Equinox has always been designed to adapt and evolve. As we continue to strengthen its mechanics to the evolving market, we propose key changes to improve sustainability and maintain peg stability.
Our new redemption model proposal aims to enhance Equinox, regain confidence, and also ensure long-term growth. This proposal isn’t final, we would appreciate your feedback. Here’s what we’re thinking so far:
The Proposed Redemption Model
We’re working on implementing a redemption mechanism that will allow users to redeem $eclipASTRO for $ASTRO. The system would have three key components:
- eclipASTRO Redemption Fee (5%)
- Users redeeming eclipASTRO for ASTRO would pay a small 5% fee. This functions as a form of tax, considering that eclipASTRO was initially designed to be permanently locked.
- While we're now allowing redemption, the fee serves as a deterrent and a way to balance the system since a significant amount of rewards were distributed under the assumption of permanent lockup. - Two-Week Unbonding Period
Once a user initiates a redemption, there will be a mandatory two-week unbonding period before they receive their ASTRO. This aligns with @astroport_fi's existing vxASTRO model, which also has a two-week unlock period. - Reduction in ECLIP Emissions
As part of the adjustments, we’re also planning to gradually reduce ongoing ECLIP emissions to balance incentives, since this new model eliminates the concept of permanent locking. Therefore, the emissions will be adjusted to reflect the shift in mechanics while still ensuring that incentives remain attractive to participants.
Naturally, this change would impact the amount of ASTRO in Equinox as people unbound, but it would also mean the peg is more stable.
Why This Change?
The current model has proven effective in certain conditions but needs refinement to adapt to evolving market dynamics. By introducing a redemption mechanism, we aim to provide users with greater flexibility while ensuring Equinox remains a powerful tool for directing liquidity in Astroport.
But We Also Want Your Feedback
We’re open to hearing from our community. We value your ideas, feedback, and suggestions to help fine-tune this model and make Equinox even better. Are there additional considerations we should factor in? Do you see any potential risks or improvements to this framework?
We have now opened a forum on Discord For anyone who wants to share their thoughts.
Over the next few weeks, our team will be working on building out this model. While we don’t have an exact release date yet, we are aiming for April, we’ll keep you updated on the progress. In the meantime, let us know what you think.