The First Project Report: The Innovator Reshaping DeFi Liquidity, ELX is Coming to The First

With the continuous development of decentralized finance (DeFi), liquidity issues have remained a core challenge faced by various decentralized exchanges (DEX) and projects. Traditional market-making models often rely on centralized liquidity providers, whose control over funds may affect token price fluctuations and even pose risks of market manipulation. Elixir Protocol, as an innovative DeFi protocol, is attempting to disrupt this model by providing a more decentralized, transparent, and efficient liquidity solution.

1. What is Elixir?

Elixir Protocol is a decentralized protocol focused on optimizing DeFi liquidity, aimed at providing deep liquidity support for centralized exchanges (CEX) and decentralized exchanges (DEX). The protocol allows project teams and individual investors to provide liquidity directly to the order book without relying on traditional market makers, thereby reducing costs and enhancing market transparency.

Currently, in the traditional liquidity provision model, project teams typically need to provide a certain amount of tokens to centralized market makers in exchange for liquidity supply. However, this model has significant flaws, as centralized market makers may control project tokens for an extended period, even affecting their market performance. Elixir Protocol achieves a more decentralized market-making approach through a modular decentralized network architecture and a Delegated Proof of Stake (DPoS) consensus mechanism, allowing liquidity providers to interact directly with exchanges without the involvement of third-party institutions.
Elixir has currently integrated with over 30 DEXs, covering multiple high-throughput L1 and L2 ecosystems such as Arbitrum, Blast, Sui, Sei, Starknet, and Injective, supporting leading trading platforms like Vertex, RabbitX, NFTPerp, Orderly Network, and dYdX.

2. Elixir Operating Model

The core operating model of Elixir revolves around optimizing order book liquidity. Its network allows individual users, institutional investors, and project teams to provide liquidity through Elixir, ensuring market depth and price stability through smart incentive mechanisms.
Compared to traditional market makers, Elixir's advantages include:

1. Decentralized Market Making: Eliminates the manipulation risks of centralized market makers, allowing project teams to manage liquidity more freely rather than handing tokens over to a single entity.
2. Efficient Liquidity Management: Elixir employs a DPoS mechanism, enabling the validator network to collectively decide on liquidity allocation, enhancing market fairness.
3. Reduced Trading Costs: Elixir's innovative market-making mechanism saves 99% of costs, allowing project teams to obtain deeper liquidity support at a lower price.

Additionally, Elixir has launched deUSD (Decentralized Dollar), a fully collateralized, yield-generating synthetic dollar that provides a convenient entry point for institutional asset holders into DeFi. deUSD further expands Elixir's application scenarios in decentralized finance.

3. Technical Core of Elixir

The underlying technical architecture of Elixir Protocol includes several key components to ensure the stable operation of its decentralized liquidity management system:

1. Exchange Feeds: Collects and transmits market data from CEX and DEX to provide liquidity support for the order book.
2. Data Aggregator: Integrates multi-party market data to form a unified order data framework, achieving consensus through validators.
3. Validator Network (DPoS): Elixir adopts a Delegated Proof of Stake (DPoS) consensus mechanism, requiring over 66% consensus to execute transactions, effectively enhancing the system's security and fairness.
4. Relay Nodes: Responsible for executing transactions and synchronizing market data, ensuring consistency between CEX and DEX order books.
5. Dispute Resolution Layer: Includes auditors and controller nodes, responsible for ensuring the correct execution of market-making algorithms and penalizing malicious behavior.

This technical architecture enables Elixir to efficiently and with low latency process liquidity orders, providing a better trading experience than traditional AMMs (Automated Market Makers).

4. Elixir Team Introduction and Financing Information

Elixir is led by an experienced team:

• Philip Forte (Founder and CEO): A blockchain liquidity management expert who has deeply participated in the construction of the DeFi ecosystem.
• Christopher Gilbert (Co-founder and CTO): A blockchain architect focused on decentralized trading technology.
• Tim Wang (COO) and Cole Petersen (Operations Director): Both have extensive experience in traditional finance and DeFi.

In terms of financing, Elixir has completed multiple rounds of funding, supported by many well-known institutions:

• March 2025: Series B funding of $8 million, with a valuation of $800 million, led by Sui / Mysten Labs and Maelstrom Capital.
• October 2024: Series A funding of $7.5 million, with a valuation of $100 million, led by Hack VC.
• January 2023: Seed round funding of $2.1 million, with participation from Inception Capital and Chapter One.

5. Elixir Token Economics

Elixir launched the ELX airdrop eligibility check website on March 5 and announced the token distribution plan, with a total supply of 1 billion ELX tokens distributed as follows:
1) Community allocation 41%: of which 8% is allocated for the first quarter airdrop, 21% for future airdrops and LP incentives, and 12% for public network security rewards, with all unlocked tokens not eligible for staking.
2) Foundation allocation 22%: for future ecosystem donations and rewards.
3) Liquidity allocation 3%: reserved for market makers and other LPs in CEX and DEX.
4) Early investor allocation 15%.
5) Core contributor allocation 19%.

$ELX, as the core token of Elixir Network, is primarily used for staking, governance, liquidity incentives, and network security.
Holders can stake $ELX to participate in the DPoS consensus mechanism, supporting validators in running the network and ensuring the transparency of transaction data. At the same time, $ELX holders can participate in DAO governance, deciding on key matters such as protocol upgrades, economic parameter adjustments, and ecosystem fund management.
In terms of liquidity support, $ELX is used for liquidity incentives in order book DEXs, enhancing trading depth and reducing reliance on centralized market makers. Additionally, Elixir adopts a long-term release mechanism to ensure the sustainability of token distribution and strengthens network security through audits and bug bounty programs.

6. Future Value Analysis of Elixir

Elixir is redefining the liquidity management model of DeFi, providing a more decentralized and transparent market liquidity solution for DEXs and CEXs. With its in-depth cooperation with mainstream DEXs and L2 networks, as well as the launch of innovative products like deUSD, Elixir is expected to become a core infrastructure in the decentralized liquidity market.