The document below presents a proposal for the strategic transition of the existing ETHA Lend protocol token, ETHA, to the newly developed Parifi Protocol (PRF), which is set to launch soon. We have been working in a stealth mode for the past few years to build Parifi, a decentralized on-chain perpetual protocol boasting novel features.
This transition seeks to recognize the intrinsic value of both tokens and respect our earliest supporters’ initial contributions and commitments while offering additional benefits to our community and stakeholders. We aim to incorporate a fair, transparent, and practical solution for the transition process by considering the price of the ETHA token and the seed round price of the Parifi token into the transition plan.
Background
ETHA Lend emerged as a protocol-agnostic yield optimizer within the DeFi ecosystem, initially deploying on Ethereum. The platform was designed to abstract the complexities of DeFi, offering algorithmically optimal yields to liquidity providers through a blend of automation and hybrid strategies, all enforced by smart contracts. Powered by the Polygon network, ETHA Lend facilitated efficient interaction across multiple DeFi platforms to expose liquidity providers to optimal yields, aligning with the broader aspirations of enhancing the DeFi ecosystem through more sustainable models and primitives.
Established in 2017, what began as a mission to lower entry barriers for both institutional and retail users in the DeFi space gradually evolved into ETHA Labs, a community-centric development hub for DeFi projects. With its refined focus, the project now concentrates its efforts on DeFi innovation, developing essential infrastructure, incubating the next generation of Web3 projects, and propelling the mass adoption of DeFi technologies.
The yield optimization and aggregation space, which primarily encompasses DeFi protocols and yield farming strategies, is indeed facing challenges due to the current market conditions and historically low yields.
During the DeFi boom, many projects relied on diluting protocol tokens and other unsustainable yield farming incentive models to attract liquidity and users. However, excessive token inflations have negatively impacted the long-term viability of the projects, and many protocols have ended or cut down significantly on token yields, further hurting the yield aggregation space.
The yields that are provided by some projects are either too low or provided for a very short period of time, making it difficult to catch up with the research and development time to build these yield aggregation strategies at ETHA Lend. Most yield aggregation platforms also lack clear intrinsic values beyond yield farming and token rewards because of the above reasons.
Hence, our team started exploring more sustainable models and DeFi primitives that also contribute to the overall progress of the broader DeFi ecosystem. We have been working relentlessly to create Parifi, as we believe that our efforts are better spent building a more sustainable protocol unaffected by the ever-changing market cycles in crypto and the broader financial markets. This will ensure that we progress towards a better and more sustainable future for us, as well as for our community and stakeholders.
Introducing Parifi
The name Parifi derives from the terms “parity” and “finance” serving as our inspiration to establish fairer markets for traders and liquidity providers. Our fundamental concept and architecture are designed to embody a sense of balance and fairness between these two crucial market participants. Our goal is to foster an environment where both traders and liquidity providers enjoy equal opportunities and benefits.
While perpetual future contracts have gained popularity in the DeFi ecosystem, they are still struggling with particular inefficiencies and issues. The main problems include unpredictable price deviations from the underlying asset, high funding rate and volatility, capital inefficiencies, high reliability on external oracles, and high slippage to name a few.
Addressing these inefficiencies and issues requires ongoing R&D and improvements in contract design and mechanisms. This includes enhancing funding rate mechanisms, improving price oracle reliability, and implementing risk management measures to ensure perpetual contracts’ long-term viability and robustness.
With Parifi, we aim to tackle these inefficiencies head-on, promoting transparency and fairness and ensuring equal opportunities for all market participants. By addressing the concerns surrounding perpetual future contracts, we strive to bring parity to the DeFi ecosystem and a boosted interest in on-chain derivatives.
You can read more about Parifi here: Introducing Parifi — the next-gen Protocol for on-chain Derivatives
Token migration specification
The DeFi ecosystem has evolved significantly, from simple yield farming and tokenomics to much more sophisticated solutions. This proposal aims to sunset the ETHA Lend yield aggregation protocol fairly and transparently so we can focus our efforts on Parifi and build a more sustainable and long-term project independent of the crypto-market cycles.
By introducing Account Abstraction (AA) and some novel, well-thought-out features addressing the inefficiencies of existing systems, Parifi aims to position itself as an important Web3 perps protocol, with the PRF token in the center powering this ecosystem. The PRF token will play a pivotal role in building a truly decentralized perpetual protocol, with token holders deciding the critical parameters of the protocol.
