Elena Protocol Fractional Phase Quick Start Guide
Elena Protocol will officially move into the fractional stage on April 26, 2021 (UTC), which means that Elena will become more valuable because each time when minting USE, Elena is needed. The amount of Elena needed will vary with the update of the collateral rate. When the collateral rate decreases, the amount of ELENA required for minting USE will increase. Our goal is to gradually reduce the collateral rate from 100% to 0%. Then ELENA will eventually be used to mint USE, so ELENA will be always needed.
We decided to follow the Moderate Policy. In the beginning, we decrease the collateral rate to 99%. For instance, if we want to mint 100 USE, it requires $99 of collateral which are 99 DAI, and an additional $1 worth of ELENA. The system will automatically calculate the amount of ELENA needed, and finally, click MINT 100USE.
Here we would like to demonstrate how to obtain ELENA. We have released a customized Swap page as requested by our investors. Due to Uniswap’s front-end restrictions, users can only use USE to purchase ELENA. This is inconvenient. To make life easier, we made an enhancement based on Uniswap’s open source codes (Thanks again to Hayden, you changed the world!) by updating the token swap routing (We will compose an article to explain how this was done, which is another interesting topic).
Via the customized Swap page, https://swap.elena.finance, all popular tokens, such as ETH, DAI, USDC, USDT, WBTC, CRV, FRAX, YFI, etc., and ELENA can be traded directly. The Swap page can be accessed through the navigation bar at the homepage.
The same as minting USE, when redeeming USE, we will get DAI and ELENA based on the current collateral rate, correspondingly.
When we enter the number of USE to be redeemed, the system will automatically calculate the DAI and ELENA that will be collected. One important thing to keep in mind: Redeeming is a two step action: 1. Redeem, 2. Collect. After clicking REDEEM button, you still need to click COLLECT button to claim back your tokens (DAI and ELENA) into your wallet.
This two steps design of redeeming is a best practice for security reasons to avoid some malicious attacks, such as flashloan attacks.
The USE/DAI liquidity providers can always get rewards. After minting USE, staking USE-DAI LP tokens on the Staking page will continue receiving ELENA rewards.