Ellipsis Finance

Background and History

Ellipsis Finance was launched to provide a decentralized platform for stablecoin swaps, addressing the need for low-slippage and efficient stable asset trading in the DeFi ecosystem. As a fork of Curve Finance, Ellipsis inherits many of Curve’s key features but adds its own unique mechanics to enhance user experience. The platform allows users to deposit stablecoins into liquidity pools, providing liquidity while earning rewards.

Over time, Ellipsis has integrated more advanced features, including metapools, to enhance flexibility in asset management and liquidity provision. The platform’s governance and incentive mechanisms are powered by the EPX token, which replaced the earlier EPS token following a migration.

Key Features and Technologies

Stablecoin Pools (Base and Metapools)

Ellipsis supports both base pools and metapools, which allow users to provide liquidity for stablecoins and earn rewards. These pools are optimized for stablecoin trading, offering low-slippage transactions.

• Base Pools: Users can deposit stablecoins into the base pools to provide liquidity and earn EPX rewards. These pools are designed for efficiency, ensuring minimal price impact on stablecoin swaps.

• Metapools: Metapools enable the addition of new stablecoins to the platform without requiring new base pools. This enhances the flexibility of liquidity provision and allows new stablecoins to integrate more easily into the existing pool structure.

Liquidity Provision and Staking

Liquidity providers (LPs) on Ellipsis can stake their LP tokens to earn EPX rewards. By staking, users not only receive rewards but also participate in the platform’s governance mechanisms.

• EPX Rewards: Liquidity providers earn EPX tokens by staking their LP tokens. These rewards incentivize long-term participation in the platform and provide a passive income stream for users.

• Locking for Enhanced Rewards: Users can lock their EPX tokens for a specified period to boost their rewards. This mechanism encourages long-term commitment and participation in the platform’s governance.

Incentive Voting and Pool Votes

Ellipsis allows EPX holders to participate in incentive voting, where they can vote on how rewards are distributed across various liquidity pools. This mechanism ensures that rewards are allocated according to the community’s preferences.

• Pool Voting: In addition to staking and providing liquidity, EPX holders can vote on which pools should receive more incentives. This democratic process ensures that rewards are distributed fairly and in line with user preferences.

• Governance and Participation: Ellipsis’s governance model allows users to have a direct say in platform decisions through EPX voting, further decentralizing the platform.

Migration from EPS to EPX

Ellipsis transitioned from the EPS token to the EPX token in a move that streamlined governance and rewards distribution. The migration improved the platform’s incentive structures and governance, allowing for more efficient and transparent tokenomics.

• Migration Process: EPS holders were able to migrate their tokens to EPX, and the new tokenomics introduced mechanisms for staking, locking, and governance participation.

Usage and Applications

Stablecoin Swaps

Ellipsis provides an efficient platform for stablecoin swaps, allowing users to trade stablecoins with minimal slippage. This feature is critical for users looking to move between stable assets without facing significant price volatility.

Liquidity Provision and Yield Farming

Users can provide liquidity by depositing stablecoins into the base and metapools, earning yield in the form of EPX tokens. The ability to stake LP tokens for additional rewards makes Ellipsis an attractive platform for liquidity providers.

Governance and Voting

EPX holders participate in governance through voting on important platform decisions, including the distribution of rewards and the addition of new liquidity pools. This decentralized governance structure ensures that the platform remains aligned with its users’ interests.

EPX Token: Governance and Utility

Overview

The EPX token is the native utility and governance token of Ellipsis. It is used for staking, liquidity provision rewards, and governance participation.

Tokenomics

• Total Supply: The total supply of EPX tokens is capped, ensuring a deflationary model over time.

• Utility: EPX tokens are used for staking, voting, and earning rewards. They play a critical role in the platform’s governance and incentive mechanisms.

• Incentive Voting: EPX holders can vote on how rewards are allocated across liquidity pools, ensuring a fair and decentralized reward distribution system.

Governance Structure

Ellipsis operates a decentralized governance model where EPX holders can submit and vote on proposals related to the platform’s development and reward structures. Governance is a core component of the platform, giving users control over key decisions.

Notable Events

• April 2021 — Ellipsis Platform Launch: Ellipsis launched its stablecoin-focused platform, providing liquidity pools for efficient stable asset swaps.

• April 2022 — EPS to EPX Migration: The platform completed its migration from EPS to EPX, improving governance and reward distribution mechanisms.

• July 2022 — Enhanced Staking and Locking Features: Ellipsis introduced new staking and locking features, allowing users to earn enhanced rewards through long-term participation.

Relevant Metrics and Data

• Total Value Locked (TVL): Ellipsis has consistently maintained a high TVL, reflecting its strong user base and liquidity provision.

• Transaction Fees and Rewards: Users pay minimal transaction fees for stablecoin swaps, with rewards distributed to liquidity providers and EPX stakers.

• Security Audits: The platform has undergone several security audits, ensuring the safety and reliability of its smart contracts.