Equilibria Deep Dive, Yield Booster ontop of Pendle

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💎 LSDfi, Yield Booster & RWA 💎 $PENDLE has been one of the biggest gainers this year in DeFi And one of the most innovative protocol. + It is now setting foot in RWA. There is an undervalued project building on top of Pendle, that deserves your attention! 👇🧵 + 𝗔𝗟𝗣𝗛𝗔

𝗪𝗵𝘆 𝗟𝗦𝗗𝗳𝗶 • LSDfi has immense potential to unleash the power of staked assets, making it a key driver for ETH and PoS Assets.

• LSDfi provides LSD holders with additional yields through innovative designs such as AMM yield, lending yield, and bribery yield. • Equilibria is building a comprehensive yield market for LSD assets, which will attract more users to new LSD assets

Introducing @Equilibriafi, a Yield Boosting Protocol created and optimized for @pendle_fi. It utilizes the veToken/boosted yield approach implemented by Pendle Finance, offering LPs an enhanced yield and providing additional rewards to $PENDLE token holders.

1️⃣ Introduction 2️⃣ Tokenomics 3️⃣ Mechanisms 4️⃣ Roadmap 5️⃣ Edge 6️⃣ Alpha 7️⃣ TL;DR 8️⃣ Conclusion

1️⃣ Introduction Before diving into Equilibria, we must talk a bit about Pendle. @pendle_fi is a yield management platform that allows for the tokenization of yield generated from various assets through fixed-rate lending market.

𝗣𝗲𝗻𝗱𝗹𝗲 𝗧𝗟;𝗗𝗥 Pendle splits the yield from yield-bearing assets into two components: • Principal Token (PT) • Yield Token (YT) This allows users to buy discounted tokens and speculate on yield But to offer this it needs users to deposit liquidity...

As a yield derivative protocol, Pendle is bringing the TradFi interest derivative market (worth over $400T in notional value) into DeFi. By creating a yield market in DeFi, Pendle unlocks the full potential of yield, enabling users to execute advanced yield strategies ↓

With Pendle Earn, they are also providing CEX-like products in DeFi. Indeed, they are offering low risk fixed stable yields of up to 5.17%, on-chain, with transparent strategies. And more strategies on Arbitrum. Pendle has also recently set foot in the RWA Market.

𝗘𝗾𝘂𝗶𝗹𝗶𝗯𝗿𝗶𝗮 Equilibria’s vision is to drive innovation in the field. The goal is not to simply create a Layer on top of Pendle: → To Introduce several novel features, such as the YT market for vlEQB, limit orders for the PT/YT trading, and cross-chain implementation.

Led by a team of DeFi OGs with years of experience in the industry, Equilibria is customized and optimized for Pendle Finance. The platform is designed for $PENDLE holders and liquidity providers, offering an easy-to-use platform to maximize profits.

2️⃣ Tokenomics Total Supply: 100,000,000 $EQB

The IDO has been sold out. • 7.5M $EQB Sold → $1.5M Collected • 50% of the IDO supply has been released at launch already. • 50% released over 6 months. It's been 3 months already: • Around 1.875M $EQB yet to be unlocked -> $187k over 3 months at current price.

There are 3 tokens in the Equilibria Ecosystem: ◾ EQB ◾ vlEQB ◾ xEQB

◾ EQB is Equilibria's governance token, and users have the following options: • Lock it as vlEQB to earn multiple benefits • Provide liquidity in DEX and earn LP rewards • Trade it through DEX

◾ vlEQB is the locked version of EQB: 🔐 Users can lock EQB for different weeks, resulting in varying amounts of vlEQB 📈 The more vlEQB a user holds, the stronger their voting power becomes 💪 Increased voting power leads to higher rewards for locking, voting and bribe income

◾ xEQB is the escrowed version of EQB: • Users have the option to redeem xEQB back to EQB, with the conversion ratio determined by the duration of the redemption period. • Or, users can choose to lock xEQB into vlEQB and enjoy multiple benefits as vlEQB holders!

3️⃣ Mechanisms Equilibria offers a wide range of ways to earn additional yield for the following users: • Pendle Liquidity Providers • ePENDLE Stakers • $EQB Lockers

𝗣𝗲𝗻𝗱𝗹𝗲 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗣𝗿𝗼𝘃𝗶𝗱𝗲𝗿𝘀 Even without owning any $PENDLE tokens, LPs who provide liquidity to Pendle through Equilibria → Earn additional rewards in both $vePENDLE and $EQB. Equilibria owns lots of $vePENDLE and they boost LPs rewards.

𝗲𝗣𝗘𝗡𝗗𝗟𝗘 𝗦𝘁𝗮𝗸𝗲𝗿𝘀 $PENDLE holders have the option to convert their tokens into $ePENDLE and then stake them, enabling them to earn rewards in both $PENDLE and $EQB. Rewards paid out in $PENDLE will be a % of Equilibria's revenue share

The $PENDLE tokens used to stake $ePENDLE will accrue maximal $vePENDLE, boosting the yield on Pendle. That's how the Equilibria Flywheel gets activated.

𝗘𝗤𝗕 𝗹𝗼𝗰𝗸𝗲𝗿𝘀 By locking up $EQB, users can earn a share of the protocol revenue in the form of $ePENDLE and extra rewards.

Currently if users want to deposit $PENDLE they can do so via @pendle_fi to get boosted rewards. With Equilibria, users earn boosted rewards in both $PENDLE and $EQB maximizing the potential return while also benefiting Pendle!

