Adjust minting fees of eTHENA

This proposal seeks to adjust the Minting Fee of eTHENA, which is currently free (0% fees) to mint at Eliteness.Network/ethena Anyone who holds veTHE, the Thena.fi governance token, can freely convert their veNFT into eTHENA and earn BNB rewards by staking eTHENA. Currently, eTHENA has over $1.6 Million TVL, Earning nearly $16,000 in the upcoming Epoch!

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Advantages

• The Minting Fee can be used to benefit current ETHENA holders, ideally through an increment in veTHE backing per ETHENA (currently at 2.17 veTHE per ETHENA)
• THE price gained significantly (13.37x) after THE Binance Listing. Some are now looking to take profits and might want to use ETHENA to exit their veTHE positions, which could lead to decrease in price of ETHENA. With a Mint Fee in place, if such people exit, they will pay a % of their sale to exisitng ETHENA holders.

Example 1: at a 10% fees, where 5% increases backing, if $100,000 (40,000 veTHE) of veTHE is minted, $5000 (2000 veTHE) will increase the backing, from 2.1729 to 2.1756 Example 2: In the last 3 weeks (since Binance listing), 150k veTHE was minted in. If another 150k ($375,000) is minted, 7500 ($18750) will increase backing from 2.173 to 2.181.

• Because of no new minters (possibly sellers), people might buy eTHENA and move its price upwards

DIsadvantages

• eTHENA is a Liquid Wrapper: But, a Mint Fee decreases Exit Liquidity for veTHE, opposite to the original goal of being a Liquid Wrapper.
• Lack of new users: With mint fees, new users will be reluctant to convert veTHE, decreasing our adoption & exposure. Although this proposal is aimed at potential sellers, a mint fee may hurt genuine users who want to make use of eTHENA's services for managing their veTHE.
• An added Fees may also hurt protocol growth due to missed revenue from potential mints.

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Current Dynamics

Exit Liquidity Tracker at Eliteness.Network/compare-wrapper/thena

As of now, eTHENA provides better Exit Liquidity rates than its best competitor liveTHE, for upto 200,000 veTHE ($500,000) being mint & old. Despite these better rates, there are very few takers, indicating that there arent many people looking to exit through Liquid Wrappers at the moment.

Liquid Wrapper Pegs tracker at DefiWars.xyz

LiquidDriver's "liveTHE" wrapper has a dynamic Mint Fees, which ranges from 12%-75% based on how badly their token is depegged. Currently when depegged to 48%, liveTHE has a Mint fee of Max 75%, which is the reason for it offering worse Exit Liquidity Rates than our eTHENA wrapper. Usually, liveTHE trades at a 70-90% peg, while eTHENA trades at around 50-60%. Currently, both are trading at half of their usual ranges, which mimics the trend of last 1 year, and indicating no discrepancies or asymmetric market sentiments.

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Choices

Voters need to choose what the Minting Fee should be. Fees, if any will be split 50/50, with one half being burned to increase backing, with the other going to Guru Network, to be potentially used for pairing for Protocol-owned Liquidity:

• No change. 0%
• 5%
• 10%
• 13.37%
• 2 x Dominance %

Note: Dominance refers to % of veTHE held by eTHENA protocol relative to the total supply of veTHE, which is currently at 1.1836% with Guru Network controlling 1,560,000 veTHE. 2x Dominance would be a dynamic fees, currently = 2x1.18 = 2.36%, which changes in proportion with change in eTHENA's Dominance.