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🧠 Elys Network x XRPL EVM: XRPfi Made Simple ⚡️
Recorded: July 7, 2025 Duration: 0:55:21Space Recording
Short Summary
In a recent XRPL EVM space, ELIS Network was introduced as a pioneering DeFi platform, emphasizing its strategic partnership with PeerSyst to enhance accessibility and yield opportunities for XRP holders. With impressive APRs in liquidity mining and vaults, the project aims to revolutionize DeFi on the XRPL EVM.
Full Transcription
Music Thank you. Music Music
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Music Thank you. Music Hello, hello. Hello, Kizisam. Can you hear me?
Hi, yes, I can. Can you hear me okay?
Yeah, all good. Thanks for joining.
Thank you for having me.
All right, let's get started.
Hi, everyone. Thank you, everyone's get started.
Hi everyone.
Thank you everyone for joining and welcome to today's XRPL EVM space.
This is Farran from Pearsis and today we are excited to dive into another project building on the XRPL EVM sidechain. Today, we are joined by Hesham from ELIS Network,
a DeFi platform that's integrated
XRPL EVM in a unique and powerful way since day one.
Today, we'll be discussing what ELIS is,
how they use the XRPL EVM,
how users can onboard, what products they offer, what kind
of APRs and rewards users can expect.
So stick around.
We also have time for questions from the community at the end of the spaces.
I've posted the tweet here where you can leave some comments and I will read a few questions
at the end if they are.
So feel free to put some comments and then we will read them and make sure your questions are answered. So I will start saying hello to Hesham and if you can introduce yourself.
Thank you, Feran. I appreciate the opportunity to be here today.
I'm Hesham. I'm a co-founder
and growth lead for Ellos Network. We launched back in December with the goal of essentially
making DeFi accessible for everybody in kind of a very seamless manner, bringing usability,
adoptability to even the most novice user who's just getting introduced to DeFi for
the first time. And we wanted to tackle specific pain points, for example, not just understanding
how to use a wallet and how to access a wallet, but really giving them more of an investor mindset
and how do I actually build a portfolio? How do I access various assets
and how can I do this in a very frictionless way?
So that's been our goal.
We're very proud to partner with PeerSyst,
especially with bringing XRPL EVM to the space.
So I've been involved in crypto since 2017.
Very early on, I recognized there was an opportunity
to really give people an opportunity to establish financial freedom and, you know, kind of take the initial kind of opportunity that we saw in Bitcoin and expand that into, you know, the applications that could be built on blockchains and the things that you could do specifically in DeFi. So that's how I got my start in the space.
I'm very excited to work with other like prominent people
in the space who do amazing, amazing things.
The engineers that are constantly building every day
and the people that just get involved
and help kind of make the space just grow
into something that I think has just been
absolutely phenomenal over the last several years.
And I'm excited for what's to come in the coming years as well
fantastic uh hey sam thanks for for the intro um i'm very excited to have you guys here on this
first space because uh you guys have been uh the first or one of the first protocols to integrate XRP coming from the XRP LEVM.
So you've been pioneers on that.
And also your product is very much focused on DeFi, which is something that we wanted
to reinforce because making yields for XRP L holders right now, it's very, very difficult.
xrpl holders right now it's it's very very difficult um yields are not super high and uh
due to the lack of programmability and until a week ago interoperability was was very difficult
but i think now with xrpl evm we can start opening some doors for all this to happen and it was great
for us to see that you guys have been pioneering and you've been prioritizing XRP a lot, which I think is a great opportunity.
So I wanted to start from the top.
For those who are new to Alice, probably most of the people in the XRP L community are new regarding Alice.
Could you give us an overview of what Alice network is
and the problem you are solving in DeFi?
Yeah, absolutely.
And I will give you guys a shout out at Pearsys
for all the support you've given us over the last few months
in terms of getting this integration.
We were super excited when XRPL EVM launched.
It was very smooth and we were able to be there on
day one with you guys so that was really fantastic work from your entire team all
your engineers have been super responsive I know you guys are working
24 7 to continually you know kind of keep things running smoothly so again
thank you to you guys for that so the way that we kind of envision LS Network is, you know, somebody coming, you know,
who has XRP and is looking to, you know, essentially put it to work, wants to get some
additional yield out of it, wants to get some additional functionality or expand their portfolio
options. They can bridge or connect their XRP, right? They can bring it over to LS Network.
And we have various guides on how to do
that. We've posted a couple things about it. And hopefully in the process, you know, in the near
future, we'll actually simplify that process down to one click when possible. And once your XRP is
on LS Network, you can do multiple things with it. You can swap it for other tokens, you can stake
it in a vault, which will have various vault opportunities
coming in the future.
Right now, for example, when you stake it in a vault,
you actually deposit it where other users can borrow
to engage in a leverage LP position,
which we'll talk about in a little bit.
So leverage LP basically allows somebody to take
a leverage position on the actual volumes
in the liquidity pool.
