SECTION 1: APPLICANT INFORMATION
Applicant Name: Equilibria Finance
Project Name: Equilibria Finance
Project Description: Equilibria Finance is designed exclusively for $PENDLE holders and liquidity providers, offering an easy-to-use platform to maximize your profits. It leverages the veToken/boosted yield model adopted by Pendle Finance to provide a boosted yield for LPs and extra reward to PENDLE holders with a tokenized version of vePENDLE, ePENDLE.
Team Members and Roles:
The Equilibria team comprises passionate DeFi enthusiasts who possess a profound understanding of the veToken model, along with a track record of developing and operating successful DeFi projects. With a wealth of software development experience in both Web2 and Web3 companies like Microsoft, Meta, Airbnb, and Binance, our team brings a diverse skill set that enables us to deliver innovative solutions in the DeFi space.
- Twopenny, core contributor and tech lead
- CoolPaper, core contributor and product lead
- Deepink, core contributor and partnership lead
- Pancake Zinc, full-stack engineer
- Shauden, front-end engineer
- Luke, front-end engineer
- QY, smart contract engineer
- Pad, QA engineer
- MW, product manager
- Syou, business development lead
- Murilo, business development manager
- Sula, marketing lead
- Blu, community manager
Project Links:
- Website: https://equilibria.fi/
- Documents: https://docs.equilibria.fi/
- Github:GitHub - eqbtech/equilibria-contracts
- Twitter:https://twitter.com/Equilibriafi
- Discord:Equilibria
Contact Information:
Point of Contact: @syou_eqb [forum handle: syou_eqb]
Point of Contact’s TG handle: @syouzh
Twitter: @Equilibriafi
Email: syou@equilibria.fi
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):
Equilibria Team possesses extensive on-chain development and operational experience. The team has successfully launched Equilibria Finance in June 2023 and it is now running on multiple networks including Ethereum, Arbitrum, BNB chain, and Optimism, with a total TVL exceeding $150 million. The TVL on Arbitrum alone surpasses $30 million, and Equilibria has garnered thousands of users on the Arbitrum network. It has provided users with reliable yields and a seamless user experience.
What novelty or innovation does your product bring to Arbitrum?
Equilibria optimizes the yield opportunities for all participants on Pendle, thereby collectively fostering the growth of Yield Trading as a new business model on Arbitrum. This will bring in more users, increase transaction interactions, and attract a substantial influx of TVL to Arbitrum.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, 3 protocols have already integrated Equilibria on Arbitrum.
- Beefy Finance: https://app.beefy.finance/
- Dappos: Equilibria
- Archi Finance: Archi
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Convex Finance and Aura Finance are similar protocols.
How do you measure and think about retention internally? (metrics, target KPIs)
Relevant usage metrics - Please refer to the OBL relevant metrics chart 5. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
General Metrics
- Daily Active Users: The daily count of unique addresses interacting with Equilibria’s contracts.
- Daily User Growth: The daily user growth (in addresses) interacting with Equilibria’s contracts.
- Daily Transaction Count: The daily number of transactions interacting with Equilibria’s contracts.
- Daily Protocol Fee: The daily total protocol fee generated. In Equilibria, this comprises fee sharing from Pendle such as swap fees, SY yields, PENDLE emission.
- Daily Transaction Fee: The daily total transaction fees generated daily by interactions with Equilibria’s contracts.
- Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by Equilibria.
- Incentivized User List & Gini: This includes a list of users incentivized by Equilibria along with their performance/contribution metrics. For instance, PENDLE convert will be incentivized so this would be a list of PENDLE converters with their respective convert amount.
Equilibria-Specific Metrics
- PENDLE convert: The amount of PENDLE converted and locked through Equilibria.
- TVL of each LP pool: A daily time series expressed in USD.
- TVL of PENDLE/ePENDLE pool: the liquidity size of PENDLE/ePENDLE.
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan:
Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):
No, we don’t use any 3rd parties.
SECTION 2b: PROTOCOL DETAILS
Is the protocol native to Arbitrum?
Yes, Equilibria is natively deployed on Arbitrum with support of key Arbitrum asset pools such as GLP and aUSDC. Equilibria completed its IDO on Arbitrum with the majority of EQB liquidity concentrated on Arbitrum DEXes. Equilibria’s governance token EQB is utilized for voting with 85% being vote-locked on Arbitrum. The primary interaction with Equilibria’s Contracts also takes place on the Arbitrum network.
