNB treasury wallet (0xf322942f644a996a617bd29c16bd7d231d9f35e9) to Venus’s Base deployment to bootstrap liquidity.

Summary:

If passed this proposal suggests the following actions:

  • Bridge 244,000 USDC from the BNB treasury to the Ethereum treasury.
  • Bridge 100 wETH from the BNB treasury to the Base treasury.
  • Deposit 244,000 USDC into the Ethena Isolated market on Ethereum.
  • Deposit 100 wETH into the wETH market on Base.

Expected Outcome

By strategically deploying idle treasury assets, Venus can accelerate the growth and success of these key new markets, ensuring sufficient liquidity to attract and retain users. Once these markets reach maturity, the DAO can reassess and reallocate the bootstrapped funds as needed.

This proposal aims to align treasury asset utilization with Venus’s long-term growth objectives while fostering user confidence and liquidity in new markets.

12 Likes
2

I don’t think this is a good proposal. The DEV team and Chaos labs should migrate some high-quality assets in the isolated pool to the core pool, and supply incentive rewards to the core pool to increase the TVL of each chain.
From the observations in the past few months, it can be seen that Venus’s isolated pools can no longer meet users’ lending needs and has low capital utilization, which in turn limits Venus’s growth.

3

XVS Treasury reallocation is a good idea for Venus ecosystem. Not for XVS vaults or old markets, but for new markets and providing liquidity for DEXs.

4

Having markets within isolated pools is a separate issue. Vanguard is pursuing with Venus Labs to get more assets within the Core pool.

However, we have an isolated Ethena pool at the moment which also includes Pendle markets that could really do with being bootstrapped to help it get off the ground.

For the wETH part of the bootstrapping, this proposal will help boost our entire Base deployment, with wsuperOETHb being added to the core pool on Base.

The Ethena Isolated market has a higher LTV and therefore higher capitalization rates vs if it was in Core, that is one of the core reasons why it was made isolated, so it is more competitive to loop the sUSDe and Pendle yield strategies.

3 Likes
5

This step makes sense to me, we need to support specific markets to kickstart growth on other blockchains.

1 Like
6

I definitely like the addition of opportunities for more and more blockchains. let’s create the first true multichain protocol.

1 Like
7

Love to see this proposal

1 Like
8

Good proposal to make Venus’ funds flow! Make Venus GREAT again! I also want to ask the team to list more assets on zksync era.

2 Likes
9

Nice! This plan will effectively support Venus’s multi-chain growth and ensure sustainable market expansion.

10

I will always support proposals that put the money to work.

11

I agree with the idea of making use of idle treasury assets.
Efficiency is important.

12

been proposing this for ages lmeow

+1 to deploy capital

-1 for XVS release, we just reduced emission, we shouldn’t add more, just redirect existing emission from useless markets (LST pool) to useful markets (Zksync markets)

13

The explanation is very clear. I understand the DEV team’s planning and arrangements (increasing the TVL of the existing isolated pool and list more assets on the core pool). I hope the team will execute it quickly!

14

I think it would increase efficiency so you have my support

15

I’ve edited the proposal, removing the XVS recommendations to focus on the protocol owned liquidity to bootstrap the Ethena sUSDE and Origin’s wsuperOETHb markets as outlined above.

The XVS treasury allocations & initiatives deserves itt’s own proposal as it is a very different initiative even though it has a very similar objective.

4 Likes