Tokenomics -
Xvs - governance token - already with decreased emissions schedule . Xvs is needed to vote and unlock additional APY benefits.
VRT - protocol utility token - withdrawal fees paid in VRT, APY reward token, % of withdrawal fees burnt (promote holding VRT), initial burn amounts should be allocated to a venus protocol fund as backup for developing the protocol) additional VRT single vault added to venus asap and initiate new rewards model.
Regarding voting - possible suggestion to change it to, addresses only who have been staking XVS for greater than 30days. 1 vote per address. That way, no one can game the system and big holders doesn’t matter as everyone has equal voting - just a thought.
Remove XVS borrowing immediately
Stop supplying rewards to liquidated wallets.
Initiate VIP 29 with a few modifications; instead of releasing as much XVS to the market, build the VRT market, vault, exchange listing’s and utility and supplement the financial debt of the platform with VRT fees generated. Maintaining XVS scarcity and longevity of XVS emissions.
Outline clearly in the next version of the roadmap: XVS and VRT tokenomics and how they combine to increase APY rewards, burn mechanism and protocol insurance. These are short term quick wins that will go along way.
Please introduce the new council to restore trust from the broader community.
XVS BSC validator - implement asap - rewards go to XVS holders only. It’s a venus validator - so all rewards go to XVS holders minus the cost of the validator. Initially 40% could even go to the platform debt.
Please consider reimbursing users who got liquidated due to the oracle not working as intended. This will go far in restoring confidence in the protocol. Other protocols reimbursed their users after similar incidents.
Please consider the following during the Incident in May:
Many people sold their tokens at a loss to avoid liquidation by repaying their loan.
Many people sold tokens other than XVS to repay their loans to avoid liquidation.
The exploit happened for a certain period but the price drop to $19 was due mostly to exploitation by the users and the oracle failure.
The VIP 26 Proposal when announced caused many people to panic sell to avoid liquidation. This is the reason the proposal was canceled but the damage was done.
It is because of the above that I please request that the Venus Team realistically consider the following to be included in their compensation proposal.
A Snapshot be taken right BEFORE the exploit took place and another AFTER issue was resolved.
That ALL users, whether liquidated or not, be compensated from that snapshot till other snapshot
Compensation can be done in XVS or VRT (at snapshot price) for the amount held in protocol for all tokens that got liquidated.
The amount of XVS or VRT used to pay back those affected can be added to a burn proposal so that the market isn’t flooded with new XVS or VRT, thus not affecting the price of the tokens
If the above is asking for too much then at least consider the 1:1 XVS reimbursement option from a snapshot BEFORE the exploit took place for those that were unfairly liquidated due to manipulation of the protocol.
I just wanted to ensure that the Venus Team understands that not only liquidated people were affected but the entire community was affected due to the manipulation. Many lost a massive amount of money to avoid liquidation.
By considering the above it will go a long way in restoring faith in the team and the project and make up for massive losses incurred by Venus users. This will also ensure that people remain loyal to Venus.
First and foremost fix VXVS polling and voting.
A. Remove XVS Borrowing as well as fix VAI Peg
B. XVS Vault
C. Remove XVS as a reward for borrowing and Supplying
Reward XVS to only XVS VAULT, XVS Supply, VRT Supply
D. Use VRT as reward token across board
E. Integrate an AMM or PMM (DODO utilizes it). This should target highly desired tokens or cryptocurrencies. An AMM or PMM would increase revenue through fees generated. Fees can be rewarded to:
1.Liquidity providers
2.Venus Grant program
3. Reward Supply and borrow(at a reasonable rate)
F. Build a lottery. ( the idea is to generate fees, the lucky winner(s) would share the pot of tickets bought and allocation of AMM or PMM FEES)
G. LAUNCHPAD to host IDO’s, (the idea is to generate fees and to provide our community to get in early on good projects.
H. Flash loans and fixed interest loans if possible
F. Integrate or hard fork some of Yearn finance Vaults or best yet create our own
That’s a lot of suggestions, so please take your time to consider and possibly implement. Thank you for the opportunity to contribute.
P. S
If compensation for community members (before VRT snapshot or after snapshot, honestly don’t know what timeline is ideal) is possible without collapsing the protocol let’s please look into it. Lastly review of the tokenomics of our tokens with the max cap of VRT being quite high, i believe XVS max cap needs to be reduced significantly or the rate of emission should reduce drastically. This is to make it as scarce as possible and to economically drive it’s price up(YFI token as a case study)
Resume the “BNB Validator Program” project as soon as possible.
Any actor that deposits its BNB on venus could obtain the role of co-validator of BSC, thus
generating 45% APY (that’s what Joselito said back in the days).
But in order to get access to this program, you would have to hold XVS on a ratio yet to be defined.
Example, let’s take 2:1 XVS/BNB. I can stake 10 BNB @45% APY only if I provide 20 XVS to the protocol. 200 XVS for 100 BNB and so on etc…
Would attract a lot of liquidity to the protocol, fees and revenue and XVS value would skyrocket.
To create 1x rare NFT you need 10x common NFT.
To create 1x legendary NFT you need 10x rare NFT. (= 100 common NTF to create a legendary NFT).
Users who participated in the original NFT airdrop will randomly receive Common NFTs or more rarely Rare NFTs. The Legendary NFTs will have to be created ONLY by burning Rare NFTs.
According to my idea, the VRT token should be distributed as a second reward in every vaults with the XVS token in order to boost the rates of return (APY) when lending or borrowing on Venus.