On what other networks is the protocol deployed?
Ethereum, BNB Chain, Optimism
What date did you deploy on Arbitrum mainnet?
Equilibria was deployed on Arbitrum mainnet on June 1st, 2023.
Tx ID: Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?
Yes, EQB is Equilibria’s native token.
Tokenomics doc: Tokenomics - Equilibria Finance
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
-
Pre-Launch Campaign
The campaign receives 5.28M PENDLE in total. The incentives are 2% of the total supply EQB. The incentives were distributed to users who converted PENDLE in this campaign. -
Pendle Convert Campaign 1
The campaign receives 0.75M PENDLE. The incentives are around 0.25% of the total supply EQB. -
Pendle Convert Campaign 2
The campaign receives 0.3M PENDLE. The incentives are around 0.25% of the total supply EQB. -
Pendle Convert Campaign 3
The campaign receives 0.25M PENDLE. The incentives are around 0.25% of the total supply EQB.
Current Incentivization: How are you currently incentivizing your protocol?
We have 3 major parties who get incentives:
- ePENDLE holders. In addition to the existing PENDLE staking yields, a share of protocol revenue is allocated to incentivize users who convert PENDLE on Equilibria. The revenue includes PENDLE and EQB tokens.
- Liquidity providers. LPs can receive boosted PENDLE reward and additional EQB tokens.
- vlEQB holders. A share of protocol revenue is allocated to vlEQB holders and encourage them to actively participate in voting.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No, we have not received it.
Protocol Performance:
Here is the historical performance dashboard: https://dune.com/lxx1233/equilibria-finance
Key Performance Stats:
- TVL across all the chains: $146 M
- PENDLE locked: 7.82M(~$20 M)
- EQB locked: 14.94M(~$6 M)
- Daily Active Users: 537
- Daily Transaction Count: 1530
- Daily Protocol Fee: $24285.71
Protocol Roadmap:
Q2 2023 (completed)
- Pre-launch Campaign to bootstrap the protocol;
- Completed public sale and token launched on Arbitrum;
- Completed the contract audits with Peckshield and WatchPug;
- Full launch on Ethereum Mainnet and Arbitrum, including launching all available pools of Pendle Finance, PENDLE convert, EQB lock and vlEQB voting features;
- Listed EQB on Camelot and provide liquidity and incentives for EQB;
- Enabled multi-chain votes with Snapshot.
Q3 2023 (completed)
- Developed and expanded our platform to BNB Chain, Optimism;
- Co-marketing with potential LSD protocols, such as Rocket Pool and Frax;
- Completed auditing for new features by our audit partner;
- Developed a multi-chain voting market which enables vlEQB holders to vote from both Arbitrum and Ethereum;
- Listed ePENDLE on Maverick;
- Launched ePENDLE buyback program to maintain the ePENDLE/PENDLE peg;
- Delivered additional features to stabilize ePENDLE/PENDLE peg;
- Integrated insurance coverage;
- Completed our first EIP voting by community governance;
- Integrated the bug bounty protocol - Immunify.
