Hey folks, happy Dragon Boat Festival!
Today I stumbled upon the
#BinanceWallet event for
#USD1 , which officially kicks off today with a total of 16 million.
$WLFI is split across three paths.
Vault is directly taking 14.4 million, with lending and LP each getting 800K. The project team has allocated 90% of the budget to the Vault, leaving the other two paths with just 5% each, creating an 18x gap.
When you line up these numbers, it’s clear what the project team really wants. They’re not just looking to pull in cash; they want everyone to truly subscribe to the protocol and stick around for a bit. Bringing funds in is crucial, but keeping them and making them work is even more important.
The entry for the Vault is pretty straightforward; you can participate by subscribing with at least 100 USD1 on Lorenzo or Lista. Users who already have positions on Lorenzo can automatically renew, which seems particularly interesting now. It reduces the hassle of pulling out and then re-entering, while also encouraging long-term positions to stay in the protocol.
The data from Lista also illustrates the point well. Their Vault received 2.4 million WLFI, while the lending pool only got 800K, making Vault rewards three times that of lending within the same protocol. The direction of where the funds are leaning is clearly spelled out by the project’s actual budget.
Comparing this with the 40 million WLFI event from another source, the strategies are completely different. The other source mainly encourages everyone to hold USD1 first, with a low entry barrier and wide coverage to bring people in. On the Binance Wallet side, the push continues towards the protocol, where after holding USD1, users need to actually enter the Vault, lending, or LP, transforming their balance into real DeFi positions.
CEX is responsible for bringing people and funds in, while the DeFi protocol needs to find ways to retain a portion. Lending and LP certainly have their roles, but based on this round's budget, they aren't the top priority right now. The size of the rewards pool doesn't mean everyone will end up with higher profits; participation numbers, fund size, sources of returns, and risk structures all vary. The 14.4 million WLFI only indicates which behavior the project team is more willing to subsidize. Specifically, which path yields higher returns will depend on the real data that follows.
The event has just started, and the specific breakdown of Vault rewards between Lorenzo and Lista hasn’t been fully disclosed yet. The net deposits and TVL changes across the three paths are still in flux. What’s clear for now is the direction of the budget.