EIP #1 - Enable the ePENDLE buy back and allocate protocol revenues as the bribe for vlEQB holders

Voting ended over 2 years agoSucceeded

ABSTRACT

Equilibria has a symbiotic relationship with Pendle and actively operates as a revenue-enhancing protocol across Ethereum Mainnet, Arbitrum, BNB Chain, and Optimism. Users holding the liquid version of the PENDLE token, known as ePENDLE, can passively earn income on the protocol and enjoy other benefits such as participating in protocol governance through EQB / xEQB tokens that yield rewards.

For Equilibria to operate more steadily and attract new investors to the protocol more easily, the ePENDLE / PENDLE PEG ratio needs to remain stable. We consistently incentivize our ePENDLE / PENDLE liquidity pool and are focused on achieving lasting success through additional efforts. Moreover, because of the market's condition, current bribes flows to vlEQB holders are not stable and active.

Therefore, we are proposing to make slight adjustments to our protocol earnings, that we aim to maintain the stability of the ratio and stimulate the bribe markets, ensuring that both liquidity providers, vlEQB holders and new investors can get benefits.

PROPOSAL OVERVIEW

Launch ePENDLE buyback program under the new fee structure

Current protocol fees: total 22.5%

12.5% to ePENDLE stakers;
7.5% to vlEQB holders;
2.5% to Treasury (0.5% to Callers)

Proposed fee structure: total 22.5%

12.5% to ePENDLE stakers;
5% to vlEQB holders;
2.5% (originally to vlEQB holders) and 2.5% (originally to Treasury) are reserved for ePENDLE Buyback Program. In return, the procured ePENDLE are used to bribe vlEQB holders.

Note: The 5% protocol fees will be used to either purchase ePENDLE in the secondary market when ePENDLE/PENDLE ratio is lower than 0.85 or directly purchase PENDLE which then will be converted into ePENDLE if the ratio remains above 0.85

Delegate the bribing power to xEQB holders and distribute ePENDLE to vlEQB holders

All the procured ePENDLE will be used to bribe vlEQB holders to vote on relevant pools. . The distribution of bribes across different pools will be decided by xEQB holders through weekly voting.

Here is an example to illustrate how the buyback and xEQB voting works:

The ePENDLE buyback and xEQB voting will proceed in epochs, starting every Monday UTC 00:00 to Sunday UTC 23:59.. Bribes will take into effect in the next epoch.

Off-Chain Vote

For

48.93M vlEQB100%

Against

0 vlEQB0%

Abstain

9.15K vlEQB0%

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Timeline

Aug 31, 2023Proposal created

Aug 31, 2023Proposal vote started

Sep 05, 2023Proposal vote ended

Jan 26, 2026Proposal updated

ABSTRACT

PROPOSAL OVERVIEW

Launch ePENDLE buyback program under the new fee structure

Current protocol fees: total 22.5%

12.5% to ePENDLE stakers;

7.5% to vlEQB holders;

2.5% to Treasury (0.5% to Callers)

Proposed fee structure: total 22.5%

12.5% to ePENDLE stakers;

5% to vlEQB holders;

2.5% (originally to vlEQB holders) and 2.5% (originally to Treasury) are reserved for ePENDLE Buyback Program. In return, the procured ePENDLE are used to bribe vlEQB holders.

Delegate the bribing power to xEQB holders and distribute ePENDLE to vlEQB holders

All the procured ePENDLE will be used to bribe vlEQB holders to vote on relevant pools. . The distribution of bribes across different pools will be decided by xEQB holders through weekly voting.

Here is an example to illustrate how the buyback and xEQB voting works:

The ePENDLE buyback and xEQB voting will proceed in epochs, starting every Monday UTC 00:00 to Sunday UTC 23:59.. Bribes will take into effect in the next epoch.