In this Elk Finance review, you’ll learn pretty much every thing there is to know about the up and coming cross-chain DEX. Native to Avalanche, but now spanning multiple chains, the future looks seriously bright for Elk.
- Elk Finance links
- What is Elk Finance?
- Elk Finance Tokens
- Elk Finance Tokenomics
Before we dive into Elk Finance review, here are the main links for Elk Finance. I highly advise you join their community, they’re a great bunch of people, and you’ll learn a lot there.
What is Elk Finance?
Elk Finance is a cross-chain liquidity network. They use the ELK token to transfer value across networks. Avalanche, Fantom, Matic. With a look to branch onto BSC (Binance Smart Chain) and Ethereum soon. They operate a DEX (decentralized exchange). And are developing their mainnet ( beta coming on Q4 2021).
- Decentralized Exchange.
- Cross-chain liquidity network.
- Launching a mainnet.
- Headed by an extremely strong team.
If you prefer watching videos, you can check out the Elk Finance review video below.
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Elk Finance operates a decentralized exchange. Similar to the links of Pangolin, UniSwap, SushiSwap. Familiarize yourself with Decentralized Cryptocurrency exchanges.
Front-end has a familiar Uniswap V2 feel. But, rumour has it there could be some advancements made to make them standout amongst the crowd. After all, everyone is probably getting a little tired of the copy-cat front-ends at the moment.
Supports coins on all connected chains. At present they’re running on Avalanche C-Chain, Matic, Fantom. But they’re developing interoperability with ETH & BSC too.
Cross-Chain Liquidity Network
What is a “cross-chain liquidity network”
A cross-chain liquidity network is a network that allows liquidity to be transacted across multiple blockchains. Blockchains aren’t always compatible. Elk makes it possible.
Let’s break down why this is needed, and what the prose are.
Solving the “compatibility problem”
There is a major problem in the crypto world. There are too many blockchains. They’re not all compatible off the bat. Many are working to be more "interoperable". "Wrapping" tokens is a common approach, but the concept can be a little baffling for newer crypto entrants.
Elk Finance is helping solve this issue. They are enabling value to be transacted across chains.
Elk could grow to become a core intersection of the "Internet of Blockchains". Which would no no doubt be be lucrative for all early investors and adopters.
Solving the “liquidity problem”
When we’re talking Liquidity, we’re talking liquid assets. Money. Currencies. Skrilla.
Again, the previously mentioned issue around many blockchains, is liquidity. It is often "trapped" on one chain.
And, unless you go through a centralized exchange like Kucoin or Binance, it’s often difficult to trade one token for another. This approach is fine for most. But causes problems. Centralized intervention. Which, if you’re operating a business can be hugely detrimental. There is no needed central organization in crypto. Every wallet holder is its own holder.
Elk Finance are catalyzing the liquidity flow between ecosystems. There are huge amounts of liquidity on the big networks. BSC. ETH. This will help diffuse the liquidity into the smaller, growing ecosystems. Avalanche. Matic. Fantom.
The ELK token is currently "penned in" for this process. We’ll talk more on the ELK token later. They’re also building out a stablecoin. It would be pegged to the Swiss Franc (CHF). Which, is a great currency to peg price to. CHFT.
Networks Elk Finance supports
- Avalanche — Highly-scalable, robust, decentralized, 5000tps fast, eco-sustainable.
- Polygon/Matic — The hugely anticipated level-2 layer blockchain. Again, insanely fast.
- Fantom — A blockchain with huge potential. It’s blazing fast. Incredibly cheap. Being pushed by billionaires, and people aren’t paying attention.
- BSC (coming soon) — Fast, has huge amounts of money on it through the ease of use.
- ETH (coming soon) — You know what Ethereum is, the mother of all smart contract-enabled blockchains.
Elk Finance Tokens
Let’s go through the different tokens that are currently under the Elk umbrella. There are a few different ones. Of which, they’re all pretty special.
- ELK token (native to Elk and the future main-net, used for cross-chain value transfer.)
- CHFT token (stable coin, again enabling cross-chain stable transfer)
- Moose NFTs (non-fungible tokens; required for people to run validator nodes, and gives some cool rewards.)
The main token of the Elk Finance ecosystem. Its used to farm more Elk. And is used to transfer value between chains. Elk is available on all the chains.
Impermanent loss protection. Elk Finance has been clever. They’re helping to protect against impermanent loss. They do this by minting Elk for the farmer. As impermanent loss is realized, more Elk is minted to offset damages. There is a 10m ELK token fund devoted to this protection.
Swiss Franc stable-coin. Most stable coins are pegged to the US dollar. Through various mechanisms and computation. Elk is innovating on this fact. They are creating a CHFT stable coin. CHF is a strong currency. It’s valued at more than the dollar. And it’s probably a better store of value, given the recent US Federal Reserve printing spree.
Cross-chain. This is an awesome factor. Like USDT — USD Tether. The Elk CHFT will be cross-chain interoperable. This, not only makes it widely adoptable. But, further cements their potential for being a key player in crypto-forex. A potentially ma-hoo-sive market.
- Limited supply NFT. If you’re unsure what an NFT is. It’s a non-fungible token. You can learn more about NFTs in our What is an NFT article. To keep it sweet: they are limited, unique, crypto tokens. Which special powers.
- Required for running network nodes. When Elk finishes their main-net, node operators must stake an Elk NFT. Node operators will process transactions. And, probably get rewards for doing so.
- Released on special events. So far, the moose NFTs have been released when new chains come in.
Moose NFT tiers
- Legendary moose. Aka. Ralph. There’s only one, and he’s passed around to boost farming rewards.
- Epic moose. There are only 9 on the Avalanche chain at the moment.
- Rare moose. There are only 30 on the Avalanche chain.
- Uncommon moose. There are only 60 on Avalanche chain.
You can follow any updates to the Moose NFTs on the Elk Finance docs.
Elk Finance Tokenomics
- Elk token max supply: 42.4m ELK. This is the cap for the time being. Though, the distribution will happen gradually. Through farming, community fund, chain releases.
- Initial Supply per chain: 4m ELK. To provide liquidity for each blockchain. As they become available.
- Elk community fund: 20m ELK. This is a community fund that is voted on. The spending will be decided democratically. Will be used to improve, promote and direct Elk.
- Impermanent loss protection fund: 10m ELK. We discussed this previously. When farming, Elk insures against impermanent loss. This fund is rewarded to people incurring it.
- Team & advisors: 2m ELK. It is only right that Elk contributors get a fair share of the pie. This will incentivize their continued involvement. And grant opportunities to those working for the betterment of the community.
- Elk Airdrops: 424k ELK.