What is Ellipsis?
Ellipsis is an Automated Market Maker (AMM) or exchange that enables users and other decentralized protocols to trade tokens (such as BUSD to USDC) with low slippage and low cost.
Instead of using exchanges that match buyers and sellers, It uses liquidity pools. Ellipsis requires a large number of (liquidity tokens) in the pools to achieve successful exchange volume and less slippage. To reward liquidity providers for adding liquidity to their pools, Ellipsis offers them EPX tokens.
What are liquidity pools?
Liquidity pools are pools that can be exchanged or withdrawn at rates determined by the smart contract’s specifications. These pools of tokens reside in smart contracts. You can potentially earn trading commissions and prizes by adding liquidity to a liquidity pool.
What is the EPX token?
EPX is the native token for Ellipsis.
EPX token has four main uses:
- Reward for Liquidity Providers.
- Voting on pool incentives.
- Locking for platform fees.
- Locking to boost Liquidity Provider rewards.
Understanding $EPX
The main goal of the EPX token is to reward Ellipsis.finance’s liquidity providers and allow users access to the incentive distribution. Voting, locking, and boosting are the three main uses of EPX at the moment.
Users may lock EPX for up to a year, allowing them to:
- Incentives for liquidity providers in the EPX pool are up for a vote.
- Receive boosted yields as an LP.
- Receive platform fees.
- Vote on which pools qualify for incentives.
Key Takeaways:
- Trading Made Easy: Ellipsis makes buying and selling tokens simple and cheap, thanks to liquidity pools and EPX tokens.
- EPX Tokens Are Awesome: EPX tokens do a bunch of cool stuff – they give you rewards, let you vote, and make things extra rewarding for those helping with liquidity.
- Lock Your EPX for Perks: If you lock your EPX tokens, you get cool stuff like rewards, extra earnings, and a say in voting for pool rewards.
- Fun Weekly Voting: Every week, people who locked their EPX vote on how rewards should be shared among different pools.
- Helps Projects: It’s not just for people; EPX also helps projects with stablecoins, synthetic tokens, and growing their money.
- Add Your Token Easily: Anyone can join Ellipsis – just add your token by providing some initial money.
Locking
Owners of EPX may lock their EPX to receive vlEPX. You’ll get more vlEPX the longer you lock EPX. Users of Ellipsis 2.0 can:
- Vote on incentive distribution between pools.
- Receive platform fees.
- Boosting EPX rewards.
- Make suggestions for new pools to be considered for EPX rewards.
vlEPX: Vote-locked EPX, or vlEPX for short, is just EPX that has been locked for a period of time. More vlEPX is awarded the longer you lock EPX. vlEPX cannot be transferred.
Some things to note:
- Each user’s account can have several locks.
- Voting is optional for lockers. Even if lockers do not vote, they may still claim platform fees.
- Ellipsis 2.0 operates on a weekly epoch that begins on Thursday at 0:00 UTC. As a result, voting is restarted each week as your lock expires in one week.
- The previous week’s fees are used to pay out locker incentives. Every Thursday, users who were locked throughout the previous week receive a new balance of fees.
Incentive Voting
Users can vote to decide how the weekly EPX incentives are distributed between the various pools using incentive voting. These votes, which start on Thursdays at 00:00:00 UTC and terminate on the following Wednesday at 23:59:59 UTC, are open to users with locked EPX, or vlEPX. By the results of the vote, 1/4 of the EPX awards for that month are divided and given to the pools when voting is over. Each week, the voting cycle starts again and the votes are reset to zero.
Why Would a Project Use Ellipsis?
The examples given in cases 1 and 2 below are just a couple of the obvious use cases for Ellipsis in projects and protocols. Then there are also less obvious and inventive options for protocols to employ it, as seen in case 3 below.
Ellipsis is a Curve fork, and the so-called “Curve wars” have shown that there are a variety of innovative methods to use Curve, and projects built on top of Curve, to boost a project’s treasury or simply increase more returns on its holdings.
Use Cases
1. The StableSwap protocol, a more effective swap protocol for pegged tokens, is used by stablecoin projects, and would benefit from using its pool as they use the StableSwap protocol for swapping, this is a swap protocol for pegged tokens that is more effective. By employing Ellipsis rather than DEXes like PancakeSwap, a pool’s underlying tokens are more likely to maintain their peg.
2. For the same reason mentioned in point #1, a project with a synthetic token, such as ANKR’s aBNBb, is better off using its pools. Ellipsis pools, as opposed to DEXes like PancakeSwap, making it simpler to maintain a peg.
3. By depositing into Ellipsis and using one of the many tactics that involve its EPX token to grow their EPX token holdings, fee rewards, or bribe+fee+third party tokens on other platforms like dotdot.finance, a protocol with Protocol-owned Liquidity, or a treasury with stablecoins could use Ellipsis pools to grow their treasury.
List your token on Ellipsis
Anyone can permissionlessly add their token using Ellipsis. For the trading pair they are adding, the user must add the necessary liquidity. For instance, you would need to give the initial liquidity to create the pair to add your token paired with BUSD.
Conclusion
Based on crypto experts and analysts Ellipsis is looking good and this could be an indication that it can go bullish in the future. This coin is looking good currently and can be a profitable coin in the upcoming time.
Note: It is important to understand that crypto coins are highly volatile and uncertain so please do proper research and follow the current status of any coin that you think is good for investment and also make sure to the decide entry and exit point of any crypto coin before investment.
Ellipsis FAQ
What is Ellipsis crypto?
What is the EPX token?
Is Ellipsis crypto a good investment