Elixir is a decentralized network that helps decentralized exchanges (DEXs) manage and increase their liquidity. Instead of relying on a few centralized firms for market making, Elixir allows regular users to contribute liquidity directly to the exchanges and earn rewards.
What is Elixir
Here's how it works:
- Collecting Data: Elixir gathers trading information from various exchanges through special feeds. These feeds only have read access and continuously update with the latest data.
- Aggregating Data: The gathered data is combined and verified by data aggregators to ensure it’s accurate. This combined data is then sent to validators and auditors.
- Validating Transactions: Validators, who are part of a decentralized proof of stake (DPoS) system, check and approve transactions. To reach a decision, at least 66% of validators must agree.
- Relay Nodes: These nodes hold keys for the exchanges and tally up order proposals from validators. Once an order proposal is complete, it is sent to auditors for further verification.
- Auditing: Auditors check the data and order proposals against pre-set strategies to ensure they are correct. If there are any issues, they can start a dispute process.
- Dispute Resolution: If there’s a dispute, it is handled by the controller, which manages rewards and penalties. The controller can call Provable.xyz to execute and verify strategies on the blockchain, ensuring everything is done correctly.
In summary, Elixir enables regular users to supply liquidity to exchanges, making trading more efficient and reducing reliance on a few centralized firms. This results in better trading conditions with tighter bid-ask spreads and deeper liquidity, benefiting everyone involved in the trading process.
Team of Elixir
Philip Forte
Founder and CEO
Philip Forte, founder and CEO of Elixir Network, has extensive experience in the blockchain and financial sectors, He previously served as a partner at BlockVenture Coalition and an Institutional Asset Management Analyst at PNC. He holds a Bachelor of Science in Business Administration and Statistics from Carnegie Mellon University, where he also founded the Carnegie Mellon Blockchain Group.
Christopher Gilbert
Co-Founder and CTO
Christopher Gilbert is the Co-Founder and CTO at Elixir Protocol. He worked as the Technical Lead at Tokensoft, where he developed the largest Web3 fair launch platform. He also served as Blockchain R&D Lead and Technical Lead at an S&P 500 company, focusing on enterprise blockchains and leading high-performing development teams. Gilbert holds a B.S. in Computer Science from the University of Maine and is known for authoring a leading denial of service attack method against Apache.
Funding of Elixir
$8,000,000
Series B
Led by Maelstorm and Mysten Labs. Other investors included Amber Group, Arthur Hayes, GSR, Manifold, and Flowdesk.
$7,600,000
Series A
Led by Hack VC. Other investors included NGC Ventures, Bloccelerate, and AngelList.
$2,100,000
Seed Round
Investors included Inception Capital, Chapter One, FalconX, and BitMEX.
Elixir review
Pros
Decentralization
Reduces reliance on a few centralized firms for market making. This promotes a more decentralized ecosystem.
Enhanced Liquidity
Allows regular users like you to contribute liquidity, leading to deeper and more stable liquidity pools.
Improved Trading Conditions for DEX's
Results in tighter bid-ask spreads (the difference between the highest bid price and the lowest ask price), making trading more efficient and cost-effective.
Reward System
The reward system allows users who provide liquidity to earn rewards, incentivizing participation. So, by adding liquidity, you can earn extra income.
Security
Elixir uses validation and auditing processes to ensure data accuracy and order correctness.
Cross-Chain Compatibility
It can integrate with multiple decentralized exchanges (DEXs), improving its versatility.
Dispute Resolution
The built-in dispute resolution mechanism handles disputes, ensuring fair and transparent operations.
Scalability
Elixir is designed to handle high throughput, making it suitable for large-scale operations.
Cons
Complexity
The system architecture is complex, which may be difficult for new users to understand.
Reliance on Validators
Requires a high level of validator participation to function correctly, which could be a bottleneck if participation is low.
Potential for Disputes
While there is a dispute resolution mechanism, frequent disputes could slow down the process.
Regulatory Uncertainty
As with any decentralized system, it may face regulatory challenges and uncertainties.
Opportunities
AirdropMainnet
Minimal cost: ~20 USD
Elixir
Learn how to deposit funds to Elixir for a potential airdrop!