# Introduction

Welcome to ENKI protocol!

This documentation is intended to introduce the general user to the project.

## What is ENKI?

ENKI Protocol is the leading liquid staking solution built on top of [Metis decentralized sequencer](https://www.metis.io/decentralized-sequencer), providing a simplified approach to get rewards from sequencer node. By staking with ENKI your Metis tokens remain liquid and can be used across a range of DeFi applications on Metis, maximize your returns. 

## Liquid staking: Bridging Accessibility and Efficiency

The [Metis decentralized sequencer](https://www.metis.io/decentralized-sequencer) introduces a groundbreaking Layer2 solution, demanding stringent node operation requirements for security and stability. These barriers — such as whitelist accessibility, a substantial Metis token requirement (Minimum 20,000 for node operation), and the complexities of node management — restrict average users from partaking in its benefits.

ENKI Protocol emerges as a solution to these challenges and got passed on the [CEG](https://ceg.vote/t/cvp-proposal-enki-a-lsd-protocol-revolutionizing-defi-on-metis/866) and [LSD Infrastructure](https://ceg.vote/t/lsd-proposal-enki/1685), fostering a liquid staking environment where users can earn staking rewards while participating in trading opportunities. This democratizes access to sequencer node benefits by:

1. Lowering the entry barrier for sequencer node participation. 
2. Streamlining the staking process, eliminating the need for technical setup and maintenance. 
3. Allowing flexible staking amounts, catering to users with varying capacities. 
4. Utilizing eMetis/seMetis as foundational elements for other DeFi applications, enhancing overall ecosystem liquidity and functionality.

## Fees and Security

A 10% fee on sequencer node mining rewards is instituted by ENKI, directed towards the protocol's treasury to support future growth and community incentives. Security remains a paramount concern, with ENKI deploying rigorous measures such as governance oversight, multiple audits, and non-custodial staking services to mitigate risks and ensure platform integrity.

## Conclusion

ENKI Protocol signifies a pivotal development in liquid staking, facilitating broader participation in the Metis sequencer rewards system without the conventional barriers. This not only simplifies the staking process but also enriches the DeFi ecosystem on Metis, providing a dual benefit of staking rewards and DeFi engagement opportunities.

## Disclaimer

Participating in DeFi carries significant risks, including but not limited to: smart contract vulnerabilities, loss of funds, market volatility, regulatory risks, and other risks associated with emerging technologies.


# Architecture

<figure><img src="/files/yiBrocPalfcBVDN0Adnn" alt=""><figcaption><p>ENKI Process</p></figcaption></figure>

The ENKI system is composed of three primary components: **ENKI Metis (eMetis)**, **Staked ENKI Metis (seMetis)**, and the **ENKI Metis Minter**.

1. ENKI Metis (eMetis): This acts as a stablecoin, loosely pegged to Metis. It leverages Metis Sequencer Node staking and enhances the composability of the Metis ecosystem.
2. Staked ENKI Metis (seMetis): This is a version of eMetis that accrues staking yield. The majority of the profit generated from Metis sequencer nodes is distributed to seMetis holders. By staking eMetis for seMetis, users can earn staking yields, redeemable when converting seMetis back to eMetis.
3. ENKI Metis Minter: This component allows the exchange of Metis for eMetis, boosts sequencer nodes when possible, and mints new eMetis equivalent to the amount of Metis sent.

### DeFi Composability

Upon deposit and staking, ENKI generates eMetis and seMetis tokens for users. eMetis symbolizes the initial deposited tokens, whereas seMetis embodies all rewards and penalties accumulated from staking those deposits. Crucially, both eMetis and seMetis maintain liquidity, allowing for unencumbered transfers between participants. This liquidity ensures that users can engage across various DeFi applications without forfeiting their staking rewards, which cycling are distributed. It's essential to maintain this liquidity feature when incorporating eMetis and seMetis into DeFi protocols, ensuring users benefit from both flexibility and profitability.


# Fantasy(Airdrop)

Genesis Plan

Fantasy presents an exclusive and unparalleled opportunity to engage deeply with the ENKI ecosystem ahead of its official launch on the mainnet. The ENKI token transcends the typical digital asset, serving as a pivotal element within the staking process by offering a 'reward booster' that grants users an additional 30% in sequencer rewards.

