👋Welcome to ELMO

The Extreme Leveraged Market-making Optimizer

ELMO is in development and built upon Itos.

See Itos Itos Concepts for more documentation.

Overview

ELMO the Extreme Leveraged Market-making Optimizer

It allows users to open Concentrated Liquidity Provisions with up to 625x leverage depending on the pool.

ELMO is built by the Itos team. Itos is our product for serious and long-term investors. ELMO on the other hand is the total opposite. We thought it'd be fun to build and use so we're doing it.

Just remember, with leverage the rewards become greater but so do the risks. So we'd recommend experience with regular concentrated LPing before opening large ELMO positions.

How to Use ELMO.

Of course we don't expect most people to actually use 625x leverage (but don't let us stop you). We anticipate two major use cases, mild leverage for wide and passive positions and extremely high leverage for short-term LPs.

For example, this ETH/USDC position has wide price ranges, earns ~36% in fees, and loses very little to IL: https://revert.finance/#/uniswap-position/arbitrum/406204. This could benefit from 2-3x leverage earning it closer to 70-90% in real yield fees.

On the other hand, Defi traders can use extreme-leveraged LP like perpetuals. When markets go up or down, they can long or short perpetuals to profit. ELMO gives them a third option, betting on a sideways market, potentially earning them massive returns in minutes.

And that's all. No complicated token splitting steps, no lockers, no bribes, no redemption. Just real, innovative, and degenerate financial engineering.

Liquidity Provisioning Context

Liquidity Provisioning (LPing) is useful for the Defi Ecosystem. It makes markets and in return Liquidity Providers (LPers) earn fees, usually about 0.05% per swap. LPing is a balance between earning fees from traders, and facing losses when prices move against your market making range (Impermanent Loss [IL]).

These losses are fundamental to the LPer's function and any protocol that promises you otherwise is jerking your chain. For any protocol offering returns above the money market lending rate, there is always a catch, always a risk. Lots of protocols in the past have tried different ways to beat impermanent loss. Token incentives were first and they were clearly unsustainable. Slippage free protocols actually exacerbated impermanent loss. Now we're beginning to see the early stages of Hedged LP protocols (like Itos!).

Ultimately, a liquidity provider's job is to make an informed guess at whether or not the price will move. If not, they profit. If it does, they lose.

All market makers are different. They have different time horizons and risk appetites. For retail, the best performing LP positions so far have been those set up with months-to-years-long return horizons in mind (you can read more about this on our medium). ELMO makes it viable to LP with seconds-to-minutes in mind.

Ultra Short-term Liquidity Provisioning

ELMO offers a simple way to beat IL, choose shorter less volatile periods to LP into. Of course that's easier said than done.

Micro-managing an LP position is work. Just like how day trading is work. Thankfully ELMO makes the work worth it.

Quick links

✨Our Features💡How it works