PufETH-WETH Pool incentive on Elara (Zircuit)

Incentives
1

Protocol/Gauge Name:

  • Elara Lending Protocol - pufETH Lending Pool

Protocol Description:

  • Elara is the #1 lending protocol on Zircuit, designed to unlock maximum capital efficiency while ensuring robust security and optimized liquidity. By leveraging innovative dynamic liquidity balancing and a two-layer market structure, Elara empowers users to seamlessly borrow and supply assets, with a special focus on enhancing liquidity and capital efficiency for LRTs like pufETH.

Protocol Overview:

  • Elara is redefining the DeFi lending landscape by offering a secure, efficient, and decentralized platform that balances risk, liquidity, and returns for all participants. Our mission is to deliver an unparalleled user experience while ensuring top-tier performance and security. With Elara, users can easily supply and borrow digital assets, enabling them to unlock liquidity and generate value from assets like pufETH.

Target Audience:

  • DeFi Lenders: Unlock liquidity by supplying pufETH.
  • DeFi Borrowers: Leverage blue chip assets like $ETH securely while maximizing returns.
  • Yield Farmers: Earn attractive incentives by participating in supply and borrowing activities.

Key Features:

  • Dynamic Liquidity Balancing: Optimizes supply-demand equilibrium for maximum efficiency.
  • Security First: Designed with rigorous safeguards to minimize risk for participants.
  • Efficient Borrowing & Lending: Streamlined processes for seamless interactions with assets like pufETH.
  • Incentivized Yield Farming: Generous rewards for liquidity providers to drive engagement.
  • Cross-Pool Borrowing: Enables flexible and efficient borrowing strategies across pools.

Incentive Proposal:

  • We propose introducing incentives for users who supply pufETH to the Elara lending pool. With over $47M pufETH currently staked in the Zircuit ecosystem without generating alpha yield, this partnership offers a valuable opportunity to unlock liquidity and foster growth in the Puffer ecosystem.

  • These incentives will:
    - Encourage liquidity provision for pufETH.
    - Attract new participants and boost user adoption.
    - Strengthen the ecosystem by creating more opportunities for earning and interaction.

  • Incentives will be distributed through a supply-based mechanism once the pufETH pool is live, leveraging Elara’s existing infrastructure.

Distribution Method:

  • Once the pufETH pool is deployed on Elara, users can supply their pufETH to the lending pool. Puffer and Elara will collaborate to design an effective incentive structure, including token emissions and supply yield, ensuring optimal rewards for participants.

Pool Addresses:

  • Recipient Chain: Zircuit
  • Pool Address: To be deployed following the addition of initial liquidity to the pufETH pool.

Incentive Impact Statement:

  • Introducing token incentives for supplying pufETH on Elara will deliver tangible value to users and enhance overall liquidity in the Puffer ecosystem.
  • By offering attractive rewards, this initiative will:
    - Drive adoption from new and existing participants.
    - Boost engagement with the pufETH pool.
    - Strengthen community loyalty and long-term protocol sustainability.
  • This proposal aligns with Elara’s vision to create a robust DeFi ecosystem and supports Puffer’s efforts to maximize pufETH liquidity and utility.

Eligibility Verification:

  • Elara Lending Protocol: https://app.elara.finance/markets
  • Audits: Conducted by QuantStamp.

Logo URL, please provide us with the logo (ideally IPFS):

  • Logo: https://learn.elara.finance/extras/brand-kit

Any Other Resources e.g. direct URL to pool, docs, etc.

  • Doc: https://learn.elara.finance/

Contact Information:

  • Telegram: @Much0Gust0
  • Email: soychristina.elara@gmail.com
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Proposal: PufETH-WETH Pool incentive on Elara (Zircuit) was escalated to the internal review committee on 27th January.

Status: PENDING