Understanding the critical role of the ENKI token, we're meticulously planning its distribution to align with our ecosystem's long-term health and expansion. Therefore, engaging in "Fantasy" offers the unique chance to obtain ENKI tokens before the protocol's debut on the mainnet.

There are 1M ENKI tokens allocated to Fantasy, for comprehensive details, refer to our articles on Medium:

{% embed url="<https://medium.com/@ENKIProtocol/the-enki-fantasy-genesis-plan-b83d24cdc39a>" %}

{% embed url="<https://medium.com/@ENKIProtocol/phase-one-of-fantasy-genesis-plan-d709b340f449>" %}

{% embed url="<https://medium.com/@ENKIProtocol/fantasy-phase-one-update-enki-tokenomics-testnet-819a9819d42d>" %}

Fantasy unfolds in two distinct phases: Phase 1 (pre-launch) and Phase 2 (post-launch). We will explore these phases further in the subsequent sections.

> *After ENKI token goes live on mainnet, there will be a fantasy page for eligible users to claim NFT and tokens.*
>
> [**-> Guide for Fantasy page** ](/guides/fantasy-page)


# Phase 1

150,000 ENKI tokens allocated

Phase 1 (pre-launch) sets the stage for unveiling the ENKI protocol's narrative and engaging the community through early marketing efforts and testnet participation. This phase is structured into three key sections:

1. **Community Engagement and Trivia**: A total of 25,000 ENKI tokens (0.25% of total supply) are dedicated to community tasks and trivia, managed by [web3davincis](https://www.web3davincis.com/journeys/projects/enki).
2. **Testnet Involvement**: Another 25,000 ENKI tokens (0.25% of total supply) are reserved for participants of the ENKI testnet, with an equal share distributed among all who contribute, including those in both V1 and V2 [testnet](https://testnet.enkixyz.com).
3. **Bug Bounty and Marketing Partnerships**: This segment allocates 100,000 ENKI tokens (1% of total supply) to reward core community members and marketing collaborators for their valuable contributions.

This phase ensures active community involvement and rewards contributions that enhance the protocol's development and outreach.


# Phase 2

850,000 ENKI tokens allocated

Phase 2 (post-launch) is designed to boost user engagement with Metis staking and support the protocol's expansion through four strategic initiatives:

1. **Metis Staking Airdrop**: This initiative allocates **400,000 ENKI tokens (4% of the total supply)** to reward users who stake Metis within the ENKI protocol. A unique points system will be employed to determine each user's share of the token allocation based on their staking activities.
2. **Invitation Staking Activity**: A substantial **200,000 ENKI tokens (2% of the total supply)** are set aside for this activity. Users holding at least 1 eMetis or seMetis can participate by minting a special inviter NFT and using a unique invitation link to introduce new stakers. The inviter’s NFT referral points increase with each new staker, who must stake a minimum of 0.1 Metis for the inviter to earn points. The formula for calculating points is: Points = 100 \* Total Referrals + 200 \* Total Staked Metis by Invitees. The distribution of airdrop tokens will be in proportion to the accumulated referral points. The inviter NFT also acts as a certificate for claiming the airdrop.
3. **Liquidity Incentives**: This section is dedicated to enhancing liquidities(including ENKI, eMetis and seMetis liquidities across Metis eco) with **150,000 ENKI tokens (1.5% of the total supply)**, with further details to be announced.
4. **Eco Airdrop**: Aimed at rewarding loyal users, this allocates **100,000 ENKI tokens (1% of the total supply)** to participants within the Metis ecosystem’s DeFi protocol communities. The specific partners and further details will be disclosed in due course.

{% hint style="info" %}
A shift for token allocation towards Metis Staking Airdrop:

<https://medium.com/@ENKIProtocol/enkis-enhanced-staking-initiative-doubling-down-on-community-rewards-75e1b773b936>
{% endhint %}

These structured initiatives are aimed at driving user participation, enhancing liquidity, and solidifying the ENKI ecosystem’s growth post-launch.


# Points System

We've crafted a distinctive points system to gauge user contributions to the ENKI protocol, segmented into two key areas:

1. **Staking Points**: Holders of eMetis or seMetis accumulate staking points over time. This also opens the potential for earning points through integrations with external DeFi protocols leveraging eMetis/seMetis.
2. **Referral Points**: Stakers possessing a minimum of 1 Metis become eligible to create an inviter NFT, which grants them a unique referral link. Inviters accumulate points when new users stake a minimum of 0.1 Metis using their referral link.

