Research Report | Analysis of the Elixir Network Project & ELX Market Cap

1. Project Introduction

Elixir Network is a modular liquidity network that enables anyone to provide liquidity directly to order books, improving market depth for long-tail crypto assets. It is designed with a modular architecture and utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism, making it well-suited for high-throughput cross-chain trading.

The network’s CORE product, , is a fully collateralized, yield-generating synthetic currency designed specifically for institutional holders of real-world assets (RWA) to access DeFi. Through its partnership with , deUSD serves as the default settlement currency, allowing institutional investors to engage in on-chain financial activities without changing their underlying asset exposure. This expands DeFi’s accessibility for asset management firms such as  and .

Elixir is  and has already integrated natively with over , according to its official website. By allowing crypto users to provide liquidity directly, it reduces reliance on traditional market makers. At the same time,  and  ensure transaction transparency and security. Its architecture enhances order book depth, improves trade execution efficiency, and provides critical liquidity infrastructure for DeFi applications.

Elixir’s native token, , plays a key role in governance and network security. Holders can participate in decision-making processes and influence the network’s future development. Additionally, Elixir relies on a , where validators stake  to support the consensus mechanism and maintain network stability. As a decentralized liquidity solution, Elixir aims to enhance liquidity for order book exchanges while supporting , and other DeFi applications.

2. Project Highlights

A DeFi Gateway for Institutional RWA Holders

Elixir’s  is specifically designed to serve . Unlike traditional stablecoins,  is  and generates yield through , allowing institutional investors to engage in DeFi without converting their assets. Through its partnership with ,  has become the , enabling asset managers such as  and  to seamlessly transition liquidity from traditional finance to the crypto ecosystem.

Seamless Integration with Order Book DEXs for Enhanced Liquidity

Elixir is , improving  to ensure stable liquidity for decentralized trading. Unlike AMM-based models, order book trading demands . Elixir’s  allows users to contribute liquidity directly, reducing dependency on centralized market makers. Its  mechanism ensures transaction data transparency, making liquidity provisioning , while also acting as  for the broader DEX ecosystem.

Cross-Chain Compatibility and a Modular Architecture to Broaden DeFi Access

Elixir’s  enables , allowing liquidity to Flow freely between different ecosystems. A  manages cross-chain liquidity, ensuring assets are transferred securely and efficiently. Meanwhile,  synchronize order book data across multiple chains, improving trade execution. Beyond , Elixir’s infrastructure supports , providing  for the DeFi sector.

Decentralized Governance and Robust Security Measures

Elixir utilizes a , where  to secure the network and maintain stability. Security is further strengthened through , along with an . On the governance side,  can participate in decision-making processes, influencing protocol upgrades and long-term development within a .

3. Market Cap Expectations

As a ,  operates across multiple sectors, including . For market cap comparisons, we reference similar projects such as:

• DEX aggregator: CoW Protocol ($COW)
• Decentralized lending protocol: MakerDAO ($MKR)
• Institutional DeFi protocol: Ondo Finance ($ONDO)

4. Tokenomics

The total token supply has . However, according to , the project has issued , with a portion already circulating on centralized exchanges (CEXs). The initial circulating supply of  is .

Token Distribution & Unlocking Schedule:

Community Allocation: 41%

• 8% allocated for the initial airdrop
• 21% reserved for future airdrops and liquidity provider (LP) incentives
• 12% allocated for public network security rewards
• Locked tokens cannot be staked

Foundation Allocation: 22% – Reserved for future ecosystem grants and rewards

Liquidity Allocation: 3% – Reserved for CEX and DEX market makers and other liquidity providers

Early Investors Allocation: 15%

Core Contributors Allocation: 19%

Token Utility:

 is Elixir Network’s core token, used for .

• Holders can stake $ELX to support the DPoS consensus mechanism, helping secure the network and ensuring transaction transparency.
• $ELX holders participate in DAO governance, making decisions on protocol upgrades, economic policies, and ecosystem fund management.
• In liquidity provisioning, $ELX is used as an incentive for order book DEX liquidity providers, improving trade depth and reducing reliance on centralized market makers.
• Elixir follows a long-term token release model, ensuring sustainable distribution while reinforcing network security through audits and bug bounty programs.

5. Team & Funding

Team Information:

Elixir Network is led by  and , alongside  and . The team has extensive experience in , focusing on enhancing .

Funding History:

• March 12, 2024: Series B

  • $8 million raised, valuation: $800 million
  • Led by Sui / Mysten Labs and Maelstrom Capital
  • Participating investors: Amber Group, GSR, Flowdesk, Manifold Trading, Arthur Hayes

• October 18, 2023: Series A

  • $7.5 million raised, valuation: $100 million
  • Led by Hack VC
  • Participating investors: NGC Ventures, Bloccelerate, Bodl Ventures, WAGMi Ventures, AngelList Ventures

• January 17, 2023: Seed Round

  • $2.1 million raised
  • Participating investors: Inception Capital, Chapter One, FalconX, Arthur Hayes, Commonwealth Capital Ventures

6. Potential Risks

deUSD Stability Risks – As a fully collateralized, yield-bearing synthetic currency, deUSD’s stability depends on its collateral assets (MakerDAO USDS, stETH) and funding rate arbitrage strategies. If MakerDAO USDS experiences extreme volatility or stETH faces liquidity issues, deUSD’s value could be affected.

Order Book Liquidity Risks – Unlike AMMs, order book models require deep liquidity and efficient trade execution. If Elixir fails to attract enough liquidity providers (LPs) or if users prefer AMM models, insufficient order book depth could lead to higher slippage, negatively impacting the trading experience.

7. Official Links

• Website: https://www.elixir.xyz/
• Twitter: https://x.com/elixir
• Discord: https://discord.com/invite/elixirnetwork