Ellipsis [OLD] (EPS)

What is Ellipsis [OLD] (EPS)?

Ellipsis [OLD] (EPS) was a decentralized exchange (DEX) operating on the Binance Smart Chain (BSC) focused on providing efficient and low-slippage stablecoin swaps. It was an authorized fork of Curve Finance, a well-established decentralized exchange on the Ethereum blockchain known for its specialized automated market maker (AMM) design for stablecoins. Essentially, Ellipsis aimed to bring the benefits of Curve’s model to the Binance Smart Chain ecosystem, offering users a platform for exchanging stablecoins with minimal price impact and low fees. EPS, the native token of the Ellipsis platform, served as a revenue-earning token, incentivizing users to stake and participate in the protocol’s governance.

Background

• Launched in March 2021.
• Authorized fork of Curve Finance.
• Operated on the Binance Smart Chain.

Since its launch, the Ellipsis project has evolved. In April 2022, the Ellipsis team started planning for a new generation of the protocol with the introduction of Ellipsis 2.0. As a result, the EPS token, referred to as “Ellipsis [OLD]” or EPS [OLD], has been migrated to the newer EPX token through a conversion process.

How Does Ellipsis [OLD] (EPS) Work?

Ellipsis [OLD] (EPS) operated using Automated Market Makers (AMMs), specifically designed for stablecoin swaps. Unlike traditional order book exchanges, AMMs use algorithms to determine the price of assets based on the pool’s supply and demand. Ellipsis utilized a specialized AMM model similar to Curve Finance that focused on minimizing slippage when swapping stablecoins. Slippage refers to the difference between the expected price of a trade and the actual price received, which can be significant, especially for large trades on less liquid exchanges.

Stablecoin Pools

The core of Ellipsis’ functionality revolved around stablecoin pools. These pools contain reserves of different stablecoins, such as USDT, USDC, and BUSD. Users could deposit their stablecoins into these pools to provide liquidity, earning a portion of the trading fees generated from swaps. The more liquidity in a pool, the lower the slippage for trades.

Minimizing Slippage

Ellipsis employed a sophisticated pricing algorithm that leveraged the inherent stability of stablecoins. Because stablecoins are designed to maintain a pegged value to a fiat currency (usually the US dollar), the price fluctuations between them are typically minimal. The AMM algorithm on Ellipsis was optimized to take advantage of this stability, ensuring that large swaps could be executed with minimal impact on the price. This was achieved through a combination of factors, including the pool’s liquidity, the algorithm’s pricing model, and low trading fees.

Ellipsis [OLD] (EPS) Key Features and Technology

Ellipsis [OLD] (EPS), as a fork of Curve Finance, inherited many of the key features and technological advancements that made Curve successful. The primary goal was to provide a secure, efficient, and low-slippage platform for stablecoin swaps on the Binance Smart Chain.

Automated Market Maker (AMM)

Ellipsis utilized an AMM model optimized for stablecoin swaps. This model differed from traditional AMMs that are used for more volatile assets. The focus was on maintaining low slippage and minimizing impermanent loss, which can occur when providing liquidity to AMM pools with volatile assets.

Low Slippage

One of the key features of Ellipsis was its ability to execute large stablecoin swaps with minimal slippage. This was achieved through a combination of factors, including the pool’s liquidity, the algorithm’s pricing model, and low trading fees. The algorithm was specifically designed to take advantage of the relative stability of stablecoins.

Low Fees

Ellipsis aimed to provide a cost-effective platform for stablecoin swaps by charging very low trading fees. These fees were distributed to liquidity providers, incentivizing them to deposit their stablecoins into the pools.

Binance Smart Chain (BSC)

Operating on the Binance Smart Chain provided Ellipsis with several advantages, including faster transaction speeds and lower gas fees compared to the Ethereum network. This made the platform more accessible and appealing to a wider range of users.

What is Ellipsis [OLD] (EPS) Used For?

Ellipsis [OLD] (EPS) served multiple purposes within the Ellipsis ecosystem. Primarily, it functioned as a governance and revenue-sharing token.

Governance

EPS token holders had the ability to participate in the governance of the Ellipsis protocol. This included voting on proposals related to protocol upgrades, fee adjustments, and the addition of new stablecoin pools. By staking their EPS tokens, users could gain voting rights and influence the future direction of the platform.

Revenue Sharing

A significant portion of the trading fees generated on the Ellipsis platform was distributed to EPS token stakers. By staking their EPS tokens, users could earn a passive income in the form of these fees. This incentivized users to hold and stake EPS tokens, contributing to the overall stability and security of the protocol.

