About the Elastic Protocol
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.
This documentation, will be regularly updated as new Elastic Protocol products and services are delivered, provides information about:
- Core protocol mechanics
- How we have partnered with Olympus DAO to integrate the flagship Elastic Protocol vault into the growing Olympus ecosystem
- Vault strategies for users, arbitrageurs and others
What Are Vault Strategies?
Vaults (such as those developed by Yearn Finance) are applications that help users earn yield on their crypto assets in a variety of ways. Their defining feature is automation. Users can earn yield via a simple deposit. They do not have to manually manage their position (e.g., make trades, compound interest, etc.).
Read Elastic Protocol 101 to learn how the Elastic Protocol operates and its many benefits.