Written by: TechFlow
With the start of the second season community test of Metis Sequencer, the market has regained its focus on the Metis ecosystem. In the official community guide, Enki is listed first in the second season introduction, and its importance is self-evident. So in this article, let's take a deeper look at the first LSD platform on Metis.
The first liquidity staking protocol on ENKI Metis
ENKI is the first and largest liquidity staking protocol on Metis, which aims to simplify and popularize participation in the Metis sequencer node ecosystem, enabling ordinary investors to earn rewards by staking Metis Sequencer nodes. At the same time, it provides a secure, simplified and DeFi-centric platform for passive income on Metis.
ENKI solves the complexity and limitations of traditional Metis Sequencer node staking, providing ordinary users with the opportunity to participate. Regardless of how much Metis a user holds, they can participate in Metis Sequencer node staking and contribute to the growth and composability of the Metis ecosystem.
For example, a node staking that executes Metis Sequencer on Ethereum will face the following situations:
Ordinary users cannot participate;
A minimum of 2,000 METIS tokens is required;
Liquidity is locked up;
Requires node server setup and management.
ENKI makes this possible for the masses:
There is no threshold, all users can participate;
No METIS amount limit;
Liquidity is freely available for trading, lending, and other activities;
No node servers to set up or manage.
The existence of ENKI is of great significance to users who are interested in staking sorter nodes and to the introduction of new users to the Metis ecosystem.
ENKIâs Metis Sequencer Node Staking
First, ENKI adopts a dual-token model - eMetis (ENKI Metis) and seMetis, similar to Lido's stETH and wstETH and Frax's frxETH and sfrxETH. Among them, eMetis acts as a stablecoin, loosely pegged to Metis. It uses Metis Sequencer nodes to stake and enhance the composability of the Metis ecosystem. SeMetis is a version of eMetis that can accumulate staking income. Most of the profits generated by Metis sequencer nodes are distributed to seMetis holders.
By staking eMetis for seMetis, users can earn staking rewards, which can be redeemed when converting seMetis back to eMetis. The working principle is shown in the figure below:
Specifically for the staking step, users first need to convert Metis to eMetis. After coming to the Mint interface, enter the amount you want to convert and send Metis to ENKI Metis Minter. Minter efficiently converts Metis to eMetis on a strict 1:1 basis, ensuring full value preservation.
After acquiring eMetis, users can stake these to seMetis. This staking process allows users to accumulate earnings, with profits from Metis sequencer nodes primarily distributed to seMetis holders.
Token Economy
$ENKI is the protocol's native governance token, which gives holders decision-making power and allows holders to participate in voting on fee structures, protocol upgrades, and the development of the entire ecosystem. In the eMetis staking flywheel, $ENKI also plays a role in enhancing staking rewards. The project promises that ENKI is an integral part of all aspects of the ecosystem, and in the future there will be more empowerment for $ENKI, rather than just being a governance token, and strive to align user incentives with the long-term success of ENKI.
The expected maximum supply of ENKI tokens is 10 million. It is important to note that any issuance above the maximum supply will be subject to a 28-day time lock. Before a change in the maximum supply is required, ENKI will initiate a community governance vote to ensure transparency and fairness.
According to the project documentation, the initial distribution plan of ENKI is as follows:
Market, partners and early community supporters: 10% of the total, or 1 million $ENKI.
Protocol liquidity support: 10% of the total, or 1 million $ENKI, will be added in batches based on market demand and protocol revenue.
Future mining incentives and some market activities: 80% of the total, or 8 million $ENKI, will be gradually released in various forms.
The ENKI team also made an important statement: the team will not hold any token allocation shares, will not raise funds, and all stages of token release will be carried out in a fair launch manner.
route map
According to the roadmap shown on its official website, in the first quarter of 2024, ENKI will conduct a public release and subsequent product upgrades. As the final step of its presentation, it includes many major events, such as the release of the native token $ENKI. Let's take a look at what major upgrades ENKI will usher in in February:
ENKI Genesis ProjectââFantasy
On February 8th of this year, ENKI officially launched its Genesis Plan Fantasy. This is a cornerstone plan that covers the events that investors want to know most, including ENKI token economics, airdrops, and NFTs.
In the testnet test, Vest is a function that users cannot avoid, and it requires the use of ENKI as a pledge token. Most projects tend to launch tokens after the mainnet is released, and the ENKI token already has its practical value, so the project team decided to launch a genesis plan called "Fantasy" before ENKI is officially deployed to the mainnet. The plan aims to increase the participation of early supporters through a series of market activities and release the first 10% of ENKI tokens (1 million) in stages as incentives. This move is also to ensure that the market circulation of ENKI is controlled within this 10% before determining the release plan for the remaining 90% of tokens.
Phase 1 â Early Market Activities and Testnet (now underway)
Community participation and trivia tasks: 25,000 ENKI (0.25% of the total) will be allocated.
Participation in testnet activities: allocation of 25,000 ENKI (0.25% of the total).
Testnet Bug Bounty and Marketing Cooperation: 100,000 ENKI (1% of the total).
Eco-partner airdrop: 100,000 ENKI (1% of the total) will be allocated to reward loyal users of the ecosystem partner community in Metis (e.g. liquidity mining).
All users who participate in the above activities will be eligible to mint an early supporter NFT on the Metis mainnet after the first phase, which will serve as a voucher for receiving airdrops later.
Phase 2 â After deployment to Metis mainnet (not started yet)
Metis Staking Airdrop: 200,000 ENKI (2% of the total) will be allocated to users who stake Metis in the ENKI protocol, and airdropped according to the staking ratio.
Invitational staking event: 400,000 ENKI (4% of the total) will be allocated. Users holding eMetis or seMetis are eligible to participate in this event. They will be able to mint a special inviter NFT and receive a unique invitation code. Users who stake through this invitation code will add airdrop points to the inviter's NFT, provided that each invitee contributes at least 0.1 Metis to the staking pool to help the inviter increase points. The points calculation rules are as follows: Points = 100 * total number of invitees + 200 * total stake of invitees. After the event, airdrop tokens will be distributed according to the proportion of airdrop points. The inviter NFT will also be used as a voucher for receiving the airdrop.
ENKI Liquidity Incentive: 150,000 ENKI (1.5% of the total) will be allocated, with details to be announced later.
In general, Enki not only provides ordinary users with the opportunity to participate in the Metis Sequencer node staking, lowers the high threshold faced by $METIS node staking, but also injects new vitality into the composability and growth of the Metis ecosystem, increases the staking ratio of METIS, and benefits the price performance of METIS itself. With the continuous development and improvement of ENKI, and the continuous completion of every step promised in the roadmap, we expect Enki to play an important role in the Metis ecosystem. Let us wait and see.
Official Twitter: https://twitter.com/ENKIProtocol
Testnet: https://testnet.enkixyz.com/home