So this is a pretty exciting opportunity
to earn some yield in XRP.
And then you can also provide liquidity.
So we do our liquidity pools currently paired with USDC.
So you could pair your XRP with the USDC,
enter a liquidity pool and then earn fees
that are generated from swaps.
So that's kind of a nice deal.
We also incentivize right now our vaults and pools with Eden,
which is our staking reward token,
which can be vested and converted to LS over a 90-day period.
Soon, you can also, of course, engage in leverage LP if you want to be the borrower.
So if you want to borrow against XRP or USDC to go into a Leverage Liquidity Provision position, you could do that as well.
And then you pay an open interest for that while you are maintaining that position.
And soon, we'll be launching Perpetual Trading.
So this one's going to be, I think, one of the more exciting ones for for XRP users I know there's some places where you can
clearly you know perpetual trade XRP but for the for us you know our focus has
always been low cost frictionless you know very seamless process so we're
gonna do that we're gonna offer these types of services at the lowest fees the lowest slippage and the the best user experience you know
based on feedback so that's our goal so I'm very excited for our perpetuals to
launch to the pool I know just open so liquidity mining pool for XRP is sitting
around almost $50,000 so we're're going to work that up. And eventually,
once it gets up to, let's say 500,000 to a million in there, we'll be able to launch perpetual
trading against it, which will be really exciting. And the great thing about that is that's actually
the biggest revenue driver, as you can see from platforms like Hyperliquid, DYDX, GMX, Synthetix,
their main revenue generation comes from Perpetual Trading.
So this is a big deal for us
in terms of being able to launch this.
Right now we have a whitelisted Perpetual feature
for Bitcoin and Atom perks.
And that's just kind of just an initial set of users,
about 130 or so users that are essentially testing
longs and shorts
against both those positions
and providing feedback on the experience.
And once we have all that kind of consolidated
and acted on and kind of to improve the UI,
we'll be able to open it up to everybody.
So we're very, very excited
to have XRP users come and engage in that.
And then with Vault, with our next iteration of Vault,
we will have various portfolio options
based on risk tolerance or target yields.
So these will be curated vaults
and they're actually going to be AI managed.
So you'll, for example, be able to partake
in a large cap vault where you could do
like Bitcoin, Ethereum, XRP.
Or you could do maybe like a,
like a mix of large and small where you could have XRP and then various other
tokens based on what the curator has offered.
And it'll show you their target yield and show you what their actual yield is.
And then all of these vaults will have a cap.
So it'll be limited to a certain number of investors who want to come in and be a
part of those. And that way we don't dilute any other rewards or yield so so we're
very excited for the uh ripple community to come in and check it out and give us your feedback and
so we can continue to build and make it better awesome um thanks i mean i think you already
mentioned most of the the products, which is fantastic.
But yeah, for everyone here, I think it's a great opportunity because literally, as Hesham mentioned, there is this vault for staging where you can just go and put your XRP to work.
You just lock some XRPs there and you're earning rewards.
We've been testing ourselves.
We've been pouring some liquidity on this pool.
We've been locking some XRP's on the bolts.
And the rewards are very good right now because we'll talk about this later.
But I guess when the markets are less efficient
and there is, you know, these first opportunities there,
there is, you know, a big number of rewards that can be earned.
Also with your token, the reward seems to be significantly good.
So I think that's an opportunity in terms of yield
that it's probably one of the best ones right now for XRP.
And I think people should look into it.
Another good reason for that,
apart from making yield out of that,
it's as Hesham mentioned,
when we reach this volume of about 500K to a million,
perpetuals can be opened.
So I think for XRPL community that's, you know,
has been claiming DeFi
and has been claiming opportunities there.
It's now also our turn to contribute to that while learning some yield to make sure there's some liquidity bridged.
So these kind of products can be launched and can work and we can all use it and bring XRP beyond our community itself.
so I think that's important that everyone has a try.
So I think that's important that, you know, everyone has a try.
The experience is not that bad.
We will talk now also about onboarding.
I think obviously these bridges and everything,
it's not a one-click thing,
but it's going to get better and better.
But I think right now, if you know the steps to follow,
it's still something very easy.
But before talking about uh onboarding
i want to first uh ask you hasham about xrp itself you've been one of the first to build on top of
xrp lbm and you've been prioritizing and betting a lot about this integration. So I wanted to ask if you can explain why you choose
to make this early integration
and how you are using XRP
or how you are seeing XRP being successful
within your protocol.
Yeah, we have a focus on quality large cap
cryptos in the space. We do a lot of research
in terms of, you know, the community of users, the use cases, and just the overall, you know,
picture in terms of like, will this fit our platform? And so that's why we focus on very, very like established cryptos
like Bitcoin and Ethereum.
And so it made perfect sense for us to have Ripple, you know, XRP, right?
And we always wanted XRP.
