How ELPP Works

Basic Flow

ELPP works through a straightforward process:

Liquidity Contribution:

• When you deposit funds, you receive ELPP tokens representing your share in the pool.

• These tokens track your ownership and reflect your claim on the pool’s assets and trading outcomes.

Broker Operations:

• A dedicated market maker utilizes the pooled liquidity to execute trades on the market..

• Profits (or losses) from these operations directly impact the pool’s value.

Automatic Profit Distribution:

• Profits increase the value of each ELPP token automatically

• Trading gains are automatically put in the pool, increasing the value of each ELPP token.

• This model eliminates the need for manual claiming or harvesting of rewards.

Main Components

The Liquidity Pool

The core of ELPP is a shared liquidity pool that:

• Collects assets from multiple providers

• Functions as a tokenized vault (each provider receives tokens representing their share)

• Automatically distributes profits to all participants

• Protects against sudden mass withdrawals

The Broker (Market-Maker)

The broker component:

• Uses pooled liquidity for market-making operations

• Executes trading strategies to generate profits

• Reports performance metrics that affect the withdrawal system

The Epoch-Based Withdrawal System

The withdrawal system:

• Divides time into fixed periods called "epochs" (typically 3 days each)

• Assigns withdrawal requests to future epochs based on performance

• Ensures orderly exits that protect the pool during market volatility