Ellipsis (EPS)

What is Ellipsis?

Ellipsis is an authorized fork of Curve Finance, which implements secure and low-slippage stable swapping on Binance Smart Chain. As a fork of Curve, Ellipsis will receive support from the Curve team. In return, Ellipsis will ensure a few features: no deposit or withdrawal fees, no liquidity lockups, and high efficiency. 25% of the EPS total supply has also been allocated for the veCRV holders’ airdrop event.

Both Ellipsis and Curve follow the AMM (Automated Market Maker) model. AMM (Automated Market Maker) is the exchange model that enables decentralized trading by using algorithms and smart contracts to determine the price of the assets. These activities happen within a liquidity pool, where users contribute liquidity to gain incentives from the project, namely the project’s native token.

What is EPS Token?

EPS is the native token on the Ellipsis platform. It is regarded as a revenue earning token, which will primarily benefit liquidity providers and EPS stakers. They will receive a portion of the trading fees on a 50-50 basis.

How does Ellipsis work?

Ellipsis works pretty much like Curve. The project aims to provide the trading between stablecoins with the lowest slippage possible. Ellipsis does this by using two types of liquidity pools: 

• Base pools: 3Pool (BUSD-USDC-USDT), btcEPS (BTCB/renBTC).
• Metapools: 3Pool + 1 additional asset.

Metapools allow one token to be swapped to any of the tokens in the 3Pool. For example: A metapool can be DAI - 3Pool. Liquidity providers only need to deposit DAI into the pool, and users will be able to swap from DAI to any token in the 3Pool (BUSD, USDC, or USDT). This model benefits Ellipsis in a few ways:

• Focus on only a few main pools, which increases the liquidity of those pools and avoids sharding liquidity.
• Stablecoin projects can easily provide liquidity regardless of their low liquidity. This encourages other stablecoins to be added into Ellipsis liquidity pools, which eventually increases the chance of Ellipsis being able to provide access to every stablecoin.
• Increase the trading volume, therefore increasing the trading fees that liquidity providers can earn.

Liquidity providers will receive EPS as the reward. The rewarded EPS tokens come from the protocol’s trading fees and will be vested over three months. Users can decide whether to skip the vesting period for a 50% early exit penalty. The penalty cost will be distributed to users who lock EPS in the staking pool.

EPS stakers receive not only a portion of the trading fees but also 100% of the penalty fees mentioned above. Those fees will be immediately distributed to EPS stakers, which will be equally divided after 7 days.

This model is the main factor leading to the success of Curve Finance. Will Ellipsis on Binance Smart Chain accomplish the same thing as Curve on Ethereum?

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