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Last updated: Nov 22, 2022
Ellipsis Finance describes itself as an authorized fork of Curve Finance. Since Ellipsis Finance receives support from the Curve Finance team, they have committed to following the core values of the protocol which include providing the community with trustless and decentralized architecture without deposit or withdrawal fees, no lockups on liquidity, and very efficient stablecoin exchange.
The company acts as an AMM allowing users to trade between various stablecoins with low slippage, by employing liquidity pools and offering rewards to liquidity providers. Half of the fee charged for trades on the protocol is split between all liquidity providers, and the other half goes to EPS token stakers.
To facilitate its trades the company utilizes three types of pools. Factory pools are permissionless and can be created by anyone, although they could be ordinary LP pools, they can also be meta pools. In them, there could be up to four tokens including stablecoins and pegged BTC or BNB. Since factory pools can be created by anyone, Ellipsis Finance warns its users to make sure they understand the assets in them before they provide liquidity.
The Meta pools provide for token trades with an underlying Base pool and are aiming to prevent dilution of the existing pools, while allowing Ellipsis to list less liquid assets, and provide more volume, hence more trading fees for liquidity providers.
As a result of the collaboration with Curve, veCRV token holders are eligible for an airdrop consisting of 25% of the supply of EPS given to the community in batches of a bit less than 0.5% each week, from the launch of the platform in March 2021 for a period of a year.
Liquidity providers earn their share of the fees generated on the platform through a Reward Pool in the form of EPS tokens which can be claimed at any time but are vested for three months. In case a user doesn’t want to wait that much, there is a possibility to exit their positions early for a 50% penalty.
The Staking Pool rewards EPS token stakers with trading fees as well as early exit penalty tax accumulated from people exiting the Rewards Pool early. There is no mandatory lock-up required for participation in the Staking Pool.
80% of LP rewards are distributed to all liquidity providers, whereas the other 20% are given specifically to EPS/BNB liquidity providers.
Users can deposit into any of the company’s pools through the Ellipsis Finance app. When using a Base Pool to stake any combination of its supported assets, users receive LP tokens representing their share of ownership in the pool, which can be staked for EPS. Bonuses depend on the size of the coin’s share of the pool, however once a stablecoin is deposited it gets split over the different coins in the pool, thus gaining exposure to all of them.
Meta Pools interactions are the same as the Base Pools ones, however, users can deposit as little as one type of token in them, if the deposit is in the form of a stablecoin, it will also get split over the various coins in the pool to gain exposure to all of them.
When using Factory Pools, clients of the platform are not required to deposit their LP tokens in order to receive bonuses such as Ellipsis Finance fee rewards offered by the underlying pool. As long as a Factory Pool has rewards to offer, they are claimable through a tab called “Rewards” which appears on the pool’s page.
To earn EPS with LP tokens, users need to visit the staking page of the Ellipsis Finance app, choose the pool representing their tokens and deposit them via a transfer to the rewards smart contract. Once the deposit is finished, users begin earning fees, and their claimable balance increases each time a new block is mined.
Ellipsis Finance wallet support includes MetaMask, Binance Chain Wallet, MathWallet, and XDEFI Wallet.
The Ellipsis token EPS is a revenue earning token, which can be staked to earn fees from the protocol. Its total supply is 1,000,000,000 tokens, out of which 50% are allocated towards LP Rewards, 25% were airdropped weekly for a year, starting March 2021 to all veCRV holders, and the rest is left for the team with a one-year vesting period.
The token can be staked by locking it into Ellipsis Finance’s fee distribution contract, however once locked the assets cannot be withdrawn for at least 90 days. To incentivize users into locking their EPS tokens, the project offers them 100% of the penalty fees paid by users withdrawing vested tokens early. These rewards are released evenly over seven days.
The Ellipsis Finance team has decided to keep their identity anonymous and unlike other projects, whose developers’ identity is kept private, has not released any information on the past experience of its team members.
The Hacken audit report highlighted a possible exploit in the rewards contract which allows the admin of the contract to direct the EPS rewards to themselves. In order to patch the vulnerability, the team created a multisig with Michael Egorov, the Curve Finance founder, Ben – Curve Finance CTO, banteg – lead developer for Yearn, and the two co-founders of Ellipsis named only with their first names - Alex and James.
Ellipsis Finance audits can be found in the protocol dashboard on this webpage.
Besides a partnership with Curve Finance whose team helps in the implementation of Curve’s smart contracts on the Ellipsis Finance platform, the company is working on establishing close relations with stablecoin projects. So far, they are working with protocols like TrueUSD and USDL among others. USDL and other synthetic assets can be minted on the TopShelf Finance platform, which is also collaborating with Ellipsis Finance. Geist Finance is also partnering with the platform and even offered its token’s airdrop to EPS token holders.
Ellipsis Finance has not released a public roadmap for 2022 yet. The 2021 one can be found on their blog here. The team claims on their Telegram chat, that typically products with roadmaps are ICOs or just ideas and are not fully functioning, whereas the Ellipsis Finance protocol was launched as a fully functioning service from day one. In the future, their focus is on adding more pools to drive user growth, adoption and revenue. Ellipsis Finance is selective and claims to add only “fully vetted” stable coins to their platform, as they enter the BSC ecosystem.
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