Q4 2023 (completed)
- Launched ePENDLE auto-compounder feature;
- Integrated with Hidden Hand bribery marketplace;
- Enabled ePENDLE on multi-chains to lower the user cost;
- Developed an analytic mode of UI/UX that displays historical TVL and yield charts
- Launched the vote delegation feature to improve the user experience;
Q1 2024
- (completed) Integrate Layerzero cross-chain solutions for ePENDLE to optimzie user experience;
- (completed) Develop vote delegation feature tailored to specific vote strategy;
- (completed) List EQB on centralized exchange - MEXC;
- Complete the migration of ePENDLE to new bridged ePENDLE (Layerzero);
Q2 2024
- Develope LP pool auto-compound feature;
- Provide and incentivize liquidity for ePENDLE/PENDLE on Arbitrum;
- Enable yield trading for ePENDLE on Arbitrum;
- Develop Smart Router feature to maintain the ePENDLE/PENDLE on Arbitrum;
- Integrate with other protocols to expand more use cases for ePENDLE;
- Complete auditing for the newly developed features;
Q3 2024
- Upgrade the protocols to make it more easier for other protocols integrate;
- Launch LSD yield strategy vault;
- Integrate with other protocols to expand more use cases for ePENDLE;
- Integrate with governance aggragator protocols for vlEQB;
- Complete auditing for the newly developed features;
Q4 2024
- Develop the YT/PT limit order feature;
- Develop YT trading tools for facilitating users‘ trading experience;
- Launch a self-service bribe market;
- Deploy Equilibria on various L2s and incentivize LPs;
- Complete auditing for the newly developed features;
- List EQB on more exchanges to improve the liquidity；
Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]
Equilibria has completed 3 audits. Here are the published auditing reports: Audits - Equilibria Finance
Besides the audit, Equilibria has adopted multiple measures to ensure the security of the protocols. Check details here: Security & Risk - Equilibria Finance
Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]
No
SECTION 3: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 400,000 ARB(325,000 in form of oARB and 75,000 ARB)
Justification for the size of the grant:
The grants that we apply for will be used to incentivize PENDLE convert (250,000 oARB), ePENDLE/ARB liquidity (75,000 ARB), LRT LPs(75,000 oARB).
Most of the rewards distributed to users will be in the form of oARB(Option ARB) which is inspired by the incentive activities of Dolomite and Umami in STIP. We have redesigned the incentive program for oARB (Option ARB) rewards distributed to users. Building upon the original framework and aligning with our current business needs, unlocking oARB now requires pairing an equivalent value of ePENDLE/ARB LP. Based on the duration of the locked LP, oARB can be used to purchase ARB tokens at varying discounted prices. For each additional week of lockup, a 2.5% discount is applied.
For example, locking up for 8 weeks allows you to purchase ARB tokens at 80% of the prevailing ARB price. The maximum lockup period of 40 weeks enables a direct 1:1 conversion from oARB to ARB.
This approach offers several benefits:
- Extends the distribution of incentives over a longer period from 12 weeks to 40 weeks, reducing potential selling pressure within the original unit time. Here are the comparison for the normal distribution and oARB distribution:
The weekly distribution will be less than 50% of the normal distribution and we will also require ePENDLE/ARB locks for ARB reward which will help to offset half of the ARB selling amount.
- Requires users to provide additional liquidity for ARB rewards, mitigating some of the selling pressure on ARB. It also prevents users from accumulating and unlocking a large amount of oARB rewards all at once.
- Enhances the long-term impact of the current incentive program by providing rewards over an extended period.
In summary, by adopting the oARB approach, we can effectively reduce the actual emission pressure of ARB while also enhancing its adoption in the ecosystem. This results in an incentive effect of 400k with an emission pressure of less than 200k, ultimately providing a longer-term value and impact for this incentive.
PENDLE convert (250,000 oARB): The converted PENDLE is a permanently locked asset on Arbitrum and will bring a substantial boost to the APR of Equilibria’s asset pools on Arbitrum.
- Based on our previous campaign performance, each ARB incentive can acquire 3.5-4 locked PENDLE. With a total of 250K ARB allocated to PENDLE convert, we anticipate that approximately 1M PENDLE will be attracted to Arbtirum and locked. This will result in an average of 1-1.5% APR increase in LP incentives on Arbitrum, and bring in an estimated 20% overall TVL growth, approximately $6M.
ePENDLE/ARB liquidity (75,000 ARB): The ePENDLE/ARB liquidity serves as a catalyst for the PENDLE conversion, and deeper liquidity ensures the effectiveness of PENDLE conversion activities. Additionally, it strengthens the participation of the ARB token in the ecosystem, establishing it as a crucial asset within the liquidity pool.
- Based on a comparable analysis with Convex where we saw the APR of CRV/cvxCRV pool boosted to 25-30%, we estimate that the ePENDLE/ARB pool can reach a TVL of $3M or above with approximately 25% APR.
LRT LPs(75,000 oARB): As one of the key narratives in the next phase of Ethereum, LRT will further enhance the foundational income and asset appeal of Ethereum. As one of the primary battlegrounds for LRT at present, Yield Trading is an exceptionally suitable use case for this asset. Sufficiently deep liquidity reduces trading friction in Yield Trading, not only attracting more TVL for ARB but also generating increased trading activity.
