My name is Brad and I am sharing application details for Venus as a part of the Unichain growth CFM 1. Please find our team’s responses below.
Past Performance
- What is the project’s average TVL over the last 30 days on other networks? Please list by network.
BNB $2.1B
Ethereum $29.9m
Unichain $21.7m
Arbitrum $11.9m
zkSync era $8.8m
- Please describe how you have historically increased TVL on new networks.
Venus Protocol’s growth strategy centers on 3 pillars: underserved collaterals, education, and capital efficiency. 1) Identifying and serving assets that established lending protocols overlook or under optimize. This approach consistently delivers outsized TVL growth because it captures latent demand rather than competing for existing market share. We systematically capture overflow demand from protocols operating at capacity constraints. Major lending platforms implement supply caps to manage risk, but these limitations create frustrated demand we readily absorb. Similarly, when utilization rates exceed 90% on other platforms, causing borrowing rates to spike dramatically, users migrate to Venus where our liquidity and rate adjustments maintain reasonable costs. 2) Through community engagement we build education, awareness and engagement at the grassroots level for sustainable and global growth. This includes events, education campaigns and workshops around the world with the aim of making DeFi understood and accessible. 3) Venus prime is one our key differentiators because it boosts yields with the same asset lenders and borrowers choose to participate with. Across these 3 pillars we focus on use cases with high PMF to generate traction. On BNB Chain that has made Venus the flagship lending protocol by providing users an abundant source of BNB liquidity during launchpools.
Receiving Funds
- If your project receives the $100,000 grant funding, what do you estimate the project’s 30-day trailing average TVL will be on Unichain August 10th 2025?
Based on our comprehensive analysis incorporating both the $100,000 Unichain grant we’d propose additional $100,000 allocation in XVS tokens, Venus Protocol projects capturing $55 million in total value locked by August 10th. This enhanced projection reflects the substantial impact of doubling our incentive capacity while maintaining realistic expectations grounded in documented market dynamics. The combined $200,000 program enables Venus to execute a more aggressive growth strategy that leverages both the immediate liquidity attraction of grant incentives and the strategic advantages of protocol token alignment.
The additional XVS allocation transforms our approach in several key ways. First, it enables us to extend incentive programs beyond the initial 83-day period, creating runway for sustained growth rather than temporary spikes. XVS rewards can vest over longer timeframes, encouraging genuine protocol adoption rather than mercenary capital rotation. Second, distributing XVS creates aligned stakeholders who benefit from Venus’s long-term success, transforming incentive recipients into protocol advocates. This community building effect multiplies the impact of pure monetary incentives. During the first month, we project reaching $30 million TVL as the market responds to the combination of zero reserve factors, grant-funded incentives, and XVS distribution opportunities. A Bunni integration and yield optimization strategies in phase two should drive TVL to $38 million by day 15. The final phase, featuring maturation of OEV value capture, positions us to achieve $55 million by the August measurement date.
This projection maintains analytical rigor while acknowledging the transformative potential of doubled resources. Historical precedent from Gauntlet’s research demonstrates approximately $6 in persistent TVL per dollar of incentives, suggesting our $200,000 combined program could theoretically support $1.2 million in direct incentive-driven growth. However, the true multiplier effect comes from combining these incentives with our structural advantages including zero reserve factors, OEV redistribution to liquidity providers, and the upcoming VAI stablecoin launch. These features create sustainable value beyond temporary subsidies.
The $55 million target represents capturing approximately a meaningful but achievable market share given our enhanced resources and comprehensive strategy. This positions Venus among the top five protocols on Unichain while maintaining conservative assumptions about market conditions and competitive dynamics.We commit to deploying these resources strategically across our three-phase program, with approximately 100% allocated to direct liquidity incentives. The XVS portion specifically will be structured with vesting schedules that encourage long-term participation while preventing immediate selling pressure.
This enhanced funding structure not only accelerates our growth trajectory but also demonstrates the strong alignment between Venus Protocol, the Unichain ecosystem, and our shared vision for building sustainable DeFi infrastructure. The combination of grant funding and protocol tokens creates a powerful catalyst for establishing Venus as a cornerstone of Unichain’s financial ecosystem.
- What Utilization ratio do you expect the protocol to produce from July 11th to August 10th? Where Utilization Ratio = Total Assets Borrowed divided by Total Assets Supplied during the 30 day evaluation period.
Venus Protocol projects achieving a 80% utilization ratio during the evaluation period, measured as a 7-day trailing average in the week prior to August 10th. This projection represents a significant improvement from Venus’s historical utilization range of 27-32% and reflects the transformative impact of our zero reserve factor model combined with strategic incentive deployment. The enhanced utilization demonstrates genuine productive use of capital rather than idle deposits, validating our approach to creating sustainable lending markets.
- Please detail how your team would use the funds to achieve this goal. Provide as much detail as necessary.