The issue was because we're built on Cosmos SDK,
we needed to have the right partner and the right connection
to bring it onto LS Network.
And that's where we're excited about this relationship with PeerSyst,
is that when you guys launched the XRP-L EVM chain, it now opened up that possibility for us.
So this is kind of where I view the multi-chain world and how collaboration
across teams and chains is really going to unlock a lot of opportunities for users.
And with XRP, because of the XRP army
and because of like the loyalty,
I mean, you know, you look at the type of user
that we really like at Alice Network
is somebody who's in it for the longterm.
You know, our motto right now is built for investors, right?
Like we want people who are gonna be around
for a very long time.
And what better example of people who are, you know,
loyal to kind of their community and wanna stick around
and wanna see it do well than the XRP, you know,
token holder and, you know, those, you know,
to look at the average kind of XRP holder,
they've been with it for years, right?
And they really believe in what it can do
for like the payment space and for, you know, just overall, you know, usability for decreasing the dependence on the banking sector, which I think is really kind of like one of the most noble causes within crypto.
And I really want to see that vision play out.
vision play out.
And having this opportunity for XRP users to come in
and essentially bring the knowledge that they've had
for the last several years and kind of being first movers
and really early on in the space,
and to come to LS Network and tell us what we're doing right
and what we're doing wrong is very, very important to me.
Like that feedback will be so invaluable
in terms of how we can gauge our progress
in terms of are we offering
the right type of like products for these users so this is where i see a lot of value in terms of
building a relationship with the xrp army and if we can uh continue to leverage that that relationship
and and essentially take the information that they are giving us through their feedback in terms of
how's the user experience how's the user interface, we'll be able to continue to just
innovate and create just really, really incredible products that can rival some of the top products
out there. And the most important thing there is obviously that we are still providing those
opportunities for people to build a portfolio that they're, that they, you know, are able to easily manage and still, you know, maintain their, their family and work
and professional relationships and everything else that they need to tend to with minimal
disruption in their lives. And eventually that's kind of the goal of where we're trying to go is,
you know, Ellis will be something that where they can set and forget, they can put their XRP in the
vaults, liquidity mining in the various places that they, that they want to do, they can set and forget they can put their XRP in the vaults liquidity
mining in the various places that they that they want to do they can stake it and then they can
maybe check on it every couple months if they want to if they don't want to have to keep coming back
and looking at it and the other thing they can do is obviously put things on some sort of automated
like AI strategies where for example you could DCA? So a DCA strategy would come in and purchase XRP tokens
every week, every month, every quarter,
or you could claim your rewards every week, month, quarter,
right, and then reinvest those into something else.
So that's where we wanna see kind of this go in the longterm.
We wanna make sure that we are very, very receptive
to those users' needs and wants,
and to continue to allow them to essentially we want to make sure that we are very very receptive to those users needs and wants and
to continue to allow them to essentially like curate their portfolios the way that they want
yeah thanks question i mean i think you mentioned a couple of things that are
very valuable uh for us or for xrpl community i guess um so yeah one of the the first things as
as you mentioned is that this cross
chain collaboration, right? All these bridges and multi chain wallets about that. Until
now, essentially you are you built on XRPL or you are not, you know, touching and offering
any product or options for XRPL. There's a few people that exchanges, et cetera, that
has, you know, some kind of rapid XRP in other places, but they are not really offering any options for people that has XRP and it's using it into the day to day.
So I think now, thanks to that, we have protocols like Alice that was alive way before and they've been offering all these products as these valves, these pools, perpetuals,
leverage, etc. within other ecosystems and now we can access it through the XRP LEBMs.
So essentially, these kind of collaborations and opening doors, it's very important.
And I think, you know, the XRP-LEVM was built for that.
We don't need to have or we don't want to have all the XRPs essentially locked on the XRP-LEVM. The XRP-LEVM, in this case, acts as a gateway for ELIS network to, you know, allow users to use their products.
but that's a very valuable use case to me.
But that's a very valuable use case to me.
And it's putting XRP out there in the Cosmos ecosystem
and other protocols that can bring real value
and also supply a demand, right?
There's demand for XRP outside XRP ledger.
And I think all those people can just click one button
and swap and get their XRPs.
It's also very valuable, simple products
that people have a demand and we are covering.
So talking about this, you know, I think we've mentioned that there's all these great opportunities.
There is all these products that people can start test now today.
This is live.
What's the onboarding experience?
Can you let us know what are the exact steps, like point by point,
if I'm an XRP user that I have an XRP wallet or I have my XRP users on an exchange, whatever,
how do I go from there to use Alice Network products?
Yeah, so right now, you know, the steps to bring your XRP over to else network
are probably you know like we talked about earlier a little bit a little bit
more difficult than we want in terms of like optimizing them in the future but
it's not too bad to be honest with you so I've been playing around this was
this myself because I moved my XRP over you You'll start off at the XRPLEVM page,
the wallet page that Peer Assist has actually created.
