Venus X powered by Fluid

Proposals
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Summary

Fluid proposes to launch Venus X (final name tbc), which will consist of the lending market and DEX on BNB Chain, powered by Fluid. This upgrade transforms Venus into a safer, more profitable, and future-proof protocol, while keeping the Venus brand and BNB chain distribution intact.

Context

Fluid is a liquidity protocol that reached a $6B TVL in 18 months, merging lending, borrowing, and trading into a unified system. It can support an entire ecosystem of financial products on top of it. Today, we already have two major components live:

  • Fluid Lending offers the highest liquidation thresholds as high as 98%, and the lowest Liquidation Penalties, as low as 0.1%, in the industry. No other protocol can match the risk parameters we’ve engineered, and that translates to better conditions for users.

  • Fluid DEX is the fastest-growing and most capital-efficient on the market. It’s built directly on top of our liquidity layer, which means bootstrapping is much easier and more sustainable. Our goal is to be the largest DEX by volume across all chains combined within the next 6 months.

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Fluid solves DeFi liquidity fragmentation with a unified architecture that integrates lending, borrowing, and trading into one shared liquidity system. This positions Fluid as the most effective protocol to bootstrap liquidity, users, and volume, while delivering a superior UX.

For example, Fluid already has the most users among all lending markets in DeFi.

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Fluid generates more volume on the correlated pairs on Ethereum, Arbitrum, Base, and Polygon than all other DEXs combined by leveraging debt-based liquidity. We believe Smart Debt will power on-chain Forex, making it ideal for Binance Pay infrastructure.

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Overall, Fluid is the second biggest DEX by volume on Ethereum, aiming to become the biggest DEX by volume after the DEX v2 launch.

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What’s Coming Next

  • We’re not stopping at lending and trading. In fact, we have recently launched the first credit-based protocol on Fluid - uncollateralized borrowing directly from our liquidity layer. This opens up some really interesting potential:

  • Users on BNB could eventually access on-chain credit lines.

  • We could integrate this directly with payment solutions, giving users a more “bank-like” UX while staying fully decentralized.

We’re also working on these protocols, and at least one of them is expected to be launched next year:

  • Permissionless lending markets for institutional and private credit.
  • Fixed rates protocol.
  • A perps market on top of the same liquidity base, meaning more protocol fees and stronger incentives for LPs.

Proposal

  • Fluid will deploy Lending market and DEX smart contracts on the BNB chain under the existing Venus branding.
  • A tier-based revenue split approach that will not reduce Venus DAO revenue.
  • Fluid will maintain and continue developing the technical stack of the protocol.
  • Protocol will implement a dual governance model by XVS and FLUID token holders.
  • Fluid and Venus will provide incentives in a 50:50 proportion for growth initiatives of Venus X on the BNB chain.

Motivation

Venus is the biggest, most popular, and well-known lending protocol in the BNB ecosystem, but it utilizes outdated Compound v2 tech underneath, which can not provide the optimal UX or maximize revenue. Current TVL of Venus on the BNB chain is $2.8B, while the revenue is only ~$5M per year.

If Venus implements Fluid tech underneath, it will be able to generate more fees, revenue, and attract more TVL via enhanced user experience and more product offerings, such as DEX. For comparison, Fluid earns $12M in revenue on Ethereum with a similar TVL. With the introduction of the DEX v2, we expect to grow the revenue to $100M+ annually, which will significantly increase Venus DAO revenue.

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Fluid has already proven the model of combining Fluid’s tech stack with a powerful distribution partner in collaboration with Jupiter. Juplend powered by Fluid, reached $1B TVL in only 8 days after launch.

Conclusion

Why Venus X powered by Fluid, is beneficial for the Venus DAO and BNB chain

  • Battle-tested tech for lending and trading, with more protocols on the way.
  • Extremely high capital efficiency and liquidity reusability.
  • The best infrastructure for Forex markets.
  • An experienced team that’s been in the space for 7+ years, with up to $15B in TVL managed, 4 products launched, and $0 in users’ funds ever lost.
  • Venus DAO will increase its revenue, TVL, and product offerings.
  • BNB chain users will benefit from the better lending UX and DEX liquidity.

Additional resources

https://messari.io/report/understanding-fluid-a-comprehensive-overview

[cyber•Fund | Demystifying Fluid, Part I: Liquidity Layer and Liquidations

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Please specify the revenue sharing model for the community :pray:. Is it for the new Venus X thing or are you also expecting anything from our core business? Moreover, it’s important to note that Venus made a lot more money than Fluid this year. I’m not sure where you got your $5M from—please check TokenTerminal for a more accurate source of information.

However, all in all, this is a super bullish proposal, and I fully endorse it, given that the revenue sharing model is fair and square. Welcome to Venus DAO, Fluid :heart:

And thank you Venuslabs for making this possible.

