The Athena neighborhood is at the moment reviewing a proposal from crypto market maker Wintermute to allow a price swap inside the protocol.
In a Nov. 6 proposal, Wintermute highlighted the anomaly surrounding Ethena's ENA token income cut up. The market maker famous that there isn’t any clear framework explaining how ENA holders may gain advantage from the protocol's revenues or whether or not there are any plans to allocate a portion of the revenues to these holders.
Wintermute highlighted that the Ethena protocol has generated important real-world income, signaling a product market match for USDe – its artificial greenback stablecoin – which boasts a market cap of over $2.8 billion. This success, Wintermute claims, signifies that sENA token holders ought to have the chance to profit from the expansion of the protocol.
Design overview
Wintermute's proposal recommends that Athena's Threat Committee contemplate allocating a portion of the protocol's income to a staked model of the ENA token, sENA. Nonetheless, the proposal didn’t embrace particular particulars on income sharing.
As a substitute, Wintermute's proposal encourages the committee to create a framework detailing the factors that Athena should meet earlier than permitting income distribution. Advisable standards for these benchmarks embrace metrics akin to USDe circulating provide, common income ranges per protocol, unfold between USDe Annual Proportion Yield (APY) and market charges, and adoption of USDe on main distribution platforms akin to centralized exchanges.
As well as, Wintermute's proposal requires a extra exact rationalization of Athena's present earnings distribution mannequin. This requirement stems from issues about “twin class” constructions within the crypto business, the place advantages to fairness holders could battle with the pursuits of token holders or the protocol itself.
The aim of the proposal is to find out whether or not such a construction exists inside Athena and whether or not protocol revenues have been earmarked solely for improvement.
Because of the important affect this variation may have on the Athena ecosystem, the proposal will should be authorised by a neighborhood vote.