Based on our analysis incorporating $100,000 Unichain grant and an additional $100,000 allocation in XVS tokens, Venus Protocol projects capturing $55 million in total value locked.
This enhanced projection reflects the substantial impact of doubling our incentive capacity while maintaining realistic expectations grounded in documented market dynamics. The combined $200,000 program enables Venus to execute a more aggressive growth strategy that leverages both the immediate liquidity attraction of grant incentives and the strategic advantages of protocol token alignment.
The additional XVS allocation fundamentally transforms our approach in several key ways. First, it enables us to extend incentive programs beyond the initial 83-day period, creating runway for sustained growth rather than temporary spikes. XVS rewards can vest over longer timeframes, encouraging genuine protocol adoption rather than mercenary capital rotation. Second, distributing XVS creates aligned stakeholders who benefit from Venus’s long-term success, transforming incentive recipients into protocol advocates. This community building effect multiplies the impact of pure monetary incentives.
Our revised growth trajectory anticipates more rapid initial adoption given the enhanced reward structure. During the first month, we project reaching $30 million TVL as the market responds to the combination of zero reserve factors, grant-funded incentives, and XVS distribution opportunities. The Bunni Protocol integration and yield optimization strategies in phase two should drive TVL to $38 million by day 15. The final phase positions us to achieve $55 million by the August measurement date.
This projection maintains analytical rigor while acknowledging the transformative potential of doubled resources. Historical precedent from Gauntlet’s research demonstrates approximately $6 in persistent TVL per dollar of incentives, suggesting our $200,000 combined program could theoretically support $1.2 million in direct incentive-driven growth. However, the true multiplier effect comes from combining these incentives with our structural advantages including zero reserve factors, OEV redistribution to liquidity providers and more. These features create sustainable value beyond temporary subsidies.
The $55 million target represents capturimg a meaningful but achievable market share given our enhanced resources and comprehensive strategy. This positions Venus among the top five protocols on Unichain while maintaining conservative assumptions about market conditions and competitive dynamics.
We commit to deploying these resources strategically across our three-phase program, with approximately 60% allocated to direct liquidity incentives, 25% to strategic partnership development and integration rewards, and 15% reserved for retention programs and community building initiatives. The XVS portion specifically will be structured with vesting schedules that encourage long-term participation while preventing immediate selling pressure.
This enhanced funding structure not only accelerates our growth trajectory but also demonstrates the strong alignment between Venus Protocol, the Unichain ecosystem, and our shared vision for building sustainable DeFi infrastructure. The combination of grant funding and protocol tokens creates a powerful catalyst for establishing Venus as a cornerstone of Unichain’s financial ecosystem.
Counterfactual - Not Receiving Funds
- If this project does not receive the $100,000 grant funding, what do you estimate the project’s 30-day trailing average TVL will be on Unichain on August 10th 2025?
$30M
- Please expand on what this project team would do to increase TVL on Unichain if you do not receive the grant funding. Provide as much detail as necessary to justify your estimates.
In the absence of grant funding, Venus Protocol would pursue a fundamentally different but equally deliberate approach to establishing our presence on Unichain. This strategy prioritizes sustainable growth through competitive advantages and strategic partnerships rather than incentive-driven expansion, accepting slower initial progress in exchange for building genuine, lasting market position.
Leveraging Zero Reserve Factor as Our Core Differentiator
Without capital for incentives, our zero reserve factor model becomes even more critical as our primary growth driver. We would implement this feature selectively, beginning with our most competitive markets where the fee advantage creates the greatest impact. Rather than launching with zero fees across all assets, we would strategically sequence market openings to maximize attention and adoption with limited resources.
The initial focus would center on stablecoin markets, where even small yield improvements attract significant capital from institutional depositors and yield optimization protocols. By offering USDT and USDC markets with zero reserve factors while competitors charge standard fees, we create a compelling reason for large depositors to migrate. This approach sacrifices breadth for depth, establishing Venus as the definitive best option for specific use cases rather than attempting to compete across all markets simultaneously.
We would amplify this advantage through transparent communication about the economic benefits. Publishing regular analyses comparing actual yields achieved on Venus versus competitors helps sophisticated users understand the compounding impact of fee savings over time. This educational content serves as organic marketing while establishing Venus as a thought leader in efficient DeFi architecture.
Building Through Strategic Revenue-Sharing Partnerships
Without upfront capital for traditional partnerships, we would pursue innovative revenue-sharing arrangements that align long-term interests. The Bunni Protocol integration exemplifies this approach, where we offer preferential borrowing terms for Bunni LP tokens in exchange for co-marketing and technical collaboration. Both protocols benefit from increased utility for users without requiring initial capital outlay.
We would extend this model to other strategic partners, particularly emerging Unichain-native protocols that need lending infrastructure. By offering white-label lending services or dedicated markets with favorable terms, Venus becomes embedded in the broader ecosystem. These partnerships might include revenue sharing from liquidations, preferential oracle access, or shared governance tokens, creating mutual incentives for success.
