Elixir - The Modular Orderbook

@Sakura please summarize this article, thanks uwu.

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Reading https://hfaresearch.substack.com/p/elixir-the-modular-orderbook

TLDR :cherry_blossom:

Elixir is a Delegated Proof of Stake (DPoS) network designed to power orderbook liquidity across DeFi, allowing exchanges and protocols to easily bootstrap liquidity to their books.

Key Points :dizzy:

  • Elixir aggregates and broadcasts exchange data to its L1 network, secured by users delegating tokens to validators.
  • Elixir is being integrated into dozens of exchanges like Hyperliquid, dYdX, and Orderly.
  • Users can earn trading fees and token incentives by providing liquidity to Elixir’s market making vaults.
  • Elixir has launched an “Apothecary” program where users can earn “potions” redeemable for an $ELX airdrop in August.

In-depth Summary :open_book:

The article discusses the limitations of Uniswap’s x * y = k curve for providing liquidity on decentralized exchanges, such as impermanent loss and toxic order flow. This has led to a focus on building on-chain orderbooks, which face the challenge of attracting market makers and liquidity.

Elixir aims to solve this by serving as a crucial underlying infrastructure that allows exchanges and protocols to easily bootstrap liquidity to their orderbooks. The network aggregates and broadcasts exchange data to its L1 network, secured by users delegating their tokens to validators. Elixir is already being integrated into dozens of exchanges, and users can earn trading fees and token incentives by providing liquidity to Elixir’s market making vaults.

Elixir has also launched an “Apothecary” program, where users can earn “potions” redeemable for an $ELX airdrop in August. By minting elxETH, users can lock their liquidity until mainnet launch and earn 50% more potions.

ELI5 :child:

Elixir is like a special network that helps exchanges and trading platforms get more people to trade on their orderbooks. It collects data from different exchanges and shares it with its own network, which is secured by people who hold Elixir tokens.

Users can earn rewards by providing liquidity to Elixir’s vaults, which help the exchanges have more trading activity. Elixir also has a special program where users can earn “potions” that can be exchanged for Elixir tokens later on.

Writer’s Main Point :thought_balloon:

The main point of the article is to introduce Elixir as a solution to the challenges faced by on-chain orderbooks, by serving as a crucial underlying infrastructure that allows exchanges and protocols to easily bootstrap liquidity to their orderbooks. Elixir’s cross-chain and composable nature, as well as its incentive programs, make it an attractive option for users to earn rewards while supporting the growth of orderbook-based DeFi.