Introduction

Elys Network is a decentralized perpetual trading and leveraged lending platform based on oracles, featuring an ETF-style multi-asset index pool. Its key characteristics include high scalability, interoperability, security, high TPS, and low transaction fees. Elys Network aims to become the PerpDex and all-in-one DeFi consumer chain for the Cosmos Hub. Currently, Elys Network is preparing to launch on its mainnet.

Funding Background

Funding Information

On June 14, 2024, Elys Network completed its seed round of financing, raising $2.5 million. Cogitent Ventures, Comma3 Ventures, Persistence, and Kahuna backed the round.

Team Members

Team Members

The core team comprises Prashant Srivastava, Mitchell N., Casey Arrington, Hesham Aly, and Maxime L’Hospital. The team collectively has extensive experience in traditional finance but limited experience in blockchain. Some members, such as Hesham, had unique backgrounds; before joining Elys Network, he served as a reserve pilot in the U.S. Air Force.

Working Principles

Elys Network is built with several key components that work in tandem to provide an efficient, rewarding, and secure DeFi experience:

• Smart Shielded Pools: Elys Network’s dynamically weighted pools are powered by real-time oracle data, adjusting asset weights to reflect current market conditions. This system helps reduce impermanent loss and ensures fair, accurate pricing for all participants, creating a stable and efficient environment for liquidity providers.
• Reward-Generating Tokenomics: The $ELYS token lies at the core of the network’s rewards model. Every platform transaction, trade, and interaction generates fees, which are redistributed to $ELYS stakers and liquidity providers.
• Rebalancing Incentives: Users are incentivized to maintain pool balance, earning additional rewards for actively sustaining optimal liquidity conditions. This unique feature promotes ecosystem balance, benefiting all users while enhancing pool stability.
• Advanced Yield and Trading Features: Elys Network offers a variety of yield and trading opportunities, including simple staking, liquidity mining, perpetual trading, and leveraged liquidity provision. These features aim to help users maximize returns through strategies tailored to their risk tolerance and investment goals.

Together, these components create an ecosystem that allows users to fully unlock the potential of decentralized finance, delivering a seamless blend of security, profitability, and innovation.

Key Features (Testnet)

Swap

Swap Feature

Elys Network’s Swap function enables users to seamlessly exchange tokens through its Smart Shielded Pools, minimizing slippage. The liquidity pools of Elys Network feature the following attributes:

• Oracle-Supported Pricing:
  Real-time oracle adjustments ensure that pool weights reflect accurate market values, guaranteeing fair pricing and minimizing slippage risks.

• Efficient Liquidity Utilization:
  Dynamic weighting allocates liquidity to optimize price stability and reduce slippage.

The goal is to deliver swaps utilizing our Smart Shielded Pools that always ensure prices with minimal slippage.

Earn

Simple Staking

Simple Staking

Simple Staking on Elys Network provides users a straightforward way to earn rewards by putting their ELYS and USDC tokens to work. Users can lock their tokens into a pool to generate returns, using different mechanisms depending on the token being staked.

• ELYS Staking
  ELYS staking currently requires a 14-day bonding period. By staking your ELYS tokens, you contribute to the platform’s overall security while delegating your tokens to validators.

• USDC Staking
  USDC staking does not require any bonding period. By staking USDC, users actively participate in the leveraged LP functionality. Essentially, staking USDC is a form of lending: stakers lend their USDC to the platform. Leveraged LP users borrow these funds and, in return, pay fees that are converted into rewards for stakers. Users can freely enter and exit USDC staking at any time.

Liquidity Mining

Liquidity Mining

Liquidity mining on Elys Network allows users to earn rewards by contributing liquidity to designated pools. Users who contribute liquidity to Elys Network deposit paired or single-side tokens into liquidity pools. These pools act as reserves, enabling traders to exchange tokens without relying on a traditional order book, minimizing slippage, and ensuring a smooth trading experience. In return for their contributions as liquidity providers, users receive rewards from various features, which are allocated based on the amount of liquidity provided and the activity level within the pool.

Elys Network offers two types of pools: classic AMM pools and smart shielding pools. \
While traditional AMM pools use a simple mechanism, where the weight between each token is fixed at a 50:50 ratio, smart shielding pools have adjustable weights that can be modified according to market conditions. This makes them more efficient and reduces the risk of impermanent loss to nearly zero.

Perpetual

Perpetual Contracts

Perpetual Trading on Elys Network is a system designed to facilitate leveraged trading of various assets within the blockchain. The BeginBlocker function in the Keeper module handles the specific responsibilities of initializing the perpetual trading logic.

The business logic of the perpetual trading module is carefully designed to oversee risk management, risk assessment, and collateral tracking. This module ensures that all open positions are backed by sufficient collateral through the margin system. It continuously monitors the health of each position and automatically triggers liquidation when necessary to protect the platform and its users. The module also implements a funding rate mechanism to ensure that the perpetual contract price remains aligned with the underlying spot price, balancing the long and short exposures in the market.

The code specifications for Keeper, Spec, and Types define the blueprint for how the perpetual trading system operates. These include:

• Keeper methods are used to manage positions, liquidity pools, and trades.
• Spec describes the configuration of the module and key parameters.
• Types define the data structures used within the module.

These components create a flexible and secure environment for perpetual trading, allowing users to leverage their positions, manage risks, and interact effectively with the system.

