Ender Protocol is LIVE: The Era of Liquid Staking Power and the 'Metaverse Bond' is here
December 31st, 2023

We are excited to announce that we are launching Ender Protocol V1 on Ethereum mainnet today. It will be in Closed Beta available to limited Early Access users.

We are about to embark on an endless journey to bring crypto as an asset class to the next era of its evolution by introducing a new form of liquid staking token through our protocol.

With the addition of this new asset type, we can build on top of its foundation incredibly powerful new products in alignment with the crypto ecosystem and digitally native landscape.

Provide liquidity to the bond deposit and earn points for the airdrop
Provide liquidity to the bond deposit and earn points for the airdrop

With the launch, we will initially conduct a liquidity event for the bond deposits called the Bond Liquidity Provision (BLP) event. You can read more about it here.

Deposits will be initially held in a contract pending our full audit, where you will be eligible to earn points before the deposits are released to the bond contract of the protocol after the audit is completed.

The BLP event will last for a period of up to 3-months upon which the Airdrop Distribution of $ENDR will occur. During this period, users will earn points to rank up on the Leaderboard for Season 1 of rewards.

For the first 2-4 week period, users will receive 2x boosted rewards for depositing into the deposit contract to earn points for the airdrop. Only users limited to the WL Early Access will be able to make a deposit. After this period, we will be further opening up early access through an Invite System.

You can access the dApp over at enderprotocol.io.

Mint the Ender WL NFT to get Early Access
Mint the Ender WL NFT to get Early Access

In order to gain access to Ender Protocol’s Closed Beta, you must mint a Ender Whitelist NFT in to wallet, which allows you to generate an access key to redeem for early access.

You can mint the Ender WL NFT from Zora below:

 

Mint it quick before it runs out! There’s only a limited supply of 1,500. And who knows what future rewards you might get from minting it?

Note: There will be an initial Fair Mint Period of 72 hours after the mint is live before Early Access is opened.

(If you had previously minted the Ender Halloween-Edition WL NFT from our legacy Foundation collection now migrated to Zora, you will automatically be airdropped a WL NFT from the Zora mint. All further mints from the migrated collection once the Zora mint is live will NOT be eligible for further redemption.)

What is Ender Protocol 🕳️

A liquid staking protocol using LST-bonds to enable concentrated yield tokens and liquid staking power. Powering the metaverse with the Metaverse Bond.

Ender Protocol is a new DeFi primitive focused on realizing the full potential of Ethereum liquid staking tokens (LSTs) through a new form of LST.

Through a novel bond-based yield compression and yield-splitting mechanism, Ender Protocol enables users to capture liquid staking yield into a token, END, backed by the staking rewards from the bond deposits, in order to allow for concentrated yields in liquid staking rewards.

The bondholders are able to sell their yield in a concentrated yield token providing liquidity to a whole new type of LST called a Metamorphic LST.

'Yield splitting' is similar to the concept of particle splitting, based on the concept of Hawking Radiation of a blackhole
'Yield splitting' is similar to the concept of particle splitting, based on the concept of Hawking Radiation of a blackhole

What does this mean?

This means that we have introduced a whole new way of transferring value through a decentralized financial protocol for the underlying staking yield of Ethereum’s staking rewards, in such a way that enables new financial primitives to be built on top.

Here are some of the potential products which can be integrated to create additional feedback loops and flywheel effects through fee generation of LSP:

  • A metaverse bond, creating realms in the metaverse powered by the blockchain production value propagated into the metaverse economy.

  • A meta-LST backed stablecoin, which has a concentrated yield allowing for an even greater interest-paying stablecoin than regular LST-backed stablecoins.

  • A LST liquidity protocol and aggregator, using staked LSP tokens to direct the staking power seamlessly to any LST or LST strategies.

  • A universal DVT staking protocol, which can also become a builder to earn MEV searcher fees.

  • A lending and borrowing platform, for LST-bond NFTs.

  • A bond liquidity pool, for LST-bond liquidity buying discounted bonds held to maturity for guaranteed returns.

If you would like to learn more about the various functions, mechanisms, or detailed technical documentation, please read our documentation.

How Ender Protocol works

Here are some visual diagrams showing the basics of how Ender protocol works:

Step 1: Ender Bond deposit. Step 2: Yield splitting and concentrated yield.
Step 1: Ender Bond deposit. Step 2: Yield splitting and concentrated yield.
Step 3: Ender Bonds backing END.
Step 3: Ender Bonds backing END.
Step 4: Liquid staking power LST liquidity allocation.
Step 4: Liquid staking power LST liquidity allocation.

