Deebs DeFi
Deebs DeFi 7 minutes reading from Terra

Can Eris Project Be The LSD Liquidity Hub?

Can Eris become the LSD Liquidity Hub not just for @terra_money but all of Cosmos?

Eris Protocol's recent proposal is both ambitious and full of alpha

Read on as I break down the key details of Eris' future plans👇🏻 Kujira Osmosis Juno Luna

2. Eris has requested 850k USD of LUNA over 6-12 months to create the “Stable LSD Economy” pictured below and to energize DeFi on Terra

•As we can see, there are many components to this Stable LSD Economy

•Nevertheless, many of these components Eris has already built

3. What Eris has Built:

•Amplifier(amp): Auto compounding LSD that also receives 50% of the fees from Eris’ other products 👇🏻

•Amp Compounder: Autocompound LP token rewards

•Manual Arb: Find Easy Arbitrage Opportunities

•Extractor: Donate your LSD yield

4. Over the past 6 months of building these products, Eris has achieved a lot with a little

•Eris captured over 950k USD TVL with 16,612 LUNA from the emergency fund (30x increase)

•Stader achieved 964k LUNA TVL from 528k LUNA (2x)

•However, Eris still has more plans

5. What Eris is going to build

•Arb Repeater

•Amp Oracle

•Amp Governance

•Expansion of their existing products: 👉🏻ampLUNA Integration on Lending Markets & new Chains 👉🏻Extractor New Use Cases

Let’s explore each of these plans below

6. Arb Repeater

•An AUTOMATED slow burn Arbitrage Protocol

•Users deposit LUNA and the protocol manages when to:

👉🏻Execute Arbitrages 👉🏻Place bids to purchase discounted ampLUNA from liquidated borrow positions on borrow/lending platforms

7. Amp Oracle

•Allows other DeFi apps to easily integrate and use LSD’s from other chains

•Example: Using stATOM as collateral to borrow LUNA on Terra

•Protocols will be able to natively query the exchange rate synchronously for LSDs coming to Terra from other chains

8. Amp Governance

•Eris is redefining LSD governance where validators compete and USERS can vote

•How does this work? Every month, Eris will use 2 Gauges to distribute funds to the top validators

1)vAMP Gauge

2)Eris Merit Points (EMP) Gauge

•I explain both gauges below

9. vAMP Gauge

•This gauge measures the votes from LSD Users

•To vote, user must lock up their auto compounding LSD LP positions

👉🏻Longer Lockup Time=More Voting Power

•Users can vote for up to 3 validators

•Result: Deeper/more predictable liquidity from LP lockup times

10. EMP Gauge

•This gauge measures contributions from validators

1)Validator Monthly Missions: Education, resources, etc

2)Community Reps: 5 Community members nominate 3 EMPs/ month

3)EMP Catalog/ICF: Follow ICF delegation rules & provide services like Relaying for points

11. Eris also plans to expand the utility of their existing products, notably, their LSD ampLUNA

• ampLUNA as collateral @neptune_finance • Loss-less NFT minting with @alch_labs • Partner with @SpecProtocol in Astro Wars • Push for ampLUNA as collateral for USK on Kujira

12. How close are these integrations?

•Based off @neptune_finance support for Eris on Twitter, this partnership is likely already underway

•ampLUNA is already listed on FIN @TeamKujira

•Eris has a strong relationship @alch_labs as they are also founders of @lns_money

13. Eris also has big plans to expand its Extractor

•Just a quick look at their proposal reveals mentions of @anchor_protocol v2, self repaying loans like @kinetic_money Stablecoins

14. How will Eris use the 850k USD?

•350k: Bootstrapping Liquidity and team compensation as Eris launches on new chains (Terra, Osmo, Juno, Kujira )

•100k: Audits

•50k: Marketing

15. How will Eris use the 850k USD? Continued

•10k: Total Cost for Relaying infrastructure for 6 months

•42-60k: Total Cost for Node Infrastructure for 6 months

•312k: Total Salary Cost for Business Ops Team for 6 months

16. Considerations

•50% of the 850k will be distributed at the start &

the remaining 50% at each milestone in the proposal

•The Eris team has personally invested approximately 300k USD in the project so far

•The funding is still subject to input/changes from community

17. Check out the full details of the proposal below and participate in the discussion!


Relaying infrastructure: 7,000 - 10,000 USD is the total cost for 6 months

Node infrastructure: 1,000 - 2,000 USD is the total cost for 6 months

This post is based on this twitter thread.


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