Detailed explanation of ENKI, the first LSD platform on Metis

As the second quarter of community testing of Metis Sequencer begins, the market has returned its attention to the Metis ecosystem. In the official community guide, Enki is ranked first to be introduced in Season 2, and its importance is self-evident. So in this article, let’s take a closer look at this first LSD platform on Metis.

ENKI, the first liquidity staking protocol on Metis

ENKI is the first and largest liquidity staking protocol on Metis, aimed at simplifying and popularizing participation in the Metis Sequencer node ecosystem, allowing ordinary investors to earn rewards by staking Metis Sequencer nodes. At the same time, it provides a safe, simplified, and DeFi-centered platform for passive income on Metis.

ENKI solves the complexity and limitations of traditional Metis Sequencer node staking, providing opportunities for ordinary users to participate, regardless of how much Metis they hold, they can participate in Metis Sequencer node staking, which contributes to the growth and composability of the Metis ecosystem.

For example, the following situations may arise when staking on Ethereum to execute the Metis Sequencer node:

• Ordinary users cannot participate;
• At least 2,000 METIS tokens are required;
• Liquidity is locked;
• Requires node server setup and management.

But ENKI makes mass adoption possible:

• There is no threshold, all users can participate;
• No METIS amount limitation;
• Liquidity can be freely used for trading, lending, and other activities;
• There is no need to set up or manage node servers.

For users interested in staking on the sequencer node and the introduction of new users in the Metis ecosystem, the existence of ENKI has significant implications.

ENKI’s 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 and is loosely linked to Metis. It leverages Metis Sequencer node staking and enhances the composability of the Metis ecosystem. seMetis is a version of eMetis that can accumulate staking returns. Most of the profits generated by Metis sequencer nodes are distributed to seMetis holders.

By staking eMetis for seMetis, users can earn staking benefits, with rewards redeemable when converting seMetis back to eMetis. Its working principle is shown in the figure below:

Specific to the staking step, users first need to convert Metis to eMetis. After coming to the Mint interface, enter the quantity 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 preservation of value.

After acquiring eMetis, users can stake these to seMetis. This staking process allows users to accumulate earnings, with profits from Metis sequencer nodes distributed primarily to seMetis holders.

Tokenomics

$ENKI is the protocol’s native governance token, which gives holders decision-making power, allowing holders to participate in voting on fee structures, protocol upgrades, and overall ecosystem development. In eMetis’ staking flywheel, $ENKI also plays a role in enhancing staking rewards. The project team promises that ENKI is an indispensable part of all aspects of the ecosystem, and more empowerment will be given to $ENKI in the future, instead of just being a governance token, striving to keep user incentives consistent with the long-term success of ENKI.

The anticipated maximum supply of ENKI tokens is 10 million. It should be noted that any increase beyond the maximum supply will be subject to a 28-day time lock constraint. Before any change to the maximum supply, ENKI will initiate a community governance vote to ensure transparency and fairness.

According to project documentation, ENKI’s initial distribution plan is as follows:

• 10% or 1 million ENKI will be used for the Fantasy phase of its creation plan, including marketing, partners and early community supporters.
• 90% or 9 million ENKI will be released in various forms over time, and more details will be announced on Litepaper soon.

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 conducted in a fair launch manner.

Roadmap

According to the roadmap displayed 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, including many major events, such as the release of the native token $ENKI. Let’s take a look at what major upgrades ENKI will welcome in February:

ENKI Genesis Project——Fantasy

On February 8 this year, ENKI officially launched its Genesis Plan Fantasy. This is a cornerstone program that covers the events investors want to know about most, including ENKI tokenomics, airdrops, and NFTs.

In the testnet testing, Vest is an unavoidable feature for users, and it requires the use of ENKI as the staking 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 the “Fantasy” Genesis plan 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 batch of 10% of ENKI tokens (1 million) as incentives. This move is also to ensure that the market circulation of ENKI is controlled within this 10% before the remaining 90% token release plan is determined.

Phase 1 - Early Market Activities and Testnet (Already Started)

• Community Engagement and Trivia Mission: 25,000 ENKI allocated (0.25% of the total).
• Participate in testnet activities: 25,000 ENKI allocated (0.25% of the total).
• Testnet Bug Bounty and Marketing Cooperation: Allocate 100,000 ENKI (1% of the total).
• Ecological partner airdrop: 100,000 ENKI (1% of the total) is allocated to reward loyal users of the ecological partner community in Metis (such as 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 subsequent airdrops.

Phase 2 - After deployment to the Metis mainnet (not yet started)

• Metis staking airdrop: Allocate 200,000 ENKI (accounting for 2% of the total amount), and airdrop according to the staking ratio for users who stake Metis in the ENKI protocol.
• Invite staking activities: Allocate 400,000 ENKI (4% of the total). Users holding eMetis or seMetis are eligible to participate in this event, and they will be able to mint a special inviter NFT and receive a unique invite 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 rule is as follows: Points = 100 Total number of invitees + 200 Total staked amount of the invitees. After the event, the airdrop tokens will be distributed according to the proportion of airdrop points. The inviter’s NFT will also be used as a voucher to receive the airdrop.
• ENKI Liquidity Incentive: Allocate 150,000 ENKI (1.5% of the total), specific details to be announced.

In general, Enki not only provides ordinary users with the opportunity to participate in Metis Sequencer node staking, reducing the high threshold problem faced by $METIS node staking, but also injects new vitality into the composability and growth of the Metis ecosystem, improving the staking ratio of METIS and benefiting the price performance of METIS itself. With the continuous development and improvement of ENKI, and the continuous completion of each step promised by the roadmap, we look forward to Enki playing an important role in the Metis ecosystem. Let’s wait and see.

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