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 to multisig addresses created and managed by the Venus and Fluid teams. Over the course of the campaign, the funds will, as needed, be converted into the asset corresponding to the incentivized market, and allocated to the incentive reserve contract weekly, which is invoked by the rebalancer bot to automatically distribute incentives to eligible users through Liquidity Layer and the lending market…
Receiving address:
0xBE0EdB1F457334B8d2DfEb3627567137E745A00B
Network chain: BSC
The incentive reserve contract address: https://bscscan.com/address/0x264786EF916af64a1DB19F513F24a3681734ce92#code
Rebalancer Bot Address: https://bscscan.com/address/0xb287f8A01a9538656c72Fa6aE1EE0117A187Be0C
Custody & control:
All incentive funds will be received, held, and managed via a multisig address. During the campaign lifecycle, the funds may be converted, as needed, into assets corresponding to the incentivized markets. At all times, transfers will be restricted exclusively to the designated incentive reserve contract as the sole recipient, ensuring transparency, security, and appropriate governance control throughout the campaign lifecycle.
5. Incentives distribution mechanism
Periodic snapshots will be taken, based on which a Merkle tree will be constructed and its root committed to the incentive reserve contract. The reserve contract will subsequently leverage the liquidity layer to automatically distribute incentives to users in terms of rebalance, with no manual interaction required.
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.