Metis LSD ecological mining: Layer 2 and LSD’s first collision

summary

• Metis, as the first Layer 2 that focuses on the development of the LSD track, can be said to break through the limitations that the other two -layer network cannot touch.Its unique decentralized sorter pool technical solution has formed a pledge demand, so LSD has become the most convenient and high -yield channel for community participation in decentralization construction.

• As an important part of the POS mechanism network represented by Ethereum, LSD has reduced the threshold for network pledge, enhances network security and maintains currency prices, and stimulates derivative DEFI ecology such as asset liquidity.

• In order to vigorously develop the liquid pledged track, Metis officially issued many ecological incentive programs such as Metislsb to give the LSD protocol 20% of the annual mining rate of the year, far exceeding the Ethereum and other networks with only 4.25%.

• Emerging agreements, such as Enki, Artemis, have initiated community proposals. Its token economics and upcoming ecological activities will be used as an important standard for early airdrops and are worthy of attention.

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1) Reduce the high threshold of traditional pledge

The full name of LSD is Liquid Staking Derivatives, which is the liquidity pledge derivative.Since Ethereum Paris upgrades to the POS mechanism of the public chain, the nodes on the chain need to pledge a certain number of tokens to participate in the Internet and get block rewards and pledge incentives. However, for ordinary users, participating in the public chain pledgeNot easy.

Generally speaking, the amount of the public chain requires a high amount. For example, the node of Ethereum needs 32 $ ETH to start, resulting in an increase in the threshold for participation; long pledged time, for retail investors, capital locks will lead to low efficiency; pledge requires some technology & amp requires some technology & AMP.; Hardware requirements are not friendly to users.

Ethereum Shanghai Shapella was upgraded to achieve pledge withdrawal, and the curtain of LSDFI has been opened.LSD not only opened a new token income channel for ordinary users, unlocked the liquidity of pledged assets, but also caused a variety of LSDFI, RESTAKING and other agreements based on this, which promoted the rapid growth and extensive participation of the Defi ecosystem.

As Layer2, Metis innovatively introduced the POS mechanism into a sorter pool, generating the needs of $ Metis pledge.The network consensus security that was originally pledged by node pledge was transferred to the decentralization of the sorter, and the development of LSD was the most important step.

Metis, a second -layer network of Ethereum, which really focuses on “decentralization”, focuses on the first focus on decentralized sorters, and feeds gray income such as MEV to the community, thus becoming a transparent and user -friendly network.In this article, we introduce the decentralized technology of Metis in detail, the most important of which is the decentralized sorter pool of node pledge.

Metis has become a sorter pool by introducing multiple sorters. Any sorter entry through pledge has the right to see the content of the trading pool, and has the right to deal with the transaction, making it impossible for a single sorter to control it maliciously;Nodes must pledge network tokens $ Metis to participate in the network. It becomes a sorter node and requires at least 20,000 $ Metis (about 2.4 million US dollars).However, once the sorter is involved in the transaction, you can also obtain the GAS income obtained by the transaction and the additional $ metis pledge incentive;Randomly use the PROPOSER for node pledge shares for broadcast blocks.

In addition, the sorter of Metis can not only enjoy the network and pledge income, but also the EDF plan launched by Metis will be allocated from a 4.6M $ Metis to the decentralization of the sorter.It is enough to see that Metis officially attaches importance to centralized sorters, but ordinary users want to participate, but they have to face a pledge threshold of up to $ 2.4 million, which is discouraged.

LSD provides such channels that allow users to participate in pledge through a small amount of investment, which greatly reduces the threshold for participation.

2) Enhance network security and maintain currency price

Why do you want pledge to the community?For the public chain of the POS mechanism, the security of the network depends to a large extent on the diversion of node pledge.

If the pledged assets are concentrated in the hands of a few nodes, then they have enough power to control the network and lead to centralized risk.On the contrary, if there are many pledge participants in the network, the influence of a single node on the network will be reduced, which will increase the cost of any potential malicious behavior, because to attack the network, you need to control more nodes.

Although after the upgrade of Ethereum Shanghai, the $ ETH pledge has a short -term retracement, but in the long run, ETH’s total lock quantity has achieved considerable growth.The user moves the withdrawal funds to the LSD protocol to enable the pledge to enjoy the asset liquidity and flexibility while the pledge, which also realizes the rise in the pledge rate of Ethereum to maintain the network consensus, thereby improving the security and stability of the network.