- We assume every 1.5% of the APY will attract $10M LRT TVL, (Considering current APY of LRT on Arbitrum, 1.5% APY for $10M TVL is a fair case, on PENDLE, rsETH has around $35M TVL but only 2% PENDLE/ARB APY). It will be a $20M LRT TVL increase for 75,000 ARB rewards in 12 weeks.
Below demonstrates what we are ultimately trying to achieve with this incentive grant and why it will impact Equilibria.
- Increase locked PENDLE amount and deepen the ePENDLE/ARB liquidity with more boosting power to grow TVL
- Currently at 7.82M total locked PENDLE and $30 M TVL on Arbitrum. The ePENDLE/ARB liquidity is yet to be created on Arbitrum.
- Targeting 8.82M locked PENDLE and $56 M TVL on Arbitrum. Deploy a $3 M ePENDLE/ARB liquidity pool on Arbitrum.
- We will be using 3 types of incentivization:
- Incentivize users who convert PENDLE to ePENDLE and hold for a period of time;
- Incentivize ePENDLE/ARB pool APR on Camelot;
- Incentivize the LRT LP pools;
- We design this incentives plan due to the following reasons:
- Equilibria accumulates locked PENDLE to gain LP incentive boosting power. The boosting power obtained by locking more PENDLE is sustainable enough to ensure a prolonged TVL growth on Arbitrum by providing continuous attractive APY to LPs.
- The conversion of PENDLE is irreversible, so users looking to exit can only do so through the secondary market’s ePENDLE/ARB liquidity. Having a sufficiently deep liquidity pool will provide users with the flexibility to enter and exit their locked PENDLE position.
- Boosting LRT’s TVL and reducing trading friction in Yield Trading solidifies Arbitrum’s narrative in the LRT space. This strategy aims to increase the ecosystem’s TVL and user engagement.
- For each incentivization mechanism. Considering the oARB model, I would like to clarify that we have two metrics here. One is Weekly ARB Assignment, representing the ARB grants we prepare each week, and the other is Actual Weekly ARB Emission, representing the actual ARB received by users each week.
-
We target to receive and lock 1,000,000 PENDLE in the next 12 weeks. With every 1 ARB incentive, 3.5-4 PENDLE will be acquired and locked.
- ARB amount = 1,000,000/4 = 250,000
- Weekly ARB Assignment = 250,000/12 = 20,833 ARB(Actual weekly ARB Emission Amount = 250,000/40 = 6250 Because of the oARB design)
-
We target an avg. 20% APR addition for ePENDLE/ARB liquidity pool on Camelot. To achieve this APR increase for $3M TVL across 12 weeks, it would require the following:
- USD equivalent = $3 M*20%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Actual weekly ARB Emission = 75,000/12 = 6,250 ARB
-
We target an avg. 3% APR addition on LRT LP pools on our platform. To achieve this APR increase for $20 M TVL in 12 weeks, it would require the following:
- USD equivalent = $20 M*3%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Weekly ARB Assignment = 75,000/12 = 6,250 ARB(Actual weekly ARB Emission Amount = 75,000/40 = 1875, Because of the oARB design)
-
Achieving this PENDLE lock amount, our boosting power will increase by 10%, from 24% to 26%. This will result in an avg 1-1.5% of boosted LP incentives. We believe this additional 1%-1.5 % incentive will bring in more than $6 M overall TVL including all the pools on Equilibria. Moreover, we believe that the special incentives for LRT will attract more than $20 M TVL.
-
Post-incentives, the locked PENDLE amount will remain unchanged. As for the TVL of ePENDLE/ARB pool, we anticipate a relatively low outflow of $600K-$1M in more than 40 weeks after the LTIPP incentive period because of the oARB implementation.
- The locked PENDLE amount will continue to grow since an equivalent EQB incentives will be provided to incentivize the PENDLE convert campaign.
- We will persist in offering liquidity incentives for ePENDLE/ARB pool.
- Due to the increased boosting on the LP APR, the TVL is expected to maintain and continue to grow.
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
We will provide 500,000 EQB for additional reward post-incentives.
