eIP 24: Update the EUL distribution scheme

[eIP] Euler Improvement Proposals Voted Proposals
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1

Introduction

This proposal follows the RFC here and suggests a range of modifications to the current EUL distribution system.

Summary

The following specific changes are proposed:

  • distribution of 5,000 EUL per epoch via staking to lenders on each of USDC, USDT, WETH markets (15,000 EUL per epoch for 6 epochs - a 3 month trial)
  • distribution of 8,000 EUL per epoch via gauges to borrowers on each of USDC, USDT, WETH and wstETH markets (32,000 EUL per epoch in total)
  • distribution of 8,000 EUL per epoch shared proportionally among all 40 assets with a Chainlink oracle (either now or in the future) + WETH (the reference asset) depending on gauge votes (8,000 EUL per epoch in total)
  • keep quadratic voting in the gauges (little demand for changing this was expressed in the RFC feedback)

This proposal aims to simultaneously widen the EUL distribution and limit the amount of EUL distributed each month.

If passed, the proposed changes will go through on epoch 18.

Voting

Options are:

  • YES - change the EUL distribution as above.
  • NO - keep the EUL distribution as is.

Snapshot

Link to voting here:

https://snapshot.org/#/eulerdao.eth/proposal/0x7e65ffa930507d9116ebc83663000ade6ff93fc452f437a3e95d755ccc324f93

2

I’m in favor of this proposal. Not because I necessarily think this strategy is the correct one, though. I am generally a fan of thinking more critically about incentives, trying new things, measuring the results, and iterating. I think this is a good first step.

Should this pass (we’ll see, strong “no” support at the moment), what I’d like to see afterward is a team apply for a grant to analyze the new distribution strategy and propose the next iteration for the following epoch.

3

in favor.

Current distri is being gamed by certain whales and doesn’t create any value for euler.