Abstract
Based on the success of the Ecosystem Initiatives approved in eIP 60, the Euler Foundation seeks an extension of the program with 1,000,000 EUL and 300,000 USDC for an additional 6 months. This funding will continue to support strategic initiatives aimed at fostering growth of the Euler ecosystem and decentralization of the Euler DAO.
Motivation
With the relaunch of Euler v2 proving successful, there is a clear opportunity to build on the momentum gained over the past few months. Extending the initiative allows the Foundation to further support the growth and incentive mechanisms within the Euler ecosystem. This continued investment is critical for capitalizing on our current trajectory and ensuring the protocol’s robust, long-term development.
Outcomes of Ecosystem Initiative to Date
The rEUL campaign was launched as an ecosystem initiative and has proven to be successful, yielding tangible benefits for Euler Finance:
- Protocol Growth: The campaign has played a crucial role in surpassing $250 million in total deposits and a significant increase in fees.Independent observers have highlighted the effectiveness of the rEUL campaign, noting an impressive efficiency rate of $245 in TVL growth for every $1 spent on emissions.
- User Adoption: Increased engagement and participation have strengthened Euler’s community.
- Enhanced Visibility: The incentives have raised awareness, trust, and credibility for the protocol.
- Transparency: The growth results since the start of the campaign can be tracked here: https://dune.com/0xpibs/euler-finance
Other initiatives include those related to liquidity provision across Uniswap v3 and centralized exchanges.
Specification
The proposal seeks to re-fund the multisig wallet 0x967B10c27454CC5b1b1Eeb163034ACdE13Fe55e2 with the following allocations for an additional 6 months:
- 1,000,000 EUL
- 300,000 USDC
These funds will be deployed across initiatives such as:
- Continuation of rEUL Campaign: Allocate EUL tokens to extend the rEUL campaign.
- Liquidity Provisioning & user growth: Supporting both public liquidity initiatives and user attraction through incentives via Merkl and Royco and strategic partnerships with funds, DAOs, and institutional partners to enhance market depth.
- Distribution Partnerships: Collaborations with wallets (OKX Wallet, Binance Wallet, Coinbase Wallet), platforms (fintech and CEXes), and distributors (Turtle Club etc) to expand reach.
- Integrations: Encouraging integrations with DeFi protocols, wallets, and key infrastructure partners.
- Grants: Funding projects and developers contributing to the Euler ecosystem.
- Other Strategic Initiatives: Any additional efforts that enhance Euler’s growth and long-term sustainability.
Voting
Given Euler’s recent move to an optimistic governance framework, no formal on or off-chain voting is currently required for this proposal to pass. However, we encourage the Euler DAO and community members to provide feedback, share suggestions, and voice their opinions on this initiative. Community input will, as always, be crucial to ensuring that Euler remains relevant, competitive, and risk-managed.