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Elastic Vault: Quick Start Guide

Here's how to start using the Elastic Vault in less than 5 minutes.

What tokens can I deposit into the Elastic Vault?

The Elastic Vault is an application powered by the native rebasing capabilities of the Ampleforth token (AMPL). Due to the rebase, the AMPL token has three states:

  • Negative rebase: AMPL token supply declines
  • Steady State (Neutral rebase): AMPL token supply remains constant
  • Positive rebase: AMPL token supply increases.

The Elastic Vault monitors the state of the Ampleforth protocol (positive, negative or neutral rebase) and uses this information to determine how much of the vault's yield token Elastic Finance Token (EEFI) will be minted/burned. Vault users can earn EEFI and benefit from the vault's EEFI burning operations when AMPL is in positive rebase.

The vault enables holders of the following tokens to earn yield, in the form of EEFI and ETH:

  • AMPL: The Elastic Vault is fueled by the AMPL token. The EEFI token supply is determined by the amount of AMPL deposited into the elastic vault.

    During negative/neutral AMPL rebases, the vault checks the amount of AMPL staked in the Elastic Vault and mints EEFI based on the amount staked. More EEFI is minted during neutral rebases and less EEFI is minted during negative rebases. During positive AMPL rebases, a percentage of AMPL is sold for ETH, which is used to buy and burn EEFI.

    AMPL holders can deposit their AMPL into the Elastic Vault contract (deposited AMPL is locked for 90 days). In exchange for helping to fuel the elastic vault, AMPL stakers receive EEFI rewards. They also receive ETH rewards during positive AMPL rebase periods.

  • EEFI/ETH: The vault also requires EEFI/ETH liquidity on Balancer to function (learn how to add EEFI/ETH liquidity by clicking here. To incentivize liquidity provision, holders of the Balancer EEFI/ETH LP token receive EEFI and ETH rewards.

    Note that the Balancer pool is weighted 90% EEFI, 10% ETH. This allows community members holding EEFI to provide liquidity in a more cost-effective fashion. Also, because the pool is weighted more heavily toward EEFI, impermanent loss associated with providing liquidity is much lower than what liquidity providers experience with 50/50 pools. (Read the Balancer documentation for more information.)

  • kMPL: Holders of the AmpleSense governance token can deposit their tokens into the Elastic Vault to receive EEFI/ETH rewards. This incentivizes kMPL holders to participate in governance. (You can trade for kMPL by clicking here).

  • kMPL/ETH: A percentage of EEFI and ETH vault yield is delivered those depositing kMPL/ETH Uniswap v2 LP tokens into the vault. Add kMPL/ETH liquidity to Uniswap by clicking here.

  • Zeus/Apollo NFTs: Holders of these NFTs can also deposit their tokens into the Pioneer Fund I vault. A small percentage of rebased AMPL will be deposited into the Zeus/Apollo Pioneer vault. After more than 40,000 AMPL has been deposited into the vault, a portion of this AMPL will be sold for ETH, which NFT stakers can then claim.

How can I get started using the Elastic Vault?

Connecting your wallet

The Elastic Vault supports several different wallets, including MetaMask, which we recommend.

Click the "Connect Wallet" button at the top of the vault page and a modal window with the following wallet options will appear (see image below).

Wallet Connect

Depositing tokens

Then, make sure that one more of the vault tokens is in the wallet connected to the app, and visit the Vault Summary page.

Click the "Select" button next to your desired vault (for an example, see the image below).

Vault Select

Once you have accessed a sub-vault, you'll conduct two transactions to deposit your tokens.

  • Approve tokens: Approve the vault to use your AMPL or other tokens
  • Deposit tokens: You can deposit 100% (or a lower percentage) of the tokens in your wallet.

Claiming rewards

Claiming rewards

Over time you will accumulate ETH and EEFI rewards, which can be withdrawn at any time.

Token Deposit

Saving Ethereum network gas fees

A common concern about using the Ethereum network is high gas fees. One of the benefits of the Elastic Vault is that you can pick and choose times when the gas fees are low to deposit and withdraw.

A great resource to use is the Ethereum gas charts at Ethereumprice.org (see image below). The site features a chart of times where Ethereum gas prices are highest. Select a time period to deposit and claim from the vault when gas prices are lowest.

Saving Gas

Another strategy is to use a lower gas fee. To do this (on Metamask).

  1. Click the "Edit" link above the Estimated gas fee section (see image below).

    Edit Link

  2. Click the "low" radio button in the gas selector tab.

    Low Gas

Using these strategies (making transactions during low gas periods, and selecting a lower speed for your transaction) will save you a lot in fees (this is especially important if you are depositing a smaller amount of tokens into the vault).