Ender Protocol

Available and Reserve Funds

A part of the treasury management system, we have a protocol design for the access and utilization of the LST bond deposit funds in which we use to deploy or deposit further into various strategies and vaults.
As part of the treasury system and bonds, we must actively process the bond deposit redemptions as bonds are matured and redeemable by the users. Thus, we employ a system of tracking and account for the available funds and the reserve funds which must be separated to allow for the continuous redemption flow of the deposit assets.

Available Funds

The available funds are determined by the funds which are not part of the reserve funds, once the reserve requirement has been met. These funds are then used to deploy into the available Vaults and Strategies which the protocol has integrated with.

Reserve Funds

The reserve funds are the pool of LST assets deposited through the bonds, which are kept track of in order to meet the redemptions of incoming matured bonds. We assume that all bonds upon maturity will be immediately redeemed and the principal withdrawn, and thus must have the funds available in reserve to meet the redemptions.
Due to this, we are tracking for each bond's maturity period, and using an automated system, will use incoming bond deposits to meet the redemptions based on the Reserve Requirement, or withdrawing from the strategies based on the priority basis of strategies which are determined during our integration process based on the ease of (like having a withdrawal period) and cost of withdrawal.
We have to account for any potential withdrawal period of these strategies, and therefore must have a threshold for this period to make sure the funds are made available for redemption with preemptive withdrawal from strategies with a withdrawal period.

Reserve Requirement

We employ a simple system to track the reserve requirement based on the bond periods. From the initial deposit into the bonds, we are adding the principal of deposit which will be redeemed upon maturity and setting that as part of the reserve requirement within a threshold of days before the maturity of that particular bond.
That means, the reserve requirement will automatically increase before the redemption time, and thus, will look to withdraw from the strategies, or use incoming deposits which are first put into the reserve funds before being deemed as available funds. This allows us to not have to withdraw from strategies whenever we can to keep as much of the deposited assets within the treasury into the strategies, but at any one time, there will never be a full deployment of funds into strategies.

Treasury Backing

The treasury assets backing END minted via the bond yield and rebasing are being backed by the treasury assets which are also deployed to active strategies and vaults. These assets are treated as the same as the bond deposit assets, with the exception that they will not need to be redeemed as they are coming from the LST yield and various fees taken through the protocol.
These assets may be used and will become partially used to meet the redemptions of the bonds. This is because they are not distinguished or stored as separate funds, they are simply accounted for as part of the backing, but are pooled or intermixed with the whole of the treasury assets.
Based on the treasury backing and rebasing calculation, the backing assets are always held in the treasury as the Treasury Assets and the bond deposits are always redeemable 1:1 for the original principal deposit (minus the bond fee if one was set), and thus the value of both shall remain fully backed based on the protocol's code.