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It can be seen that the launch of LSD has made Ethereum’s network pledge facing more retail investors. Ethereum network is also safer as more and more tokens participate in pledge; at the same time, pledge reduces the marketmaking of $ ETH/Raise token value.

3) Improve capital efficiency & amp; promote the DEFI ecology

As an important part of Ethereum, LSD, its current TVL is 37.96B, accounting for 35%of Ethereum total TVL.Lido, RocketPool and other head protocols provide high-standard and multifunctional liquidity pledge, which drives the development of other LSDFI, RE-Staking, DVT and other segmented tracks.

The perfect liquidity ecology makes $ ETH assets easier to divide transactions and stimulates new gameplay of the Defi ecosystem.For example, users can use the tokens obtained by pledged pledges in the scenes of lending, marketing, and farming, which greatly improves the efficiency of the capital that was originally locked.

LSD attracts more users and capital into the DEFI ecosystem by providing liquidity and innovative financial products, thereby stimulating the economic growth of the entire ecosystem.

It can be seen that the development of LSD is vital to the network of the POS mechanism. It is an important step in maintaining the network consensus and promoting the circulation of ecological capital. Metis also provides rich and perfectIncentive plan.

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Metis launched the liquid Staking Blitz on February 8th, focusing on helping Metis to become the first Rollup with decentralized serials and sharing sequencer revenue with the community.

The official draws a 3M $ Metis from the 4.6 million Ecological Development Fund (MetiseDF) to accelerate the deployment development of the LSD protocol.The selected protocol will have the right to pair with the Sequenceer node and provide a 20% MRR (Mining Rate) mining incentive in the first year.

As mentioned earlier, it becomes a sorter of Metis. Once it is involved in the transaction, it can also obtain the GAS income obtained by the transaction and the additional $ metis pledge incentive.The tokens obtained by the LSD protocol in the community also have the right to serve as a separate individual, match the serial machine node, and get a 20% mining reward rate.

Compared with the pledge incentive rate of the network with other POS mechanisms, Ethereum is only 4.25%, Solana has 7.25%, and Celestia has 14.8%. If only for Ethereum ecology, except for the recent popular API3, only Metis’s reward rateIt is the highest, and the rest are less than 10%.

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Metis LSB provides income incentives for LSD products by integrating sorter mining and ecological fund, amplifying the income of liquidity pledges, not only attracting more users to participate in decentralization, but also for pledge related derivative products, including re -pledge, etc.The expansion of the sub -track realizes the network expansion while activating the circulation of assets.

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On December 6, Metis provided a $ 5M of an incentive plan #Metisjourney for the DEFI category to motivate and attract more related DAPPS deployments.

On December 18th, Metis launched the #MetiseDF (Ecosystem Development Fund) program to allocate 4.6M’s ecological funds of $ 4.6M ($ 5.5 billion) to the realization of the decentralized Sequencer, DAPPS’s GRANTS, DAPP Building mining incentives, DAPPS, Maps, Maps, and Miner’s mining incentives.Other ecological development activities such as liquidity incentives and so on.

Among them, it is clear that 3M is allocated from EDF for sorter mining to ensure the functionality and decentralization of the network; the remaining 1.6m $ Metis is used to attract more LSD protocol deployment, including borrowing, stable currency, CDP, etc.Ecological development.

On February 16th, it was determined that 250,000 $ Metis will be extracted from EDF as Grant Pool in 2024, and 23K has been applied.

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Source: https://www.metis.io/grants

As of now, Metis has provided billions of dollars as an incentive plan, which provides new driving for new assets, products and platforms to provide strong support for the decentralized development and asset liquidity of the network.

At present, the community proposal voting of the LSD protocol has been opened. Combined with the LSB plan, we can expect to participate in these elected agreements and enjoy high mining income. So what are the specifics?

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Enki is deployed on the first LSD project on Metis to simplify the process of participating in the Metis Sequencer Node Staking process.It allows users to get rewards without the technical complexity of a SEQUANCER node. They can regard Enki as a bridge, connect ordinary users to Metis Sequencer Node and get multiple benefits.

The following is its workflow:

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• Step 1:Converted to $ EMETIS, the user transformed the $ metis held in ENKI (via MINTER) to $ Emetis.