The END Token

Through the protocol, the END tokens are the primary token emissions, which acts as a yield token, or LSP (Liquid Staking Power) token, generated through the Ender Bonds. These tokens are a new form of LST, called a “Metamorphic LST” or “meta-LST”.

In order to mint these tokens, users may bond with their LSTs, initially, limited to stETH or ETH. By selecting a bond period, you will receive a fixed yield rate which are rewarded in $END tokens. These tokens are backed by the bond deposit yield, thus getting the value of the LST rewards.

You can then stake END tokens and receive sEND, which then provide a rebasing yield further capturing the split yield value of the bond deposits, also known as the floating yield rate on top of the fixed rate. Through this process, these tokens earn a concentrated yield plus the compounding yield from the backing assets. There will be further utility to the sEND tokens which users can use to interact with the protocol, which allows users to basically ‘allocate’ or ‘direct’ liquidity of the LST deposits through the bonds.

The Ender Bond

The evolution of the Ender Bond as it goes through its maturity
The evolution of the Ender Bond as it goes through its maturity

At the core of the protocol, we issue what are called Ender Bonds, which accepts deposits in LSTs and issues them a Bond NFT and thus the bondholders are providing the yield liquidity in the form of liquid staking power, a concentrated yield token.

The Ender Bond NFT
The Ender Bond NFT

Bondholders are able to sell their bond rewards in $END tokens as part of their own deposit yield from the LSTs, creating a platform for trading of LST yields. Essentially, the protocol is akin to an AMM, but for yield liquidity provision, through a novel architecture of the rebasing mechanism.

Refraction Fees

Refraction fees are a new kind of fee similar to the reflection fee. Each time the END token is traded, a fee is taken. But instead of paying the fee back to the token holders, they are paid to the bondholders who provided liquidity of the LST and its yield instead.

What’s more, the fees levied from the transactions paid to the bondholders, factor in the maturity of the bonds, incentivizing for longer maturity periods, through the Refraction Index (μ), in which increases over time throughout the maturity of the bond.

What this means is that the fees collected are distributed proportionately to the bonds not only based on the bond value, but also the refraction index. The higher the refraction index of the bond, the more fees it earns.

Rebase Fee

In addition to the trading fees of $END tokens, bondholders also collect a refraction fee from the rebase reward from the staking of $END. Every time there is a rebase reward, a refraction fee is taken in the form of sEND tokens, and distributed to the bondholders accordingly (also taking into account the refraction index). This means that all future bondholders earn the remnants of the rewards compounded over time from all past bonds.

Bond Trading Fee

Through the trading of the Ender Bond NFTs, a bond trading fee is deducted from the underlying principal deposit of the LSTs further adding value to the token backing. This creates a true liquidity vortex and feedback loop in its purest form, paying the underlying deposit of the bonds in ETH or stETH into the treasury to provide further backing to the $END token, while the refraction fee does the inverse, paying fees to the bondholders, double-incentivizing both ends of the protocol.

These fees will also be used as part of the treasury assets for sustaining the development of the protocol itself and is considered as part of the protocol’s fees revenue generation model. Whereas the refraction fees are paid solely to the bondholders themselves directly.

Bond Fee

In addition to the refraction fee, there is a completely optional, self-set bond fee which allows users to set a fee directly adding their bond assets into the treasury, becoming part of the treasury assets. Upon the redemption of the bond, the bond fee will be deducted from the redemption and kept in the treasury. This will give an even further boost to the backing of the $END token from the LST yields, creating an over-backing. We consider this as a kind of tip or fee you may choose to set to create a stronger backing for the $END token.

What do you get for setting a bond fee?

You will get a boosted bond yield multiplier, which you can see in the Bond NFT above, showing a fee deducted and a boosted yield, as well as refraction index. In addition, you will get more rewards in the $ENDR governance token, which effectively gives you further ownership of Ender Protocol and voting power in future governance and utility.

The fees taken here are also considered as part of the protocol’s fees, and may be used for funding the future development of Ender Protocol and its ecosystem integrations, like into the metaverse.

Through the governance process, a fee switch may also be turned on to pay a portion of the protocol fees to the holders of $ENDR. More details will be provided on that front later.

Ender Protocol governance token $ENDR
Ender Protocol governance token $ENDR

We are excited to provide further details on our post-launch plans in the coming weeks, providing more information about our future plans, including our governance token, ENDR, and the airdrop.

You can read more about the $ENDR governance tokenomics and distribution here.

We look forward to bringing everyone on this journey to the END through the blackhole.

(⚫,🕳️)

The Ξℵδ is here.

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