Advantages of Elys Perpetual Trading System Compared to Other Platforms:

Elys stands out due to its deep integration with the Cosmos ecosystem, offering superior interoperability and scalability. By leveraging the Cosmos SDK and Tendermint, Elys ensures lower transaction costs and faster processing times while seamlessly connecting with other Cosmos-based networks.

Elys strongly emphasizes decentralized risk management and integrates features such as dynamic interest rate adjustments and real-time monitoring of liquidity pool health. These tools give traders precise control over their positions, offering enhanced flexibility and security. This focus on dynamic, decentralized management tools makes Elys the ideal choice for traders seeking to refine their strategies in a multi-chain environment.

Leverage LP

Leverage LP

Leverage liquidity provision allows users within the Elys Network to use borrowed funds to amplify their liquidity positions, thereby gaining greater control over their investment strategies. By borrowing additional assets, users can participate in larger liquidity pools and earn higher returns from trading fees and rewards without providing the full amount of assets upfront. Leverage liquidity configurations offer several benefits, including the ability to control larger positions than what actual capital would allow, thus optimizing capital usage. With leveraged assets, users can free up capital to invest in other opportunities, making their investments more capital-efficient. Leveraged liquidity providers can also hedge existing positions, helping manage risk and protect against market fluctuations.

Token Economics

$ELYS Token Distribution

Token Distribution

The total supply of the ELYS token is 200 million, and it is distributed as follows:

• 22.3% Strategic Reserves: Divided into decentralized (5.3%), liquidity (5%), and strategic reserves (12%). These reserves strengthen the long-term sustainability of funds, support fundraising, and diversify through OTC (over-the-counter) transactions. They will also be used for partner-specific grants, which can add long-term value to the Elys network. Additionally, they will be used to provide liquidity on CEXs, offer liquidity via POL on Elys DEX, and be staked at genesis for decentralizing the network.
• 18% Project Contributors: Reserved for core contributors who support the development and growth of the project.
• 15% LM Rewards: Liquidity mining rewards designed to help bootstrap the Elys ecosystem. These rewards are temporary, aimed at simply guiding liquidity into the ecosystem and supporting non-inflationary income sources.
• 14% Airdrop: To reward early adopters and active participants, this allocation is intended to stimulate early network activity and foster loyalty. It will be distributed over two years to continuously drive growth and reward users.
• 13.4% Public and Private Sales
• 8.5% Staking Rewards
• 7.5% Community Fund: This includes payments to the DAO council as well as funds for community programs and projects. Accessing funds from this pool will follow established governance and approval processes.
• 1.3% Advisors

Token Unlocking Path

Token Unlocking Path

The initial supply of $ELYS is 20,429,204 ELYS, with a maximum supply of 200,000,000 ELYS. During the first 24 months, the overall token unlocking rate is relatively fast, after which it will slow down. Below are the unlocking schedules for different investors:

• Pre-seed Round: 8.5% at TGE (Token Generation Event), 6-month cliff period, and 12-month linear vesting.
• Seed Round and Advisors: 10% at TGE, 5-month cliff period, followed by 12-month linear vesting.
• Private Sale: 12.5% at TGE, 4-month cliff period, followed by 12-month linear vesting.
• Public Sale: 15% at TGE, 1-month cliff period, followed by 6-month linear vesting.

$ELYS Token Utility

Token Utility

The $ELYS token is not just a governance token; it has multiple functions supporting the Elys Network’s long-term success. Below are how the $ELYS token facilitates growth and sustainability:

• Fee Sharing: $ELYS stakers earn non-inflationary real returns from 25% of all DEX revenue (paid in USDC). Revenue sources include:

  • Perpetual trading fees
  • Spot trading fees
  • Margin interest fees
  • Trading network fees
  • Liquidity staking fees

• Staking Token Rewards: Elys’ governance model rewards stakers and node operators with EDEN tokens. These tokens vest over a 90-day period and can be exchanged for $ELYS.

• Liquidity Mining: Liquidity providers earn rewards by contributing liquidity to the Elys Network pools, ensuring the platform maintains high liquidity for users.
• Membership Tiers: Holding $ELYS unlocks loyalty benefits such as fee discounts, exclusive NFTs, merchandise, and access to premium platform features based on membership tier.
• Fee Burn Mechanism: A portion of the collected fees will be allocated to the burn module, which over time will improve the overall tokenomics of $ELYS.
• Governance Rights: $ELYS serves as the governance token for the network. Staked tokens grant voting rights on key proposals, including upgrades, product releases, incentive programs, and ecosystem growth strategies.

Roadmap

Roadmap

The roadmap indicates that Elys is set to launch its mainnet in Q4 2024, accompanied by the $ELYS TGE. Moving forward into 2025, Elys Network will focus on vertical and horizontal expansion. This includes developing a mobile DApp and integrating more public blockchains into the Elys Network ecosystem. [3]

Recent News

Airdrop Campaign

Elys Network has announced its launch on Gate Startup from December 15th, 22:00 to December 17th, 18:00 (UTC+8). During the initial offering, participants can share 237,500 ELYS tokens, with trading set to open on December 17th, 22:00 (UTC+8).

Conclusion

Elys is a Layer 1 blockchain that introduces a suite of DeFi products and features supported by wallet and chain abstraction. By leveraging tools such as Smart Shielded Pools, leveraged LPs, derivatives, and spot trading, Elys Network provides a robust platform where liquidity providers, traders, and stakers can optimize their strategies while enjoying various opportunities to enhance their returns. The platform is designed to enable beginners and professionals to easily manage their assets across multiple chains.