Stopping XVS Rewards for borrowed XVS. A quick and easy solution!

Proposals
1

STOP XVS REWARDS FOR BORROWED XVS

We are currently distributing rewards to XVS asset, paid in XVS, split 50/50% to suppliers/borrowers according to the protocol rules (not easy fix without mayor upgrade to the main code as informed by the community). However, borrowing is capped and not possible now.

The result is that we have a small group of 88 borrowers that are the only ones allowed to borrow XVS and they are getting a large APY, ~ 17% APY return (~-16% Borrow APY and +33% Distribution APY) while the suppliers are getting a 2.57% APY return (~0.72% APY and + 1.85% Distribution APY). This issue has been subject to criticism for a long time by the community due to being unfair to the majority of XVS holders (currently ~14k suppliers of XVS and only 88 borrowers).

It is important to mention that supplying XVS is betting long on XVS and borrowing XVS is essentially a short bet and that the LP Farms currently borrowing XVS put a constant sell pressure on XVS.

The proposed quick and easy Solution:

Reduce the distribution of XVS to XVS asset vault from current to 0 (zero). The result of that small change that can be very easily implemented via a quick change of parameters via a VIP will be that the borrower’s yield will change from +17% APY to -16% APY. Suppliers will also get a reduced APY, from 2.57% to 0.72% APY but, its a Small price to pay by the HODL group, because the immediate effect is that the borrowing group will start repaying/contributing to the protocol instead of benefiting from it. The logical next move by the borrowers will be that they will return their borrowed XVS and at that point our new XVS vault will almost be ready to launch as well, with MORE XVS DISTRIBUTION REWARDS for XVS HOLDERS IN THE VAULT.

These changes can be implemented in days without complicated coding or audit.

We are all very happy for the new changes that will come with the new vault and the bright future of Venus. This is a fair move to reward the community and stop the unjust distribution of XVS rewards to a few borrowers only.

24 Likes
2

Sounds phenomenal! Glad this is finally getting done even if I lose APY for my supplied XVS. I am banking on XVS returning to previous prices! I just bought another $4k 2 days ago.

1 Like
3

It is a great injustice that xvs supplyers have a much smaller return than xvs borrowers. I support any proposal to correct this injustice.

2 Likes
4

Please do this as soon as possible .

5

Supported, we the xvs holders have been suffering from this injustice for long, great move

6

I am also in favour of this proposal

7

Good proposal. I’m very positive to the changes on Venus Protocol. Soon we will be the largest TVL on BSC again.

1 Like
8

I like it so gogo do it immidiately! :slight_smile: Do not hesitate and start VIP. I think that 88 borrowers at the moment included a lot of guys arround swipe team because that thing with borrow cap and start of XVS borrow was a little bit shady as everything in Swipe.

1 Like
9

This was very necessary, Nice… well done!

1 Like
10

Thank you for putting this in writing. Totally for it. Go Venus! Looking long-term.

1 Like
11

Es una buena solución ,
Ya Toca frenar este abuso que hace muchos meses que se esta produciendo.
Voti si a esta propuesta

12

Of course a good idea. In the right direction of course. ASAP

13

It’s time to do it. :clap:

1 Like
14

Yes, definetely, do it. The apy for supply is too low anyway. The promised apy was around 12% for xvs supply and now is around 2.5%, that is really low…

15

I agree with that proposal !

16

Great Move. Go Venus! HODL only !

17

Absolutely agree. Let’s return profits to suppliers

18

This measure proposed could be a real turning point!!!
I’m confident the dev team will consider it carefully and then wisely come with a new VIP.
Real XVS investors are here for the long run.
I’m happy the new team is working hard to make XVS the great project we all have foreseen.
Keep up the good work.

19

:100: agree, good move :+1:

20

I see it perfect but it falls short, the same should be done with all the loans of all the coins.

The interest must be for holding, and not for borrowing.