Further details will be elaborated in the subsequent sections.


# Staking Points

Holders of eMetis and seMetis will accumulate staking points over time, with the protocol awarding 100% of these points to the holders from day one. The distribution of points will reflect in the stakers' portfolios, showcasing their allocation.

{% hint style="info" %}
**Please be aware that our staking journey is divided into two phases: pre-staking and official staking. During the pre-staking phase, you'll earn staking points at DOUBLE the rate compared to the official staking phase!**

**And users can only stake Metis to mint eMetis during the pre-staking phase.**
{% endhint %}

### **Display of Staking Points**

Staking points are visible on the ENKI Dapp upon connecting your wallet, updating in real-time to reflect accruals.

### **Utilization of Staking Points**

These points play a crucial role in determining your share of the ENKI token allocation for the [Metis Staking Airdrop during Fantasy Phase 2](/getting-started/fantasy-airdrop/phase-2). Additionally, they may serve future purposes, including incentives and participation in decentralized governance.

### **Earning Staking Points**

The primary method to earn points is by staking Metis to mint eMetis or staking eMetis into seMetis. Further opportunities will arise through participation in DeFi protocols integrated with ENKI, enhancing point earnings for liquidity provision. Continuous earning of Staking Points requires maintaining eMetis or seMetis in your wallet or following designated ecosystem pathways as outlined on our official ecosystem page.

### **Staking Points Formula**

Staking 0.01 Metis for eMetis results in earning 1 point per day(**2 point for pre-staking stage**), with the formula being: Points Earned = Metis Staked \* 100 \* Days Staked. For example, staking 5 Metis for 6 days yields 3,000 staking points. There's a maximum cap on staking points set at 10¹² for larger stakeholders.

### **Retention and Transferability of Staking Points**

Staking points are non-transferable and will not be lost as long as you hold eMetis or seMetis. However, points will cease to accrue if these assets are no longer in your wallet. Additional DeFi protocol engagement will also generate points. Stay updated with our Telegram for more information on how eMetis/seMetis integrates across DeFi.

<br>


# Boost Integrations

Users who deposit and provide liquidity in specific pools featuring ENKI, eMetis, and seMetis tokens can earn yield from those protocols while still accruing staking points with a boost. Here's an overview of the supported pools and guidelines for depositing to maximize rewards.

#### Boost Rules for eMetis\&seMetis Liquidity

Details coming soon.

#### Boost Rules for ENKI Liquidity

For example, by depositing ENKI/Metis liquidity into Netswap, the boost you receive is solely based on the amount of ENKI tokens in the liquidity:

| ENKI amount within the liquidity | Boost tier |
| -------------------------------- | ---------- |
| 10 <= ENKI amount <= 200         | 2x         |
| 200 < ENKI amount <= 400         | 4x         |
| 400 < ENKI amount <= 600         | 6x         |
| 600 < ENKI amount <= 1000        | 8x         |
| 1000 < ENKI amount               | 10x        |

For instance, Alice has minted 5 eMetis from the ENKI protocol and earns 500 staking points per day. She decides to provide liquidity in the ENKI/Metis pool on Netswap by depositing 50 ENKI tokens. Alongside, she matches this with an appropriate amount of Metis tokens to maintain value balance in the liquidity pool.

Based on her contribution of 50 ENKI tokens, Alice qualifies for the 2x boost tier. This adjustment boosts her daily staking points from 500 to 1000.

This boost reflects the additional value she contributes to the liquidity pool and incentivizes her continued participation in the ENKI liquidity.