The NFTs would finally have an interest as well as the VRT which despite a stock which increases quickly would see itself burned in a consequent way each time an NFT is improved from common to rare or from rare to legendary or when someone is buying an empty NFT that has to be improved.
I think that VRT should be removed from the ecosystem in order for the Venus protocol to continue on its way in a healthy way. No need to imagine, as long as XVS and VRT exist together they will share the same demand pool and VRT will simply steal from XVS’ market value. VRT will not bring new investors to the system and will decrease the value of XVS.
While the market value of the Venus platform was measured by the market value of XVS, it will now be measured by the sum of the market values of XVS and VRT. In this case, only XVS will lose where VRT does not contribute anything.
Realistically, as long as VRT exists, XVS will have trouble getting back to its old glory days at full speed. Investors holding VRT will gain from VRT and lose at the same rate from the slow increase in XVS.
My suggestion is to remove VRT from the ecosystem, cancel or reduce the burning of XVS, and rebuild the ecosystem completely on XVS. Thank you.
Thanks for informing the community. However, I think that the promises made should be kept in order for the Venus coin to be adopted better and regain its former power. This is essential for this trust. Like burning 10 million coins. In addition, a CEO who will be appreciated by the entire industry should be announced as soon as possible.
The burn does nothing right now and won’t affect anything in the future if Venus doesn’t survive. It comes from the non-circ supply. Swipe burned a ton that way and look at them now.
VRT’s role is to make XVS more scarce, so everything you said goes against why VRT was created. VRT MUST STAY and must serve as the reward token so that XVS can remain scarce. Simple really.
XVS must have a incentive to hold and accumulate.
A small portion of the paid interest should flow to vXVS holders / stakers, with a buy back of XVS or by giving stakers a portion of the interest.
(Waves does this with NSBT, have a look at that)
I f you ask me, I would say the interest rates need to be higher, 3% minimum.
If we can’t make Vai a stable coin, I think it would be better to fase out Vai.
There is no purpose using Vai, because it stops people lending stable coins.
(Altho I hold VRT from airdrop, I don’t see a use case for VRT at this moment. I would understand if this coin would be fased out)
Adding a little bit of rationale behind the VRT tokenomics, I believe Venus will last for years, decades and hopefully for a century. This tokenomics is one that after considering the consequences over the next 5 years, the best I personally can come up with. It directly correlates to the TVL of Venus as a protocol and brings in additional revenues streams possibility.
Strongly disagree with the original poster. VRT is made to increase XVS value. Bad idea. VRT and XVS together done the right way will increase both values as they coexist with each other. Look at theta and theta fuel.
Consider the fallout on social media and word of mouth if reimbursement isn’t given to those that were affected by the incident in May. I am talking about the cascading liquidations where the oracle didn’t do it’s job and a couple of accounts manipulated the price.
I am just saying way up that potential blow back on social media and word of mouth and how much that could potentially cost the protocol VS paying the people who were affected out and rebuilding trust and showcasing that wrongs can be righted which in turn will show Venus cares about its users.
First and foremost, CZ should come out and endorse the protocol, explain his stance on the rugpull, and how binance will act going forward. Insiders know exactly what happened here, so for him to come out and denounce the previous mouselabs/norestlabs team will go along way for some whales I know to buy back into the protocol eventually. Without this, there is no new capital from outside sources imo.
VRT. A lot of people bought XVS to yield farm with VRT. Since the previous team all but removed any high APYs and never implemented VRT, everyone has since left the protocol. Implementing a Cake like APY mint and burn structure will go a LONG way in getting eyeballs back on the protocol. Also implementing fee ideas such as cake uses, and even thinking outside that box will go a long way. Even if we go into a bear market, people will want to lock up and hold their tokens for a nice APY. HOW DOES BINANCE DO THIS? They need to really invest money into a new team with new ideas that can take VRT/XVS forward in terms of this. I believe this is an absolute must.
Everyone loves cake. Tshirts, great memes, weekly burns. Everyone loves Tfuel and theta. Why can XVS/VRT not combine the ideas from those protocols? Binance has such a good opportunity with VRT/XVS because defi is the future. They squandered the first opportunity because people were actually using the platform in a positive way and their previous team ruined it for everyone involved by rug pulling. How will they fix that?
Transparency. We should know that CZ is behind this project himself, even if hes just the face of it. This should be one of the highest rated projects on binance, and instead its a laughing stock now. CZ should inject capital into this, help the people who got rug pulled by creating a fund or something to help them, and really put a huge effort behind it. The first AMA is a good start, its a very professionally written draft. Now holders want to see follow-through, and they want that to be fast. In order to do that, you will need to pour capital into it to hire developers and turn the project around rather quicky. With the rapid speed of development on other defi projects, xvs/vrt is already way behind due to the previous team. Does this happen fast?
Token transparency. The previous team minted a lot of free tokens in SXP from the purchase, which transferred over to XVS and now VRT. There are big wallets which are holding a large allocation of tokens. From the SXP disaster of selling off millions and millions of tokens over the course of a year, whales dont want to see that happen again with XVS/VRT. What would go a long way in whales eyes would be to allocate those tokens to the project, the distribution, or burn them. With the amount of tokens unlocked, whales will always be skeptical of any future investment due to the last rugpull. Binance might think people dont watch the wallets, but whales do.
I think everything else is covered in the AMA. Removing XVS borrow function, hiring defi experts, and literally removing all the internal hacks the joselito team exploited. Make this a truly professional outfit and not just a piggybank for insiders.
Can advertising investment be increased in the future? Few people know xvs.
It has been more than a month since the 519 incident. We have seen the contribution of the new team, but please speed up the action and restore the confidence of the community as soon as possible.
