Guy D.

The Lay of the Land When people/organizations get some 💶, they start looking for a yield. Boomers call it cash flow, and your favorite internet guru calls it passive income. It happened in TradFi and now happens in DeFi. Yet, there is a problem with DeFi. In uptrends, yield opportunities are abundant and often very lucrative. Well, in downtrends, there ain’t… The Solution Meet Elastic Finance ($EEFI), a project that aims to build yield strategies across bull and bear markets. Now, every yield protocol promises this, so the goal itself doesn’t impress me. What impresses me is their approach. EEFI as a leveraged bet on AMPL. $EEFI is initially a leveraged bet on $AMPL. Now you might ask: before explaining one token, you already throw in another? Haha, yes. Let me explain. $AMPL is a decentralized unit of account. Its goal is to track the CPI-adjusted dollar of 2019 (now around $1.18). If the price goes under or above the target, the $AMPL supply contracts or expands. This means that the number of tokens in your wallet increases when the price increases and decreases when the price decreases. Eventually, due to this mechanism, the price will come back to that dollar price. Back to $EEFI. They did an LPB launch where they raised about $5M, which was used to buy $AMPL. They acquired 4.1m $AMPL for their main product, the Elastic Vault. This vault works as follows: 💠 If $AMPL is in a positive rebase (above $ price), the extra AMPL tokens will be used to buy & burn $EEFI. 💠 If $AMPL is in a neutral rebase ($ price), $EEFI will be minted. The more AMPL in the vault, the more $EEFI is minted. 💠 If $AMPL is in a negative rebase (below $ price), $EEFI will be minted. The flywheel explained In reading about $EEFI, you also read about ‘flywheel’. This certain set of mechanisms should cause a positive feedback loop for both the $EEFI price and the % yield of the vault. Part 1 of the flywheel is The EEFI Furnace. Remember the $AMPL rebase? In a positive rebase, you have a daily % price change, leading to extra AMPL tokens in the vault (see image below). A portion will be used to buy and burn EEFI, and so far, $200.000 in EEFI has been burned. In a longer positive rebase, these numbers can go high and with the relatively low current supply, this causes some major buy pressure. It's called the Force Multiplier effect (FME). If $AMPL goes to the moon, $EEFI is heading to another universe. The effect of this can already be seen: since the Furnace went live (8th of March), the price of EEFI did a 5x. The second part of the flywheel is the $PEAS pod. Since its launch, $32.000 in rewards has been collected. # 3 and 4 have yet to be revealed, but I feel it has something to do with their plans for sub-vaults and their $OHM partnership. Yes, the elastic vault and focus on $AMPL is just the beginning. From (3,3) to (E,E). With $OHM, (3,3) was introduced, a game theoretical framework where all parties would gain if staking was done by all. It’s a bit of a meme because the $OHM uptrend didn’t last. Yet, @elasticprotocol innovated and created (E,E), which outlines a social coordination strategy: High EEFI emissions → The neutral base gets the highest $EEFI emissions. So, when $AMPL is in a negative rebase, stakers are incentivized to buy $AMPL to bring it to neutral base. Higher EEFI burns—> This benefits both vault users and EEFI holders due to a decreasing $EEFI supply. In a positive rebase, both vault stakers and EEFI holders could coordinate to sustain the positive rebase and grow both the Elastic and Ampleforth protocols. The Team The team currently has seven people working on the project, including three co-founders. One worked at $OHM, and all seem to be OG crypto people. They also have an official partnership with $OHM, which gives them further legitimacy. The Tokenomics / Financials $EEFI doesn’t have a maximum supply. WHAATT?? Well, it depends on the rebase status of AMPL. $EEFI is only minted when $AMPL is in a neutral/negative rebase. When $AMPL hasn’t been in a positive rebase for 45 days, the $EEFI minting stops to prevent a Luna 2.0. The seed round unlocks start in April. The presale prices were $10 and $12, so they are up 120x and 100x. Although I feel those investors agree there is more in the tank for this project, it's hard to believe there won’t be selling pressure coming from them. The Adoption ▶️ The $EEFI vault has acquired 4.1M $AMPL (Top 10 holders currently) ▶️ More than $200.000.- of $EEFI has already been burned due to $AMPLs positive rebase. ▶️ More than 32.000 of fees were collected by the $PEAS pod. The Reasons ‘why not’ My main concern with $EEFI is the general lack of interest in Crypto and DeFi in the bear market. The price will eventually tank as a function of the speculative nature of crypto. A good yield on a token whose price keeps going down isn’t so good anymore. But I'm obviously happy to be proven wrong by the team 🙂. The Road Ahead ▶️ The main vault has yet to be launched (date TBD). ▶️ The Sub-vaults are also yet to be launched. ▶️ The opportunities within the $OHM ecosystem have yet to fruition. The Conclusion: I love the protocol. It's innovative and the choice for $AMPL is fantastic, IMO. The money printer will eventually go BRRR again, which will create further inflation (well, debasement, actually). IMO, this will popularize the flatcoin narrative even further, and $AMPL is spearheading that narrative. Finally, I don’t see many big accounts talking about the project, and their Twitter only has 7.000 followers. This makes me even more bullish. Again, we will have to wait to see how sustainable the project is. But for now - f*ck it - I am just going to say it: 1 EEFI = 1 BTC 💪 Obviously, this is not NFA. I am just a random dude on the internet who likes to talk crypto. I have also been involved in this project since the LBP. So, yes, I am severely biased and would love to see 1 EEFI become 1 BTC. If you have made it this far, so sorry for this long review, but I feel honored, my friend! — Want to know more about $EEFI? Look up these guys: @ChillTRD @RVNFTproject — Friends, I know you get tagged tons, but If you like the review, it would be awesome if you could share it with your community: @CryptoxHunter @izu_crypt @whalepoon @crypto_leszcz @CryptoWizardd @cryptocevo @CryptoGideon_ @jkrdoc @0xelonmoney @KaminoCrypto @Taknmdwn @V2Chenz @EzMoneyGems @fomohilator @resdegen @Xim2EFI