What the ELE is going on with RFI?

Ok so it’s been a couple days since Morpheus’ new project Elevate($ELE) launched on Uniswap and the dust is starting to settle. It’s time to wrap our heads around what the ELE is going on.

First let’s Reflect on where we were before Elevate launched. (See what I did there?)

Reflect($RFI) is a world first digital asset that generates passive, frictionless yield simply by holding it. Real yield, not just inflation of esoteric tokens. No need to participate in complicated, dangerous, and expensive farming pools. RFI simply takes a 1% fee from every transaction (trades, un/staking, wallet transfers, etc) and proportionately distributes it to all holders, instantly. It uses a “rebase” function in the smart contract to do this automatically with no need for gas-heavy airdrop transactions. Hence the frictionless part.

As retail investors we can earn double and even triple yield by staking RFI in farming contracts if we choose, but all we need to do is Hold and Earn.

This is revolutionary in the world of passive income!

One of the most common questions we get, though, is: “What if everyone just holds it? Where would the yield come from?”

This is absolutely the right question.

The yield from RFI is 100% dependent on volume. So we have to generate volume!

Our first target for volume generation has been pitching DeFi projects to create token pairs on Uniswap with their native token and RFI. This has some unique benefits as compared to ETH.

For one thing, there’s exponentially more upside potential. But the real magic is in the fee share mechanism. When a token is paired with RFI, the RFI side of the pair is receiving a portion of the fee share just like everybody else. Since Uniswap liquidity pairs have to keep an even 50/50 ratio, this puts constant upward pressure on the project’s native token price.

We have some great integrations doing this already, like Yield($YLD).

But this is just the beginning. One of the most powerful drivers of volume on financial markets is arbitrage.

Enter Elevate.

So what is Elevate?

The ELE token takes some elements of RFI like the frictionless yield function and some elements of Morph’s first project (FLOW protocol) like gaslessly distributed, non-dilutive inflation and adds a few extra twists to create a token with multiple frictionless yield streams and tons of arbitrage potential.

1. 1% Fee Share/Burn
   This is essentially the same function RFI uses — a 1% fee on all transacitons — except that half the 1% tx fee is burned instead of redistributed. This adds a deflationary mechanism to ELE at the smart contract level. The community created RFI’s deflationary mechanism post-launch by voting to place 4.5% of supply in a burn wallet we call The Black Hole.
2. Inflation.
   Usually inflation wouldn’t be considered a source of yield, but not only is ELE inflation proportionately distributed to token holders — and thus, non-dilutive — the ELE/ETH LP is blocked from receiving this inflation. So holders outside of the ELE/ETH pool are actually getting a higher percentage of new token supply than the proportion of the total supply they hold.

Here’s where the arb opportunities come in.

There’s a dynamic function generated between the inflation (static at 5m tokens per year) and the deflation (volume based). When transaction volume is high, more tokens get burned than added, making ELE deflationary. When transaction volume is low, more tokens are added than burned, making ELE inflationary.

Either way token holders win. Ya love to see it.

So won’t ELE just replace RFI like RFI replaced FLOW?

No!

For one thing, ELE’s token mechanics are more difficult to integrate into centralized exchanges and other off-chain platforms. This creates some friction to broad adoption.

RFI is simple by design and meant to be the centerpiece of an ecosystem.

But more than that, ELE couldn’t even exist without RFI. The single pool blocking for volume generation only works if you have two pools for the token. See, the ELE/ETH pair isn’t just blocked from receiving inflation. It’s also blocked from receiving the native fee share.

Pay attention bc this is where some of the real magic happens.

Remember how I mentioned arbitrage earlier?

Because the ETH/ELE pool doesn’t receive the inflation or fee share and the ELE/RFI pair does, there’s a constant imbalance generated between the price in the two pools. When ELE token accumulation in the pool exceeds RFI token accumulation ELE is effectively ‘cheaper’ in this pool than in the ELE/ETH pool. This creates an arbitrage path of ETH->RFI->ELE->ETH and results in both volume and buy pressure for RFI.

This is an evolution of our original volume generation strategy of launching token pairs against RFI. Morph just took the idea and designed the mechanics of his new project to optimize for arb opportunities which incentivizes traders (maximal volume) and volume-based yield which incentivizes holders (boosting token price).

This doesn’t even get into the fact that when you combine ELE and RFI in the ELE/RFI liquidity pool you have the opportunity for QUINTUPLE YIELD.

1. Fee share on RFI
2. Fee share on ELE
3. Inflation on ELE
4. Uniswap transaction fees
5. Farming rewards

This is completely unprecedented in DeFi and almost certainly in TradFi as well!

Seriously wtf.

But what else are we missing?

In a word: Enreach

Enreach is a soon-to-launch, fully regulated funding vehicle for the RFI ecosystem and a volume generator in its own right. It’s placing RFI at the center of a stablecoin generation engine and trade finance liquidity mechanics.

Enreach is building RFI into infrastructure that links the traditional financial world to the crypto financial world.

And it’s also where the farming options for ELE, RFI, and the ELE/RFI liquidity pair come in.

Ya see, for RFI to be at the heart of real world financial markets the volatility of RFI needs to be more manageable. For that we need a higher token price. To raise the price we need to lock up supply. To lock up supply we need to incentivize holders to provide liquidity.

Enter farming. If you choose to stake RFI or ELE independently in Enreach or Elevate’s farming contracts you’ll receive stablecoins, and when you stake the ELE/RFI pair you’ll receive *both* NRCH and ELE tokens.

(Does that actually make it septuple yield? 🤔)

This will incentivize a ton of supply lock up which will raise the price. Market making on top will help take advantage of arb opportunities and reduce volatility. Once we have a higher price and less volatility we can do truly powerful things with RFI, like generate bonds out of it.

The bond market is worth TRILLIONS of dollars.

SO. In short, RFI is the centerpiece of a global financial ecosystem aiming to provide simple passive yield to retail investors and the key building block for arbitrarily complex financial instruments for GLOBAL institutional trade infrastructure.

Just so we’re clear. We are not $%^&ing around.