We propose a $450,000 treasury allocation to support the community-driven launch of Venus X, as part of a $1M jointly funded incentive program alongside committed partners.
1. Objective — Venus X Launch Liquidity Campaign
To support the launch of Venus X, we propose a targeted liquidity incentive campaign to bootstrap deep, stable, and sustainable base liquidity at launch.
Through early-stage incentives, this campaign aims to attract high-quality stablecoin liquidity, forming the foundation for Venus X to operate efficiently from day one.
This proposal requests 450,000 USD in incentives from the Venus Treasury, as part of a joint $1M Venus X launch incentive program, to ensure a controlled, stable, and successful launch.
2. Target Liquidity Size & Role at Launch
During the Phase One launch campaign, Venus X targets reaching approximately $250M in total TVL within the first two months.
To support this goal, the campaign focuses on onboarding sufficient seed liquidity at launch, ensuring that early market activity starts from a position of strength rather than scarcity.
Early-stage incentives are designed to:
- Secure meaningful seed liquidity for a smooth and credible launch
- Support early borrowing and leverage demand without utilization shocks
- Establish strong market presence and early confidence in Venus X
All incentives will be applied strictly at the product level, with rewards accruing directly to users supplying assets into Venus X. Incentives will be limited to supply-side participation in core stable assets only, namely USDT, USDC, and U.
By prioritizing seed liquidity formation, this approach enables Venus X to scale efficiently toward the $250M TVL phase one target, while maintaining stable utilization, competitive rates, and healthy market conditions throughout the launch phase.
3. Incentive Structure (High Level)
The total launch incentive budget is $1,000,000, jointly contributed by three parties:
- $450,000 from the Venus Treasury (this proposal)
- $450,000 from Fluid (already committed)
- $100,000 from the U team (already committed)
These incentives are allocated to support early liquidity formation and market adoption, rather than short-term yield extraction, ensuring that Venus X launches with a strong and durable liquidity base.
4. Fund Transfer & Operational Details
To proceed with execution, the following operational arrangements will apply to the incentive fund transfers:
Transfer mechanism:
Incentive funds will be transferred either to a single incentive contract or to separate contract addresses for each supported market (USDT / USDC / U), based on the finalized deployment structure.
Receiving address:
For the sake of transparency, we will share the multisig contract address(es) for receiving the incentive funds in the comments of this post once they are finalized.
Custody & control:
All incentive funds will be received, held, and managed via a multisig address, ensuring transparency, security, and proper governance control throughout the campaign lifecycle.
Once the above arrangements are finalized at the contract level, timelines will be aligned and fund transfers will be executed accordingly.
5. Incentives distribution mechanism
All APY incentives for supplying USDT, USDC and U will be transacted onchain for transparency. More information on the distribution mechanism will follow shortly.
6. Conclusion
By directing incentives toward early seed liquidity in core stable assets, the program helps ensure a smooth, stable, and well-balanced market at launch, supporting real user activity while avoiding sharp utilization swings.
All incentives are distributed on-chain, transparently, and at the product level, reinforcing Venus X as a community-aligned, sustainably designed liquidity layer and setting a strong foundation for its Phase One growth toward the $250M TVL target.