Abstract

The development progress of Equation v2 has reached the final stage of contract auditing and is expected to be deployed on Arbitrum by the end of January or early February. This proposal primarily concerns the upgrade to version v2, the initial setup of trading tokens, and the mining migration plan from v1 to v2.

Specification

Equation v2 is a significant upgrade to the BRMM algorithm, with major improvements:

1. Precise passive position for LPs.
2. Multiple fee and leverage tiers.
3. The Risk Buffer Fund (RBF) is removed.

The upgrade gives LPs the ability to hedge risks accurately and enables them to expand a variety of market-making strategies. With this upgrade, Equation theoretically can support any asset with an oracle price.

Upon the launch of v2, it is planned to support perpetual contract trading for the following 48 tokens, which include:

ETH (100x), BTC (100x), SOL (50x), ARB (50x), OP (50x), MATIC (50x), AVAX (50x), LINK (50x), XRP (50x), DOGE (50x), ADA (50x), BNB (50x), LTC (50x), ETC (50x), DOT (50x), ATOM (50x), NEAR (50x), UNI (50x), AAVE (50x), GMX (50x), DYDX (50x), SNX (50x), MKR (50x), 1INCH (50x), SUI (50x), TIA (50x), INJ (50x), LDO (50x), STX (50x), RUNE (50x), FTM (50x), APT (50x), 1000PEPE (50x), CRV (20x), SUSHI (20x), PENDLE (20x), ORDI (20x), RDNT (20x), FIL (20x), SEI (20x), BLUR (20x), MINA (20x), NTRN (20x), PYTH (20x), ENS (20x), JTO (20x), TRB (20x), 1000BONK (20x)

The tokens will continue to expand in the future according to market conditions.

The levels of trading fee and leverage will be set as:

Taking into account market promotion and the competitive landscape within the industry, during the initial phase of v2, all traders who bind a referral code will enjoy a 50% discount on the trading fee. The fee rate will be adjusted at a later stage based on market conditions.

Mining Migration Plan

After the launch of Equation v2, it will coexist with v1 for a period until all users switch from v1 to v2. The mining migration plan aims to allow all users to smoothly migrate from v1 to v2 by gradually adjusting the rewards allocation.

Current Mining Allocation in v1:

[Traders] Position Holders: 40% [Pools] Liquidity Providers: 10.8% [RBF] Liquidity Providers: 16% [Pool2] EQU/ETH Liquidity Providers: 20% [EFC Member NFT] Holders: 12% [EFC Connector NFT] Holders: 1.2%

Mining Migration Plan from v1 to v2

Step 1: Half of the v1 liquidity mining, which is 5.4%, half of the RBF liquidity mining, which is 8%, and the portions from referral mining, which are 2% for Members and 0.2% for Connectors, totaling 15.6%, will be transferred to v2 liquidity mining.

Step 2: The entire v1 position mining quota, which is 40%, will be transferred to v2 position mining. The portions from referral mining, which are 10% for Members and 1% for Connectors, will be transferred to Member and Connector respectively in v2 referral mining.

Step 3: The remaining 5.4% of the v1 liquidity mining quota will be transferred to v2 liquidity mining.

Step 4: Based on the LPs' withdrawal activity from the v1 RBF (Risk Buffer Fund), the remaining RBF liquidity mining quota will be gradually transferred to v2 liquidity mining until the transfer is fully completed.

Finally, the EQU Mining Allocation in v2 will be:

Voting for EQUIP-6:

The vote on this proposal is scheduled to begin at 13:00 UTC on January 18, 2023, and will last for four days. Upon approval of this proposal, the development team will announce the specific launch date based on the status of deployment preparations.