The following process will ensure that we are able to transition ETHA tokens to PRF tokens fairly:
- ETHA tokens will be exchanged for PRF tokens at a predetermined rate. The predetermined conversion rate will be announced before the token migration process begins.
- A smart contract will be deployed to enable the migration of ETHA tokens to PRF tokens. The conversion ratio will be fixed, and the source code of this smart contract will be made public. A front-end UI will also be available for the token migration.
- The token conversion process will be available for a minimum period of 3 years from the date of announcement. All dates will be announced well in advance, giving token holders ample time to plan and migrate their tokens.
PRF token allocation
The allocation of PRF tokens for the ETHA token migration will be determined based on the historical price of ETHA tokens and PRF tokens from the initial community sale. This is because ETHA has a total supply of 30M tokens, while PRF will have a total supply of 1B tokens. A conversion rate based on price ensures that token holders receive fair value for their tokens.
PRF Token Utility
The Parifi Token (PRF) will be integral to the Parifi protocol. It will be the focal point for coordination and incentivization within the Parifi ecosystem. The utility is multifold and comprises the following:
· Protocol Governance (New markets, collateral, fee distribution)
· Risk management (Modifying risk parameters)
· Proposals
· Tokenomics
· Incentives and rewards
· Community building
The PRF token is the protocol’s governance token, facilitating decentralized decision-making throughout the protocol ecosystem. That includes decisions regarding introducing new features, determining the protocol’s direction, incorporating additional functionality, implementing protocol upgrades, and modifying risk parameters.
This governance model ensures the protocol’s flexibility and the ability to dynamically respond to the changing demands and needs of the market.
Rationale
We anticipate the community will have questions regarding the token transition process. Hence, we’ve tried to answer some of the questions we could anticipate proactively. Still, we encourage our community and stakeholders to ask any further questions in our discord server here.
Why a token migration period of 3 years?
A token migration period of 3 years should provide every ETHA token holder ample time to participate in the migration process. Any staked veETHA tokens will also be unlocked and are eligible for migration. All pertinent details about the migration process, including the start and end dates for migration, will be communicated through the appropriate Parifi channels.
What happens to the migrated ETHA tokens?
All migrated ETHA tokens are locked/burned by the migration contract in exchange for PRF tokens.
What happens to the ETHA token not being migrated?
As we transition to the launch of Parifi, the ETHA Lend protocol will be fully sunsetted. The ETHA Lend project will no longer receive updates or maintenance from our team. Our entire focus will shift to the growth and development of Parifi, and we strongly encourage the community to migrate their ETHA tokens.
While unmigrated ETHA tokens will remain in the market, liquidity for swapping these tokens will be limited. However, for a 3-year period, ETHA tokens can be migrated to PRF tokens and subsequently exchanged in markets with available Parifi liquidity. ETHA tokens not migrated within this timeframe will be ineligible for PRF migration in the future.
Given circumstances such as holders losing access, we foresee that it’s unlikely the entire ETHA token supply will transition to PRF. Consequently, a minimal amount of ETHA tokens might continue to exist as ETHA.
Why not conduct an airdrop of the PRF token to ETHA holders?
There are several reasons we suggest not structuring this as an airdrop:
- Distribution Challenges: Not all token holders store their ETHA tokens in EOA (Externally Owned Accounts) or Smart contract wallets. Presently, numerous ETHA tokens are locked in smart contracts for liquidity provision to DEXs (Decentralized Exchanges). Others are held in Token Vesting contracts or deposited in centralized exchanges. Given this distribution, executing a fair airdrop that benefits genuine token owners is challenging.
- Coexistence Concerns: The ETHA token is not intended to coexist with the Parifi PRF token. This is because the ETHA Lend project will no longer be sustained by our team, rendering existing ETHA tokens without any utility or value.
- Token Movement Risks: ETHA tokens are frequently traded and change ownership. If tokens are traded after a snapshot for the airdrop is taken, there’s a risk that individuals who purchase the tokens post-snapshot won’t be eligible to receive PRF tokens. Conversely, those who sold their tokens after the snapshot might still receive PRF tokens, which could be perceived as unfair.
Overall, we have designed this transition from ETHA to PRF to ensure fairness, transparency, and the continued growth of the DeFi ecosystem. We encourage our community to engage with us and welcome any questions you may have.
