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Ellipsis (EPX) is the native token for Ellipsis.
The main purposes of the EPX token are to incentivise liquidity providers on Ellipsis.finance and to allow users to participate in the incentive distribution.
Currently EPX has three main uses: voting, locking and boosting. Those three things will require you to vote lock your EPX and acquire vlEPX.
vlEPX stands for vote-locked EPX, it is simply EPX locked for a period of time. The longer you lock EPX for, the more vlEPX you receive. vlEPX is non-transferrable.
EPX can be locked for up to one year, allowing users to:
- vote on EPX pool incentives for liquidity providers,
- receive boosted yields as an LP,
- receive platform fees,
- vote on eligibility of pools to receive incentives.
EPX can be locked to receive trading fees from the Ellipsis protocol.
These fees will be paid out in the tokens as they are collected; so fees in renBTC will be available as renBTC, BUSD will be available as BUSD etc.
Fees are collected over one week, and then paid out the following week. For example, fees collected from day 1 to day 7 (Week 1) will be paid out between day 7 and day 14 (Week 2).
vlEPX weights used for distributing the fees are from the corresponding week. So the vlEPX weights at the end of week 1 will determine how the fees from week 1 are credited.
Alice has 50% of the vlEPX at the end of week 1, Bob has 30% and Charlie has 20%. When the fees for week 1 are streamed out in week 2, Alice will receive 50% of the fees, Bob 30% and Charlie 20%.
One of the main incentives for EPX is the ability to boost your rewards on provided liquidity. Vote locking EPX allows you to acquire voting power and earn a boost of up to 2.5x on the liquidity you are providing on Ellipsis.
EPX holders with locked EPX (vlEPX), can participate in some limited governance on Ellipsis, namely pool incentive votes and vote to enable incentives on pools.