Summary
This proposal outlines the deployment of Venus Prime on the Arbitrum network. The objective is to enhance user engagement and market participation through a sustainable rewards system, utilizing Venus Protocol’s reserves for organic incentives.
Market Allocation
The reward allocation across markets on Arbitrum will be based on recent performance data and aligns proportionally with market reserve distributions. Below are the proposed reward allocations:
| Market | Relative Market Reserves | Reward Allocation |
|---|---|---|
| vUSDC_Core | 24% | 25% |
| vUSDT_Core | 24% | 25% |
| vWBTC_Core | 17% | 15% |
| vWETH_LiquidStakedETH | 35% | 35% |
Details
Venus Prime is designed to boost user engagement and market activity within Venus Protocol on Arbitrum. It operates as an incentive program that leverages protocol revenue to offer sustainable, market-specific rewards to eligible $XVS holders. Rewards are delivered through a non-transferable Soulbound Token, ensuring they benefit engaged participants directly.
For further details, please refer to the Venus Prime documentation.
Proposed Allocation for Arbitrum
The reward distribution follows the reserves generated by each market, prioritizing sustainability while driving market engagement. This allocation is tailored to attract participants effectively, similar to the approach on Ethereum Mainnet.
Disclaimer
- The budget details are currently pending, as the Vanguard team is undergoing a grant application process that may fund this initiative.
- Allocations and reward distribution percentages will be subject to adjustment based on Arbitrum’s market performance and ongoing results.
Conclusion
Deploying Venus Prime on Arbitrum aims to replicate and amplify the success observed on other chains, leveraging a reward system that fosters sustainable growth. This expansion strengthens Venus Protocol’s presence and incentivizes user engagement through organic market-driven rewards.
