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WEN Protocol is a decentralized, community-owned platform that enables users to obtain loans using Liquidity Staking Derivatives (LSDs) as collateral. pufETH serves as the core collateral asset within the WEN Protocol ecosystem.

Features

WEN Protocol aims to unleash the magical power of LSDs across the Defi ecosystem.

Dive in
wenUSD ≈ $1
Introducing a decentralized stablecoin full of potential backed by LSDs.
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115% Minimum Collateral Ratio
The minimum collateral ratio, aka MCR, refers to the lowest acceptable ratio of minted wenUSD to collateral assets needed to avoid liquidation. The protocol sets a minimum collateral ratio parameter 115%.
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Efficient Liquidation Mechanism
Liquidations ensure the system remain solvent. Thus,WEN Protocol's instant and efficient liquidations mechanismof Troves that fall under the minimum collateral ratio of 115% maintains the health and stability of the protocol, which implemented by a stability pool.
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Low Interest Loan
Users can mint and hold wenUSD by using their LSTs as collateral with minimal fees and interest rates.
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Governance
Wen Protocol will introduce an ES-Model to amplify the sustainability of the system, utilized by its native governance token esWEN.

How does WEN Protocol works?

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STEP 1

Deposit
Deposit your pufETH on WEN Protocol
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STEP 2

Mint wenUSD
Use pufETH as collateral to mint the exact amount of wenUSD you desire.
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STEP 3

Earn Interest and profits
Enjoy the interests of the WEN protocol and earn freely in various ways within the WEN ecosystem.

Calculate how much wenUSD you can mint

  • This is the maximum amount that you can generate at115% collateralization ratio.
  • Borrow less to secure your LSDs collateral position
  • Protect your LSDs collateral by keeping a higher collateralization ratio.
How much collateral do you want to deposit?
30 pufETH
What s your target collateralization ratio?
115 %
Estimated mintable wenUSD
wenUSD

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FAQ

Frequently Asked Questions

1. What is puffer ?
Puffer is a decentralized native liquid restaking protocol (nLRP) built on Eigenlayer 🐡🤝🟣 It makesnative restakingonEigenlayermore accessible, allowing anyone to run an Ethereum Proof of Stake (PoS) validator while supercharging their rewards.
2. What is WEN Protocol?
WEN Protocol is a decentralized, censorship-resistant, and community-owned protocol that allows users to take out loans using Liquidity Staking Derivatives(LSDs) as collateral. These loans come with minimal fees and offer up to 6.66x leverage, with payments made in wenUSD.
3. How does WEN Protocol work?
WEN Protocol combines LSD and Liquity, and supports a variety of LSD asset combinations based on the Liquity protocol.

    Here is a brief introduction how Wen Protocol works:

  1. Deposit - Users can deposit their ETH or LSDs into Wen protocol, they can either choose a strategy or approve their assets to a vault contract. The assets will go into different LSD protocol and start earning interests.
  2. Mint - Users can mint the native stable coin wenUSD against their assets used as collateral by opening a Trove, where incentivized by esWEN.
  3. Redeem - Redeem 1 wenUSD for $1 worth of LSDs when wenUSD pegging falls below $1 at any time.
  4. Liquidate - Secure Wen Protocol by providing wenUSD to the Stability Pool in exchange for rewards paid as liquidation fee and esWEN.
  5. Earn - Providing liquidity for $WEN/ETH and wenUSD/USDC LP pool to earn reward paid in esWEN, CRV, CVX and transaction fees.
  6. Stake - Stake esWEN to earn the protocol fees such as minting fee, redemption fee and annual fee, earn esWEN and govern the system.
  7. Lock - Buy and Lock WEN from the market, convert it into esWEN to earn protocol incomes and governance the system.
  8. Unlock - Unlock esWEN and convert it to WEN at anytime through a cliff-linear-vesting process.
  9. Governance - Vote on WEN Improvement Proposals to decide the future of WEN protocol.
4. What are the key features of the WEN Protocol?
  • Low Interest Loan
  • Protocol Controlled Interest Rate
  • 115% Minimum Collateral Ratio
  • Efficient Liquidation Mechanism (ELM)
  • Diversified Underlying Assets
  • Governance
5. What is wenUSD?
wenUSD is over-collateralized by LSDs and is 1:1 pegged to USD.
6. What is $WEN?
$WEN is the native token of WEN Protocol. It captures the value that is generated by the protocol and also incentivizes system participants.
7. What is esWEN?

esWEN is escrowed $WEN, which has the same value as WEN. esWEN is not tradable nor transferrable but can be used for governance.

8. How can I get $WEN & esWEN?

$WEN can be earned in 2 ways:

  • Buy directly in WEN/wETH pool
  • unlock esWEN

esWEN can be earned in 4 ways:

  • Minting wenUSD via protocol
  • Providing liquidity to the WEN/wETH pool, and stake the LP in WEN protocol
  • Depositing wenUSD into the Stability Pool
  • Providing liquidity to the wenUSD/USDC curve pool, and stake the LP in WEN protocol
9. What benefits can I earn with esWEN?

esWEN is the core of WEN Protocol ecosystem. The holders can enjoy the following benefits:

  • Share protocol revenue
    • Staking esWEN can earn the protocol fees generated by wenUSD issuance/ redemption / Annual fee.
  • Stake esWEN to govern
    • Voting for proposals from the community, where the voting power depends on staking time

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