#Gate观点任务 #ELX

How does Elixir Network (ELX) work?

Elixir's technology is designed to provide deep liquidity while remaining decentralized. It uses a modular system that includes several key components:

1. Validator Network (DPoS - Delegated Proof of Stake)

Elixir's validator network secures the system and ensures that liquidity providers are fairly rewarded. Validators operate under a delegated proof of stake (DPoS) model, where users can stake their ELX tokens to support validators and earn rewards.

Validators are responsible for validating liquidity transactions and ensuring fair market making operations. Processing transactions requires 66% consensus to ensure security and efficiency. The ELX token is used for validator staking and governance, making it a critical part of the Elixir ecosystem.

2. deUSD: Elixir's Local Currency

Elixir's deUSD differs from traditional stablecoins. Instead of being backed by a 1:1 U.S. dollar reserve, deUSD is backed by the following:

● stETH used in a delta-neutral trading strategy

● MakerDAO's USDS T-Bill protocol

This structure makes deUSD more efficient collateral than traditional stablecoins by enabling it to generate yield. It also allows institutional investors to enter DeFi without changing their existing asset exposures.

3. Provide Retail Liquidity

One of the biggest innovations of Elixir is to allow regular users to provide liquidity to order book-based DEXs. This was previously only possible through central market makers. Now, anyone can provide liquidity and earn rewards while helping improve the trading experience of DEXs.

4. Exchange Integrations

Elixir is currently integrated with some of the best DeFi platforms, including the following:

● Vertex Fusion uses Elixir to provide insecure, delta-neutral liquidity in order books.

● Orderly Quantum - Allows retail users to provide liquidity to trading pairs using Elixir.

● dYdX will integrate Elixir to enable permissionless market making, allowing anyone to list and trade new assets.

These integrations make Elixir an important part of the future of DeFi, as it helps exchanges increase liquidity without relying on central institutions.

https://www.gate.io/trade/ELX_USDT
https://www.gate.io/launchpool/ELX?pid=234
https://www.gate.io/announcements/article/43767