Crypto Focus: Why EPX posted over 40% gains in one week
The cryptocurrency market has spent most of the year struggling as the market has been in a downtrend that has seen many cryptocurrencies fall from regions considered to be all-time highs more than a decade ago. a year, to trade at prices not seen since the resumption of the COVID-19 pandemic.
While May was a particularly bearish month for the cryptocurrency space with Bitcoin below the $27,000 support zone, we see the same effect in the US stock market with the tech-dominated NASDAQ index posting its 7th consecutive week of decline.
Although the market has struggled, notable cryptocurrencies like EPX post are gaining week after week, challenging market leader Bitcoin as investors continue to invest in projects with promising potential. EPX, the native token of Ellipsis Finance, in a very bearish week, still managed to post over 40% gains for the week. In fact, in just 13 days, the token has gained around 200%.
What is Ellipsis Finance?
As we saw at the end of the year with DAOs like Wonderland, Ellipsis Finance is an authorized fork of Curve Finance on the BNB channel. It is an Automated Market Maker (AMM) or exchange that allows users and other decentralized protocols to trade tokens (BUSD to USDC, for example) with low fees and a low slippage.
Unlike exchanges which match a buyer and a seller, Ellipsis uses liquidity pools. To achieve successful trading volume and low slippage, Ellipsis needs a large amount of liquidity (tokens) in the pools. The platform provides stable coin exchange with very low slippage and minimal fees. To incentivize liquidity to deposit into Ellipsis pools, Ellipsis offers rewards in EPX tokens, its native token, to liquidity providers.
As mentioned earlier, Ellipsis (EPX) is the native token of Ellipsis. It has four main uses which are; As a reward for liquidity providers, for voting on pool incentives, for locking platform fees, and for locking liquidity provider rewards.
As a result of this agreement between Curve and Ellipsis, veCRV holders will receive 25% of the supply over the next 12 months. Curve Finance will support the Ellipsis team. Ellipsis, in turn, is committed to upholding Curve’s core values, namely; no deposit or withdrawal fees, no liquidity lock-ins, and extremely efficient stablecoin swaps.
The platform recently launched Ellipsis 2.0. While the first release provided Curve’s StableSwap protocol to BNB chain users, this new release will bring other dimensions of Curve to Ellipsis. These included; Reward Gauge Vote, Reward Weight Vote, and Reward Boost.
To add, token holders will be able to lock their tokens for voting weight and use that weight to vote on adding rewards to pools, and which pool they want to direct the rewards to. A user’s locked tokens will also determine the level of APR boost to be applied to their liquidity provision rewards.
What you should know
- The token is one of the trending coins, currently ranked #7 on CoinMarketCap.
- It is up over 30%, at the time of this writing with a circulating supply of 1 billion EPX tokens and a fully diluted market cap of $2.15 million.
- We have seen a significant increase in the token’s trading volume of over 700% as more people become interested in what the platform does and its native token.
- It currently has a volume of over $200 million after the launch of Ellipsis Finance 2.0.
- At the time of this writing, it is the 4th largest pool, which has recorded the highest volume in the last 24 hours, the USDD/BUSD pool has a total value locked (TVL) of 31.7 million dollars and it offers an APR (Annual Percentage Return) of 19.79%. Its largest pool has a TVL of just over $50 million.
Ellipsis Finance currently ranks 9th in the TVL ranking among all Binance Chain DeFi platforms according to DeFi Llama. It has a total TVL of $192.95 million at the time of this writing, up 10% for the day.