Liquidity Provision

While not a direct use of the EPS token itself, the tokenomics incentivized users to provide liquidity to the stablecoin pools on the Ellipsis platform. Users who deposited their stablecoins into the pools earned a portion of the trading fees, which further boosted their returns on their liquidity.

EPS to EPX Conversion

Since the launch of Ellipsis 2.0, the primary utility of the EPS token became the conversion to the new EPX token. Users who held EPS tokens had the opportunity to convert their tokens to EPX at a predetermined ratio.

How Do You Buy Ellipsis [OLD] (EPS)?

Purchasing Ellipsis [OLD] (EPS) previously involved several steps and the availability was influenced by its integration on various cryptocurrency exchanges. Note that since the migration to EPX, purchasing EPS is no longer the primary goal. The following information is for historical context.

Acquiring Base Cryptocurrency

The first step was to acquire a base cryptocurrency, such as BNB (Binance Coin) or USDT (Tether), which could be used to trade for EPS. These base cryptocurrencies could be purchased on major centralized exchanges like Binance or Coinbase.

Transferring to a Supporting Exchange or Wallet

Once BNB or USDT was acquired, it needed to be transferred to an exchange or wallet that supported EPS trading. This typically involved a decentralized exchange (DEX) operating on the Binance Smart Chain (BSC).

Connecting to a DEX

To trade on a DEX like PancakeSwap or similar platform, a compatible wallet, such as MetaMask or Trust Wallet, needed to be connected to the platform. These wallets allow users to interact with decentralized applications (dApps) on the BSC.

Swapping for EPS

Once the wallet was connected, users could swap their BNB or USDT for EPS on the DEX. This involved selecting the trading pair (e.g., BNB/EPS or USDT/EPS) and specifying the amount to swap. It was important to be aware of slippage and transaction fees before confirming the trade.

Possible Exchanges

• PancakeSwap (historical data)
• Other DEXs on the Binance Smart Chain (historical data)

How Do You Store Ellipsis [OLD] (EPS)?

Storing Ellipsis [OLD] (EPS) required a compatible wallet that supported the Binance Smart Chain (BSC) network. These wallets allowed users to securely store their EPS tokens and interact with dApps on the BSC ecosystem.

Wallet Options

Several wallet options were available for storing EPS, each with its own features and security considerations.

Software Wallets (Hot Wallets)

• MetaMask: A popular browser extension and mobile wallet that supported the BSC network. It allowed users to easily connect to dApps and manage their EPS tokens.
• Trust Wallet: A mobile wallet developed by Binance that supported a wide range of cryptocurrencies, including EPS on the BSC network.
• Binance Chain Wallet: An official wallet developed by Binance for interacting with the Binance Chain and Binance Smart Chain.

Hardware Wallets (Cold Wallets)

• Ledger Nano S/X: Hardware wallets provide a higher level of security by storing private keys offline. Ledger Nano S/X supported the BSC network through MetaMask or Binance Chain Wallet, allowing users to securely store their EPS tokens.
• Trezor: Another popular hardware wallet that offered support for the BSC network through third-party integrations.

Storage Considerations

Regardless of the wallet type chosen, it was important to take precautions to protect the wallet and its private keys. This included setting a strong password, enabling two-factor authentication, and storing the seed phrase in a safe and secure location.

Future Outlook and Analysis for Ellipsis [OLD] (EPS)

The future outlook for Ellipsis [OLD] (EPS) is primarily tied to the transition to Ellipsis 2.0 and the EPX token. Since EPS [OLD] has been replaced by EPX, its individual value depends on user participation in the conversion process. Holding the EPS [OLD] token without converting to EPX would likely result in diminishing returns, and a long term outlook requires converting to EPX.

Ellipsis 2.0 and EPX Migration

The evolution to Ellipsis 2.0 indicates a significant shift in the project’s direction. The success of the new platform and token will likely dictate the final outcome for the original EPS holders.

Community Engagement

The strength and activity of the Ellipsis community will play a critical role in the long-term success of the project. Active community involvement and support can drive adoption and innovation.

Market Trends

The overall market trends in the DeFi space and the Binance Smart Chain ecosystem will also impact the value of EPS (now EPX). A growing interest in stablecoin swaps and AMMs could drive further adoption of the Ellipsis platform.

Disclaimer

It is important to note that the cryptocurrency market is highly volatile, and investments in cryptocurrencies carry significant risks. The information provided here is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.

References

• CoinGecko: https://www.coingecko.com
• CoinDesk: https://www.coindesk.com
• Ellipsis Finance Telegram: https://t.me/ellipsisfinance
• Ellipsis Finance GitHub: https://github.com/ellipsis-finance
• Ellipsis Finance Medium: https://ellipsisfinance.medium.com/