How Does Equilibria Work?
Equilibria is a yield booster for Pendle Finance with $28M TVL, offering enhanced yields by aggregating vePENDLE governance power. Its B grade reflects established Convex-style mechanics with multiple security audits, balanced by full dependency on Pendle and liquid wrapper peg stability risk.
TVL
$10M
Sector
Yield
Risk Grade
B-
Value Grade
D+
Core Mechanisms
5.1.3
NovelePENDLE liquid wrapper for vePENDLE governance power
Convex-style liquid wrapper pattern applied to Pendle yield tokenization
7.1.2
Boosted yield from aggregated vePENDLE position
Standard Convex-style yield boosting
5.1.1
EQB governance token
Standard governance with 100M supply
2.2.1
Revenue sharing to EQB stakers
Standard revenue distribution
2.1.2
Performance fee on boosted yield
Standard Convex-style fee
How the Pieces Interact
ePENDLE defeats time-lock alignment of vePENDLE by making governance power liquid and tradeable; bribery markets can emerge
Entire value depends on Pendle; a Pendle exploit or governance change could eliminate boosted yield advantage
ePENDLE trading at significant discount to PENDLE makes new deposits less efficient and existing holders face exit losses
Managing boosted positions across 300+ Pendle pools creates operational complexity
What Could Go Wrong
- Equilibria is a yield booster built on top of Pendle Finance, creating a layered dependency where any issue with Pendle directly impacts Equilibria users
- ePENDLE liquid wrapper for vePENDLE defeats the lock mechanism's alignment incentive and enables governance power to be traded — a known I-08 interaction risk
- With 300+ Pendle pools and $28M TVL, Equilibria depends on maintaining a large vePENDLE position; if the ePENDLE/PENDLE peg breaks, boosted yields are compromised
ePENDLE Depeg Triggers Yield Booster Collapse
TailTrigger: ePENDLE/PENDLE exchange rate drops below 0.85 due to large sell-offs or loss of confidence
- 1.ePENDLE sells off on secondary markets — ePENDLE trades at 15%+ discount, making new deposits uneconomical
- 2.LP depositors exit Equilibria — Without deposits, vePENDLE position shrinks, reducing boost
- 3.vePENDLE governance power diminishes — Smaller position means lower boosts, accelerating exits
- 4.Negative feedback loop — Declining yields and ePENDLE discount feed each other
Risk Profile at a Glance
Overall: B- (28/100)
Lower score = safer