Restarting mevETH
We are still in productive discussions with CREAM, it looks like no issue for us to take full custody of the mevETH protocol, and we will be implementing a few small changes. A public announcement will be forthcoming after New Years.
Fee Abstraction based on Performance
We will use Lido as a reference benchmark for Staking Yield. This benchmark rate will be used to define the performance threshold for applying a new (proposed) fee structure:
2%/20%
2% on the entire yield curve, and 20% applied on the curve area difference between what mevETH produces and the benchmark.
That 20% will be fed into Staking Rewards. Currently, we are at 4.7% based from DeFiLlama reporting. We want to emphasize that we have not done any additional tuning to the validator setup since last year, this is just being able to effectively operate Validators. I anticipate another 0.7% at a minimum. My personal target is doubling Lido’s Yield.
Wut?
mevETH will focus on one thing and one thing only: yield. Not TVL, not Decentralization, only ETH Yield. That’s it, that’s the thesis we are embracing.
Defining our success metrics in these terms and the performance-based fee structure means Staking rewards will be more consistent than previously stated in earlier posts.
Nothing will change in terms of contracts or the underlying mevETH protocol: CREAM will potentially remove themselves from the MultiSig, and that will be the only change (potentially, we are discussing an additional deal in tandem).
Next Community Call
I will tentatively schedule the call for January 4th, we should have this wrapped up before then.