About Element Finance Airdrop
Element Finance Airdrop is a protocol that enables users to seek high fixed yield income in the DeFi market. Users can access, via the ecosystem and existing AMMs at a discount without being locked into a term, allowing the exchange of the discounted asset and the base asset at any time.
As already guessed in retroactive airdrop overview, Element Finance is airdropping 10% of the total supply to various early users of the platform. Users who’ve traded a minimum of $500, provided liquidity worth at least $500 for 90 days and users who’ve minted more than $10k worth are eligible for the airdrop.
Element Finance Discord community members & Ethereum ecosystem contributors on GitHub are also eligible for the airdrop. The snapshot was taken on March 1st, 2022. Eligible users have until an year to claim the airdrop.
| Basic | Details |
|---|---|
| Token Name | Element Finance Airdrop |
| Ticker | ETH |
| Total Value | 10% of the total supply |
| Total Supply | 100,000,000 ELFI |
| KYC | KYC Is Not Requirement |
| Whitepaper | Click Here To View |
| Max. Participants | Unlimited |
| Collect Airdrop | Click Here To Collect Free Airdrop |
Step-by-Step Guide:
- Visit the Element Finance airdrop claim page.
- Connect your ETH wallet.
- If you’re eligible then you will see the number of tokens you’re eligible to claim.
- Now you will be asked to pick a delegate to assign your voting power. You can pick yourself or another community member.
- Review the amount of voting power to claim and confirm the transaction to claim your tokens.
- The claimed ELFI tokens will be automatically staked in a locking vault. ELFI tokens cannot be removed from the vault and is intended to keep the utility of ELFI as a voting tool.
- Eligible users have until one year to claim the airdrop.
- Users who’ve traded a minimum of $500, provided liquidity worth at least $500 for 90 days and users who’ve minted more than $10k worth by March 1st, 2022 are eligible to claim the airdrop.
- For more information regarding the claiming process, see this page.
- Element Discord community members & Ethereum ecosystem contributors on GitHub are also eligible for the airdrop. For more information regarding the claiming of the Discord airdrop, see this page and for more information regarding the claiming of the GitHub airdrop, see this page.
- For more information regarding the airdrop, see this article.
The Element Approach
The Element Finance Airdrop Protocol, at its core, works by enabling users via the Ethereum contracts to split the base asset (ETH, BTC, USDC, DAI) of yield generating positions, such as a Yearn vault or an ETH2 validator, into two separate, fungible tokens: the Principal Token (PT), and the Yield Token (YT).
The splitting mechanism allows users to sell their principal at a discount, thus giving users the ability to create a marketplace for fixed rate income positions. Their principal is no longer locked up and they may use their newly freed funds to leverage at high multiples, gaining increased exposure to yield without the typical liquidation risk.
Users may also gain additional trading fees or APY on their yield positions by using their new tokens to provide liquidity into an AMM. The casual user subsidizes the DeFi user’s active strategies by securing fixed rate yield at a discount on what the DeFi user earns. The DeFi user’s participation subsidizes the value of the fixed rate yield.
Principal Tokens
A Principal Token (PT) offers an asset such as BTC, ETH, USDC, or DAI that is locked for a fixed term. At the end of the term, it can be redeemed for its full value.
Initial Use Cases of Principal Tokens
Purchasing PTs can provide a wide variety of utility depending on a user’s market strategy. This section provides an in-depth look into some of those utilities. Additionally, Section 5 of this paper covers the possible use cases surrounding the minting and selling of PTs in an active market.
Yield, Fixed Yield, and Stability
In today’s market, the current variable yield positions available fluctuate constantly, frequently changing day-to-day. In a single week, a variable position that may have carried 20% APY on Tuesday may only carry 5% on Thursday. This constant fluctuation forces current DeFi users to constantly monitor the market and move their capital to different yield positions in order to maintain their desired APY.
AMM Liquidity Provision
If a user is already looking to gain exposure to BTC or ETH for a period of time, it makes sense to gain that exposure at a discount. During the period of holding the discounted ETH, the user may provide liquidity for the PTs on an AMM, gaining a significant boost on their fixed rate yield via trading fees.
Bearish on Variable Yield
Element Finance Airdrop DeFi user may believe that the current yield rates offered in the market are high and suspects that rates will begin to decrease over the next 3-6 months. As a result, the user decides to secure a high fixed rate yield and thus, hedges against a yield downturn in the market.
Grow your savings
When you purchase Element Principal Tokens, you receive a fixed rate token that you buy and hold until the day of the term end date. Once this term has ended, you have the ability to redeem your token and earned APR. Our Principal Tokens have no minimums and no penalties. You can trade your Principal Token back for it’s base asset at any time.
Build on Element
Element Finance Airdrop Develop new defi products with the Element SDK. Whether it’s a new feature that you want to build on top of Element or a completely new product, we love to see our community utilizing our SDK.
Grow Your Capital for Your Company
Element is the perfect treasury diversification solution allowing Protocols, DAOs, and organizations to earn fixed rate yield on treasury capital while maintaining the ability to exit if needed.