We also have strong confidence that this new avenue will be extremely beneficial. We look forward to seeing our users experience Parifi and sharing their impressions with the community and anyone interested in perpetuals. Your feedback and engagement are invaluable as we continue to shape the future of DeFi.
Thank you for being a part of our journey!
ETHA代币迁移到Parifi PRF代币的过程
以下文档提出了一个战略转型的提案，即现有的ETHA Lend协议代币ETHA将转变为即将推出的新开发的Parifi协议（PRF）代币。我们在过去几年一直在秘密模式下工作，以构建Parifi，这是一个具有新颖特点的去中心化链上永续协议。
此转型旨在认识到两种代币的固有价值，并尊重我们最早期支持者的初始贡献和承诺，同时为我们的社区和利益相关者提供额外的利益。我们的目标是通过考虑ETHA代币的价格和Parifi代币的种子轮价格，为过渡过程提供公平、透明和实用的解决方案。
背景
ETHA Lend作为DeFi生态系统中协议不可知的收益优化器而崭露头角，最初在以太坊上部署。该平台旨在抽象化DeFi的复杂性，通过自动化和混合策略的融合，通过智能合约为流动性提供商提供算法最优的收益。借助Polygon网络的支持，ETHA Lend促使在多个DeFi平台之间的高效互动，使流动性提供商能够获得最优的收益，符合通过更可持续的模型和原语增强DeFi生态系统的更广泛的愿望。
自2017年成立以来，最初的使命是降低DeFi空间中机构和零售用户的准入门槛，逐渐发展成为ETHA Labs，这是一个以社区为中心的DeFi项目开发中心。随着其短暂的关注点，该项目现在专注于DeFi创新，开发基础设施，孵化下一代Web3项目，并推动DeFi技术的大规模采用。
收益优化和聚合领域，主要包括DeFi协议和收益农业策略，确实面临着当前市场条件和历史上低收益的挑战。
在DeFi繁荣时期，许多项目依赖于稀释协议代币和其他不可持续的收益农业激励模型来吸引流动性和用户。然而，过度的代币通胀对项目的长期生存造成了负面影响，许多协议已经结束或大幅削减代币收益，进一步伤害了收益聚合领域。
一些项目提供的收益要么太低，要么只提供很短的时间，这使得很难赶上在ETHA Lend构建这些收益聚合策略的研发时间。大多数收益聚合平台也缺乏明确的固有价值，除了收益农业和代币奖励，原因如上所述。
因此，我们的团队开始探索更可持续的模型和DeFi原语，这也有助于推动更广泛的DeFi生态系统的整体进步。我们一直在努力不懈地创建Parifi，因为我们相信，我们的努力更好地花在构建一个不受加密货币和更广泛的金融市场不断变化的市场周期影响的更可持续的协议上。这将确保我们朝着为我们自己以及我们的社区和利益相关者创造一个更好、更可持续的未来的方向前进。
介绍Parifi
Parifi这个名字来源于“parity”和”finance”两个词，作为我们建立更公平市场的灵感，为交易者和流动性提供商服务。我们的基本概念和架构旨在体现这两个关键市场参与者之间的平衡和公平感。我们的目标是培养一个环境，让交易者和流动性提供商享受相同的机会和利益。
尽管永续期货合约在DeFi生态系统中已经受到欢迎，但它们仍然面临着特定的效率和问题。主要问题包括从基础资产的不可预测的价格偏差、高资金利率和波动性、资本效率低下、高度依赖外部预言机和高滑点等。
解决这些效率和问题需要进行持续的研发和合约设计和机制的改进。这包括改善资金利率机制、提高价格预言机的可靠性和实施风险管理措施，以确保永续合约的长期生存和健壮性。
通过Parifi，我们的目标是直接解决这些效率问题，促进透明和公平，确保所有市场参与者享有平等的机会。通过解决永续期货合约周围的问题，我们努力为DeFi生态系统带来平衡，并提高对链上衍生品的兴趣。
您可以在这里阅读更多关于Parifi的信息：介绍Parifi — 链上衍生品的下一代协议