{% hint style="info" %}
*Please be aware that the position of your ENKI holdings may be affected by impermanent loss, which might also impact your boost tier in volatile market conditions.*
{% endhint %}

**Current protocols integrations with points tracking**

* [Netswap](/getting-started/points-system/staking-points/boost-integrations#netswap)
* [Hercules](/getting-started/points-system/staking-points/boost-integrations#hercules)

#### Netswap

**ENKI/Metis & ENKI/NETT Pool**

*Earn staking points with a boost of up to 10x.*

LPs who provide and stake their ENKI liquidity in Netswap's farm continue to earn:

* Trading fees for LP
* Incentives from [Netswap farming](https://netswap.io/#/farm)
* Boosted staking points (up to 10x)

Links for liquidity pools:

* [ENKI/Metis Pool](https://netswap.io/#/add/0x096A84536ab84E68ee210561FFD3A038E79736F1/0xDeadDeAddeAddEAddeadDEaDDEAdDeaDDeAD0000)
* [ENKI/NETT Pool](https://netswap.io/#/add/0x096A84536ab84E68ee210561FFD3A038E79736F1/0x90fE084F877C65e1b577c7b2eA64B8D8dd1AB278)

Action required to get boosted

1. Stake your Metis with [ENKI Protocol](https://enkixyz.com/mint) to mint eMetis first.
2. Go to the DeFi tab and click the link that takes you directly to the Netswap pools
3. Once on the Netswap pool page(take ENKI/Metis as an example), connect your wallet and add the amount of ENKI and Metis that you would like. This position will help you getting boosted according to the tier rules above.

<figure><img src="/files/pilFBWEkJrDuVzQvkFru" alt="" width="563"><figcaption></figcaption></figure>

4. After you add ENKI liquidity, you can then stake to the farm pool to earn emissions provided by the pool.

<figure><img src="/files/7dvSbPIdMuGMuocWeQKf" alt="" width="563"><figcaption></figcaption></figure>

<figure><img src="/files/U0OQxa30hY41mosmp5Ko" alt="" width="563"><figcaption></figcaption></figure>

5. You are now staked your ENKI liquidity in the Netswap farm earning LP trading fees and incentives while earning boosted staking points.&#x20;

#### Hercules

**ENKI/m.USDC**

*This integration is coming soon and will offer staking points with a boost of up to 10x.*


# Referral Points

Users who obtain a special inviter NFT can generate a unique link to welcome new participants to the ENKI platform, earning referral points in the process.

### Minting the Inviter NFT

To mint this non-transferable inviter NFT, users need to hold a minimum of 1 eMetis or seMetis in their wallet, which then enables them to create a unique invitation link.

### Viewing the Inviter NFT and Referral Points

These elements are displayed on the Portfolio page of the ENKI Dapp, accessible once the user's wallet is connected.

### Usage of Referral Points and Inviter NFT

Referral points are key to determining the distribution of airdrop tokens during the Invitation Staking Activity (which has 400,000 ENKI tokens set aside) in Fantasy Phase 2. The inviter NFT serves as proof of eligibility to claim the airdrop.

### Earning Referral Points

The most straightforward method to accumulate referral points is by encouraging potential stakers to use your invitation link for staking at least 0.1 Metis in the protocol.

### Referral Points Calculation

Referral points are calculated using the formula: Points = 100 \* Total Referrals + 200 \* Total Staked Metis by Invitees. For instance, if you have 5 invitees who each stake 0.1 Metis (totalling 0.5 Metis), your points would be 100 \* 5 + 200 \* 0.5 = 600.

### Policy on Cheating

Should any form of cheating be verified, the implicated user's referral points will be annulled.


# Roadmap

### General roadmap:

* **Q3 2023**: Initiation of the Proof of Concept.
* **Q4 2023 to Q1 2024**: Deployment of the beta version for testnet and commencement of public trials.
* **Throughout 2024**: Official launch followed by continuous enhancements and updates.

### Short-term journey:

<figure><img src="/files/kwiemQ5JCwubVNzJL7aa" alt=""><figcaption></figcaption></figure>


# FAQ

1. **When's the deadline to claim airdrop on Fantasy page? And what will happen after the deadline?**

The airdrop claim deadline on the Fantasy page is January 1, 2025, subject to extension. Post-deadline, NFT minting remains free but without ENKI token claims; unclaimed tokens go to the ENKI treasury for community use.

2. **Will the NFT claimed on Fantasy page be used for other purposes?**

The claimed NFT may boost staking and referral points or apply to future activities. Being non-transferable, it's secure against loss.

3. **What can I do with eMetis and seMetis?**

eMetis, symbolizing staked Metis, supports DeFi protocol activities like trading, lending, or collateral. seMetis represents accruing rewards from staked eMetis, serving as a non-rebasing yield-generating token that might also engage in external DeFi protocols.