• Step 2:Package $ EMETIS, obtain $ semetis, as a voucher for active participation in the income acquisition process.

• Step 3:The accumulation of benefits, the $ Semetis held will accumulate the income over time, reflect the performance of the Metis Sequency Node ecosystem.

• Step 4:Get award, awarded a reward every 7 days, 70% of the $ Emetis revenue will be transformed into $ semetis immediately, and the remaining 30% enter the Vesting stage. For this part of the income users, $ Enki needs to be unlocked within one year.

• Step 5:Receive rewards, you can convert $ semetis $ semetis in ENKI, and then go to the secondary market, such as netswap to convert $ Emetis into $ Metis.

Even if users hold a small number of $ Metis, they can participate in pledge, eliminating the technical knowledge required by users and the needs of a large number of initial settings, and providing more users with opportunities to participate in pledge and gain benefits.

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1) Distribution mechanism

The ENKI protocol’s native token is $ ENKI, and the total supply is 10m. Holding the $ ENKI tokens can not only participate in the lock, but also obtain potential governance and other income in the ecosystem.

$ ENKI initial allocation plan is as follows:

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• Market, partners and early community supporters:It accounts for 10%of the total, that is, 1M $ ENKI.

• Protocol liquidity support:It accounts for 10%of the total, that is, 1M $ ENKI, which are added in batches according to market demand and agreement revenue.

• Future mining incentives and some market activities:It accounts for 80%of the total, that is, 8m $ ENKI, and is gradually released through various forms.

The ENKI team itself does not hold any token distribution share and does not raise funds. The tokens of all stages are carried out by Fair Launch.

2) Double -profile model

• $ Emetis:A tokens similar to a stablecoin are linked to the $ Metis value of 1: 1. It is transformed by Minter in ENKI to facilitate users to participate in the ENKI system.

• $ ESMETIS:Represents the pledged $ EMETIS, the user is effectively mortgaged by the $ Emetis, and at the same time earn more tokens with pledge income. At the same time, it has liquidity and can interact with other DEFI ecosystems.

3) Value capture

• Governance right:The holder is an important part of the decentralized governance model. Most of the $ ENKI token will be used as mining incentives. The holder can vote for influence the incentive content, cost structure, agreement upgrade, and the development of the entire ecosystem.

• Unlock right:As above, 30% of the ENKI protocol’s mining incentive requires users to lock $ ENKI to get unlocked within 365 days.

The $ ENKI tokens are important for the lock -up process. Pure $ ENKI is the request for part of the $ Emetis reward earned by $ ESMETIS holders.This lock mechanism is combined with the $ ENKI token to encourage users to continue to participate and invest in an ecosystem, and successfully inspire the long -term development of ENKI.

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1) Community test Season 2

ENKI is currently deployed on Metis Sepolia Testnet and participated in the second phase of the Metis decentralized sorter community test.

On January 16th, Metis officially launched the Community Testing on the Sepolia Test Network to test the POS Sequenceer pool by exploring various DAPPS, and users will also get the corresponding Testing Points reward.Each DAPP corresponds to different integration pools, and each operation also has different points ratio. Participants can obtain a test network $ metis through the network to get 0 cost participation and earn points.

In Season 1, the participating ecological projects include Hummus Exchange, League.tech, TETHYS Finance, Midas Games, Netswap; only ENKI is included in Season 2.

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Source: https: //decentralize.metis.io/#szn2

By receiving test currency $ Metis, you can get points on the ENKI website to obtain points on the ENKI website.

2) Fantasy Creation Program

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Source: Medium

The official issued the Enki Fantasy Genesis program on February 8th, which will be incentive to release a 10%(1m) $ ENKI tokens in advance.

The entire event will be divided into two stages:

The first stage -early market activities and test networks (Pre -Launch)

• Community participation and Trivia task: allocate 25,000 $ ENKI (accounting for 0.25%of the total).

• Participate in the test network event: allocate 25,000 $ ENKI (0.25%of the total).

• Test network Bug Bounty and marketing cooperation: allocate 100,000 $ ENKI (accounting for 1%of the total).

• Ecological partner air investment: allocate 100,000 $ ENKI (1%of the total), aiming to reward loyal users in the ecological partner community in Metis.

