How Does Equilibria Work?

Yield|Risk B|5 mechanisms|4 interactions

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

$13M

Sector

Yield

Risk Grade

B

Value Grade

D+

Core Mechanisms

5.1.3

Novel

ePENDLE 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 liquid wrapper↔vePENDLE governance lockHigh

ePENDLE defeats time-lock alignment of vePENDLE by making governance power liquid and tradeable; bribery markets can emerge

Aggregated vePENDLE↔Pendle protocol dependencyMedium

Entire value depends on Pendle; a Pendle exploit or governance change could eliminate boosted yield advantage

ePENDLE/PENDLE peg↔Boosted yield calculationsMedium

ePENDLE trading at significant discount to PENDLE makes new deposits less efficient and existing holders face exit losses

300+ pool monitoring↔Operational complexityLow

Managing boosted positions across 300+ Pendle pools creates operational complexity

What Could Go Wrong

  1. Equilibria is a yield booster built on top of Pendle Finance, creating a layered dependency where any issue with Pendle directly impacts Equilibria users
  2. 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
  3. 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

Tail

Trigger: ePENDLE/PENDLE exchange rate drops below 0.85 due to large sell-offs or loss of confidence

  1. 1.ePENDLE sells off on secondary markets — ePENDLE trades at 15%+ discount, making new deposits uneconomical
  2. 2.LP depositors exit Equilibria — Without deposits, vePENDLE position shrinks, reducing boost
  3. 3.vePENDLE governance power diminishes — Smaller position means lower boosts, accelerating exits
  4. 4.Negative feedback loop — Declining yields and ePENDLE discount feed each other
See all 2 collapse scenarios in the full risk report →

Risk Profile at a Glance

Mechanism Novelty3/15
Interaction Severity5/20
Oracle Surface2/10
Documentation Gaps2/10
Track Record3/15
Scale Exposure3/10
Regulatory Risk2/10
Vitality Risk7/10
B

Overall: B (27/100)

Lower score = safer

More on Equilibria

Is Equilibria Safe?

Safety analysis

Is Equilibria a Good Investment?

Value analysis

Full Risk Report

All mechanisms & interactions

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