Introduction to ELPP
We are excited to announce the upcoming launch of our new Electra Liquidity Provider Pool (ELPP)! ELPP is designed to empower you—our community of liquidity providers—to participate in market making on a transparent, community-owned platform.
What is ELPP?
The Electra Liquidity Provider Pool (ELPP) is a community-focused financial infrastructure that efficiently attracts and manages liquidity from users across multiple chains. It functions as a tokenized vault (following the ERC-4626 standard) that enables market-making operations while distributing profits generated from these activities to all liquidity providers.
Key Features and Benefits
Transparent Profit Sharing: Earn returns from market-making operations without active trading. Profits and losses from market making are automatically distributed proportionally among all liquidity providers
Community-Driven: Opens up market making to everyone in the community, ensuring that gains are shared fairly
Multi-chain Liquidity: Deposit funds from ETH, BSC, and other blockchain networks
Protected Withdrawals: Epoch-based system protects against market volatility
ELPP in the Electra Protocol Ecosystem
ELPP serves as the financial backbone of the Electra Protocol, creating a symbiotic relationship between liquidity providers and market-making operations:
Liquidity providers contribute assets to the pool
The broker (market-maker) uses these pooled resources for trading operations
Profits from trading increase the value of ELPP tokens
The epoch-based withdrawal system maintains stability during market fluctuations
By contributing funds to ELPP, you not only share in market-making profits but also support and help to build a more resilient and community-focused financial ecosystem.
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