Elk.Finance and OKC AMA Recap
On November 29th, the Chief Human Resources Officer of ELK.Finance, Snake Plissken, joined a live Ask Me Anything session on the official OKC Telegram channel and answered questions from the OKC team.
The purpose of the event was to introduce ELK.Finance to the OKC Community.
The following is a recap of the AMA.
What is the ElkNet and how does it work?
Snake Plissken: Burns $ELK on one chain and mints on the other. ElkNet will have the ability to transfer more than just Elk. Think wrapped tokens of any type or a stablecoin.
Is This Yet Another Bridge?
Snake Plissken: No. While bridges are a step in the right direction, we believe they just do not do nearly enough to enable cross-chain functionality. Below are some of the problems with bridges that Elk aims to solve:
4.Hard to manage
5.One-off (you need to deploy a new bridge between every pair of chains)
6.Only support bridging assets that exist on both chains
Extra costly conversions if the two assets you want to swap do not exist in both chains. What is your approach to that?
Snake Plissken: Our approach is much more efficient and inexpensive than a bridge. It is a “multi-bridge on steroids” that is cheaper and faster, with support for many more use cases.
We’ve heard rumblings about a stable coin called CHFT, what’s that about?
Snake Plissken: It is a stablecoin that is pegged to the Swiss Franc. The first of its kind. We picked the Swiss Franc because it is widely regarded as the most stable fiat currency in the world. CHFT will be able to be natively created by “collateralization”, meaning locking up some of your pre-existing tokens on any chain Elk is on. It can then be sent to any of the chains we are on.
So there’s CHFT; will there be any additional cross-chain tokens?
Snake Plissken: Technically there can be so many more! People will be able to utilize a Moose, along with the Elk SDK, to create a “proxy token” that can be sent to any other chain using the ElkNet. Imagine being able to create a smart contract on one chain, and then suddenly having access to 14 more- and that’s just today- we’ll be launching on so many more.
So in the future, I could create a proxy token for OKT?
Snake Plissken: Yes, you could! You would just wrap it, get some liquidity on other chains and launch it using the upcoming SDK. You could even make a new version of Bitcoin- use a Moose to wrap it on OKEx, and send it out to the many other chains! You could go so far as to lock other versions of WBTC to the Elk BTC and increase liquidity of the Elk version, this then solves the bridge fragmentation problem.
Are there any requirements for creating a proxy token?
Snake Plissken: You’ll simply need the Moose NFT and will have to access the Elk SDK when it is released. There are only 100 Moose on each chain!
Is there a Moose available on OKT?
Snake Plissken: Not yet, but they will be coming! There will only be 100 Moose available, as with every chain launch.
How can you benefit from Elk?
Snake Plissken: We have a variety of farms on various chains. There are some great APRs on various chains, including OKEx. Providing liquidity is a great way to earn some ELK, and since people are swapping it quite frequently, it can really reward you with some great bonuses due to the 0.3% fee per swap that goes to LP providers. The APR on OKEx is XXX right now!
I’ve heard that Elk.Finance has Impermanent Loss Protection, how does that work?
Snake Plissken: Yes it does! There is a specific pool to cover IL Protection. The initial funding for the IL Protection pool is based on the token allocation outlined in our litepaper. The insurance coverage will increase over a period of 42 days. If you withdraw your liquidity earlier than 42 days, your IL protection will be prorated based on the number of days you’ve been in the farm. This also adds a long-term staking incentive. Additionally, there is a limit on how much will be paid per day from the insurance fund, which is equal to the daily rewards rate for the designated farm. Impermanent loss is currently one of the largest roadblocks to widespread adoption across DeFi. IL Protection is just one of the groundbreaking innovations that will continue to position Elk at the forefront of the DeFi revolution. Also, if you happen to have a Moose NFT on the chain you are farming on, you will reach 100% coverage after 21 days vs 42!