So this is actually, you don't have to do this step,
but this is one of the places where you can at least
identify where your wallet address is.
So this will be at wallet.xrplevm.org,
wallet.xrplevm.org, wallet.xrplevm.org.
And there you'll have, if you connect with MetaMask,
you'll have a MetaMask Snap integrated there.
You'll be able to get your XRP wallet address
if you are new to XRP for the first time.
And then you can fund that XRP from a centralized exchange
if you need to, or wherever you need to source your XRP from.
So what I did, for example, I just tested from Coinbase.
I sent Ripple from Coinbase to that wallet address that was on there.
And once it's on there, I can connect to SquidRouter, so app.squidrouter.com.
And so you can skip this first step if you already have an XRP wallet because
you can connect it directly to SquidRouter so SquidRouter just want to
make sure I did say that correctly app.squidrouter.com once you're at
app.squidrouter.com you can go to the swap section it already I think
believe the defaults there then you're're going to go to XRP.
You're going to select XRP in the top section
that you're going to swap from.
And then you'll connect your wallet to that one,
the same wallet that you had referenced in the previous site,
the XRPL EVM wallet.
And then in the receive section you're going to select XRP
L EVM under chains and
Then that one you can connect your Kepler wallet to get
Get your wallet address there or you can connect them at a mass wall. So both of those will will work and
Then you can swap the amount that you want into XRP-L EVM.
So once that happens, that's pretty quick.
I think it takes like two to three minutes.
Once you have it there, it now lives,
your XRP now lives on XRP-L EVM chain,
which is a Cosmos SDK chain,
as well as, and it has an EVM component to it.
So you can then very easily transfer your XRP into Ellis. So then you
would visit the Ellis app, app.ellis.network. Once you connect your wallet to app.ellis.network,
you hit the transfer button. And then when you select from the chain, from the chain options of
what tokens you want to bring in, you would select XRP. And then it should, once you have your wallet connected, automatically
show you your balance. And then you go ahead and transfer that
in as XRP into LS Network. So I think if you were to do this kind
of like in a very efficient manner, you could probably knock
out this whole thing in under five minutes. Like I said, our
goal is, we've done a couple of things.
One, we've partnered with chains like Agoric
who are utilizing orchestration
to essentially take these steps and automate them.
So you could basically tell it you wanted to do one thing,
it'll do all those in sequence for you.
And two, we have applied to
be listed directly on SquidRouter. So if either of those steps should at least either reduce it down
to one step or two steps. But if we get listed on SquidRouter, which hopefully we'll hear from
them in the next couple days, you'll actually be able to do that swap that I just discussed on
SquidRouter directly into XRP on Ellis.
So it'll still route through XRP-L-EVM, so it'll still route through Pierce's chain,
but it'll eventually just make its way over to Ellis through essentially their swap adapter,
if that makes sense.
I know that's like a very, you know, going through this step, you know, with just audio
only without a video demo can be be a little bit difficult to follow.
So I have posted a video guide on my X account.
I will probably put the link in there.
I don't know if we can put it in the comments for this space,
but I'll put the link in there.
That way you can actually follow along as I do it.
And I think that might make it a little bit easier to visualize it.
Thanks, Kesham. Actually, yeah, you explained it in very good detail. But yeah, we've done this
process a few times. And essentially, it's two steps. This can be done in, you know, in less
than five minutes for sure. So essentially, it's if you have your xrps on chaman or
wherever place in an xrpl wallet already uh as as i made it's like step one it's bridging using
uh squid router to xrpl ebm you can use metamask or kepler to receive address and then step two you
directly go to app.elist network and and then there is all this process to say
I've liquidity, it will make you transfer and everything
but you just sign from there.
So essentially it's one step to bridge
and then the second step is going to elisnetwork
and you can already use it.
So the experience there is like elis was an app
directly on top of the XRP LEVM
and I think it's fairly simple.
The only thing is waiting like this two minutes on Squid,
which is fairly fast for being a bridge.
And yeah, I think it's a process that works pretty well.
All the platforms are stable.
They are all secure.
We've bridged also big quantities on our site
and everything worked well.
And it's something that I do recommend or encourage XRPL holders to try these two steps.
It's very simple and this way you can also start being early adopters of these options.
And also, you know, we can all contribute to enable these perpetuals on Alice, which I think it would be a very nice product to try and to have available for XRP, not only for us, but also for the rest of the communities on Cosmos and Ethereum and all the outside world that wants to use XRP, I think it's a good way to serve them with this kind of product so XRP gets more demand, gets used,
and also this creates more by-pressure,
or we serve better this by-pressure demand that exists.
Yeah, absolutely.
I'll add a couple things too as well with Squid Router.