All users participating in the above -mentioned activities will be eligible to cast an early supporter NFT on the Metis main network after the first stage, which will receive a voucher for the airdrop after the airdrop.

The second stage -deployment to the Metis main network (post -launch)

• Metis pledge surgery: allocate 200,000 $ ENKI (accounting for 2%of the total). For users who pledged Metis in the ENKI protocol, airdrops were carried out in accordance with the pledge ratio.

• Invite pledge activities: allocate 400,000 $ ENKI (accounting for 4%of the total).

  Users holding $ Emetis or $ Semetis are eligible to participate in the event. They will be able to cast a special inviter NFT and get a unique invitation code.Users who pledge through this invitation code will increase air investment points for the inviter’s NFT, provided that each invited person contributes at least 0.1 $ Metis to the pledged pool to help the inviter to increase points.

  The points calculation rules are as follows: Points = 100 * Total number of invited people + 200 * The total pledge of the invited person.After the event, the airdrop tokens will be allocated according to the proportion of airdrops.The inviter NFT will also be used as a voucher for the airdrop

• ENKI liquidity incentive: allocate 150,000 $ ENKI (accounting for 1.5%of the total).

Enki is the most important step for Metis to achieve decentralized sorters. The pledge threshold is low to reach ordinary users & amp; benefit individual investors, so that the entire community can participate in network construction and enjoy benefits.

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Artemis Finance is a liquid pledge protocol designed for Metis decentralized sorter pool. Users can pledge their $ Metis tokens on Artemis and get mobile tokens $ Artmetis.Interaction on the metis chain.

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1) Distribution mechanism

The native token of the Artemis protocol is $ ART, with a total supply of 100m. The initial allocation plan is as follows:

• Airdrop (10%, 10m):Early activity participants such as $ Metis pledged, liquidity providers, and ecological partners.

• State Treasury (52%, 52M):State Treasury funds are mainly used for initial liquidity provision, incentives for $ Artmetis; market cooperation proposals, and so on.

• Ngdao/consultant (18%, 18m):The team itself does not hold a share in DAO.

• IDO (20%, 20M):Sale in FAIR LAUNCH form.

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2) Value capture

Artemis allocates 10% tokens to early participants such as $ Metis pledges, so that the $ Metis pledge obtains multiple benefits, similar to the role of gold shovel, enjoy the incentives of other ecological projects, and further stimulate the pledge force.In addition, the share of another part is used to expand the use cases of $ Artmetis, which can expand the practicality and application scenarios of assets.

The income that the holder of $ ART can enjoy has not yet been disclosed.

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Artemis is expected to release a series of activities, including cooperation with the DEFI project, liquidity provider and income optimization platform to increase the use cases of liquidity and expand the use of $ Artmetis:

• Start the $ Artmetis/$ Metis pool on DEXES, and provide liquidity mining incentives;

• List $ Artmetis on PENDLE and enable income transactions;

• List $ ARTMETIS as a qualified mortgage for the loan protocol;

It aims to attract more people to participate in $ Metis pledge, and at the same time allows users to use $ Artmetis in the diverse Defi ecosystem and obtain benefits.Like Enki, Artemis provides a simplified participation to decentralize serializers and earns profit for $ Metis holders.

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We can foresee that Metis vigorously develops the positive cycle brought by the LSD protocol: the LSD protocol reduces the pledge threshold and allows ordinary users to enjoy multiple returns to encourage more users to participate in pledge;Share the traditional Layer 2 MEV income with the community, reduce the cost of user use, and maintain user income; forming unique network characteristics to attract more users to participate in the network.

As the consumption tokens used by $ Metis, the rise in network usage will bring more consumer demand, which will increase tokens; while LSD is the fastest investment income method for token holders.Multi-user participation; rich user traffic stimulates more derivative tracks such as LSDFI, RE-Staking, etc., so that the assets can benefit the income while enjoying liquidity, thereby activating the entire DEFI ecology gameplay.

Reference information

[1] https://medium.com/@enkiprotocol/understanding-enki-nki-Essential-faq-BEFORE-Testnet- Lunch-57AB3F2E6A22

[2] https://pro.nansen.ai/eth2-deposit- control

[3] https://medium.com/@GryphsisISISACADEMY/diving-nTO-LSD-the-GROWTH-Potential-ndrategic-opportunities-bcea5c10cdc6cdc6