Ender Bond: The Metaverse Bond
Last updated
Last updated
The Ender Protocol introduces a revolutionary crypto-native paradigm by integrating a metaverse game world platform as an application layer built atop a liquid staking protocol. This fusion of DeFi and gaming creates a unique ecosystem centered around Metaverse Bonds and Realm Portals.
At the heart of this system is the Ender Bond, which represents more than just a deposit in the Ender Protocol. It serves as a gateway to a new form of ownership and value creation within the metaverse economy. The bond acts as the foundation for issuing END tokens—the metaverse-native currency—enabling the construction of a sovereign metaverse economic system directly backed by Ethereum's liquid staking rewards.
When you deposit assets into the Ender Protocol, you receive an Ender Bond NFT. These NFTs have different rarities based on their maturity period and deposit amount:
Common
7-89 days
0.05 ETH
Rare
90-179 days
1 ETH
Epic
180-259 days
5 ETH
Legendary
260-359 days
10 ETH
Ethereal
360+ days
15 ETH
Ethereal+
360+ days
30 ETH
Ethereal++
360+ days
50 ETH
Unknown
365 days
333 ETH
The bond's rarity tier increases over greater maturity periods and deposits, reflecting the commitment of longer-term deposits to the protocol.
Important Note: It's crucial to understand that the minimum deposit amounts listed above are not a cost in the typical sense. Each bond is fully redeemable upon maturity. What you are effectively "paying" is the yield of your deposit, for which you are also being rewarded. This means, on a practical level, these bonds and each corresponding rarity merely cost your time and capital (liquidity).
These costs of reaching each tier of rarity might seem high, but the values are deceiving. A bond is merely a commitment of time and the yield you earn, which you are being paid in a bond reward. Therefore, the cost is effectively none, except the capital requirements. The only way to lower these requirements is by setting a bond fee.
Consider this: A bond at max maturity gives a 4.5% APY, and the base yield of liquid staking is ~3.2%, you are actually earning more by minting the bond than you would through standard liquid staking. The benefits in this sense far outweigh the actual costs.
Let's break down the economics of minting a max-tier Unknown bond:
Initial Deposit: 333 ETH
Maturity Period: 365 days
Assumed ETH Price: $3,500
Opportunity Cost: ~3.2% APY you could have earned from standard liquid staking elsewhere
Capital Requirement: 333 ETH * $3,500 = $1,165,500 (exceptionally high)
Yield Value: 333 ETH * 3.2% * $3,500 = $37,296
This is effectively the "cost" of minting an Unknown rarity bond. However, now let's consider the benefits:
Redeemable Principal: 333 ETH (fully returned upon maturity)
Bond Yield: 4.5% APY in END tokens, which are being fully-backed by the yield from your deposits further deployed into a higher yield strategy
Value of END earned: 333 ETH * 4.5% * $3,500 = $52,447.50
$52,447.50 (END earned) - $37,296 (opportunity cost) = $15,151.50
Effectively, you have actually profited from minting a max-tier bond, without any "real cost".
Plus, you have the option to stake your earned END for even more yield or sell it on the market, creating a marketplace for yield liquidity, which is the core purpose of the protocol.
No Traditional Cost: The minimum deposit is not a cost, but a commitment of capital that is fully redeemable.
Opportunity Cost: The real "cost" is the yield you could have earned elsewhere during the bond period.
Higher Yields: Ender Bonds offer higher yields (4.5% APY) compared to standard liquid staking (3.2% APY).
Capital Requirement: The main barrier is the need for significant capital, especially for higher tiers.
Net Benefit: Participating in the Ender Bond system can result in a net positive return compared to other staking options.
Additional Opportunities: Beyond direct yield, the system offers opportunities for further yield through staking END tokens and participating in the broader Ender Protocol ecosystem.
Aligned Incentives: The system is designed to reward participants for their capital commitment, aligning user interests with protocol growth.
When you understand the mechanics of the Ender Bond system, it becomes clear that the "costs" are more about opportunity and time commitment than actual financial expense. In fact, participating in the system can be more profitable than traditional liquid staking, while also offering additional benefits and opportunities within the Ender Protocol ecosystem.
The only real costs is the capital requirement.
Which of course, in a liquid staking and DeFi protocol, is what you are rewarded for and is the entire benefit you get by depositing your assets with us. In other words, the incentives are truly aligned, when you consider it from a purely game theoretic standpoint.
While minting higher tier rarities generally doesn't involve direct costs, introducing a bond fee creates a strategic trade-off. This mechanism allows for greater flexibility in achieving higher rarity tiers and encourages thoughtful use of bond fees.
For every 1% bond fee set on your original Ender Bond, the minimum deposit threshold for each rarity tier is reduced by 0.8%. For example:
With a 10% bond fee, the Ethereal tier minimum deposit would be reduced from 15 ETH to 13.8 ETH.
With a 20% bond fee, the Ethereal tier minimum deposit would be reduced to 12.6 ETH.
With a 50% bond fee, the Ethereal tier minimum deposit would be reduced to 6 ETH.
With a 100% bond fee, the Ethereal tier minimum deposit would be reduced to 3 ETH.
By setting a bond fee to lower the capital requirement for higher tier rarities, you gain several advantages, albeit with increased risk:
Earn additional points and yield in governance tokens and airdrops
Increase your bond yield rate in exchange for a portion of your principal deposit
Earn higher refraction fees
These benefits open up opportunities for more complex strategies when considering the game incentives and cost factors of the entire system.
