Abstract

This proposal presents a strategic adjustment to reallocating vote rewards and base rewards to align with the latest cap mechanism from Pendle. If approved, it will supersede the previous EIPs accordingly.

Motivation

Pendle has implemented a Dynamic Pool Incentive Caps mechanism based on a pool’s swap fee contribution.

To maximize the benefits for both vlEQB voters and ePENDLE holders, we propose this EIP to align with Pendle’s latest incentive mechanism. Our objectives are:

• Better alignment with Pendle: Encourage fairer voting participation, supporting Pendle’s vision of a healthy, long-term ecosystem.
• A balanced yield allocation between vlEQB voters and ePENDLE users: Both parties are critical to Equilibria’s growth.

Buying PT stk-ePENDLE and using it as bribe rewards will boost trading volume in the stk-ePENDLE pool, raise the cap, and create bribe income for vlEQB voters. Increasing the percentage of vote rewards for vlEQB voters encourages them to vote for higher-fee pools, which in turn generates higher yields for ePENDLE users.

Specification

Equilibria currently has 4 revenue sources:

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

In this EIP, 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.