Everyone knows that the Cosmos Ecosystem is hot right now, and its newest entrant Elys Network is redefining the DeFi landscape with its Cosmos SDK-built, Layer 1 blockchain. Elys is just about to launch a private test net, with plans for a public test net later in 2024. Let’s delve into the key aspects that make Elys Network a game-changer in DeFi.
A Suite of Innovative Features
Elys Network is not short on innovative functionalities. The platform is equipped with a multi-token infrastructure, a revenue-sharing model, a unique reward structure, staking/governance, and an AMM DEX. These features, coupled with opportunities for passive income on stablecoins, provide users with a comprehensive suite of tools for optimizing their financial strategies.
There are various tokens within the Elys ecosystem, and each serves a unique purpose:
ELYS – staking & governance token of ELYS Network
EDEN – reward token earned by both stakers & liquidity providers
ELYS-LP – Liquidity Providers can receive a pool token (LP token) or a molecule token. Molecule Tokens are assigned to a multi-asset index. For example, holding a molecule token would get exposure to Atom, ETH, BTC, and USDC. Find out more about molecule tokens here.
EDEN-Boost – a multiplier token to reward long-term stakers.
Revenue Sharing Model
- Applicable for LPs, validators, and delegators, distributed in USDC.
Non-Inflationary Revenue Sources
- Margin Trading Interest Fees
- Styx (Cross Chain Omni Bridge) Fees
- Swap Fees
- Transaction Fees
- MEV (Maximum Extractable Value)
Revenue Sharing Distribution
- Stakers/Delegators: 35% of DEX revenue
- Liquidity Providers: 65% of DEX revenue
- During the initial liquidity bootstrapping phase, rewards will be distributed in EDEN and EDEN-Boost, and given to ELYS stakers and liquidity providers.
- Once users earn EDEN they have three choices of what to do with it:
- Commit It – a way to compound your EDEN rewards (earn EDEN-Boost). Can be uncommitted at any time. No unbonding period. After EDEN is uncommitted, it can be claimed, vested, or re-committed.
- Claim It – deposited into your wallet and able to be swapped.
- Vest It – lock EDEN for ELYS in a 180-day time frame. Locked EDEN is burned and turns into ELYS in a 1:1 ratio over the 180-day timeframe. During the locking schedule, the EDEN is turned into liquid ELYS which the user can claim and use however they want. Locking can be canceled at any time.
- EDEN-Boost is earned while ELYS is staked or EDEN is committed and is aimed at rewarding long-term holders and has a 100% APR. You can also commit EDEN-Boost to earn additional EDEN.
- Delegate ELYS to a validator node on the Elys Network
- Participate in governance
- Earn rewards (35% of DEX revenue) paid in USDC, EDEN, and EDEN-Boost (based on your choices from the Rewards section).
- The initial unbonding period is 14 days (this could change with a governance vote).
Elys Network is more than just a new player in the cryptocurrency space; it’s a trailblazer in the DeFi landscape within the Cosmos Ecosystem. With its innovative multi-token infrastructure, revenue-sharing model, rewards system, and staking, Elys Network is poised to make a lasting impact in the blockchain and DeFi space. As we watch its journey unfold, Elys Network is undoubtedly set to redefine the standards of DeFi.
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