代币迁移规范
DeFi生态系统已经显著发展，从简单的收益农业和代币经济学发展到更为复杂的解决方案。此提案旨在公平和透明地结束ETHA Lend收益聚合协议，以便我们可以集中精力在Parifi上，构建一个独立于加密市场周期的更可持续和长期的项目。
通过引入帐户抽象（AA）和一些解决现有系统效率问题的创新、周到的特点，Parifi的目标是将自己定位为一个重要的web3 perps协议，PRF代币位于中心，为这个生态系统提供动力。PRF代币将在构建一个真正的去中心化永续协议中发挥关键作用，代币持有者将决定协议的关键参数。
以下流程将确保我们公平地转换 ETHA 代币为 PRF 代币： ETHA 代币将按预定汇率兑换为 PRF 代币，该汇率将在代币迁移过程开始前公布。 将部署一份智能合约，以便于 ETHA 代币向 PRF 代币的迁移。转换比率将被固定，此智能合约的源代码将公开。同时，也将提供一个用于代币迁移的前端用户界面。 代币转换过程将从公告之日起至少提供 3 年时间。所有相关日期将提前公布，以便代币持有者有充足的时间进行规划和迁移。
PRF代币分配
根据ETHA代币和PRF代币的初始社区销售的历史价格确定PRF代币的分配，因为ETHA的总供应量为30M代币，而PRF的总供应量为1B代币。基于价格的转换率确保代币持有者获得他们代币的公平价值。
PRF代币实用性
Parifi代币（PRF）将对Parifi协议至关重要。它将成为Parifi生态系统内协调和激励的焦点。实用性是多方面的，包括以下内容：
协议治理（新市场、抵押、费用分配）
风险管理（修改风险参数）
提案
代币经济学
激励和奖励
社区建设
PRF代币作为协议的治理代币，促进了协议生态系统内的去中心化决策。这包括决定引入新功能、确定协议的方向、增加额外功能、实施协议升级和修改风险参数等决策。
这种治理模型确保了协议的灵活性和应对市场变化需求和需求的能力。
理由
我们预计社区会对代币转换过程提出问题。因此，我们试图主动回答一些我们可以预见的问题。然而，我们鼓励我们的社区和利益相关者在我们的discord服务器里提出任何进一步的问题。
为什么代币迁移期为3年？
代币迁移期为3年应该为每个ETHA代币持有者提供足够的时间参与迁移过程。任何质押的veETHA代币也将被解锁，有资格进行迁移。所有有关迁移过程的重要细节，包括迁移的开始和结束日期，将通过适当的Parifi渠道传达。
ETHA代币迁移后会发生什么？
所有迁移的ETHA代币都将被迁移合约锁定/销毁，以换取PRF代币。
没有迁移的ETHA代币会怎样？
随着我们过渡到Parifi的发布，ETHA Lend协议将完全结束。ETHA Lend项目将不再从我们的团队中获得更新或维护。我们的全部注意力将转向Parifi的增长和发展，我们强烈建议社区迁移他们的ETHA代币。
虽然未迁移的ETHA代币将继续留在市场中，但交换这些代币的流动性将受限。然而，在3年的时间里，ETHA代币可以迁移到PRF代币，并在有可用Parifi流动性的市场中交换。在此时间段内未迁移的ETHA代币将在未来无法迁移到PRF。
考虑到诸如持有者丧失访问权等情况，我们预见到不太可能所有ETHA代币供应都将转换为PRF。因此，可能会有少量的ETHA代币继续作为ETHA存在。
为什么不对ETHA持有者进行PRF代币空投？
我们有几个原因建议不以空投的形式结构化此事：
分配挑战：并非所有的代币持有者都将他们的ETHA代币存储在EOA（外部所有账户）或智能合约钱包中。目前，大量的ETHA代币被锁定在为DEXs（去中心化交易所）提供流动性的智能合约中。其他的则保存在代币授权合约中或存入中心化交易
代币流动风险：ETHA 代币频繁交易并改变所有权。如果在拍摄空投快照后进行代币交易，则在快照后购买代币的个人可能没有资格接收 PRF 代币。相反，那些在快照后出售代币的人可能仍然会收到 PRF 代币，这可能被认为是不公平的。
总的来说，我们设计从 ETHA 到 PRF 的过渡是为了确保公平、透明和 DeFi 生态系统的持续增长。我们鼓励社区与我们互动，并欢迎您提出任何问题。
我们也坚信这条新途径将非常有益。我们期待看到我们的用户体验 Parifi 并与社区和任何对永续感兴趣的人分享他们的印象。在我们继续塑造 DeFi 的未来的过程中，您的反馈和参与非常宝贵。
感谢您成为我们旅程的一部分！