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Delegate Statement from a group of Major XVS Holders Regarding the Fluid Proposal.

As one of the representative of the largest and longest-standing XVS holders group, our responsibility is to evaluate any proposal through the lens of protocol safety, governance integrity, and long-term value creation for Venus and XVS holders.

The initiative presented by Fluid is ambitious and potentially transformative but, it also introduces governance, technical, and economic implications that must be fully clarified before the Venus DAO can responsibly consider approval.

At this stage, the proposal is incomplete, and several critical details remain undefined. For a protocol of Venus size with over $2.2B TVL, central to the BNB Chain ecosystem, these omissions are unacceptable without further elaboration.

Below are the areas where we deem the community requires full transparency:

1. Governance & Protocol Control

The introduction of a dual governance framework between XVS and FLUID holders is a fundamental change to Venus structure.

Before any vote, Fluid must provide:

  • A precise definition of what powers FLUID governance receives.

  • A clear outline of whether FLUID holders can veto or override XVS decisions.

  • Confirmation that XVS governance retains exclusive, unilateral authority over:

    • Risk parameters
    • Market listings
    • Oracle configurations
    • Incentive programs
    • Upgrades
    • Emergency actions / Guardian functions

The Venus community cannot support any structure that dilutes XVS authority, directly or indirectly.

2. Smart Contract Admin Keys & Upgrade Paths

Integration with Fluid’s stack implies major architectural changes. The DAO must understand:

  • Who controls the admin/owner of deployed Fluid contracts on BNB Chain.

  • Whether Venus retains full, revocable authority over:

    • Pauser/Guardian roles
    • Upgrade mechanisms
    • Deployment rights

  • Whether Fluid can roll out protocol upgrades without Venus DAO approval.

  • The existence of emergency exit mechanisms allowing Venus to disengage without jeopardizing user funds.

For a $2.2B protocol, contract control and revocability are non-negotiable.

3. Economic & Revenue Model Clarity

The proposal outlines a (tier-based revenue model), but no specifics are provided.

The DAO requires:

  • The exact revenue sharing percentages across all tiers.

  • The conditions that determine these tiers.

  • Confirmation that Venus DAO will not earn less than current revenue in any scenario.

  • Complete transparency on:

    • Incentive matching obligations
    • Duration of incentive matching
    • Whether Venus is expected to incentivize FLUID pools or the FLUID token
    • Long-term sustainability without excessive emission requirements

Venus must avoid entering a structure where XVS emissions or DAO revenue become dependent on a third party’s incentives or tokenomics.

4. Risk Architecture, Oracles & Liquidity Exposure

Fluid uses a unified liquidity layer and “smart debt” system. Before adoption, Venus DAO requires:

  • Full explanation of liquidity isolation between Venus markets and Fluid’s other products.

  • Whether Venus users liquidity can be rehypothecated or borrowed against outside the Venus ecosystem.

  • Details on oracle infrastructure and fallback logic.

  • Complete list of audits covering every module proposed for Venus X.

  • Stress test data demonstrating resilience across:

    • Oracle attacks
    • Cascading liquidations
    • Volatility events
    • Chain outages on BNB Chain

Safety remains paramount; unified liquidity introduces unified risk unless clearly segmented and protected.

5. Migration Plan for Existing $2.2B TVL

Switching Venus backend is not trivial. Venus users require:

  • A full migration plan for all existing positions.
  • Clarity on whether migration is automated or user-driven.
  • Guarantees that users will not face liquidation risk during migration.
  • Timing, sequencing, and testnet validation procedures.

A migration of this scale cannot proceed without exhaustive clarity and risk controls.

6. Exit Conditions & Long-Term Independence

Any partnership must include:

  • A clearly defined exit path for Venus DAO.
  • Guarantees preserving Venus independence, brand, and governance authority.
  • Commitments preventing Fluid from launching “Venus X” derivatives or equivalents on other chains without DAO approval.

Venus cannot be placed in a position where returning to independence becomes impossible or financially damaging.

Conclusion & Path Forward

We appreciate the ambition and effort behind Fluid’s proposal. Their technology and growth trajectory warrant serious discussion. However, Venus is not simply a partner, it is the backbone of BNB Chain, and proposals of this magnitude require the highest standards of precision, transparency, and safeguards.

At this time, we cannot support the initiative without comprehensive answers to the above governance, security, economic, and migration concerns.

The DAO must prioritize stability, sovereignty, and safety, above all else. This proposal could be transformational or catastrophic, depending on the fine print. It’s either: A major tech leap for Venus or a disguised takeover giving Fluid control of Venus backend + governance + revenue.

Once all issues are addressed (with exact parameters, not concepts) we are fully open to evaluating a revised and more detailed proposal.

The opportunity is substantial, provided the framework is transparent, secure, and aligned with long-term XVS holder interests.

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