Introducing the Elastic Vault and EEFI: A Yield Generating Protocol and Asset Powered by Ampleforth’s Rebase Mechanic

EEFI Overview
  1. Generating yield from AMPL: Individuals will be able to deposit AMPL in the vault to receive rewards in a new yield token, Elastic Finance Token, or EEFI. The elastic vault monitors AMPL’s rebase status and delivers EEFI rewards to stakers when AMPL is in negative rebase or equilibrium (neutral rebase).
  2. Benefiting from positive rebases in a new way: When AMPL staked in the elastic vault experiences a positive rebase, a percentage of new AMPL supply is traded for EEFI. 90% of EEFI purchased by the vault is burned (the rest is deposited into the DAO’s treasury), making EEFI a deflationary asset depending on how long AMPL is in positive rebase status.
  3. Incentivizing active participation in the AMPL protocol’s economics: Currently, the Ampleforth protocol utilizes negative rebases to incentivize market actors to purchase AMPL to bring it back into its target range. The elastic vault introduces a new economic incentive for AMPL market participants. The elastic vault emits more EEFI rewards when AMPL Is in neutral rebase and burns EEFI when AMPL is in positive rebase. Because of this, elastic vault stakers and EEFI holders are incentivized to engage with the Ampleforth protocol to maximize the benefits of EEFI minting and burning.
  • Does not have a maximum supply: The number of EEFI in circulation will depend on the following factors:
  1. How much AMPL is staked in the elastic vault: The amount of EEFI minted by the vault and delivered to stakers depends on the amount of AMPL deposited into the vault. The more AMPL is staked, the more EEFI is minted.
  2. AMPL’s rebase status: Less EEFI is minted by the vault when AMPL Is in negative rebase. More EEFI is minted when AMPL is in positive rebase.
  3. The amount of EEFI burned daily: Each day that AMPL is in positive rebase, a percentage of new AMPL supply (generated from AMPL staked) will be used to buy EEFI. The majority of purchased EEFI will be burned, reducing the amount of the token in circulation.
  4. How long it has been since AMPL reached positive rebase status: The elastic vault is configured to stop minting EEFI if AMPL has not entered positive rebase status for 90 consecutive days.
  • Pioneer II Vault Stakers: kMPL stakers will receive a percentage of EEFI rewards from the elastic vault
  • Pioneer Fund III Vault Stakers: Some EEFI rewards from the elastic vault will be delivered to kMPL/ETH liquidity provider stakers
  • AMPL stakers
  • EEFI/ETH LP stakers
  • kMPL stakers
  • kMPL/ETH LP stakers.
  • Self-repaying AMPL loans
  • Lending and borrowing with EEFI
  • Protocol-owned EEFI/ETH liquidity
  • Rewards calculator: A calculator that can be used to estimate token rewards generated by the elastic vault
  • Lending and borrowing: Information on a strategy AMPL borrowers can use to leverage the elastic vault — even during periods of negative AMPL rebases
  • Ecosystem development: Potential to create a funding stream to support the development and implementation of elastic finance applications
  • Improved community stewardship of the DAO: Launching advisory and implementation committees run by leaders from the community to shape the DAO’s priorities and activities over the short-and medium term

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AmpleSense

AmpleSense

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A global community focused on improving understanding and adoption of AmpleForth, the pioneer of elastic money.