• A

    Anna Key

    Elk Finance is Leading The Way on Multi-Chain Adoption

    Elk's outlook for 2022

    Elk Finance is the biggest crypto network people have likely never heard of. Since launching last March, they have expanded their cross-chain services to an impressive 16 chains, making them the most extensive protocol in all of decentralized finance. Elk provides a robust suite of services, including trading, farming, and instant cross-chain transfers within their network of blockchains. 

    To date, Elk still has a modest market cap of around $15 million. In this article, Elk lays out its plans for becoming a major player in the sought after cross-chain sector in 2022, which includes a major protocol upgrade, a unique stablecoin offering, and launches on Ethereum and other popular chains. 

    Elk’s Progress to Date

    Elk Finance officially launched on Avalanche March 19, 2021. A beta version of ElkNet, their innovative cross-chain value transfer service, launched at the end of June, meaning that Elk has really only been operational for around 7 months.

    To date, Elk has expanded their fast and secure cross-chain services to 16 chains that operate on the Ethereum Virtual Machine (EVM) standard, including major players like Avalanche, Polygon, Fantom, Cronos, and Binance Smart Chain, alongside buzzworthy up-and-coming chains like Fuse, IoTeX, and Telos. ElkNet’s cross-chain design stands out from other bridge protocols in that it is designed for transferring value rather than bridging tokens. For a basic primer on ElkNet and its multiple advantages over traditional bridges, their release article, “A Closer Look at ElkNet,” is a useful starting point. The key differentiator is that $ELK is by design the only token that moves through ElkNet. This provides an elegant solution to many of the liquidity and security problems that cross-chain protocols face, while also giving the $ELK token a vital role within the Elk ecosystem.

    ELK Ecosystem

    Elk operates decentralized exchanges (DEXs) on each one of its connected networks, where users are able to swap tokens and provide liquidity for rewards on dozens of farms. Additionally, each of their farms is covered by impermanent loss protection (ILP), an insurance program that gives liquidity providers coverage against price divergence on their liquidity positions. To date, Elk has also released sold-out collections of utility-bearing Moose NFTs on six chains, which unlock benefits for token holders and will be used in the future to manage nodes and third-party multi-chain applications within the Elk ecosystem. 

    Elk’s Roadmap for 2022

    Elk is preparing to deploy a number of major protocol upgrades and new services in 2022. Their article “Beyond the Bridge: Exploring Use Cases for the Elk Network” provides an in-depth overview of some of the forthcoming releases and use cases for ElkNet. With the release of ElkNet v.2, Elk will add support for cross-chain swaps, contract calls, and seamless integration with oracles. The upgraded ElkNet will also feature faster cross-chain transfers, lower fees (including an option for gasless transfers), and an Elk SDK, which will allow developers to release multi-chain applications on top of ElkNet. 

    Several other novel features are also in the pipeline, including a stablecoin $CHFT based on a unique “gyroscopic” design that allows it to move freely between any of the blockchains where Elk is deployed. 

    Starting in Q2, Elk also plans to transition into a fully decentralized peer-to-peer network with the release of ElkNet nodes, which will allow users to stake $ELK and contribute to the security of the network. In terms of an investment outlook, they plan to reward their node operators handsomely. Most cross-chain platforms depend on centralized, custodial counterparties, which means that ElkNet will become one of the first truly decentralized solutions for cross-chain activity. 

    In terms of network development, Elk plans to integrate many more chains in 2022, starting with Ethereum and “layer 2” chains Arbitrum and Optimism. They plan to integrate many smaller chains over the course of the year, as well as several popular non-EVM chains such as Solana and Terra. 

    With the release of the ElkNet SDK, developers will be able to build cross-chain applications that make use of “proxy tokens”–virtualized assets that can move freely across any network within the Elk ecosystem. Unlike conventional bridge tokens, Elk’s proxy tokens do not require new wrappers as they move onto new chains. In this way, Elk plans to greatly reduce token fragmentation, which is currently one of the major problems that networks experience as various protocols release stablecoins and bluechip tokens in proprietary wrappers. 

    Some of the unique use cases for ElkNet and proxy tokens include cross-chain loans, multi-chain index tokens, cross-chain liquidity provisioning, multi-chain governance, wallet integrations, and more. 

    More Features Coming in 2022

    Here are just some of the other features coming to Elk in the coming year: 

    Bridging-as-a-Service (Baas): This feature allows developers to bridge their tokens across chains on demand. Deploy a contract, stake a Moose NFT, and the token can be bridged. No more paying fees or royalties for bridging services.

    Deflationary Dynamics: The upgraded ElkNet will start taking a very low fee, which will eventually be controlled by governance. A fraction of which will be burned, making the $ELK token deflationary.

    Governance: 2022 will also see the initial launch of Elk’s governance module, which will be built around the $ELK token. 

    CEX Listings: The $ELK token will be listed on several centralized exchanges, starting in Q1. 

    Improved Farming & Staking: Elk is constantly reviewing its farm offerings in order to support the most innovative projects on established and emerging blockchains. Elk also plans to offer innovative farming and staking options, building on top of the “dual token” farming contracts, which allow users to earn more than one token as a reward. 

    Impermanent Loss Protection: One of Elk’s most popular features, Impermanent Loss Protection (ILP) will continue across all farms in 2022. 

    New dApp UI/UX: The first quarter of 2022 will also see the unveiling of a completely overhauled user interface, which will be mobile friendly. For a look at the new UI and Elk’s design philosophy, see the preview article, “Secondhand DeFi: Elk’s Bid to Fix Derivative UI/UX.”

    Token Halving: Finally, on March 19, 2022, the anniversary of Elk’s launch, $ELK emissions will be cut in half based on the schedule in the Elk litepaper

    ***

    Stay up to date by following Elk Finance on Medium and the official Elk’s Twitter account

    Have a chain you’d like supported? Join the conversation! Drop into their Telegram chat and let them know. 

    About Elk Finance

    Elk Finance is a peer-to-peer network for cross-chain value transfers. ElkNet, its cutting-edge multi-chain protocol, makes it easy for anyone to move value and exchange cryptocurrencies across blockchains quickly and securely at a low cost. Start exploring the Elk ecosystem today at https://app.elk.finance/.

    SHARE