Elastic Finance TokenPrice

(EEFI)

EEFI serves as the central rewards and yield token for the Elastic Protocol, which is deeply integrated with Ampleforth (AMPL). AMPL acts as the primary deposit asset for the protocol. By leveraging the unique rebase mechanism of AMPL—where supply expands or contracts based on market demand—the Elastic Protocol drives its "Flywheel" ecosystem. Essentially, EEFI is distributed to users who provide support and stability to the AMPL ecosystem, aligning incentives between the two protocols.

The Elastic Vault operates in three distinct states based on AMPL’s rebase performance. During negative or neutral rebases, the vault mints and distributes EEFI to stakers to maintain incentives. Conversely, during positive rebases, the protocol captures a portion of the supply expansion. It uses these "new" AMPL tokens to purchase and burn EEFI, making the token deflationary during growth periods. Additionally, the vault acquires Olympus (OHM) tokens to distribute as rewards to stakers, diversifying the yield for participants.

No, EEFI is not a stablecoin. It is designed as a yield and utility token within the Elastic Protocol ecosystem. Its value is determined by market dynamics rather than being pegged to a specific fiat currency or asset. While the protocol aims to provide sustainable yield through its rebase-driven mechanics, users should be aware that EEFI’s price fluctuates. It is important to distinguish the authentic Ethereum-based EEFI from fraudulent projects on other networks that may falsely claim it is a stablecoin.

EEFI is designed with a "micro-supply" model, where its supply is intended to be highly scarce and elastic. It becomes deflationary when the protocol burns tokens during positive AMPL rebases. Currently, EEFI handles utility and proxy governance through Improvement Proposals. However, the protocol plans to launch EFT (Elastic Finance Token) as the dedicated governance token. Once active, EFT holders will vote on vault strategies and the inclusion of new rebase assets, while EEFI remains the primary rewards token.

Users can earn yield by staking AMPL in the Elastic Vault or by providing liquidity to pools such as EEFI/ETH. The protocol utilizes a game theory concept known as "(E, E)," which stands for "Elasticity x Extension." This strategy encourages participants to stake their assets and extend their yield throughout various rebase cycles rather than selling during periods of market volatility. This approach aims to maximize "real yield" composed of a mix of EEFI, OHM, and protocol-generated fees.

EEFI can be traded on LBank and decentralized exchanges like Uniswap on the Ethereum network. To ensure safety, users must use the official Ethereum contract address and avoid interacting with unofficial links. Be extremely cautious of phishing scams, particularly those appearing on social media or Telegram bots offering unverified airdrops. Legitimate EEFI is an Ethereum-based project; always verify information through official documentation to avoid fraudulent schemes promising guaranteed high returns on non-Ethereum chains.