Abstract

This proposal presents a strategic approach to reallocating Equilibria’s protocol revenue by consolidating multiple revenue sources. If approved, it will supersede the previous EIPs accordingly.

Motivation

EQB and ePENDLE are the cornerstone assets of Equilibria, and our primary goal is to expand Equilibria's vePENDLE share, thereby fostering sustainable benefits for the multiple stakeholders, including LPs, ePENDLE holders, EQB holders.

Equilibria currently has 4 revenue sources:

• 22.5% protocol fees on LP yields
• vePENDLE’s Vote Rewards
• vePENDLE‘s Base Rewards
• Bribes

The revenue mentioned above has been distributed to ePENDLE and EQB holders, whether in the form of direct incentives, bribe rewards, or buyback support. However, the current distribution structure makes it impossible to accurately calculate the real returns for ePENDLE and EQB, or to assess the intrinsic value of both assets. As a result, this hinders their potential value and growth.

Moreover, the launch of Pendle’s Boros platform marks a game-changing opportunity for yield trading across DeFi, TradFi, and both on-chain and off-chain assets. This new platform presents a significant yield opportunity for Equilibria. However, since Boros operates separately from V2, it is crucial that we increase our vePENDLE holdings to capitalize on these opportunities.

After a thoughtful consultation and discussion with the Pendle core team and several advisors, we hereby propose a revised distribution structure to optimize the benefits for all stakeholders. This proposal aims to shift the focus towards directly allocating incentives to ePENDLE holders, thereby creating greater demand for holding ePENDLE. This increased demand will lead to a healthier peg, driven by the inherent value of ePENDLE.

Specification

To implement these strategies, we propose the following changes:

1. 22.5% Protocol Fees

2. vePENDLE’s Vote Rewards

3. vePENDLE’s Base Rewards

4. Bribe

• The bribe rewards remain unchanged: 100% goes to vlEQB voters;
• The bribe reward to the ePENDLE pool will continue.

5. Halt EQB Emissions for LPs and Team Allocation

This reduction will significantly benefit EQB holders by lowering EQB inflation and reducing the circulating supply.

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We would like to thank the entire community for your participation and valuable input. We firmly believe the best is yet to come—and we stand on the brink of a tremendous opportunity to elevate Equilibria to new heights. To seize this moment, we need your support to step into the future and make it great!