Redeem
The Redeem page allows users to exchange eMetis for Metis on a 1:1 basis without any fees or slippage. Here’s how the process works:
How eMetis to Metis Redemption Works
The ENKI Protocol enables eMetis holders to redeem their tokens for Metis through the eMetis Redemption Queue Contract. Since eMetis is backed by Metis tokens locked in sequencer nodes, these nodes are ejected to fulfill 1:1 redemptions of eMetis for Metis, supported by partial withdrawals from the locking pool.
Users who choose to redeem their eMetis rather than swap it on secondary markets (such as AMMs like Netswap and Hercules) can send their eMetis to the redemption contract at any time. In return, they receive a redemption NFT, which secures their spot in the redemption queue and includes a timestamp indicating their redemption duration. Once the timestamp is reached, the NFT holder can swap their NFT for the exact amount of Metis as their redeemed eMetis, without fees or slippage. This system ensures that users are protected against frontrunning, MEV, and other arbitrage activities by guaranteeing their place in the queue.
Understanding the eMetis Redemption Queue
The eMetis redemption queue requires users to wait a specific amount of time before receiving Metis in exchange for their eMetis. The waiting time is calculated based on three factors:
The time it takes to withdraw Metis to Layer 1 (L1).
The time needed to exit the Locking Pool.
An additional buffer time added by the ENKI protocol.
Initially, the general redemption queue time is set to 20 days. However, users can reduce this waiting time to a minimum of 8 days by utilizing the speed-up mechanism.
This queue system combines the entry and exit times of Metis sequencer nodes because seMetis stakers don't bear the cost of waiting (unlike Metis L2 stakers who must wait through a challenge period when withdrawing Metis from L2 to L1). To prevent potential exploits, like entering during long queue times and redeeming during periods of extended exit times, redeemers must wait the full sum of both queues and a small additional buffer.
Locking ENKI Liquidity to Speed Up Redemption
To help users reduce their waiting time in the redemption queue, the ENKI protocol offers a mechanism that allows users to lock a specific amount of ENKI liquidity for 30 days. This lock can reduce the waiting time for redemption from the standard 20 days to as little as 8 days.
To avoid price manipulation, we use an off-chain oracle to determine the price of related tokens, ensuring fair and accurate calculations for all participants.
Supported LP Tokens (continuously updated):
ENKI/Metis on Netswap
ENKI/m.USDC on Hercules
How the Calculation Works
We use a base formula to determine the required ENKI liquidity to lock or the reduced waiting time:
Formula: Locked ENKI liquidity value * 30 days = Redeemed Metis value * Reduced waiting time * Discount
Initially, the discount is set at 50%. Here are some examples to illustrate:
Example 1
Alice wants to redeem $1,000 worth of Metis with a remaining queue time of 20 days.
She aims to reduce her waiting time by 12 days.
Calculation:
$1,000 * 12 * 0.5 / 30 = $200Alice needs to lock $200 worth of ENKI liquidity for 30 days to reduce her waiting time to 8 days. After 8 days, she can claim her Metis, and after 30 days, she can retrieve her locked ENKI liquidity.
Example 2
Alice has $100 worth of ENKI liquidity and wants to know how much time it will reduce from her 20-day queue.
Calculation:
$100 * 30 / $1,000 / 0.5 = 6 daysBy locking $100 worth of ENKI liquidity, Alice can reduce her waiting time by 6 days, bringing it down to 14 days. She can claim her Metis after 14 days and retrieve her ENKI liquidity after 30 days.
This formula offers flexibility, allowing users to calculate the speed of reducing waiting time or determine how much ENKI liquidity is needed to achieve their desired reduction. Users can also choose to lock ENKI liquidity later, adjusting based on the remaining queue time.
Important Notice: Users have only one opportunity to lock ENKI liquidity to reduce the waiting time. Additionally, we use an off-chain oracle to determine the price of related tokens to prevent price manipulation. As a result, all calculated outcomes are estimated, and actual results may vary depending on real-time liquidity conditions.
Cancellation and Fees
There are no fees as long as users follow the redemption process and wait the required time. However, users can cancel their redemption at any time, subject to a 0.5% cancellation fee. Upon cancellation, the user will immediately receive their eMetis back, minus the cancellation fee.
This guide is designed to help users understand the redemption process clearly and make informed decisions based on their specific needs and the tools available within the ENKI protocol.
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