Automatic Income Allocation
Overview
Section titled “Overview”This innovation is designed to distribute the incomes generated by Venus Protocol seamlessly, channeling them to different destinations according to specific rules and percentages. This functionality will incorporate incomes generated through various sources, including interest reserves and liquidation incentives, for both the Core pools and Isolated pools. The goal is to distribute these incomes in underlying tokens and not in vTokens, based on the latest protocol tokenomics.
Key Aspects of Automatic Income Allocation
Section titled “Key Aspects of Automatic Income Allocation”- Near-Streaming Distribution: The income will be distributed in a near-streaming fashion, from the different pools to the ProtocolShareReserve contract.
- Flexible Distribution Rules: The incomes generated by Venus Protocol are distributed according to two schemas. The percentages below are the BNB Chain configuration since VIP-638 (1 July 2026, Tokenomics Phase II); XVS Vault rewards are no longer a destination, and deployments below the revenue-eligibility threshold route 100% to the Treasury (see Tokenomics).
- Schema (PROTOCOL_RESERVES): Applied specifically to income generated by the interest reserves in every Venus market.
- 40% to Treasury
- 40% to Venus Prime
- 20% to Risk Fund
- Schema (ADDITIONAL_REVENUE): Valid for liquidation and other product developments.
- 60% to Treasury
- 20% to Venus Prime
- 20% to Risk Fund
- Schema (PROTOCOL_RESERVES): Applied specifically to income generated by the interest reserves in every Venus market.
- Buyback Delivery: Since VIP-620 (May 2026) every destination is a single-purpose TokenBuyback contract. The Prime share is bought into USDT and U and forwarded to the PrimeLiquidityProvider, the Risk Fund share into USDT for RiskFundV2, and the Treasury share into U, BTCB, ETH, USDT, USDC and XVS for the VTreasury. An off-chain operator triggers the swaps.
- Integration with Existing Architecture: The Automatic Income Allocation will seamlessly integrate with the existing ProtocolShareReserve contract, ensuring that the incomes are sent to their designated reserves.
Benefits
Section titled “Benefits”- Efficiency: Automating the income distribution process allows for quicker and more accurate allocation.
- Transparency: All distributions are recorded on the blockchain, reinforcing Venus Protocol’s commitment to clear and open practices.
- Flexibility: The ability to define specific rules and percentages for different destinations ensures that the distribution aligns with the community’s needs and goals.
Architecture
Section titled “Architecture”
The dashed lines represent transactions initiated by external agents (VIP’s, scripts, arbitrage bots, etc.), and the solid lines represent transfers of funds.