Introduction
Since its start, the DeFi business has grown tremendously and there are no indications of a recession in sight. People from all around the world are drawn to the concept of financial independence and the potential for passive income.
DAI “stablecoin” and CDP, which stands for “collateralized debt position,” were introduced by Maker as early participants in this market. Typically, a CDP entails depositing ETH or other tokens in order to get a loan in DAI stablecoin, which is supposed to mirror the US dollar. DAI’s 1:1 dollar peg is under Maker’s control because of the interest rates he sets on loans.
Correspondence-backed loan, a holdover from the days of traditional banking, has been critical to the growth of the sector. The “global debt pool” was a groundbreaking addition to Synthetix’s derivative asset emission mechanism. It is possible under this paradigm to mint synthesizers, which are tokens based on cryptocurrencies and real-world resources, by depositing tokens in the pool. As a result of this process, debt is created, and as a result, the value of the newly created assets fluctuates. Each participant’s share of the pool’s debt is distributed according to their original participation.
Another significant moment in DeFi’s brief but rich history is the introduction of “bonded curves” and the creation of “automated market makers” (AMM) like Bancor Network and Uniswap. Due to the fact that users trade directly into the smart contract’s liquidity, AMM protocols do not need the physical presence of both parties to a transaction. As part of the exchange fees earned by transactions, liquidity providers provide cash in exchange and a well structured bonding curve allows buyers and sellers to access the liquidity, punishing them for exhausting it.
It became more common for projects to use AMM protocols, and they explored strategies to boost liquidity in their pools. This led to the rise of “liquidity mining,” in which projects reward users who supply liquidity for them with tokens of their own.
Protocol interoperability increased as a result of the proliferation of the ecosystem, which is now being used as the building blocks of the new financial system. Many projects have given over control of their own infrastructure to a decentralized party formed of users and stakeholders that hold “governance tokens” as a result of the widespread adoption of trust-less design and the DAO’s (Digital Autonomous Organization) ideology. Additionally, this form of token is utilized by projects to incentivize liquidity provisioning and other actions, such as voting on proposed changes. It is nicknamed “yield farming” by users when interoperable protocols are used in conjunction with activities like staking and liquidity mining.
Algorithmic stablecoins and rebase tokens have been tested recently as a result of new concepts. Ampleforth and Olympus DAO are two of the most renowned projects. Stablecoins that are based on algorithms instead of debt and collateral strive to maintain a constant value by adjusting the supply and demand of the underlying asset. Though not strictly a stablecoin, Olympus DAO is tasked with issuing and managing a free-floating stable asset that is entirely supported by algorithms (OHM).
The fact that so many more or less serious copy-cats are seeking to profit on the concept shows how well-publicized this ambitious endeavor has become. We suggest reading the Olympus documentation to understand more about the protocol’s inner workings.
Features of Elysian Finance
This project, called Elysian Finance (LYS), is designed as an alternative to the present status quo, drawing inspiration from OHM but with a distinct approach to system design. Smart contract architecture may be upgraded (EIP-1822 proxy pattern) and modularized with our contribution, which includes extra functionalities like:
An over-the-counter bond and bond inverse market.
Automation of protocols
Governing the blockchain and implementing NFTs. On top of ve(3,3) “vote-escrow” mechanism, we provide a second layer of incentives for staking on top of risk-free value (RFV), protocol owned liquidity, and compounding returns. As of now, the project is under active development, and we plan to debut in early 2022, during the first quarter of that year.
The method of distributing information
Pre-Elysian (pLYS), a derivative of LYS with an option-like behavior, will be distributed in the forthcoming round. For every LYS coined, there must be a reserve of $1. pLYS holders have the right to mint LYS by burning 1 pLYS and depositing $1 worth of a reserve asset for every token created.
Since pLYS vests dependent on supply, it is a long-term gamble and there are no precise dates at which the circulation is artificially inflated. pLYS behaves like an option since it can only be redeemed when LYS is trading at a premium to its intrinsic value. Early backers, advisers, and members of the team will be able to accumulate their pLYS when the supply hits 12 percent. At 1 million units of supply, there will be 120k reedemable pLYS; at 10 million units, there will be 1,200,00 pLYS; and so on.
For the Pre-Elysian distribution, you’ll first need to be whitelisted. Our official website has a form for requesting to be removed off the blacklist. There are only a limited number of seats available, and we will close the application process as soon as they are gone.
In the financial sector, there are many different systems at work: foreign exchange (forex), leveraged trading (leveraged options), bonds (derivatives), etc. The trust between investors and fund managers is essential to the success of these systems, which include several financial intermediaries. The expenses of enforcing such regulations are enormous, making it difficult for newcomers to enter the market. The present asset management sector is clumsy, inefficient, and susceptible to the actions of unscrupulous actors since each intermediary is a potential point of failure (think Bernie Madoff). Elysian Finance’s goal is to enhance asset management protocols in the web3 world by using blockchain technology. As part of our strategy, we codify best practices in the industry (such as fraud prevention and correct accounting) and remove middlemen. An asset management infrastructure driven by smart contracts has a lot of promise since it can speed up procedures and eliminate barriers to entry while also increasing transparency and giving investors more influence. Elysian Finance has the potential to become a dominant platform in the DeFi 3.0 age, since most financial protocols are rapidly embracing automation.
The confluence of finance and encryption is where our group of computer science nerds works. Smart contracts and network security are only a few of our prior experiences with distributed systems. It is the team’s mission to improve the ecosystem and contribute positively to this sector. Innovation and careful management of human and financial resources are the means through which we want to accomplish this.
For more information visit :
Website : https://elysian.finance/whitelist
Twitter : https://twitter.com/Elysian_Finance
Github : https://github.com/ElysianFinance
Discord : https://discord.gg/gNFfBfV4he
Telegram : https://t.me/elysianfinance
#ElysianFinance #DeFi #ETH #Ethereum #LYS #DAO
Bitcointalk Username: AF_Nill
ETH Wallet Address: 0xB986D0FC970aF72261A0932F65c657CAc5A6D0a1
Really nice project
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