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
- 250,000 oARB to incentivize users who convert PENDLE to ePENDLE and hold for a period of time;
- We target to receive and lock 1,000,000 PENDLE in the next 12 weeks. With every 1 ARB incentive, 3.5-4 PENDLE will be acquired and locked.
- ARB amount = 1,000,000/4 = 250,000
- Weekly ARB Assignment = 250,000/12 = 20,833 ARB(Actual weekly ARB Emission Amount = 250,000/40 = 6250 Because of the oARB design)
- 75,000 ARB to incentivize ePENDLE/ARB pool on Camelot;
- We target an avg. 20% APR addition for ePENDLE/ARB liquidity pool on Camelot. To achieve this APR increase for $3M TVL across 12 weeks, it would require the following:
- USD equivalent = $3 M*20%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Actual weekly ARB Emission = 75,000/12 = 6,250 ARB
- 75,000 oARB to incentivize LRT pools on Equilibria;
- We target an avg. 3% APR addition on LRT LP pools on our platform. To achieve this APR increase for $20 M TVL in 12 weeks, it would require the following:
- USD equivalent = $20 M*3%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Weekly ARB Assignment = 75,000/12 = 6,250 ARB(Actual weekly ARB Emission Amount = 75,000/40 = 1875, Because of the oARB design)
Funding Address:
0x6Bc27bE639DF9eAe4D3EFFB0159f03C54255eb89
Funding Address Characteristics:
The above address is a 2/3 multi-sig wallet with private keys securely stored in cold storage.
Treasury Address:
0xFdA441270c1166d80f68AA6B5396e56b732724E4
0x6Bc27bE639DF9eAe4D3EFFB0159f03C54255eb89
0xc7537B621A613864E7ca2f34ae6625F9226b6D7D
0xa461e5933272fA200d6c6a268805516A3496cb99
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
For PENDLE conversion campaign: 0x7B121086Db8a28412c7574e0688500F5bA8F40Ca
For ePENDLE/ARB liquidity, not set up yet.
For LRT reward contract: 0x968e4A4E4B80E7dd258e2D7E3Be7467C2432b49b, 0x643df8DEef4EF24B2e5A487ed395b3102428fee1
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
We will use ARB incentives to encourage users to convert PENDLE and promote the liquidity of PENDLE/ePENDLE pool. This plan serves several important purposes:
- Accumulating locked PENDLE: By accumulating locked PENDLE, Equilibria increases its LP incentive boosting power. This ensures a sustainable and robust boosting effect, offering continuous attractive returns to LPs and encouraging them to stay invested for longer periods, thereby contributing to a more sustained TVL on Arbitrum.
- Secondary market liquidity: As locked PENDLE cannot be unlocked, users who wish to exit their positions can only do so through the secondary market’s ePENDLE/ARB liquidity. Having a sufficiently deep liquidity pool will provide users with the flexibility to enter and exit their locked PENDLE position.
- Increased TVL on Arbitrum: This approach attracts more TVL specifically related to Pendle listed assets on the Arbitrum network. By strengthening the innovation of Yield Trading on Arbitrum, we contribute to the growth and development of the ecosystem, creating new opportunities for traders and investors.
- Catch the LRT trend. Boosting LRT’s TVL and reducing trading friction in Yield Trading solidifies Arbitrum’s narrative in the LRT space. This strategy aims to increase the ecosystem’s TVL and user engagement.
Execution Strategy:
We will be using 3 types of incentivization:
- 250,000 oARB to incentivize users who convert PENDLE to ePENDLE and hold for a period of time;
- We target to receive and lock 1,000,000 PENDLE in the next 12 weeks. With every 1 ARB incentive, 3.5-4 PENDLE will be acquired and locked.