The Centrifuge partnership for VAI stablecoin backing would proceed on a success-fee basis rather than upfront payment. Centrifuge benefits from additional demand for their tokenized real-world assets, while Venus gains access to differentiated collateral types. This creates sustainable competitive advantages without requiring initial capital deployment.
Community-Driven Growth Initiatives
Absent traditional incentive budgets, we would mobilize our existing community as growth catalysts. This begins with investing the Venus ambassador program on Unichain initiatives where active users earn recognition and non-monetary benefits for evangelizing Venus’s advantages. These benefits might include early access to new features, direct communication channels with the development team, and influence over protocol direction through enhanced governance participation.
We would launch educational initiatives that transform users into informed advocates. Weekly workshops teaching advanced yield strategies using Venus create a knowledgeable user base that naturally shares their success with others. These sessions would be recorded and distributed as evergreen content, building a library of resources that attracts new users searching for DeFi education.
Community-generated content campaigns would reward users with NFT achievements and protocol recognition rather than token incentives. Users creating tutorials, strategy guides, or integration tools receive official Venus credentials that enhance their DeFi reputation. This approach costs nothing while building genuine engagement and user-generated marketing content.
Technical Innovation as a Growth Driver
Without funds for traditional marketing, technical excellence becomes our primary differentiation. We would accelerate development of features that create unique value propositions unavailable elsewhere. The implementation of ERC-4626 tokenized vaults happens immediately, as this standard enables composability with other protocols without requiring partnership negotiations.
The Redstone OEV integration would be prioritized as it creates sustainable yield advantages without ongoing costs. By being the first Unichain protocol to implement MEV redistribution to lenders, we create a permanent structural advantage that attracts sophisticated capital. This technical implementation requires development resources but no ongoing incentive expenditure.
We would open-source components of our risk management framework, establishing Venus as the technical leader in safe lending practices. While this might seem counterintuitive, it builds developer trust and encourages integrations from other protocols that want to leverage battle-tested infrastructure. The resulting network effects often exceed the value of proprietary technology.
Gradual Market Expansion Strategy
Without capital to support multiple markets simultaneously, we would pursue a deliberate expansion strategy that builds depth before breadth. Each new market launch would be timed to maximize impact, with careful analysis of competitive dynamics and user demand determining the sequence.
The initial three months would focus exclusively on establishing dominant positions in USDT, USDC, and WETH markets. Only after achieving clear market leadership in these core assets would we expand to additional tokens. This concentrated approach allows us to become the obvious choice for specific use cases rather than a mediocre option across many markets.
Market launches would be coordinated with partner protocols and timed around significant ecosystem events. For instance, launching wstETH markets simultaneously with a major liquid staking protocol deployment on Unichain creates natural synergies and shared marketing opportunities without requiring capital expenditure.
Alternative Funding Mechanisms
While lacking traditional grant funding, we would pursue alternative capital sources that align with our decentralized ethos. This includes exploring protocol-owned liquidity strategies where a portion of treasury assets are deployed to generate sustainable yields. These yields fund ongoing operations and modest growth initiatives without relying on external capital.
We would implement optional fee tiers where users can choose to pay modest fees in exchange for additional features or insurance coverage. This creates revenue streams from users who value premium services while maintaining our core zero-fee advantage for price-sensitive depositors. The key is making these fees genuinely optional and value-additive rather than mandatory.
Community funding rounds through platforms like Gitcoin could support specific technical initiatives. Rather than funding general growth, these targeted campaigns might support security audits, oracle integrations, or specific feature development. The concrete deliverables and open-source nature of outputs encourage community contribution.
Measuring Success Differently
Without incentive programs driving vanity metrics, we would focus on sustainable growth indicators that reflect genuine adoption. Metrics like average position duration, repeat usage rates, and integration count become more important than raw TVL. A protocol with $15 million in sticky, productive TVL creates more value than one with $50 million in temporary, incentive-driven deposits.
This patient approach to growth, while slower, builds antifragile systems that survive market downturns and competitive pressures. Users who choose Venus without incentives do so because we solve real problems, creating the foundation for long-term market leadership. The resulting protocol might be smaller by October 3rd, but it would be built on sustainable economics rather than temporary subsidies.
Venus Protocol’s growth strategy centers on identifying and serving assets that established lending protocols overlook or under optimize. This approach consistently delivers outsized TVL growth because it captures latent demand rather than competing for existing market share. We systematically capture overflow demand from protocols operating at capacity constraints. Major lending platforms implement supply caps to manage risk, but these artificial limitations create frustrated demand we readily absorb. Similarly, when utilization rates exceed 90% on other platforms, causing borrowing rates to spike dramatically, users migrate to Venus where our liquidity and rate adjustments maintain reasonable costs.