If you don't already own XRP but you'd like to get some to bring over to Ellis,
I found one of the more
efficient ways to do that, although it is a little bit more time consuming, if you're trying to move
a larger amount, is through Arbitrum USDC. So on SquidRouter, if you do a swap for, it'll allow
you to do up to 100 USDC at a time, although they're going to lift that restriction soon. I
think it's just kind of like they're still verifying some of the security stuff. But 100 USDC at a time, swapping over to XRP L EVM is actually very, very efficient. There
was actually very little slippage, very little like fees involved, and it's quick. So that happens
actually in under 10 seconds. So this is an option. Again, if you want to purchase XRP to bring over,
might be a good way for you to do it.
So hopefully, like, we're going to talk to the SquidRouter team
and see when they're going to lift that 100 USDC cap
for people who want to bring in larger amounts.
But, for example, I was able to do it with 1,000.
I just did it 10 times, and the slippage was very, very low.
Every time it was only a few cents, so it was not a big deal.
But, again, if uh that we
would need to lift that restriction at some point for for it to be like a really viable way to bring
xrp in so that that's one option um and you know also uh i did want to highlight that you know one
of the things that we're we're very proud of is you know again we do a lot of testing in terms of
very proud of is, you know, again, we do a lot of testing in terms of how much it costs to buy XRP
on other platforms. And so, you know, Coinbase being like a major, you know, the major exchange
in the US, for example, I did a test of $1,000 worth of XRP, and it was going to cost me around
$12 to $18 to buy that XRP. On Ellis, it was going to cost me about $1 to $1.50,
depending on what the balance of the pool is.
So right off the bat, we're saving users a large amount of fees
that they can go back into investing in the more XRP or other tokens.
So yeah, we try to really solve those problems.
I don't know if you want to go into the pool balance reward and some of the things that we do to incentivize
you know keeping the keeping the pools healthy i can talk about that now or maybe i can talk about
it later yeah we just want to ask you about that uh but yeah essentially just uh last edition on
onboarding is that uh all this process we've described is you have xrps and you want to
move it to ellis but there's also other options
if you have eth in ethereum or essentially whatever token almost um in whatever chain uh
soon we will have available on a squid router um liquidity for coral so essentially you'll be able
to without bridging just swap whatever currency is on ethereum for xrp on the xrp levm and this is not going to
be a bridge it's going to be a swap um so essentially you will get there uh in a few
seconds and then from there you literally go and use it on on ellis network so i think the
onboarding as i said it's going to be much better uh metamask it's also going to support um xrp
levm with the logos and currencies and everything in a short period of time um stillamask it's also going to support um xrp lebm with the logos and currencies and
everything in a short period of time um still it's quite usable right now but i think all these things
it's going to improve uh but yeah let's get to maybe catch on to the the root on why people should
do that right uh apart from you know we've talked about these products we've talked about the
importance of having that in order to enable more more more products but uh what users can expect um from the products you
have right now available for xrp can you talk about maybe the aprs and the yield that people
can make within the different products right now yeah absolutely so uh right now, the best yield opportunities are going to be in the liquidity mining pool. So providing liquidity XRP USDC. Right now, the total APR is 43, a little over 43%. And showing about 8.7% of that is paid in usdc so like i talked about earlier the fees generated from
swaps within the pool go back to the liquidity providers as well as stakers so that's where
you see the usdc being generated and when a trader is paying a slippage or price impact
for their tokens typically on something like a uniswap
or some of these other decentralized exchanges that use the classic type pools or xyk type pools
uh those will the uh those will actually have the slippage or price impact actually go
i should say the slippage goes to the trader So if you're an arbitrage trader going in and balancing these pools, this gets a little bit technical and advanced, but
at the end of the day, the trader typically is the one capturing that slippage.
With Ellis Network, the trader does not capture the slippage, the liquidity provider does. So
that's why you see the USDC if you go on app.ellis.network and you look at the APR breakdown,
you'll actually see the USDC being generated from swap fees. And in a separate USDC if you go on app.ls.network and you look at the APR breakdown, you'll actually see the USDC being generated from swap fees.
And then a separate USDC showing the price impact because that's coming back to you as a liquidity provider.
And that's how we mitigate impermanent loss for somebody who is a liquidity provider.
So if you've done this before, you recognize your major risk that you take when providing liquidity is in permanent loss,
and this is how we solve it.
So our pools are very unique.
They're proprietary.
Nobody else in DeFi has them.
We are the only ones to have this design.
So it's a very robust design.
We've obviously been put through the ringer
over the last six months
with a very challenging market in crypto,
and our pools have held up exceptionally well.
So we're very, very excited to see the feedback from people who provide liquidity and tell us
that, yeah, this design is actually working as intended. So this is going to be your greatest
opportunity to earn some yield. In the vaults, if you just want to do the single XRP deposit,
right now it's showing 13.5% APR. That's 12% in Eden, which is our reward token.
And then 1.3% in XRP. So again, that XRP comes from the users that are borrowing XRP to take
on leverage LP positions. So since the pool is very small, and the the amounts that people can leverage right
now are very small, that that number is going to stay low until the pool gets much bigger. And then
you start to see borrows go up. And then you can see that XRP number go up pretty, pretty significantly.
