Protocol/Project Name:
Elixir Protocol
Protocol Overview:
About Elixir
Elixir is a modular network built to power liquidity on orderbook exchanges.
Pre-Elixir, orderbook exchanges need to pay significant fees to centralized market makers for basic liquidity provisioning. These firms are the only participants providing liquidity onto the orderbooks, creating low capital efficiency and little options for exchanges.
Post-Elixir, exchanges can now build their own liquidity engines for their pairs via Elixir, incentivizing retail liquidity to their books and significantly improving depth.
Elixir allows for:
- Higher capital efficiency for orderbook liquidity: natively integrating Elixir frees the market for orderbook liquidity on the exchange, enabling anyone to supply to orderbooks
- Improved liquidity depth on exchanges: Elixir builds orderbooks with consistent depth and is complementary to existing market makers on exchanges (largely quoting top of book arbing to centralized venues). Better liquidity leads to more traders, which leads to more liquidity and fees on the exchange, leading to more traders, etc.
- Unlocking a new source of yield on USDC/USDT: Elixir is a new primitive and offers LPs a similar risk/return profile to supplying to a Uniswap v2 position. This yield (incentivized by exchanges’ long term liquidity provider programs) was never accessible to passive LPs before.
- Better user and TVL retention for exchanges: exchange products powered by Elixir offer traders and ecosystem participants a yield bearing option for their stablecoins natively within the exchange, making capital and traders stickier for exchanges.
About deUSD
deUSD (“decentralized US Dollar”) is a fully collateralized synthetic dollar powered by the Elixir Network, and one of the core products for the Network… Minted by stETH and sDAI, deposited collateral will be used to short ETH, creating a delta neutral position.
The Elixir network creates a synthetic dollar by creating delta neutral positions through basis trading and thus capturing positive funding rates. Even in a negative funding rate environment however, deUSD is built to be resilient. It is important to note that, at any given time, deUSD may only have partial backing in U.S. dollar denominated assets and may hold collateral in a basket of yield bearing positions such as funding rate basis trades, sDAI or other versions of wrapped Treasuries, as well as other potential assets
deUSD will be the collateral backing Mode’s native yield-bearing stablecoin, superUSD. superUSD will be the preferred stablecoin asset within the Mode ecosystem, ideally replacing USDC and USDT as the most liquid asset that can be easily swappable to USDC. superUSD will launch with 2-3 key Mode ecosystem partners and proliferate to other protocols once superUSD mint vault is live on Ethereum Mainnet.
Read more here: https://docs.elixir.xyz/
MS Receiver Address:
Mode: 0x704377f719651C3eE6902Ff3C9D5522e5054d429
Optimism: 0x704377f719651C3eE6902Ff3C9D5522e5054d429
Distribution Confirmation:
We confirm that we will use Merkl to distribute the incentives received.
Incentive Impact Statement:
The incentives from the program will be used to bootstrap liquidity to the multi asset launch vault on Ethereum Mainnet. $OP rewards will be coupled with Elixir Potions (points) for anyone who deposits into the vault and mints superUSD that will be bridged to Mode via Hyperlane’s Superbridge. $OP rewards will be claimable on Mode as long as assets remain on the chain while Elixir rewards will naturally accrue to users who LP and hold superUSD.
Eligibility Criteria:
elixir.xyz
Additional Information:
Roadmap:
While initially, minting of superUSD will occur on ETH Mainnet, our goal is to have native mint/redeem of superUSD live on Mode in the next few months. We will be, and already are, working closely with the Mode Foundation to add superUSD to money market protocols, borrow/lend protocols, spot/perp DEXs, and ensure there is utility for superUSD on Day 1 and that it continues to expand in the future.
Partnerships:
We are in the midst of integrating into top Mode projects like Velodrome, Ionic, and Kim. These integrations will be completed ahead of having superUSD live on Mode.
Community Engagement:
Elixir will be bringing our active and engaged community to support the superUSD launch as well as all future launches with Mode ecosystem projects. As one of our earliest ecosystem wide partners for deUSD, we want to ensure the success of superUSD.
Contact Information:
For any partnership inquiries, please reach out to Cole on TG: @colecp
For any additional questions, please join the Elixir Discord and open a ticket:
discord.gg/elixirnetwork
Socials:
Twitter: x.com
Telegram Community: Telegram: Contact @elixir_network