- ARB amount = 1,000,000/4 = 250,000
- Weekly ARB Assignment = 250,000/12 = 20,833 ARB(Actual weekly ARB Emission Amount = 250,000/40 = 6250 Because of the oARB design)
- 75,000 ARB to incentivize ePENDLE/ARB pool on Camelot;
- We target an avg. 20% APR addition for ePENDLE/ARB liquidity pool on Camelot. To achieve this APR increase for $3M TVL across 12 weeks, it would require the following:
- USD equivalent = $3 M*20%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Actual weekly ARB Emission = 75,000/12 = 6,250 ARB
- 75,000 oARB to incentivize LRT pools on Equilibria;
- We target an avg. 3% APR addition on LRT LP pools on our platform. To achieve this APR increase for $20 M TVL in 12 weeks, it would require the following:
- USD equivalent = $20 M*3%*12/52 = $138,462
- ARB amount = $138,462 / $2 = 69,231 ARB (around 75,000 ARB, assume ARB price is $2)
- Weekly ARB Assignment = 75,000/12 = 6,250 ARB(Actual weekly ARB Emission Amount = 75,000/40 = 1875, Because of the oARB design)
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
Equilibria accumulates locked PENDLE to gain LP incentive boosting power. The boosting power obtained by locking more PENDLE is sustainable enough to ensure a prolonged TVL growth on Arbitrum by providing continuous attractive APR to LPs.
The conversion of PENDLE is irreversible, so users looking to exit can only do so through the secondary market’s PENDLE/ePENDLE liquidity. Having a sufficiently deep liquidity pool will provide users with the flexibility to enter and exit their locked PENDLE position.
Post-incentives, the locked PENDLE amount will remain unchanged and continue to grow since an equivalent EQB incentives will be provided to incentivize the PENDLE convert campaign. We will persist in offering liquidity incentives for PENDLE/ePENDLE pool. Due to the increased boosting on the LP APR, the TVL is expected to maintain and continue to grow.
Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy.
Currently we have 7.82M total locked PENDLE and $30 M TVL on Arbitrum. The ePENDLE/ARB liquidity is yet to be created on Arbitrum. Targeting 8.82M locked PENDLE and $56 M TVL on Arbitrum. Deploy a $3 M ePENDLE/ARB liquidity pool on Arbitrum.
Grant Timeline and Milestones:
Milestone 1: the end of 4th week, new PENDLE lock reaches 250K, ePENDLE/ARB liquidity reaches $1.5 M;
Milestone 2: the end of 8th week, new PENDLE lock reaches 600K, ePENDLE/ARB liquidity reaches $2.5 M, TVL on Arbitrum reaches $45 M;
Milestone 3: the end of the 12th week, new PENDLE lock reaches 1M, ePENDLE/ARB liquidity reaches $3 M, TVL on Arbitrum reaches $56 M.
Note: In the initial stages, the lack of significant liquidity in ePENDLE/ARB hindered the optimal performance of the PENDLE conversion activities. It was anticipated that each ARB reward could get approximately 3 PENDLE tokens. Additionally, the increased PENDLE in the early stages did not contribute significantly to LP boost in terms of APR. Hence, the overall TVL changes were not considered. As the liquidity for ePENDLE/ARB grows in the later stages, there is an expectation of improved PENDLE conversion effectiveness. With a sufficient number of new PENDLE conversions, it becomes easier to attract overall TVL.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Pendle has demonstrated the immense potential of Yield Trading within the DeFi space. However, to unlock even greater value and foster wider adoption, it is crucial to enable a broader understanding and participation among users. The Arbitrum network, known for its efficiency, low fees, and active user base, presents an ideal platform for popularizing Yield
Trading to a larger audience. Equilibria plays a pivotal role as an amplifier, effectively locking PENDLE tokens to generate income boosts. By offering LPs a relatively higher and more enticing APR, Equilibria attracts more liquidity, making Yield Trading transactions smoother with reduced slippage. This, in turn, benefits users engaging in Yield Trading.
Moreover, within the Arbitrum ecosystem, Equilibria has the potential to provide highly attractive yields, further attracting a substantial amount of TVL. This increased TVL generates real yield in the Yield Trading process. As a result, we anticipate a significant increase in a highly sticky $26 million TVL.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Yes
SECTION 5: Data and Reporting
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 8. Along with this list, please answer the following:
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?
Yes, there are no special considerations.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? [Please describe your strategy and capabilities for data/reporting]
Our engineers will create a Dune dashboard in the next two weeks to track key OBL data and our core KPIs. Every two weeks, dedicated operations personnel will review and compile the data from the Dune dashboard, creating a report on the usage and achievement of data for the Grant.
First Offense: In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offense: Funding is halted permanently
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)
We agree to provide a final report including the information here.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: [Y/N]
Yes
