Whitelist Echelon on VIP

Initia Governance VIP
1

0. Proposer Info

  • Email : team@echelon.market
  • Proposer’s Project Name : Echelon
  • Proposer’s Project URL : echelon.market
  • Proposer’s X (Twitter) Account : x.com/echelonmarket

1. TL;DR

This proposal requests the whitelisting of Echelon Chain to Initia’s VIP (Vested Interest Program).

2. Background

2-1 About the Project

  • Protocol Name : Echelon
  • Protocol Blurb: Composable, Efficient & Secure Move Money Market
  • Protocol Type : Lending
  • Docs : docs.echelon.market
  • Audits : docs.echelon.market/echelon/operations/audits

3. Rationale & Impact

  • Motivation and benefit to the Interwoven Economy :
    • Describe in detail how your rollup adds value to the Interwoven Economy and how being whitelisted to VIP will help you grow

Echelon is a Move centric, cross-chain lending market with over $300m in TVL on existing deployments – enabling access to capital-efficient borrows and a diverse array of yield strategies. As a Minitia, Echelon will utilize Initia VIP to help scale the native ecosystem, with VIP emissions incentivizing native products, including but not limited to INIT LSTs, governance tokens, yield bearing receipt tokens, and more.

  • VIP Scoring Criteria (Details)
    • Outline how you’re planning to allocate VIP scoring to users. This should include any and all details about
      • Any actions that will earn users scores on VIP
      • How the specific scores are calculated including any thresholds, calculations, and methodologies as appropriate.
        **Please write down specific formulas. Proposals that do not contain specific formulas will be removed.**Echelon will allocate VIP rewards directly to users in proportion to their activity in featured markets. Through Echelon’s internal farming accounting, we track user proportional share of a given action per second using the masterchef farming algorithm, ensuring all users are tracked exactly for their participation and contribution to Echelon’s Markets.Regarding incentivized actions, 50% of all VIP rewards will go to USDC suppliers, 25% to INIT suppliers, and 25% to USDC borrowers. Over the epoch, any user participating in any of the actions will be rewarded with points for every second they are engaged. Then, at the end of the epoch a user’s share of the total VIP emissions will simply be total VIP rewards for Echelon * (USDC supply share % (50%) * user share of USDC supply points + INIT supply share % (25%) * user share of INIT supply points + USDC borrow share % (25%) * user share of USDC borrow points)

4. Proposal Details

Field Value Description
Operator Address 0x68b8295438b3d50f81679db88260a596b8ab1f4be1caa94af87c6b853baf7b20 The address eligible to claim a portion of the VIP rewards allocated to the rollup team as commission. This address does not need to be a system key (like admin or bridge executor).
Bridge ID 16 An identifier automatically generated during the setup of the bridge between the Rollup and Initia.
Bridge Address init1y3avrs2r9q3ggj5xs2q5zg4mmpqvr2necwl6s6fhfergtyp93ueq5270ht The L1 address where tokens are locked when bridging from L1 to L2. This address is auto-generated during bridge setup.
Scoring Contract Address init1v6xugw9aw8ekt50f4cu6eyhnt4wvmcpa6cahdw The contract deployed on the rollup that assigns VIP scores to users. These scores are snapshotted on L1 and used to build a Merkle tree for VIP reward distribution.
Operator Commission Max Rate 0.2 The maximum commission rate the rollup can configure.
Operator Commission Max Change 0.2 The maximum allowed change in the commission rate per update. For example, if OCR is 0.3 and OCMC is 0.2, OCR can only be adjusted between 0.1 and 0.5.
Operator Commission Rate 0.2 The actual commission rate. If 100 INIT is distributed and OCR is 0.2, the rollup team receives 20 INIT.
VM MoveVM The VM type of the rollup is using.

Governance Votes

  • YES – You support whitelisting this rollup on VIP with the parameters provided.
  • NO – You do not support adding this rollup on VIP.
  • NO WITH VETO – You believe this proposal is harmful, spam, or violates governance principles.
  • ABSTAIN – You choose not to vote for or against but wish your vote to count toward quorum.
1 Like
2

Proposed Update to VIP Scoring

Motivation
This change aims to bootstrap adoption of milkINIT as a collateral asset by allocating a portion of VIP rewards to its suppliers. By doing so, we encourage users to utilize milkINIT in capital-efficient strategies (i.e. looping) to amplify yield, enhance protocol stickiness, and diversify collateral usage.

Current Criteria
Regarding incentivized actions, 50% of all VIP rewards will go to USDC suppliers, 25% to INIT suppliers, and 25% to USDC borrowers. Over the epoch, any user participating in any of the actions will be rewarded with points for every second they are engaged. Then, at the end of the epoch a user’s share of the total VIP emissions will simply be total VIP rewards for Echelon * (USDC supply share % (50%) * user share of USDC supply points + INIT supply share % (25%) * user share of INIT supply points + USDC borrow share % (25%) * user share of USDC borrow points)

Proposed Change
Regarding incentivized actions, 50% of all VIP rewards will go to USDC suppliers, 24% to INIT suppliers, 1% to milkINIT suppliers, and 25% to USDC borrowers. Over the epoch, any user participating in any of the actions will be rewarded with points for every second they are engaged. Then, at the end of the epoch a user’s share of the total VIP emissions will simply be total VIP rewards for Echelon * (USDC supply share % (50%) * user share of USDC supply points + INIT supply share % (24%) * user share of INIT supply points + milkINIT supply share % (1%) * user share of milkINIT supply points + USDC borrow share % (25%) * user share of USDC borrow points)

Target Implementation
Beginning of Stage 4

2 Likes
3

Echelon’s VIP Update has been reviewed and approved by The VIP Committee.

1 Like