And then of course, there is a small amount of USDC that also gets paid into this vault,
because you are as a vault participant, you are entitled to also a portion
of system revenue share. So it's a really great opportunity to earn yield in XRP, to earn yield
in USDC, and then to earn yield in our reward token as well, which is Eden. And very briefly,
Eden, the way that Eden works is Eden is essentially unvested ELL Ellis. So once you receive Eden, you can stake it or you can vest it.
If you vest it, you can then redeem it over a period of 90 days,
one for one for Ellis, and then you can sell it.
You can just stake it.
You can do whatever you want with it at that point.
But you don't have to wait the full 90 days.
So the full vesting period is 90 days,
but you could redeem it along the way anytime you want over those 90 days.
And there's no penalty for doing so. It'll just continue to vest and you can hit the redeem button anytime you want.
So we do that for various reasons. One is, you know, to encourage like long term participation in the token.
And two, depending on where you live, this will trigger your tax obligations.
So if you don't want to claim your token
at that particular time, don't claim it.
You can invest it and redeem it
at whatever time you want to trigger the tax obligation.
So those are kind of the nuanced reasons
of why we do that.
Eden will eventually disappear, right?
So Eden is just part of the way
that we use inflation to get to our max supply.
But once we've actually minted all of our Eden and all of that turns into Ellis, Eden goes away forever.
And then we'll essentially just be a platform that rewards you in the native token of whatever vaults you're participating in or just USDC.
And that's how we kind of keep it sustainable.
That's how we keep our tokenomics tight.
And we actually have a deflationary model in terms of burning ellis over time through a taker fee uh and then um and we'll be looking at
some other various options in terms of how we continue to work on a deflationary model like
buybacks or things like that so uh and with with the perpetual trading actually i will i will touch
on the leverage lp um right now xrp usC showing rewards APRs up to 130%. If you are engaging in leverage LP, you are again taking a leverage position in a liquidity pool as if, so let's say you, I'll just make an example.
worth of exposure into this liquidity pool and you want to go at five times leverage,
it's as if you have $5,000 in that liquidity pool. So you're exposing yourself as if you have more
liquidity in that pool to gain the rewards of that. Now, of course, you're paying interest
for that open position. So the rewards you earn need to outpace the interest that you're paying
for your position
to be profitable.
So this is probably more of an advanced function, but if you're interested in trying it out,
again, use discretion, use caution.
I would recommend that you definitely do your homework on any kind of leverage product before
you go in and always, always, always have a plan to mitigate your risk and never take
on too much risk at one point.
That's not financial advice.
Please do speak with your financial advisor about how you engage in those
products. So, but this is a great opportunity again,
for people who believe that maybe trading volumes are going to spike or they
have an opportunity to earn additional yield that can outpace their interest
paid. So, you know,
and we have these open
for every single one of our Smart Shield pools.
So that includes Bitcoin, Atom, Ethereum, Paxos Gold,
Akash, Ondo, Injective, Chainlink, et cetera.
So pretty excited to see what the users think about that
because I think Leverage LP is one of those features
that a lot of people don't know a whole lot about but when they get a
good grasp on it they um you know they can see how it can balance into the rest of their portfolio
in terms of strategy when they can take it on and turn it off awesome uh has some yeah i think you
know apart from more complex products as you you mentioned, there's these various things. You just get your XRP, bridge it through SQUID, connect to Alice, and then you have, as you mentioned, the vault,
that it's just simply putting your XRP to be borrowed against, and it's giving this almost 14% interest.
um interest and then this uh the liquidity mining uh also as you as you mentioned it that um it's
also being in this uh 43 apr can you maybe uh expand a little bit on what so how people really
claim these rewards so you essentially go to the pool and you put 50-50. And then what I do understand is that this pool gets moving depending on the people who's buying one asset or the other.
And then you have to eventually go and rebalance.
So remove liquidity.
For example, let's say there is less XRPs than USDCs.
Then you go sell your USDCs for XRPs again, and then you re-add
the liquidity. How is the day-to-day of a liquidity provider in this pool? And also
for the rewards that are earned in Eden, as you mentioned, then you go with these additional
rewards that you get, and you go to your your same platform you can best them and get
ellis as a reward is that like the how people make money out of it yeah so uh so as far as claiming
the rewards you have a dashboard when you log into app.ls.network that has a nice display of your overall portfolio and then on the right side
you have your rewards broken out to you in uh usdc and eden as well as a multiplier called eden boost
that's kind of a nice bonus that we add for people who continue to restake their eden we just give
them a multiplier on that if they want to stay in.
And then there's an external asset.
So if we have partners that are offering external asset rewards, those would be in there too.
So basically all you have to do if you're a liquidity provider or you're in the vaults is click claim rewards.