Upgrade Mechanism: You can mint a lower tier rarity bond and attempt to upgrade its rarity by paying an extra fee when minting realm portals. This adds another layer of strategic depth.
Risk-Reward Trade-off: If you're willing to take on more risk with a lower capital requirement, you can pay a mint fee for a chance to upgrade. The bond fee reduces both the minimum deposit amount and the associated mint fee, creating a "gamble" option for potentially achieving higher rarity with less initial capital.
These costs and mechanisms are balanced to reward different strategies:
Committing more upfront capital provides more certainty and lower cost
Lowering capital requirements introduces more risk but offers the chance of upgrading to a higher rarity tier
Balancing the benefits of setting a bond fee while maintaining the lowest cost factor for the higher capital commitment
These costs are the balanced in such a way that rewards you for committing more upfront capital, or lowering the capital requirements for more risk added and a lesser chance of successfully upgrading your rarity tier. This creates a risk-to-reward facet of the system, allowing for user choices to potentially earn a higher value rarity with a lower entry cost if they are lucky and succeed in the upgrade by paying a fee.
Realm Portals are the gateways to Endworld, an open-world RPG metaverse. These portals are minted using mature Ender Bond NFTs, creating a unique link between the DeFi protocol and the gaming metaverse.
Redeem your mature Ender Bond NFT.
Use the redeemed bond to mint a Realm Portal (this process burns the bond NFT).
Optionally pay a mint fee in END tokens for a chance to upgrade your portal's rarity.
You can pay an optional mint fee in END tokens, up to 15% of the bond's principal value. This fee gives you a chance to receive a portal one tier higher than your bond's rarity. The upgrade chances are as follows:
Common
Rare
10%
Rare
Epic
5%
Epic
Legendary
2.5%
Legendary
Ethereal
1.25%
Ethereal
Unknown
0.15625%
Ethereal+
Unknown
0.3125%
Ethereal++
Unknown
0.625%
The base determining factor of the realm's rarity is the tier of the Realm Portal, which is directly based on the maturity period of the original Ender Bond. The longer the maturity period, the greater the tier of the realm you will mint.
In addition to the rarity, the size of the realm varies based on the actual deposit value of the bonds. More deposit asset value committed results in a larger realm size, independent of the rarity tier.
Based on the rarity of the Realm Portal minted, you will have access to a diverse world of different biomes. These range from:
Common desert plains
Mountainous lands
More exotic biomes like alien landscapes
Rare and ethereal lands (in higher rarity portals)
The rarity of your portal directly influences the diversity and uniqueness of the biomes you can explore in your realm.
The types of entities you encounter in your realm are influenced by the biomes and other factors related to your portal's rarity. You may encounter:
Various animals
Mythical creatures
Intelligent lifeforms
Bosses and dragons
Even advanced robots in high-tier realms
Higher rarity portals increase your chances of encountering rarer and more powerful entities.
Throughout all these realms, you will find various resources for building materials and crafting. The distribution and rarity of these resources are tied to your portal's rarity:
Common resources are available in all realms
Rare crafting materials appear more frequently in higher-tier realms
The rarest resources and materials will only be found in the highest rarity realms
This resource distribution adds another layer of value to higher rarity Realm Portals, as they provide access to materials that are crucial for advanced crafting and building within the Endworld metaverse.
While the rarity of a realm establishes a minimum threshold for randomly generated realm characteristics, there is always an element of RNG (Random Number Generation) that adds excitement and potential value to every realm:
Rare Attributes in Lower Rarity Realms: It's possible, though less likely, for lower rarity realms to generate some rare attributes. This means that even common or rare realms have the potential to contain valuable or unique features.
Exclusive High-Rarity Attributes: Some attributes are exclusively available to higher rarity realms. However, the quality or intensity of these attributes can still vary due to RNG.
Quality and Density Variations: Even for more common attributes, the RNG factor can result in extremely high quality or density. For example, a common resource might appear in unusually high concentrations, or a typical biome might have exceptional characteristics.
Unique Combinations: The RNG system can create unique combinations of attributes, potentially resulting in one-of-a-kind realms at any rarity level.
This RNG factor ensures that each realm, regardless of its base rarity, has the potential to be special and valuable in its own way. It encourages exploration and adds an element of surprise and discovery to the Endworld metaverse.
While higher rarity realms have better odds of generating rare and valuable attributes, the RNG factor keeps the possibility open for exciting discoveries in realms of all rarities. This system rewards not just those who invest in high-rarity bonds, but also lucky explorers who might find rare gems in unexpected places.
The Ender Bond and Realm Portal system creates a unique bridge between DeFi and gaming. It incentivizes longer bond periods and larger deposits while offering exciting opportunities in the Endworld metaverse. By carefully considering maturity periods, deposit amounts, and bond fees, participants can optimize their strategy for acquiring rare and valuable Realm Portals.
This system allows you to:
Earn yields through the Ender Protocol's liquid staking mechanism.
Acquire valuable NFTs in the form of Ender Bonds and Realm Portals.
Participate in a novel, time-locked minting process for metaverse realms.
Engage with a dynamic metaverse platform with various gameplay loops and mechanics.
Remember: Even after redemption, your Ender Bond NFTs retain utility for minting Realm Portals. Hold onto them for the upcoming Endworld Realm Portal Mint event!
By participating in this ecosystem, you're not just earning yields—you're securing your place in a vast, evolving digital universe backed by the power of Ethereum and shaped by the innovative mechanics of the Ender Protocol.
