Proposal: Fund Venus Prime Rewards on BNB Chain

Vanguard Vantage Team
1

Summary

Proposal to transfer funds from the Venus Treasury to the PrimeLiquidityProvider contract on BNB Chain to sustain Venus Prime reward distributions through Q2 2025.

Description

Following the Prime Adjustment Proposal – Q2 2025 [BNB Chain], Venus revenues on BNB Chain were projected to average approximately $983,563 per month. Based on these estimates, reward distribution speeds for Venus Prime markets on BNB Chain were set as follows:

  • USDT: 363,000 over 90 days

  • USDC: 198,000 over 90 days

  • ETH: 35.11 over 90 days

  • BTCB: 0.40 over 90 days

This amounts to a total of +/- $660,000 in rewards over three months at time of the original post.

In VIP-491, the following amounts were already withdrawn from the remaining Prime Budget surplus in the Treasury and sent to the PrimeLiquidityProvider contract:

  • 33,000 USDT (of 363,000 USDT)

  • 18,000 USDC (of 198,000 USDC)

  • 3.33 ETH (of 35.11 ETH)

  • 0.03 BTCB (of 0.4 BTCB)

Recently, Venus has executed several strategic risk adjustments on BNB Chain, including changes to risk parameters and the liquidation of the BNB Bridge exploiter account, in collaboration with the BNB Chain team. While these measures were necessary to protect the protocol’s integrity, they have temporarily reduced protocol revenues on BNB Chain.

Due to the current design of the Venus Prime converters, lower revenues limit the protocol’s ability to fund Prime rewards at expected levels, which may undermine incentive structures and reduce user engagement.

To maintain uninterrupted operation of the Venus Prime program through Q2 2025 and provide a small buffer for Q3, we propose transferring the remainder of the planned Q2 rewards from the Treasury to the PrimeLiquidityProvider contract.

Requested Action

Transfer the following amounts from the Venus Treasury to the PrimeLiquidityProvider contract on BNB Chain:

  • 330,000 USDT

  • 180,000 USDC

  • 31.78 ETH

  • 0.37 BTCB

This funding will ensure that Venus Prime reward emissions continue through the end of Q2 2025 and support adequate liquidity accumulation for Q3 2025.

Conclusion

Approving this funding is not just about maintaining reward distributions, it’s a strategic investment in Venus’ long-term growth on BNB Chain. By bridging the short-term gap in protocol revenues, we can preserve user confidence, sustain high levels of participation in Prime markets, and continue building momentum as market conditions stabilize.

These rewards are critical to attracting and retaining liquidity, reinforcing Venus’ position as the leading money market on BNB Chain. With prudent treasury management and proactive protocol adjustments, we are well-positioned to capitalize on the next wave of DeFi growth. Let’s keep Venus Prime strong and competitive.

11 Likes
2

It makes sense to me, we need to keep our Prime program attractive to investors and also without any downtime. :clap:

3

Ok, please do it asap, I’m broken without prime reward T.T

4

Totally agree! It’s not merely a suggestion; it’s a necessity.

5

Venus Prime is for XVS holders, which is why I want this proposal to be implemented urgently. The sooner it happens, the better.

6

I support the proposal! Venus users should always see the prospect of Prime status. This is a priority program for us!

7

Very happy we are not paying xvs!

1 Like
8

Sounds perfect to me, I fully agree with this proposal. This will significantly help ensure the Venus Prime program is not disrupted. Let’s go, team!

9

I’m in favor of this—it’s important to keep the rewards flowing to maintain user interest and grow liquidity. It’s a smart move to keep Venus Prime strong on BNB Chain.

10

I support this, let’s do it immediately.

11

Definitive solutions to protect Venus Prime should always be supported

12

Great! — it ensures Prime reward continuity, supports liquidity, and strengthens Venus’ position on BNB Chain. Fully support!

13

I agree with this proposal.
It is absolutely necessary to keep Venus Prime functional.

14

This proposal has my full support :100:. It’s prime time :blush:

15

I think there are a few potential solutions:

  1. Find a way to compensate users for the missed prime rewards when the converter fails — though this might not be technically feasible.
  2. Drop the converter entirely, and instead fund the Prime rewards manually each quarter.
  3. Keep using the converter, but at the same time, pre-fund the Prime rewards with a reserve to avoid interruptions.
16

I support this manual funding approach for Venus Prime rewards on BNB Chain. It’s a practical solution to keep the program running smoothly while we work toward a more automated system in the future. Thanks to the team for keeping things on track!

17

This is primarily a matter of urgent necessity. A value/distribution has already been indicated. This could cause problems for those who rely on it to repay loans that end up costing them more than expected.

18

We have to keep the rewards for now. So I totally agree.

19

Fully support. Prime must go on!

20

I also support this proposal. :wink: