eTHENA: Update Minting Fees

Summary

Vote to update the Minting Fee of eTHENA.

Background

Currently the Mint Fees is set to Zero. Increasing it could help earn further backing increase for eTHENA holders. Previous proposal succesfully achieved its goal of attracting more new veTHE deposits. At present we stand at 9 Million veTHE backing 3.5m eTHENA, a number up considerably thanks to the zero mint fee era.

Need for change.

Adding a marginal mint fee would go a long way in providing a consistent stream of backing-increment for eTHENA holders. This would be a significant portion of potential yield especially as veTHE real yields are now stabilizing in the 15-25% APR zone. Aggregated over life-time, the rebase yield (including the fees from mints & redeems) is 35%, calculated as the APY that results in the current 2.57 veTHE per eTHENA from the original 1 veTHE per 1 eTHENA. This makes up a significant chunk of the net gains made by the eTHENA users.

As apparent from the dune chart above (https://dune.com/eliteness/ethena), the veTHE<>eTHENA volumes are now significantly more active & can potentially bring a lot of fees in if we streamline the Trading of veTHE<>eTHENA pair, especially if abstracted away as a BNB<>veTHE trading interface. We plan to work towards implementing this in the near future.

Voters

For this vote, we have developed a new bespoke contract to service this task in a general sense, for all chains & protocols. It calculates a weighted balance over multiple assets, such as ERC721 veNFTs, ERC20 tokens, v2/classic LP tokens, v3/CL NFPs, and even ERC1155 tokens.

For this vote, the config is as follows:

[
        {"addr": "0xafbe3b8b0939a5538de32f7752a78e08c8492295", "kind":0, "coef":"1000000000000000000"},
        {"addr": "0x90cda9b619b124d321111fe240f8191a72e93297", "kind":0, "coef":"1000000000000000000"},
        {"addr": "0x5b8ce6d591c914a56cb019b3decb63ede22708c8", "kind":0, "coef":"1250000000000000000"},
        {"addr": "0x9b99296264cb27c2358cadbc0e16b8f7cc72d7b0", "kind":0, "coef":"1250000000000000000"},
        {"addr": "0x9798a3835c8C87bD92803C3A248aE0042FBE4c6c", "kind":0, "coef":"12500000000000000000000"},
        {"addr": "0xC3b03e57677E4015eEec4e7ceC467cE71B7d1FF4", "kind":0, "coef":"12500000000000000000000"},
        {"addr": "0x2fF3e680315F93057913617844361D30C6EcF784", "kind":0, "coef":"12500000000000000000000"},
        {"addr": "0x2c997A190C35e7cAB5644F0B118c3C7F3680Ee32", "kind":0, "coef":"11250000000000000000"},
        {"addr": "0xCE6B9bae3c330e0455D1af0Ae3996f496cdbF1f1", "kind":0, "coef":"100000000000000000"},
        {"addr": "0xfbbf371c9b0b994eebfcc977cef603f7f31c070d", "kind":1, "coef":"1000000000000000"},        
        {"addr": "0x30c8cf6b46aa4df3f9fbc2857aca92f10a6cad7f", "kind":0, "coef":"5000000000000000"},
]

Notably, this includes Spectra's PT & LP users, stakeTHENA holders, Thena LPs, eTHENA holders & Stakers, as well as All veTHE users to encourage participation in the Elite Club affairs.

Voting Options

• 0% (No change)
• 1x Dominance (Dynamic)
• 0.5x Dominance (Dynamic)
• 0.25x Dominance (Dynamic)

Dynamic Fee % is based on our veTHE Dominance: The % of veTHE votes controlled by eTHENA protocol out of the current total veTHE votes, as detailed in the original mint fee proposal from 2024.

Further Reading

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