4. **Why take a dual token mechanism for eMetis/seMetis?**

This mechanism resolves rebasing token compatibility issues in DeFi, maintaining broad protocol adaptability while ensuring user-friendliness. It allows eMetis holders to choose between liquidity provision or native reward earning via the seMetis vault.

5. **What can I do with the ENKI token?**

ENKI token functionalities include governance participation, acting as a 'Reward Booster' in the vesting contract for full sequencer node rewards, and sharing future incentives or protocol revenues.

6. **How can I claim my eMetis rewards from the seMetis vault?**

Claiming eMetis rewards involves interacting with the ENKI DApp's Stake/Unstake page, converting seMetis back to eMetis via the Unstake feature to realize accumulated rewards.

7. **How can I claim additional eMetis rewards from the vesting contract?**

Upon unstaking seMetis to eMetis, 30% transfers to a vesting contract. Claim these by staking ENKI tokens into the contract for 90 days, with the option to claim vested eMetis anytime, noting that vesting pauses upon unstaking ENKI.

8. **How much ENKI tokens should I have for staking into the vesting contract?**

Required ENKI tokens for vesting depend on eMetis amounts, with a 10:1 staking ratio on the mainnet. For vesting 10 eMetis, stake 100 ENKI, vesting over 90 days.

9. **How can I redeem my eMetis back to Metis?**

Until enabling direct redemption, swap eMetis for Metis on secondary markets (DEXes, etc.). Efforts are ongoing to enhance market liquidity and facilitate the withdrawal process.

10. **How’s the peg mechanism for eMetis and Metis?**

The peg, akin to traditional finance’s fixed exchange rates, relies on reserve management to maintain the eMetis to Metis peg. Withdrawals are initially disabled to stabilize this peg, ensuring a controlled, stable transition to full operability.

11. **Why disable the withdrawal for eMetis to Metis at the initial phase and when to enable it?**

Withdrawal suspension in the initial phase ensures platform stability and gradual adoption. The timing for enabling withdrawals will depend on platform readiness and user feedback, ensuring a secure transition to full functionality.

12. **Any restrictions to participate in ENKI protocols?**

Participation is open to all, with no minimum staking limit. However, regional access restrictions may apply in the future due to policy variations.


# Fantasy page

The Fantasy page is dedicated to early supporters, offering them the chance to claim exclusive NFTs and incentivized ENKI tokens. It's divided into three sections: Intro, Phase 1, and Phase 2, each serving a distinct purpose.

{% hint style="info" %}
The Fantasy page is estimated to conclude on January 1, 2025.
{% endhint %}

#### Intro

The Introduction segment outlines the essence of the Fantasy initiative, providing a high-level overview without requiring user interaction. It sets the stage for deeper engagement in the subsequent phases.

#### Phase 1: Engagement and Rewards

In Phase 1, 150,000 ENKI tokens are set aside as rewards, accompanying the distribution of three unique, non-transferrable NFTs, each symbolizing a specific role within the ENKI community:

* **Explorer NFT**: Awarded to 400 winners of the community participation and trivia tasks hosted by [web3davincis](https://www.web3davincis.com/journeys/projects/enki), celebrating active community engagement.
* **Pioneer NFT**: For participants of the V1 and V2 testnet phases, acknowledging their early involvement and feedback.
* **Guarantor NFT**: Reserved for individuals who have significantly contributed to the ENKI project through bug bounties, marketing efforts, development, or other collaborations. This also includes those who did not win in the [web3davincis](https://www.web3davincis.com/journeys/projects/enki) campaign but have contributed to ENKI's growth.

{% hint style="info" %}
The process for Phase 1 includes checking eligibility, claiming the respective NFT, and subsequently claiming ENKI tokens, which will be enabled shortly after the NFT claim.
{% endhint %}

#### Phase 2: Expansion and Incentivization

Phase 2 allocates 850,000 ENKI tokens to further incentivize community participation and ecosystem growth through various activities:

* **Metis Staking**: Encourages users to stake their Metis tokens in both pre-staking and official staking phases to earn rewards.
* **Invitation Staking Activity**: Rewards users for inviting new participants to stake in the ENKI ecosystem.
* **ENKI Liquidity Incentives**: Designed to enhance liquidity within the ENKI ecosystem.
* **Eco Airdrop**: Targets loyal users within the protocol communities for additional rewards.

