After experiencing a surge of up to 600% in token prices, the L2 project Metis, renowned for its decentralized sequencer concept, continues to draw attention within its ecosystem.
According to the latest official announcement, the Metis community testing event that started in mid-January has seen over 100,000 individuals amass more than 300 million points in less than three weeks, with total interactions exceeding 3 million, stimulated by the anticipation of airdrops. 
Equally noteworthy within the Metis project are the ecosystem projects deployed on Metis. A rough estimate shows that the token prices of several mainstream ecosystem projects that have issued tokens on Metis have seen a maximum increase of 5 to 10 times amidst the rise of Metis, making new, unissued projects worthy of attention.
Among these, the first LSD protocol on Metis, Enki, which is about to issue its tokens and enter a key development phase in 2024, has garnered significant attention.
I.Enki’s Genesis Airdrop Plan
According to Enki’s official introduction, the total supply of ENKI tokens is set at 10 million, with the initial distribution outlined as follows:
- 10% — Genesis Airdrop Plan (including market influencers, partners, and early community supporters);
- 90% — Allocated for future distribution in various forms, with more details to be revealed in the upcoming Litepaper.
To maximize the utility of ENKI tokens within the product ecosystem, increase early supporters’ participation, and provide appropriate incentives, the Enki team will launch a Genesis Airdrop Plan named “Fantasy” in early February (exact date TBD), releasing 1 million ENKI (10%) as rewards for this plan.
The Genesis Airdrop Plan will be conducted in two phases.
The first phase is the testnet phase, distributing 250,000 tokens as follows:
- 25,000 for community participation and Trivia tasks
- 25,000 for testnet activity participation
- 100,000 for testnet Bug Bounty and marketing collaborations
- 100,000 for airdrops to loyal community partners
The second phase is the mainnet phase, distributing 750,000 tokens as follows:
- 200,000 for METIS staking rewards
- 400,000 for invitation rewards
- 150,000 for liquidity rewards
According to the Enki official website, the issuance of ENKI tokens involves no team reservation or private sales, and token releases at each phase are conducted fairly. Thus, the Genesis Airdrop Plan is worth paying attention to for users seeking Alpha returns from Enki.
The Fantasy Airdrop Plan will continue from the testnet phase to Enki’s official deployment on the Metis mainnet. Although many details are still undisclosed, it’s evident that interacting more with the Enki protocol is the most direct way to obtain tokens from this airdrop. Additionally, remaining active in the community could increase the weight of future airdrop reward distributions.
II.What is Enki?
Metis’s primary narrative revolves around its decentralized PoS sequencer pools, composed of sequencer nodes formed through METIS staking. This multi-sequencer approach enhances the network’s decentralization and stability, offering users the chance to enjoy sequencer rewards.
However, becoming a sequencer node is not straightforward. A basic requirement is staking 20,000 METIS tokens, a threshold challenging for average users to meet, coupled with election and whitelist reviews. Thus, for ordinary users, Enki represents the best avenue to participate in sequencer nodes.
Enki is an LSD protocol on Metis, officially recognized as a sequencer node, aiming to facilitate easy and convenient participation in sequencer node staking for ordinary users, thereby earning staking rewards.
Enki acts as a crowdfunded sequencer node, gathering METIS stakes from users, distributing staking rewards and node earnings based on stake weight. This approach is barrier-free, allowing any stake amount, from 1 to 10,000 METIS, to earn corresponding rewards.
III.How Users Earn Through Enki
Users don’t need to grasp complex technical principles or operations to participate in sequencer nodes; simple staking through Enki suffices for passive income.
After entering Enki, users first stake their METIS tokens, converting them into eMETIS (corresponding to the staking rewards in the airdrop plan), then re-stake eMETIS to convert it into seMETIS. Upon obtaining seMETIS, users can passively await their earnings.
According to Enki’s rules, when users claim earnings (eMETIS), 70% is credited immediately, with the remaining 30% going into the eMetis Vesting contract. To continue claiming this portion of earnings, users need to stake an equivalent amount of ENKI tokens, showcasing another utility of ENKI tokens beyond governance – as a profit amplifier.
Moreover, after converting METIS into eMETIS, users can pair it with METIS tokens for liquidity mining in Metis ecosystem DEXs like Netswap (corresponding to the liquidity rewards in the airdrop plan).
Enki thus designs two revenue paths for user-obtained eMETIS:
(1)Re-staking for seMETIS to collect staking (node) earnings
(2)Providing liquidity for the eMETIS/METIS trading pair to collect LP earnings
Enki’s design, inspired by another LSD project, Frax Finance’s dual-token model, theoretically allows users choosing between re-staking and providing liquidity to gradually reach a dynamic arbitrage equilibrium, keeping the returns of both options within the same range.
This ensures sufficient staking volume for the Enki sequencer node while meeting the market liquidity needs for eMETIS, leveraging DeFi’s flexibility and composability to support more protocols within the ecosystem.
IV.The Importance of Enki to the Metis Ecosystem
The decentralized sequencer, as a core component of Metis, indicates that Metis’s forthcoming primary efforts, including ongoing community testing, will revolve around this concept. The method to realize a decentralized sequencer pool is by allowing users to stake METIS to become sequencer nodes, collectively maintaining the operation of the Metis network.
Enki plays a crucial role in the Metis ecosystem, which can be described as a positive feedback loop.
By lowering the barriers for users to participate in sequencer nodes, Enki attracts more users to stake. As more users engage in staking, a significant amount of METIS tokens get locked, reducing market supply and potentially increasing token prices from a supply-demand perspective. Rising token prices mean enhanced staking rewards through Enki, prompting more investors to lock their tokens for stable returns, further reducing the market’s liquid supply, thus creating a value-driven positive feedback loop.
For Enki, the more users participate in the protocol, the higher the demand for its ENKI token (as a profit amplifier), naturally leading to a price increase.
Therefore, Metis and Enki share a symbiotic relationship. A recent tweet from Metis official suggests that “LSD will be the cornerstone of the Metis DeFi ecosystem.”
Moreover, considering the information released by Enki (details on liquidity support and mining incentives are yet to be announced), the 1 million (10%) tokens from the genesis airdrop plan will be the total circulating supply for a considerable future. Users wishing to obtain ENKI tokens would only be able to do so through the genesis plan.
This restricted issuance strategy will further intensify the market demand for ENKI tokens. As the Enki ecosystem develops and its user base expands, the demand for ENKI tokens is expected to continue growing, benefiting ENKI’s price.
V.Benefits of Joining “Fantasy”
Joining “Fantasy” offers a unique and exclusive opportunity to become an indispensable part of the Enki ecosystem before the official launch of the Enki mainnet.
ENKI tokens are not just digital assets; they play a crucial role in the staking mechanism, acting as “reward boosters” that enable users to unlock an additional 30% of sequencer rewards. This depends on the users staking a sufficient amount of ENKI tokens, highlighting the token’s critical role and sustainable utility within the platform.
Given the strategic importance of ENKI tokens, the Enki team has adopted a distribution method to ensure alignment with the ecosystem’s long-term stability and growth. Therefore, participating in “Fantasy” is the sole path to obtaining ENKI tokens before the protocol’s official mainnet launch.
To maximize the advantages for “Fantasy” participants, Enki established a 1:1 staking ratio on the testnet. However, to recognize the community’s commitment and early support, the team plans to significantly increase this ratio when transitioning to the mainnet, amplifying the benefits for early adopters and ensuring they derive maximum value from participating in “Fantasy.”
