Core mechanism

Summary

Users can convert their veNFT into eTHENA.
eTHENA can be staked to earn BNB.
ieTHENA is a dedicated compounder for eTHENA.

Minting eTHENA

Initially in the first week, each 1 THE inside a veNFT will be able to mint out 1 eTHENA (1:1 ratio).

Minting-price Ratio & Rebases

As the epochs go by the rewards from rebasing will be added to the main veNFT of eTHENA protocol without minting any new eTHENA. This will cause the minting ratio to shift from 1:1 to 1:(1+R), R being the rebase factor.

For example, if the rebase for 2nd epoch is 0.5%, then the mint ratio will increase to 1.005, which means it would take a veNFT with 1.005 THE inside it to mint 1 eTHENA token.

Due the fact that there are no negative rebases in veTHE system, this minting-price ratio of eTHENA will keep on increasing forever, and it will keep on appreciating against plain THE in a veNFT.

Usage of the veNFT

The main veNFT of the system will be simply used to maximize the returns from voting. Vote distribution will only consider the after-sale value (in BNB) of the earnable Bribes & Voter fees to decide its vote.

All the earnings from Voting such as Bribes & Trade-fee will be sold in their entireity to purchase BNB.

All 100% of the Votes will be used for this purpose and this purpose only. Even if we have a conflict of interests in the future, the votes will be allocated solely on the basis of maximum BNB returns per vote.

Usage of the BNB from Voting yield

13.37% of the BNB will be used to acquire Protocol-owned Liquidity.
86.63% of the BNB is used as follows:
- 20% of BNB is distributed to Stakers
- 80% of BNB is sent as Bribes to Thena.fi voters

Note:

This was different prior to the First DAO proposal for eTHENA:
74.26% of the BNB will be distributed to eTHENA stakers.
13.37% of the BNB will be give to Thena.fi Voters as a Bribe to gather votes for the vAMM-eTHENA/WBNB pool.
13.37% of the BNB will be used to acquire Protocol-owned Liquidity.