eTHENA : Proposal 2

About eTHENA

eTHENA is a liquid wrapper for veTHE, the veNFT of Thena.fi DEX on Binance Smart Chain. It currently has a 1.3% domination with over 500k veTHE powers.

Learn more

Website: https://eliteness.network/ethena Analytics: https://dune.com/eliteness/ethena Docs: https://ftm.guru/docs/eTHENA/eTHENA

Introduction

This proposal seeks to change the Revenue allocation of the Protocol from the current 80% Bribes + 20% Stakes as established in the previous Guru Network DAO proposal: https://dao.ftm.guru/#/proposal/0xa8671deadb6a1cc3f8c4d13b3eff89d12cda4940bbde8814d8eca6135Cons9eb08e2

The Problem

Our bribing ROIs (ratio of emissions secured per unit bribe) have declined substantially from $3-5 of THE emissions per $1 of BNB bribe to around $1.1-$1.3 of THE per $1 of BNB.

Background

Due to the grand success of Thena's new v3 integration, it has become a more sought-after platform for Liquidity provisioning among external protocols. This has led to massive increases in bribes while the base emissions & prices of THE have stayed the same, leading to a fierce competition which has lowered our bribe ROI.

Current status

As of recent (April 2023), our Bribing ROI was just 1.25x, netting us $3,289 of (8,770 THE) emissions for our Bribe of $2,621 (8.08 BNB). This number was around 3-5x when we enacted the previous proposal, which was a great success and helped us drive eTHENA into the list of the biggest Liquid Wrappers on BSC. 

The Solution

To make the most out of this opportunity we would like to propose a temporary shift to a new Bribe:Stake ratio which is inclined more towards our eTHENA Stakers.

Deeper details

It's currently at 80% Bribe : 20% Stake. Effectively, we are paying 80 cents on the dollar to win $1 of emissions, but at the same time we have 2x the TVL chasing it, since the farm-deposit is a LP token, of which only half is eTHENA. The lower price of eTHENA has helped us so far, but even then we're seeing a net negative effect currently.

Potential disadvantages

The major drawback of shifting away from a 80% Bribe alloc would be a big opportunity cost if the price of THE token goes up substantially. In such a scenario, the bribe ROI would shoot up and we would be left out of the Game of Bribes!

Desired outcome

A well utilized revenue would lead to increase in yields across the board and make eTHENA an unparalleled choice among its peers. 

Conclusion

We request all of you to join the discussion and guide the direction of this proposal to raise the yields across the board. 10 Weeks (& Epochs) have passed since the previous proposal, and we believe right now is a great occassion to re-evaluate what went right and what we could improve in our designs.

If this proposal passes, it will go into effect before the next epoch and define the bribes of the present epoch.

Please share your opinons and view on our Discord and cast your votes in the best interest of the Protocol and make our eTHENA the No. 1 Wrapper of BSC.

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Voting Options

No Change

To keep the current model as it is.

50% Staking + 50% Bribes

To split the revenue half-half between stakers & bribes.

66% Staking + 34% Bribes

1/3rd sent as Bribes to get votes on our eTHENA/WBNB pool and the rest to our stakers as BNB.

80% Staking + 20% Bribes

Send 80% of Revenue to stakers, and Bribe the rest. This can have a major effect on our Liquidity and reduce it considerably

Dynamic Allocation (PvP)

If this option is chosen, the Team will decide upon a new split each week based on the circumstances. It includes JIT bribes, where we will side more towards bribing when other protocols are bribing less, and conversely, we'll bribe less when other competing protocols bribe more (lowering ROIs for all). This option also tackles the drawbacks in case of a pump in THE prices. Under this choice, bribing will become tactical and ensue Protocol-vs-Protocol This option also has a hard limit of minimum 10% and maximum 90% allocation to any of the two sides, with the rest going to the other.

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Guru Network DAO

Disord: https://discord.com/invite/QpyfMarNrV Twitter: https://twitter.com/ftm1337

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