Ellipsis

Market Making

Ellipsis is a decentralized exchange focused on providing low slippage trades for stablecoins on the BNB chain.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Ellipsis is an authorized fork of Curve on BNB Chain that leverages the stableswap automated market maker (AMM) concept to enable more efficient trades between similarly priced assets.
What we like less
The team is anonymous and all Ellipsis contracts are controlled by only a 3/5 multisig.
What it means for you
Ellipsis offers a great way for you to earn yield through market making on stablecoins and tokenized assets with low fees on BNB Chain.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: EPS
  • Tags: Market Making
Key Metrics
  • TVL: $6.2M (Rank #163)
  • TVL Ranking by Market Making: #0
  • Blockchain: Binance
  • Chain TVL
    • Binance: $6.22M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including Hacken and PeckShield
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Ellipsis

How Ellipsis works

Ellipsis is a decentralized exchange that is an authorized fork of Curve on BNB Chain. Ellipsis leverages the stableswap AMM algorithm which is a combination of the constant product (popularized by Uniswap) and constant sum formula. Trading occurs on a constant sum curve when the pool is relatively balanced and switches to a constant product curve when imbalanced. This allows for lower slippage and impermanent loss but is only applicable to similarly priced assets like stablecoins. The protocol charges a fee on every trade within a pool.

How Ellipsis makes money

Ellipsis makes money through protocol fees that are currently set at 0.04% for swaps within stable or like-kind pools and range from 0.04% to 0.4% for volatile pools like BUSD-BNB. Half of the trading fees goes to liquidity providers and 50% to EPX token lockers (vlEPX).

How you make money on Ellipsis

You earn swap fees for providing liquidity on Ellipsis. Each pool also provides incentives in the form of native protocol tokens and the EPX token, which provides limited governance around pool incentives. You can lock EPX (vlEPX) on the platform to receive platform trading fees.