Abstract

Equilibria has successfully passed the Arbitrum LTIPP, and a portion of $ARB incentives will be used to enhance the ePENDLE peg. Therefore, ePENDLE's position on the Arbitrum network will be significantly improved. Building upon this momentum, in response to community suggestions, we recognize that implementing additional changes simultaneously could further fortify the ePENDLE Peg.

With this objective in mind, this proposal suggests allocating a portion of the voting rewards (originally sourced from Pendle and distributed to vlEQB voters) to be used for buying back ePENDLE.

Motivation

The ePENDLE Peg is crucial to the Equilibria ecosystem. With a healthier peg, there will be more PENDLE inflow to Equilibria through future PENDLE Campaigns. By accumulating more PENDLE on Equilibria, it will bring benefits to ePENDLE holders, vlEQB holders, and liquidity providers:

ePENDLE holders enjoy yields with fewer worries about the Peg. vlEQB holders could enjoy more bribe rewards due to the enhanced voting power. Liquidity providers could enjoy better yields through enhanced boosting power.

Specification

We propose the following changes:

• Reallocating 50% of voting rewards from vlEQB voters for ePENDLE buyback on the secondary market.
• The bought-back ePENDLE will be staked in the ePENDLE Pool to receive boosted yield.
• The staking yield will be offered to vlEQB holders as ePENDLE pool bribe rewards.