What is Elastic Finance?
Participants in decentralized finance are seeking opportunities to earn sustainable yield —— regardless of market conditions.
The Elastic Protocol is designed to meet this market need. The protocol enables anyone to participate in an ecosystem of unique yield strategies that:
- Maximize market uptrends: Classic rebasing tokens such as Ampleforth (AMPL), can have a “force multiplier” effect on derivatives or other tokens connected to these assets. For example, the protocol’s core Elastic Vault utilizes a percentage of AMPL emitted during positive rebases to buy and burn the Elastic Vault’s reward token, EEFI, which, depending on other market forces, could result in value accrual for EEFI. Holders and stakers can access enhanced EEFI yield without resorting to leverage and avoiding liquidation risks.
- Minimize market downtrends: During market downtrends the Elastic Vault provides users with EEFI yield. When Ampleforth is in neutral or negative rebase, the Elastic Vault distributes EEFI tokens to stakers. Also, in the future, sub-vaults could be launched that enable users to participate in the Olympus ecosystem (and other opportunities) via automated strategies that deliver stablecoin or OHM rewards when asset demand is low.