Protocol Update: From Reserve Currency to Decentralized Treasury
At Epsilon, it is important that we stay focused on being the most effective and decentralized crypto/web3 firm possible. As the forefront of on-chain technology progresses, it is critical that we constantly reevaluate and update our assumptions to make changes for the betterment of the community
Recently it has become clear that reserve currencies face a number of issues in long-term sustainability that make them unfit for the vision of Epsilon. We aim to be a place in which brilliant technology, investments, and research occur. Fundamentally, the reserve currency model relies on attracting users with high yields while encouraging them to hold through unproven appeals to game theory. We’ve come to realize that this model does not align with the future goals of Epsilon.
For the reasons outlined above, Epsilon will be moving away from the reserve currency model to a new model we call a ‘Decentralized Treasury’.
What does this mean for Epsilon?
Epsilon will continue to feature many of the same features, however, they will be parameterized to ensure the protocol is able to achieve its goals.
Bonds
Epsilon will continue to feature a bonding mechanism by which protocol-owned liquidity can be accumulated by the treasury. As seen through Olympus Pro, protocol-owned liquidity via bonds can be leveraged by any protocol and is not tied is not inherent only to reserve currencies.
Staking
Epsilon’s staking design will see drastic changes as it transitions away from being a reserve currency to a decentralized treasury. Rather than rely on unsustainable APYs to attract users to the protocol, Epsilon is able to generate profits through creating legitimate value in the DeFi ecosystem. It does this by investing in promising projects, publishing helpful research, and developing in-house protocols.
The most significant change to staking is that it will be capped at 5% APY. This rewards users for holding EP while minimizing the quantity of treasury profits that go towards stakers, so that they may instead be allocated towards technology and investments.
In a later change, we plan to add a lockup to staking, so that only users who are willing to lock up their EP for a certain period of time may receive staking rewards. In doing so, those users will also receive additional governance power through our REP system.
Next Steps — Devnet Now Live!
We are pleased to announce that Epsilon has launched on Devnet!
Thank you for testing out Epsilon protocol and helping to secure the network!
Link here — https://project-epsilon.vercel.app/
On the home page you will see a panel to mint any tokens you want to participate
Devnet presale begins — 1/29, 3:00pm EST
Devnet presale ends — 1/30, 3:00am EST
Bond sales begin — As soon as presale ends
Please go around all of the pages and components of the app and give detailed feedback if possible
Feedback form
1. What do you rate the usability of the app? Anything slow or glitchy?
2. What do you rate the UI/UX of the app? Anything that can be displayed or explained better?
3. What do you rate the functionality of the app? Any protocol features that you would change?
4. What is your overall impression? Anything that you particularly like or dislike? What can be improved?
5. Please try the app on mobile as well. Is there anything you notice that is wrong with the mobile version?
6. Any other feedback? :)
Send your feedback in the #devnet-feedback channel of our Discord! https://discord.com/invite/QhcvGn2PW7
Once again, thank you so much for testing!
