Eclipseum (ECL) | The “Antifragile” DeFi Asset
Eclipseum, a new DeFi asset, is an ERC-20 token, which is advertised as being an “antifragile, high liquidity, low downside volatility asset.” Eclipseum is an open-source smart contract built by one developer. It was deployed to the ETH mainnet on November 16, 2020, and is audited by Trail of Bits.
Eclipseum is built on six core value propositions:
- ETH/DAI Price Volatility Value Capture | Eclipseum has a liquidity pool that has DAI and ETH, and leverages the price of ETH and transaction fees to increase the price of ECL.
2. Trustless & High Liquidity ECL Exchange| Eclipseum also has a liquidity pool with ECL and ETH, allowing users to buy and sell the token directly from the smart contract.
3. Elastic Supply System | Eclipseum has an “elastic supply system,” meaning it mints and burns ECL tokens every time ECL is traded, which reduces the price volatility and increases liquidity. This is also key in allowing the pool to scale relative to the circulating supply.
4. ECL Price Downside Volatility | Eclipseum utilizes price downside volatility mitigation game theory, which, in short, allows it to balance the distribution of buyers and sellers over time. This results in fewer and smaller sharp price decreases.
5. Decentralization | Eclipseum claims to be 100% decentralized. It does not have any access control privileges or governance, and the deployer doesn’t receive any free ECL. All users are equal when working within the ECL smart contract.
6. Immutability | Eclipseum smart contract functionality cannot be changed once deployed.
How Eclipseum Works
Eclipseum is made up of two Automated Market Maker (AMM) liquidity pools: the ECL Pool, which contains ECL and ETH, and the DAI pool, which consists of DAI and ETH. Users can purchase ECL from the ECL pool with ETH. Once the purchase has been made, the ECL price in ETH increases, and a percentage of the ETH sent is transferred to the DAI pool to balance the quantity of ETH in both pools.
Users can also sell ECL and get ETH in return from the ECL pool. Finally, users can also buy and sell DAI using ETH. Half of the transaction fee is then transferred from DAI to ECL, which increases the price of ECL.
In summary, Eclipseum is a new Defi token that utilizes two separate liquidity pools that balance each other as trades are made. It utilizes a smart contract structure, allowing complete decentralization and security of your assets. You can read more about Eclipseum in their White Paper here.
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