Detailed information on each activity within Phase 2 will be unveiled following the completion of Phase 1, promising more opportunities for engagement and rewards.

Stay tuned for further updates and details!

[Explore the Fantasy Page!](https://enkixyz.com/fantasy)


# Mint

The Mint page allows users to stake Metis on a 1:1 basis and mint eMetis. Here's how to get started:

### **Step 1: Connect Your Wallet**

<figure><img src="/files/p55CzeWaN8MNVtEJc12X" alt=""><figcaption></figcaption></figure>

Choose your preferred wallet and connect it to the platform.

<figure><img src="/files/yu82nvR8pOTMbq3NcwN1" alt=""><figcaption></figcaption></figure>

### **Step 2: Stake Metis and Mint eMetis**

<figure><img src="/files/S3BFE8tF0qY4AwMCZ58e" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Notice the tip "Earn double staking points at the pre-staking stage," highlighting a key advantage of early participation at pre-staking stage.
{% endhint %}

Enter the amount of Metis you wish to stake. The "MIN.RECEIVED" field will display the corresponding amount of eMetis you'll receive.

Click the "Mint & Stake" or "Mint Only"button to initiate the transaction:

{% hint style="info" %}
"Mint & Stake" allows you to mint eMetis by staking your Metis and simultaneously stake the eMetis into the seMetis vault in a single transaction, resulting in seMetis being added to your wallet.

"Mint Only" simply mints eMetis by staking your Metis, with eMetis being deposited into your wallet as the outcome.
{% endhint %}

<figure><img src="/files/9a7JhMvUkVPcbrCeRsbu" alt=""><figcaption></figcaption></figure>

Confirm the transaction in the pop-up window. Once confirmed, the staking process is complete, and you'll start accruing staking points over time!

<figure><img src="/files/e9mX8nT41C2P5VbaCwVO" alt=""><figcaption></figcaption></figure>

### **Tracking Your Staking Points**

1. **Mint page** - Your staking points are displayed in the right-side container under "Your Staking Point."

<figure><img src="/files/lSHjPFBoVnoWzF7h6vob" alt=""><figcaption></figcaption></figure>

2. Dropdown Menu - Access via the wallet address at the top right of the page.

<figure><img src="/files/UA0oK5LMLR1eeypIVvOh" alt="" width="271"><figcaption></figcaption></figure>

3. Portfolio page - Visit to view detailed staking information

<figure><img src="/files/2Ue9MVY2UWjEV9MuzltA" alt=""><figcaption></figcaption></figure>

Last, you can also navigate to the home page to check the total staking points accumulated by all users:

<figure><img src="/files/hsgIIiIyvGl3tYI7UYhm" alt=""><figcaption></figcaption></figure>


# 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:

1. The time it takes to withdraw Metis to Layer 1 (L1).
2. The time needed to exit the Locking Pool.
3. 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.

<figure><img src="/files/rGi4zHykQVhlprKtXRC2" alt=""><figcaption><p>Complete transaction flow through the eMetis redemption system.</p></figcaption></figure>

## 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 = $200`
* Alice 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 days`
* By 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.

{% hint style="info" %}
**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.
{% endhint %}

## 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.


# Stake/Unstake

The Stake/Unstake page allows users to stake eMetis for seMetis or unstake seMetis to revert to eMetis. Here's a streamlined guide to both processes:

### Staking eMetis

#### **Step 1: Acquire eMetis**

Obtain eMetis by staking Metis on the "Mint" page (see tutorial [here](/guides/mint)) or purchase it on the secondary market once sufficient liquidity is available.

#### **Step 2: Stake eMetis into the seMetis Vault**

<figure><img src="/files/sfM8Xn43TxcV0WVgVyCY" alt="" width="563"><figcaption></figcaption></figure>

* Enter the amount of eMetis you want to stake in the "MIN.RECEIVED" field to see the equivalent seMetis you will receive.
* The right panel will display your pool share and the current eMetis to seMetis ratio.
* Click "Approve," then "Stake" to initiate the transaction.
* Confirm the transaction in the pop-up window. Once confirmed, the staking process completes, and seMetis will be added to your wallet. The ratio between eMetis and seMetis may update to reflect reward distributions, typically allowing 1 seMetis to be unstaked for more than 1 eMetis, reflecting accrued rewards.