You can do that anytime you want on any schedule you want.
And again, we'll automate this at some point to allow you to simply choose when you want to claim or restake.
You'll hit the claim rewards button and then your Eden and USDC will come back to you.
Now, if you're in the vault and you're earning, let's say you're in the XRP vault and you're earning XRP,
that XRP actually just auto compounds right back into your vault so if let's say you started with
that XRP actually just auto compounds right back into your vault.
100 XRP and you've earned over the course of time you've earned you know two XRP you'll actually go
in and check your vault balance it'll say 102 so that's actually really great we actually really
like that concept that it just stays in the vault for you it just keeps going back into the vault
for you so that you can continue to kind of like compound
on that exposure.
So anytime you want, you can just go and withdraw
your vault position.
One thing I don't think I mentioned it earlier,
if you're participating in a vault, there are no lockups.
So typically when people engage in some sort of like
deposit feature or staking feature,
there's usually some sort of like 7, 14, 21 day lock.
With our vaults, with XRP, there are zero lock.
I can literally deposit my XRP and then 10 seconds later, take it right back out.
So that is a great feature.
We don't force you to stay there.
We want you to be there if you want to be there.
And if you don't want to be there, don't be there. And the reason I mentioned this is we have a USDC
vault that currently pays 6% USDC because of the amount of borrows that are going on right now.
So this is actually where we hope XRP will come to eventually, is to see the same level of borrows
that we're seeing on the USDC side. Because I keep my USDC in this vault. I'm earning 6% USDC. So I'm doing better
than a treasury. I'm doing better than a collateralized stable coin or note or anything
like that, but I don't have a lock. So if you look at some of these other platforms that where you're
trying to get some sort of yield on your USDC, there's typically some sort of lock, which makes
it difficult for you to get in and out. I can literally go in and out of my USDC vault anytime I want, and it's not a problem. And I'm
earning 6% on that. So again, that number is variable because it's based on the amount of
borrows. So this is where I see opportunity for XRP users to really engage in the vault side
specifically to earn additional yield in XRP. And then now circling back to the liquidity pools
in terms of like how those pools work with balancing.
So this one's, this is again, part of our unique design
is I'll kind of briefly discuss how Uniswap works
and then how we work, right?
So Uniswap and then the other DEXs out there,
basically everybody else.
So the way that those other platforms work is they use an AMM balancer, right?
Automated Market Maker balancer.
And any time that you purchase a token out of a pool, that balancer automatically sells
the other side of that pool to bring it back to 50-50 balance.
Always done it automatically, right? And when that happens, there's actually a price dislocation. So if I were to buy XRP,
let's say in a Uniswap style pool, I would actually be changing the price of XRP in that
specific pool and it would dislocate from the market. So this is where an arbitrage trader
comes in. An arbitrage trader would come in and say,
oh, look, the price is different.
I can actually capture that difference
between the price and market price
by bringing tokens from another platform
that I paid at market price
and bringing them in and adjusting them here
in this pool to bring it back to market price.
That's how an arbitrage trader essentially does their work.
Obviously, they do it on a much,
on a high-frequency basis
and a much more complex strategy than that. But essentially, that's how these pools stay balanced. But every
time that happens, the slippage actually goes to the arbitrage trader. And there's some erosion of
those liquidity pools in that process every time that selling occurs because of the price being
off the market price, which leads to impermanent loss for the liquidity provider. So the way our liquidity pools in that process every time that selling occurs because of the price being off
the market price, which leads to impermanent loss for the liquidity provider. So the way our pools
work is since we actually have our price data fed from the market into our pools, we use the Oracle,
the price of the token never changes off of the market. It stays tied to the market. So instead,
our pools do move off of the 50 50 balance and instead
we start to charge a higher amount of slippage or price impact to the user for swapping the pool
swapping tokens into the pool that takes you further away from balance but conversely if
you're bringing it back towards balance we give you what's called a pool balance reward. So that pool balance reward
is an opportunity for a lot of users, especially arbitrage traders who want to come in and
essentially capture some opportunity to make a little bit on a spread, right? So for example, Now the pool for XRP USDC is 38% XRP and 62% USDC.
That represents a pool balance of a pool balance reward of 0.08%.
So a trader can come in and actually sell some XRP into this pool.
And right now they have an opportunity of about $5,000 worth of XRP that they could sell into this pool to bring it to 50-50.
And when they do that, they can earn that pool balance reward. And they'll actually,
in some cases, be able to sell their XRP for more than what it's worth. So right now, XRP is,
I think at the time that we're talking right now, let's look up the price,
230, 234. We're out to have a nice day today. 234, so you might be able to sell it
for slightly more than that,
depending on how much you're trying to sell into the pool.
So really great opportunity,
not just for liquidity providers, but for traders.
And again, when that pool is balanced,
you have a really, really great opportunity
to buy XRP out of the Ellis pool,
which is kind of funny
because I balanced the pool yesterday.