𝗣𝗘𝗡𝗗𝗟𝗘/𝗲𝗣𝗘𝗡𝗗𝗟𝗘 𝗣𝗲𝗴 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 The objective is to establish $ePENDLE as a valuable long-term liquid wrapper, similar to $cvxCRV on Convex. Two things are therefore crucial: • The overall PENDLE/ePENDLE Liquidity • The Stability of the Peg

𝗣𝗘𝗡𝗗𝗟𝗘/𝗲𝗣𝗘𝗡𝗗𝗟𝗘 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 Equilibria Leverages Maverick's Features: → Multiple AMM strategies, concentrating liquidity within core trading ranges, thereby enhancing trading and capital efficiency. → Boosted positions to Incentivize liquidity provision.

𝗧𝗵𝗲 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗲𝗴 ◾ Smart Converter • Peg falls below a threshold → The Smart Converter will automatically route the best conversion ratio by comparing the threshold with the current peg. → Increase in the buying pressure for ePENDLE.

◾ Buy Back 5% of the total protocol revenue earned by Equilibria will be used to: → Buy ePENDLE from the Secondary Market when ePENDLE/PENDLE ratio is lower than 0.85. → Directly purchase PENDLE which then will be converted into ePENDLE if the ratio remains above 0.85.

💎 The ePENDLE acquired from the market or converted will be distributed as rewards to vlEQB holders.

𝗗𝗲𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺𝘀 Equilibria has implemented several deflationary mechanisms to reduce the overall token supply.

🔹 Buyback & Burn: In the future, certain proportion of protocol fees will be allocated for buyback, followed by token burning.

🔹 $xEQB/$EQB Burn: During the redemption of $xEQB, if the redeemed amount of $EQB is not the full amount, the remaining $EQB will be burned. For example, if 100 $xEQB is redeemed after 2 weeks, only 50 $EQB will be received, and the remaining 50 $EQB will be burned.

Deflation models are also applied in various ways: • Liquidity Mining - rewards emitted weekly with 1.1% deflation rate applied • $PENDLE LP Incentives - deflation of 5% applied for every 1M $EQB minted

4️⃣ Roadmap 🔹 Limit order for YT/PT trading Limit order is a common feature in traditional trading that allows traders to set a predetermined price at which they want to buy or sell. Equilibria will make it easier for users to trade YT and PT on Pendle.

🔹 $EQB Yield Market After locking $EQB on Equilibria → Users will receive a fixed yield from the protocol fee and bribe income. This creates a new yield market for $EQB on Pendle, attracting more trading volume and TVL to the platform.

🔹 $xEQB Developments Building more use cases around $xEQB, let $xEQB as the first utility token of LSDfi. Equilibria will also implement multichain governance voting.

5️⃣ Edge ▪️ Equilibria currently has accumulated around 7.4M $PENDLE token which will be locked for 7.5M $vePENDLE → approx. 26% voting power on Pendle Finance. ▪️ TVL 42M+ ▪️ Partnership with Pendle, Frax, GMX & more ▪️ Bribe Rewards with 3 partners: StaFi, Swell & Stader

▪️ RWA Narrative ▪️ LSDfi & Pendle Narratives ▪️ 2 Audits: PeckShield & WatchPug ▪️ @OuroborosCap8 Advisors (advisors for other great projects like @RDNTCapital & @goodentrylabs 👀) ▪️ Deflation Model: Burned more than 120k $EQB

6️⃣ Alpha ▪️ Chart bottomed out ▪️ Equilibria's Mcap is just a fraction of Pendle's Mcap (~130x smaller) ▪️ Mcap/TVL Ratio is ~0.035 → Considering this indicator, $EQB is highly undervalued ▪️ Especially since ~36.5% of the current supply is locked

▪️ Incoming News, Partnerships & Updates ▪️ Support from Pendle Team ▪️ 1st Gov Proposal: $ePENDLE Buyback Program → Last chance to buy $ePENDLE at a discount? ▪️ In the future Equilibria will collaborate with more LSDfi protocols to acquire more yield source for LSD assets

7️⃣ TL;DR

8️⃣ Conclusion This thread was made in collaboration with @Equilibriafi. You know when I put my threadoooor hat on instead of my curatoooor hat, it's to talk about something that can benefit you. Well, here I think $EQB is undervalued & a long-term project. As always it's NFA.

🔸 Official Links 🔸 X: @Equilibriafi Website: equilibria.fi Telegram: t.me/EquilibriaFinance Discord: discord.gg/pHYaFFArbX Docs: docs.equilibria.fi Medium: medium.com/@Equilibriafi

Find more Alpha about LSDfi Narrative in my Newsletter: tinyurl.com/shirosalphas Also find Live Alpha in my TG Channel: bit.ly/shiroalpha Find out about the Catalysts & Alpha early, have your edge on the Market.

Equilibria Chads & Inspirations: @monosarin @SmallCapScience @Flowslikeosmo @Slappjakke @thelearningpill @arndxt_xo @definapkin

Frens that are interested in LSDfi: @DeFiMinty @Louround_ @CryptoGideon_ @0xTindorr @0xsurferboy @IamZeroIka @rektdiomedes @2lambro @schizoxbt @WinterSoldierxz @0xFlips @0xShinChannn @poopmandefi @0xCrypto_doctor @Defi0xJeff @wacy_time1 @splinter0n @CryptoNikyous @0xSalazar