About Element Finance Airdrop
Element Finance Airdrop is a protocol that enables users to seek high fixed yield income in the DeFi market. Users can access, via the ecosystem and existing AMMs at a discount without being locked into a term, allowing the exchange of the discounted asset and the base asset at any time.
As already guessed in our retroactive airdrop overview, Element Finance is airdropping 10% of the total supply to various early users of the platform. Users who’ve traded a minimum of $500, provided liquidity worth at least $500 for 90 days and users who’ve minted more than $10k worth are eligible for the airdrop.
Element Finance Airdrop Discord community members & Ethereum ecosystem contributors on GitHub are also eligible for the airdrop. The snapshot was taken on March 1st, 2022. Eligible users have until an year to claim the airdrop.
| Platform | Total Value | Max. Participants | Website |
|---|---|---|---|
| ETH | 10% of the total supply | Unlimited | Click Here To Visit |
Grow your savings
When you purchase Element Principal Tokens, you receive a fixed rate token that you buy and hold until the day of the term end date. Once this term has ended, you have the ability to redeem your token and earned APR. The Principal Tokens have no minimums and no penalties. You can trade your Principal Token back for it’s base asset at any time.
Build on Element
Develop new defi products with the Element Finance Airdrop SDK. Whether it’s a new feature that you want to build on top of Element or a completely new product, we love to see our community utilizing our SDK.
Grow Your Capital for Your Company
Element is the perfect treasury diversification solution allowing Protocols, DAOs, and organizations to earn fixed rate yield on treasury capital while maintaining the ability to exit if needed.
The Element Approach
The Element Protocol, at its core, works by enabling users via the Ethereum contracts to split the base asset (ETH, BTC, USDC, DAI) of yield generating positions, such as a Yearn vault or an ETH2 validator, into two separate, fungible tokens: the Principal Token (PT), and the Yield Token (YT).
The splitting mechanism allows users to sell their principal at a discount, thus giving users the ability to create a marketplace for fixed rate income positions. Their principal is no longer locked up and they may use their newly freed funds to leverage at high multiples, gaining increased exposure to yield without the typical liquidation risk.
Users may also gain additional trading fees or APY on their yield positions by using their new tokens to provide liquidity into an AMM. The casual user subsidizes the DeFi user’s active strategies by securing fixed rate yield at a discount on what the DeFi user earns. The DeFi user’s participation subsidizes the value of the fixed rate yield.
Initial Use Cases of Principal Tokens
Purchasing PTs can provide a wide variety of utility depending on a user’s market strategy. This section provides an in-depth look into some of those utilities. Additionally, Section 5 of this paper covers the possible use cases surrounding the minting and selling of PTs in an active market.
Future Use Cases of Principal Tokens
After the Element Finance Airdrop protocol has been released, a number of future structured products can be built by third parties on top of its foundation which may further drive demand for purchasing PTs. Section 6 provides an in-depth look at some of the potential structured products that could be built on top of the Element Protocol:
- 1:1 Collateralized Loans
- Fixed Term Lending
- Yield Ladders