I balanced it pretty close to 50-50.
And then people came in right back in and bought it bought the xrp back out of it because we have the best xrp swap rates in all of crypto so uh this is like the perfect example of
why this system is working right so now somebody's gonna have to come in and sell some xrp into there
to bring it back to balance and the cycle repeats itself. And that's how fees get generated in this pool.
Awesome. I was actually looking into some of the questions that the people
leave, but I think with that, you answered some of these questions
that people were asking.
So I think that was a very nice expression.
It's good to keep it recorded here for people to
go and check um later and yeah we are getting out of time uh but i think it was a pretty open space
and a pretty good opportunity to you know get to know uh how this works as i will say it's it's
better to try it uh because you know now we can talk here will say, it's better to try it
because now we can talk here, we can see videos,
but until you try it and you see the reward you're getting
and everything, it's fairly complex to visualize.
So I do encourage people to reach 10 XRP,
reach a small quantity just to get familiar,
make yourself comfortable, try the process of
bridging, try the process of going to Alice, see the different products, navigate on the dashboard,
see the rewards, and give it a try because I think it's an interesting opportunity. I'm sure
the guys from Alice also has the documentation, audits, everything in place. So I think that's
something to explore and obviously everyone to do their own research and get, you know,
a financial advisor or whatever they need in order to engage with the more complex products.
But I think it's definitely an option that it's open and it's available there. And it's something new that wasn't available until now for XRPL users.
And I think it's something worth at least giving a try or exploring.
But yeah, I don't want to overextend this.
Hesham, thank you very much for joining today, for giving such a nice explanation to the entire community. I will let you maybe say the
last words also for the XRPL holders, XRPL community, if you like.
Thank you, Ferran. I really appreciate this opportunity. Again, my sincere gratitude to
the Pearsys team for everything that you've done. I think that you guys have changed the game and really unlocked a lot of opportunities
for the XRP army.
And it's gonna definitely have a tremendous impact
in terms of how people are gonna be able
to create opportunities for themselves going forward.
The one thing I will say to kind of everybody
who's been with us on this journey,
whether you've been with us for the past two and a half years,
you know, even in the testnet days, or whether you're just joining us today, I'm extremely
thankful for your participation. It means a lot to me in terms of what you do to bring value to
LS Network is actually your feedback, right? It's not so much the amount of funds you bring on the
LS Network. Of course, we always appreciate that. but it's more about how can we make it better?
And that is how we're gonna continue to strive
to improve this industry.
So please do be very active and engaged.
Please join our Discord, please leave comments on X
and just take part in governance,
propose some things, anything that you want to see change within L's network, please do so. We are always,
always excited to see what ideas you guys have going forward. Keep in mind that the road to
kind of successful DeFi is going to have a lot of different like challenges, whether they be
regulatory, which seems to be kind of a tailwind for us right now,
whether they be, you know, from a design aspect, whether it be the hurdles of like connecting all these chains together, all the things that are like moving and essentially coming together to
make this happen. It's important to take a long-term mindset and understand that like,
as much as we wanted these to happen years ago or wanted
them to happen tomorrow, they take time. And it's really, really important that, you know,
teams like Pierces and teams like Ellis and teams like Osmosis and everybody, you know,
we're not cutting corners, right? We're trying to do this methodically in a way that always protects,
you know, the user and always make sure that like the user's not placed in some sort of you know situation where they have to take on additional
risk than they need to which is definitely different than the actual
risk of purchasing a token and then having its value go down right those are
two very distinctly different things so the thing that I would encourage
everybody think of is when you are building your portfolio when are you
when you're taking a decision to participate in a platform, be active,
be really, really like involved in what you, what you want to see happen.
And then as you're building your portfolio, just recognize, you know,
manage your risk, right? Like have a, have a plan to essentially,
you know, like, let's say your, your's say, your large cap,
your small cap, make sure that you're in a balanced situation
where you're not going to get harmed if something doesn't go
the way that you intended.
And with that, I'm really, really excited to see what you guys
bring to the table in terms of what you want to see us build
in our vault, because that will be the next thing
that users
will actually be able to do on their own is create vaults and then be actual curators for it,
which I'm very excited to see. And eventually when we bring on our prediction markets,
you, the users, will be the ones that will be posting your predictions, asking the questions
and asking, you know, and having other users take the other side of your
question or your prediction so i'm super super excited to see how that's going to play out and
again thank you for the opportunity i hope we can do this again in the future thank you
for everyone who's listening here uh this will be uh the first of a series of x spaces that we are going to do with different providers or the apps
such as alice that are using xrp levm to bring their products and bring new solutions for xrp
so stay tuned follow pierce's on twitter of course follow follow as well alice network and repelex dep and we expect and we would like to
see you in the next space which is likely to happen tomorrow with a similar time thanks
everyone for joining and we'll see you in the next bye bye access cheers Cheers.
