Ellipsis is an Automated Market Maker (AMM) or exchange that lets users and other decentralised 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. To incentivize liquidity to deposit in Ellipsis pools, Ellipsis offers rewards in EPX tokens to liquidity providers.
What are liquidity pools?
Liquidity pools are pools of tokens that sit in smart contracts and can be exchanged or withdrawn at rates set by the parameters of the smart contract. Adding liquidity to a liquidity pool gives you the opportunity to earn trading fees and possibly rewards.
What are liquidity providers and LP tokens?
Liquidity providers (LPs) refers to the people who provide liquidity in Ellipsis' pools. For example, if you deposit USDC + BUSD into the 3EPS pool, you are a liquidity provider in the 3EPS pool.
When you deposit, in return you receive LP tokens representing your deposit in the pool.
What does it mean to stake LP tokens?
Staking LP tokens refers to staking your LP tokens in Ellipsis to receive the EPX rewards from a pool.
What is the EPX token?
Ellipsis (EPX) is the native token for Ellipsis. It has four main uses:
- As a reward for Liquidity Providers.
- For voting on pool incentives.
- Locking for platform fees.
- Locking to boost Liquidity Provider rewards.
Trading Fees
Ellipsis trading fees are 0.04% for stable or like-kind pools, and range from 0.04% to 0.4% for crypto pools like BUSD <> BNB.
50% of the trading fees are distributed to liquidity providers in the pools where the trades happen. The other 50% is distributed to EPX lockers.
What is a Week or Epoch on Ellipsis
A week on Ellipsis refers to the 7-day period between Thursdays, 00:00:00 UTC and Wednesdays, 23:59:59 UTC.
