This proposal seeks to immediately allocate to the USD1 Market $10,000 in XVS from the Venus Protocol Treasury to provide initial incentive rewards for the USD1 market for a 30 day period. These rewards will stimulate supply-side liquidity and encourage early adoption of USD1, a fiat and RWA’s backed stablecoin recently integrated into the Venus ecosystem.
Background
Following the successful deployment of the USD1 market, this proposal acts on the momentum outlined in the original integration rationale. USD1, issued by World Liberty Financial, a venture backed by the Trump Family is making significant waves in the BNB Chain ecosystem. The stablecoin is pegged 1:1 with USD and backed by low-risk assets, ensuring high credibility and institutional appeal.
The Venus Protocol community approved the onboarding of USD1 with the understanding that early support would be critical to building market confidence and usage. Chaos Labs has recommended enabling supply-only mode initially, providing a low-risk way to begin seeding the market and ramping up user participation.
Proposal
Objective: Fund USD1 market with $10,000 worth of XVS tokens to be used as liquidity mining incentives for an initial 30 day period.
Implementation: Coordinated by Venus Labs Team in collaboration with the Vanguard BD team to monitor performance.
Rationale for Immediate Funding
1. Jumpstart Liquidity & Usage
Incentives are critical to onboarding the first wave of users and creating immediate depth in the USD1 supply pool.
Liquidity begets liquidity: An active, incentivized market attracts larger deposits and grows organically thereafter.
2. Visibility & Strategic Positioning
With USD1 gaining attention due to its backing and affiliation, Venus can position itself as the go-to lending venue for this new asset.
Early adoption puts Venus ahead of competitors in the BNB Chain DeFi ecosystem and strengthens our lead in stablecoin markets.
3. Confidence for Institutional Partners
Incentives provide stability and engagement metrics that institutional players monitor before making entry decisions.
A healthy reward system reinforces the commitment of Venus to quality assets and helps boost TVL.
4. Ecosystem Growth Flywheel
More stablecoins → more borrowers → increased protocol revenue.
USD1 has high potential in underserved regions and political-aligned communities, offering us a new user base.
Let’s get this one trough ASAP Fam. This is a pivotal moment to capitalize on the early excitement surrounding USD1. With strong institutional backing, alignment with Venus growth strategy, and solid fundamentals, USD1 can become a core stablecoin in the Venus ecosystem. Early incentives ensure we capture the momentum and build the market before competitors do.
The primary purpose of XVS tokens in the Venus Protocol white Paper is precisely to be used as a governance and incentive tool. That includes liquidity mining rewards. Rewarding early adopters of new markets with XVS is not dilution without purpose, it’s a strategic investment to grow the protocol, expand TVL & specially our Mcap… and of course, to generate future revenue.
Using XVS directly from the treasury aligns with how most DeFi protocols bootstrap liquidity. Think Aave, Compound, Curve, and others. The goal isn’t to hoard XVS but to deploy it where it creates protocol-level value. That’s what this proposal aims to do.
We need to focus on long-term protocol growth, not short-term token optics…
You guys are pushing underwater the xvs holders!
How are you guys gonna mitigate the past years emissions? Or, are you gonna mitigate them? When all the xvs supply is gonna be emitted, how will venus pay incentives? If thinking longterm is the game, why not acumulate xvs into the treasury wallets, show proof of value as AAVE has.
I get exactly where you come from and completely agree for what’s to come next, but for right now, how can 300 XVS/Day over a 30 day period push under XVS Holders when trading volume is around 150K XVS per day? I am an XVS holder too remember? It’s not about the short term value…
Simply hoarding XVS doesn’t create any value. A treasury full of unused tokens might look good on paper, but without protocol growth, utility, and adoption, it’s meaningless. Instead, responsible, targeted deployment of XVS now, like this proposal, is how we turn XVS into a productive asset, not a dusty one.
Once emissions wind down, incentives will likely be funded through protocol revenue but again, we need TVL growth now to generate that revenue stream later. You don’t cut off a rocket’s fuel source mid-launch right?
This proposal isn’t about dumping XVS. It’s about strategic deployment of treasury resources to bring users from a new market to Venus, teach them everything about XVS and Venus Prime, onboard new liquidity and win early in that new market. That’s what creates real lasting value for XVS holders.
I support the proposal to allocate XVS incentives to support the growth of the USD1 market. Providing rewards is a practical way to attract users and liquidity in the early stages, and will help USD1 establish a more stable presence within the Venus ecosystem. Looking forward to seeing its adoption grow with this support.
I’m not saying “Don’t”, dont misunderstand me. I’m saying stop emitting new xvs in circulation. Somewhere in the past there were discussions of 0 emissions. Thoose 0 emissions will come when all xvs will be in circulation and no more to emit, and convientlly team will say… “Lets do 0 emissions”… So they won’t have to market buy the xvs.
What I’m saying is use treasury funds to market buy the xvs you are gonna reward as incentives. Let’s do that for all the emissions.
Danny says xvs is a utility token meant for this and it states in the whitepaper… Etc. Well if holders sell you’ll have to reward more xvs to cover the 10k usd worth. We went from 9M xvs in circulation to almoust 16M. How has the price evolved?
I keep my statement, TEAM IS DILUATING XVS HOLDERS WALLETS VALUE. We could rename venus protocol to Venezuela protocol.