Crypto Focus: Why EPX posted over 40% gains in one week

The cryptocurrency market has spent most part of the year struggling as the market has been in a downtrend that has sent many cryptocurrencies to fall from regions seen as all-time highs over a year ago, to trade at price points not seen since the recovery from the COVID-19 pandemic.

While the month of May has been particularly bearish for the cryptocurrency space with Bitcoin below the $27,000 support zone, we are seeing the same effect in the United States stock market with the Tech-dominated NASDAQ index posting its 7th consecutive week of decline.

Although the market has been struggling, notable cryptocurrencies like EPX post gains week in, week out, defying Bitcoin, the market leader, as investors continue to invest in projects with promising potential. EPX, the native token of the Ellipsis Finance, in what is a very bearish week, still managed to post over 40% of gains for the week. In fact, in just 13 days, the token has gained approximately 200%.

What is Ellipsis Finance all about?

Like we saw late year with DAOs like Wonderland, Ellipsis Finance is an authorized fork of Curve Finance on the BNB chain.  It is an Automated Market Maker (AMM) or exchange that lets users and other decentralized protocols exchange tokens (BUSD to USDC, for example) with low fees and low slippage.

Unlike exchanges that match a buyer and a seller, Ellipsis uses liquidity pools. To achieve successful exchange volume and low slippage, Ellipsis needs a high amount of liquidity (tokens) in the pools. The platform allows for stable coins swap with very low slippage and minimal fees. To incentivize liquidity to deposit in Ellipsis pools, Ellipsis offers rewards in EPX tokens, its native token, to liquidity providers.

As previously mentioned, Ellipsis (EPX) is the native token for Ellipsis. It has four main uses which are; As a reward for Liquidity Providers, for voting on pool incentives, for locking platform fees and for locking to boost Liquidity Provider rewards.

As a result of this agreement between Curve and Ellipsis, veCRV holders will receive 25% of the supply over the next 12 months. Curve Finance will provide support to the Ellipsis team. Ellipsis, in turn, has pledged to commit to Curve’s core values of which are; no deposit or withdrawal fees, no lockups on liquidity, and extremely efficient stable coin swaps.

The platform recently launched Ellipsis 2.0. While the first Version has been providing Curve’s StableSwap protocol to users on the BNB chain, this new version will bring other dimensions of Curve to Ellipsis. These include; Reward gauge voting, Reward weight voting and Reward boost.

To add, token holders will be able to lock their tokens for vote weight and use that weight to vote on adding rewards to pools, and on which pool they would like to direct rewards. A user’s locked tokens will also determine the level of APR boost to apply to their Liquidity Providing rewards.

What you should know

  • The token is one of the top trending coins, currently ranked #7 on CoinMarketCap.
  • It is up over 30%, as of the time of this writing with a circulating supply of 1 billion EPX tokens and a fully diluted market capitalization of $2.15 million.
  • We have seen a significant spike in the volume of transactions of the token by over 700% as more people gain interest in what the platform is doing and its native token.
  • It currently has a volume of over $200 million after the launch of Ellipsis Finance 2.0.
  • As of the time of this writing, it’s 4th largest pool, which recorded the highest volume in the last 24 hours, the USDD/BUSD pool has a Total Value Locked (TVL) of $31.7 million and it is offering an APR (Annual Percentage Return) of 19.79%. Its largest pool has a TVL just a little above $50 million.

Ellipsis Finance currently ranks #9 in TVL rankings among all the Binance Chain DeFi platforms according to DeFi Llama. It has a total TVL of $192.95 million as of the time of this writing, up 10% for the day.

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