Ethereum
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ETH · 7w

Eclipseum — The Transaction Fee Generator : (1Y Fees / Liquidity) = 138% This Week

Quick Links eclipseum.org Introducing Eclipseum Etherscan Discord Telegram Twitter Whitepaper Security Audit Introduction

Eclipseum is designed to be a store of value asset that generates value for ECL holders over time. This is accomplished using two AMM liquidity pools which generate transaction fees that increase the ECL price. This week ECL holders enjoyed a 138% annualized increase in the ECL price from transaction fees generated alone, in addition to ECL Price increases from ECL bought.

1Y Fees / Liquidity Metric

The (1Y Fees / Liquidity) metric is an indicator of how much profit a liquidity provider can expect from the AMM liquidity pool transaction fees. It can be seen on the Uniswap Info page here and also as shown below.

So, for the WBTC-ETH pair for example, a liquidity provider could expect their value held in the liquidity pool to increase by 8.45% over the course of a year from transaction fees if the current transaction volume is maintained.

Eclipseum AMM Liquidity Pools

Eclipseum contains two AMM liquidity pools. The ECL pool enables users to buy and sell ECL and ETH, while the DAI pool enables users to buy and sell DAI and ETH.

Both AMMs charge a 0.3% transaction fee on every transaction. All of the fees captured by the ECL pool remain in the ECL pool. Half of the fees captured by the DAI pool are transferred to the ECL pool. These fees accumulate as ETH in the ECL pool, increasing the ECL price in ETH over time.

When ECL is bought from the ECL pool, the ETH balance of the ECL pool increases from the ETH spent by the buyer, and the ECL balance of the ECL pool increases as a result of the elastic supply system minting ECL. As a result of a Buy ECL transaction, the ETH balance increase is greater than the ECL balance increase, so the ECL Price in ETH increases from every Buy ECL transaction.

In this way, ECL token buyers are also the ECL liquidity providers.

The ECL price in ETH increase...

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