Abstract

This proposal presents a strategic approach to reallocating base rewards and vote rewards to further enhance ePENDLE peg. If approved, it will supersede the previous EIPs accordingly.

Motivation

Since the implementation of EIP#6, the ePENDLE peg has shown a stable recovery. At the same time, with Pendle now supporting permissionless listings, we are seeing increased interest from protocols seeking to offer incentives through Equilibria. To build on this momentum, it is now crucial to further strengthen the ePENDLE peg — with the strategic goal of increasing Equilibria’s share of vePENDLE. By growing our vePENDLE share, we aim to bring more long-term value to all stakeholders.

• For LPs, a higher vePENDLE share enables Equilibria to offer relatively higher APYs, making the pool more attractive and competitive.
• For ePENDLE holders, more TVL in the pool means greater revenue share and stronger yield sustainability.
• For vlEQB holders, a larger vePENDLE share gives Equilibria more voting power, which helps attract more third-party protocols to bribe on the platform — increasing bribe and vote income.

Specification

Equilibria currently has 4 revenue sources:

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

To implement these strategies, we propose to restructure the vote rewards and base rewards:

vePENDLE’s Vote Rewards

vePENDLE’s Base Rewards

To make it easier to track the information, here’s a summary of Equilibria’s revenue share if this proposal is passed.