Venus Stars
Venus Protocol is thrilled to unveil its latest rewards program: Venus Prime Token. This innovative initiative aims to incentivize user loyalty and drive growth within the protocol by offering enhanced yields. Venus Prime will initially be available for select crypto markets, including USDC, USDT, TUSD, DAI, BNB, BTC and ETH, allowing users to leverage this program to substantially increase their yields in both supply and borrow markets.
At its core, Venus Prime Token Program is an integral part of the new Venus Tokenomics 3.0, specially crafted to promote XVS staking and protocol engagement. Eligible members will receive a unique Venus Prime Token, which is non-transferable and intimately linked to their account. This token acts as a catalyst, elevating the annual percentage yields (APYs) for both supply and borrow positions across selected markets. By participating in Venus Prime, users can enhance their earnings and actively engage with Venus Protocol.
Diverging from conventional approaches, Venus Prime sets itself apart by utilizing the protocol’s revenue to establish a sustainable and dynamic rewards program that grows alongside the protocol. Unlike traditional methods of rewards distribution, which often rely on external sources, Venus Prime taps into the revenue generated by the protocol itself. This unique approach ensures that the rewards program remains sustainable and adaptable as the protocol expands, creating a self-sufficient ecosystem where users can reap the benefits.
Users qualifying for Venus Prime will be granted one of two distinctive soul-bound tokens, each representing a non-transferable NFT that empowers them with a boosted APY on their supply and borrow balances. These soul-bound tokens, known as Prime Tokens, are exclusive to Venus Prime participants and cannot be transferred. By holding these tokens, users can enjoy the standard APY rates on their balances while benefiting from an additional boost provided by the Venus Prime program. This incentivizes users to actively engage in the Venus Protocol and maximize their yields.
The initial token available in Venus Prime is the revocable Prime Token. To obtain this token, users must stake a minimum of 1,000 XVS, the native token of Venus, in the vault for a minimum of 90 days. Once claimed, users must maintain a stake of at least 1,000 XVS in the vault to retain the Prime Token. In the event of a withdrawal that reduces their stake below the threshold, the Venus Prime Token will be invalidated or revoked. This mechanism encourages users to commit to the protocol and maintain their stake, fostering a sense of long-term engagement and participation.
Venus Prime offers multiple tiers beyond the minimum staking requirement, enabling users who stake larger amounts to access even higher yields. Each tier introduces an increased cap on the maximum balance eligible for the prime-boosted APY. This tiered structure incentivizes users to consider larger stake sizes, which contributes to the growth and stability of the markets supported by the Venus Protocol. By catering to varying levels of stake sizes, Venus Prime encourages a diverse range of users to actively participate and contribute to the ecosystem.
Alternatively, users can acquire the irrevocable OG Prime Token, which automatically qualifies for the highest tier and cannot be revoked once obtained. To be eligible for the OG Prime Token, users must have maintained a stake of XVS for the past 12 months and have at least one borrow and supply position on the protocol each month during that period. This exclusive token rewards long-term commitment and active involvement, providing users with a sense of recognition and enhanced benefits within the Venus Prime program.
The boosted APY rewards offered through Venus Prime are disbursed in the respective cryptocurrency associated with the user’s supply or borrow position. Each market has specific caps determined to ensure that the rewards remain within predefined limits. This approach ensures that users receive the rewards in a currency relevant to their participation while maintaining a balanced distribution across different markets. By tailoring the rewards to specific cryptocurrencies and implementing caps, Venus Prime promotes a fair and efficient rewards system.
Anticipating substantial results, Venus projects a significant increase in the number of users staking at least 1,000 XVS in the XVS Vault, accompanied by boost in the Total Value Locked (TVL) for Venus Protocol’s supply and borrow markets. Importantly, these rewards will be financed by the protocol’s revenue, ensuring they do not affect the price of Venus’s token. Pending the success of the pilot program, Venus Prime will be extended to a wider user base, eventually replacing the existing buyback and burn program that currently rewards loyal Venus users.
Venus Prime serves as a powerful incentive for user loyalty and contributes to the overall growth of the protocol. By encouraging long-term staking and larger stake sizes while discouraging premature withdrawals, the rewards program fosters the expansion of markets supported by the protocol. This mechanism incentivizes users to commit to the protocol and actively participate in its activities, ultimately driving increased user engagement, liquidity, and the overall success of the Venus ecosystem.
To stay up to date with the latest developments and progress regarding Venus Prime, users can visit the Venus Protocol website and Dapp. For the latest news and events, you can visit Venus Community. For the latest updates, you can visit our Twitter and our Telegram Announcement Group. We also have a global community on Telegram. For users who prefer to communicate in their native language, Venus has Telegram groups in Arabic, Chinese, Czech, German, Filipino, French, Hindi, Indonesian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Slovenian, Spanish, Thai, Turkish, Ukrainian, and Vietnamese.