### Unstaking seMetis

#### **Step 1: Switch to Unstake**

Toggle to the "Unstake" option using the convert icon in the form.

<figure><img src="/files/ABGdEsrSSdCRMEcDNNwp" alt="" width="563"><figcaption></figcaption></figure>

#### **Step 2: Unstake seMetis to Convert to eMetis**

<figure><img src="/files/cCjqS285rDo3dUEaHSaP" alt="" width="563"><figcaption></figcaption></figure>

Input the seMetis amount you want to unstake. Below the input field, you'll see:

* Estimated total converted eMetis
* Estimated received eMetis
* Estimated eMetis sent to vest, with vesting details available [here](/guides/vesting).

These steps ensure you can efficiently manage your eMetis and seMetis, participating actively in the rewards and opportunities within the ENKI protocol.


# Vesting

The Vesting page allows users to stake ENKI tokens to unlock 30% of eMetis from the seMetis vault.&#x20;

Further details will be announced shortly.


# Portfolio

The Portfolio page provides an overview of a user's holdings and activities within the ecosystem, featuring:

* Current eMetis Balance
* Current seMetis Balance
* Current ENKI Balance
* Staked ENKI
* Staking Rewards: Includes details on APR, Staking Points, and Referral Points
* Referral Section

Further information about invitation will be disclosed shortly.


# ENKI Token

The ENKI token functions as the core utility and governance token of the platform, offering holders access to numerous advantages. Its primary utility lies in acting as a "reward booster" within the vesting contract. By staking a certain quantity of ENKI tokens, users can unlock the complete spectrum of eMetis rewards derived from the sequencer node operations.

Furthermore, ENKI token holders possess the power to shape crucial aspects of the ENKI ecosystem, including fee structures and protocol enhancements. This collaborative governance approach plays a critical role in maintaining the protocol’s efficiency and reliability.


# Tokenomics

The forecasted total supply is 10 million ENKI tokens. The increase in circulating supply will vary depending on the number of tokens that get allocated through different methods, and the amount of tokens used for marketing / partnerships.\
\
Minting beyond the total supply of 10 million will be controlled by a 28 day timelock. This option will only be used if more products are launched or long-term liquidity mining is required, a governance vote will be conducted before any changes.

The initial allocation plan is the following:

* 1 million ENKI reserved for marketing, partnerships and community contributors.
* 9 million ENKI reserved for liquidity mining and community incentives through different methods.&#x20;

Please note that the ENKI team will not hold any token allocations, there will be no fundraising, and all phases of token distribution will follow a fair launch approach.


# Governance

Governance enhances the decentralization of the ENKI protocol. It primarily considers the interests of ENKI token holders and the staking points accumulated by users.&#x20;

Further details will be provided shortly.


# Technical Overview

<figure><img src="/files/WguCjc3fLypUAP8WLyVD" alt=""><figcaption></figcaption></figure>

The above diagram illustrates the core architecture of the ENKI protocol.


# Deployed Contracts

### Layer 1(Etheruem)

dealer: 0xeed9De312F438692570b103b580A59bEa80aAd65

sequencerAgentTemplate: 0xf1A376A969532337912D9E3D9b16EF9650cd610D

### Layer 2(Metis Andromeda)

ENKI Token: 0x096A84536ab84E68ee210561FFD3A038E79736F1

Config: 0x28254967E34db48eB548ec078288cD69b5f63EA5

eMetis: 0x97a2de3A09F4A4229369ee82c7F76be1a5564661

eMetisMinter: 0x810Ef8Aa1326FB1c5Ce57cD79d549CF9B2cC32aF

seMetis: 0x79F3522a1b56f22a6549e42f9cfa92eF5FEb81e8

vesting: 0x13C0CCC4c21a1Aa082Ab92Ca515Fe36f514C8cd7

rewardDispatcher: 0xCF8A7B8ce925133892EC641cD75B6074B6841c2A


# Audits

Dec 19, 2023

{% embed url="<http://odex.vip/?sign=9c65ba809188969ca834a3499bca3464>" %}

Mar 12, 2024

{% embed url="<https://hacken.io/audits/enki/>" %}