# About Elixir Introducing the next generation of liquidity: a network built to power high-throughput settlement The Elixir network is a new primitive, purpose-built to power the next generation of institutional liquidity. Elixir powers deUSD – a fully collateralized, yield-bearing synthetic dollar. Elixir is the most widely adopted network by RWAs: bringing funds from BlackRock, Hamilton Lane, and others to DeFi for the first time through deUSD. The Elixir network is secured by 10,000+ global validators. Through Elixir's natively integrating with funds, deUSD serves as the primary rails for RWA assets to natively enter the crypto economy. Used exclusively by Securitize and others, deUSD is the default currency enabling holders to use DeFi without changing their original asset exposure. Hamilton Lane and other leading institutions have **directly allocated to deUSD within their RWAs**, integrating the Elixir network for instant onchain liquidity for their funds. # Network Architecture Under the hood of Elixir Elixir's modular network infrastructure is decentralized and high-throughput. The network reaches DPoS consensus for deUSD's mint/redeem mechanisms and orders placed on exchanges. Fraud proofs are posted to Ethereum mainnet, where staking and delegating flows occur.
### Exchange Feeds Exchange feeds hold read-only credentials for each exchange, and individually subscribe to a single update stream, broadcasting that data to the data aggregators. For more information about how Elixir connects to the central limit order books on exchanges, please take a look at the "[Exchange Orderbook Connections](/technical-architecture/exchange-orderbook-connections)" sub-section. ### Data Aggregator The data aggregator collects data from multiple exchange feeds and combines them into a deterministic data frame, signs them, and broadcasts them to the validators and auditors. This piece of the Elixir tech stack enables validators to act upon accurate data related from the exchange feeds. ### Validator Network (DPoS) Elixir's validator network operates off of a decentralized proof of stake system with 66% consensus required, which is enforced at the relay node. End users delegate their stake to validators, and the top-staked validators based on stake weight will receive the largest portion of validator emissions, based on a curve, for securing the network. ### Relay Nodes Relay nodes hold trading keys for individual exchanges and tally order proposal frames from the individual validators. After the order proposal has expired, it is passed to an auditor to verify correctness. Long term, API keys will be protected via SGX + Shamir's Secret Sharing within these nodes. ### Dispute Resolution The dispute resolution layer (comprised of the Auditor and Controller) works to ensure that the network is acting honestly, and to resolve any conflicts should they arise. Specifically, this layer ensures that the validators are running the market making algorithm with properly set parameters based on the initial guidance. Furthermore, auditors work to incentivize honest behavior from validators via a bounty, while penalizing dishonesty. # Validators Elixir's validator network is at the core of the network's technical infrastructure. Validators are a key component of the Elixir stack, responsible for executing the underlying consensus and reaching consensus within the network. Validators will be delegated Elixir Foundation governance stake via the Elixir Foundation Delegation Program. Top performing validators will participate in governance with their delegated tokens and earn validator emission rewards from their delegated stake. The parties running this infrastructure are economically aligned with the network. The validator network operates off of a decentralized proof of stake system, meaning that 66% consensus is required to pass data to the relay nodes, which enforce this consensus. Users can delegate ELX tokens to individual validators, with the top delegated validators participating in consensus (and receiving the largest portion of rewards from the network). The controller, which is responsible for managing staking, rewards, bond pools, and slashing, calls Provable on-chain and receives an on-chain callback verifying or rejecting the order proposal from the auditor in the case of a dispute. If a validator acts maliciously, its delegated token stake will be slashed (see "[Dispute Resolution](/technical-architecture/fraud-proofs)" for more information). There will be a random component to the algorithm used to build up orderbook liquidity. Elixir's first strategy is a variant of the infinite Avellaneda-Stoikov algorithm (see more here: [Broken mention](broken://pages/8tf89wweiVc5Ei4uZa24)), where instead of (T - t) linearly progressing to 0, the network approaches it as a random walk. The randomness for this will be generated within an SGX secure enclave with a VRF which can be synchronized across validators. Read more about how the network prevents gamification & builds resiliency here: [Broken mention](broken://pages/EBxry4cW7hIf6ixfBpHb) # Fraud Proofs Elixir's technical architecture ensures that the protocol's deUSD operations and orderbook orders activities operate functionally and securely. Security is at the core of Elixir's network. On the technical process flow, the auditor and controller infrastructure ensures that the data broadcasted to exchanges are honest and accurate. The auditor infrastructure monitors inputs / outputs within the network, while the controller infrastructure resolves conflicts that could arise as a result of inconsistencies in outputs. This helps guarantee accuracy within the network and blocks any potentially malicious actions from validators who may attempt to output data that could prove harmful to the strategies and users. ### Auditors Auditors work to keep the rest of the network honest. The auditor monitors the inputs and outputs from each of the various actors in the network, and in the case of a discrepancy (either reported or observed), an auditor submits a proof of malicious activity to the ETH slashing smart contract in the controller in exchange for a bounty. The bounty will be extracted from the validator's stake and credited to the auditor. Finally, the auditors are responsible for ensuring validator uptimes for purposes of staking rewards. ### Controller (smart contract) The controller smart contract is responsible for managing staking, delegating, rewards, jailing, and slashing. In the case of a dispute, the controller checks for 2/3rds consensus within the active validator set, and can slash the malicious validator. In the case of excessive downtime, the controller enables jailing the offending validator. # Exchange Order Book Connections Elixir Network connects to exchange order books to build up liquidity. Exchanges expose websockets to provide low-latency updates on trades, positions, and order books. The Elixir network consumes these real-time data streams and periodically snapshots the order book into a dataframe in time slices corresponding to the network's tick size. The dataframe data is normalized to provide a consistent representation of orderbooks across individual exchanges. ### What are Dataframes? In essence, dataframes are a consistent source of truth that allow Elixir's security infrastructure and users themselves to verify the honesty and accuracy of data flowing throughout the network. Dataframes are cryptographically signed and broadcast to all participants in the network. Network participants can verify the provenance of the data frame by checking the signature - this can be done both on-chain and off-chain. The signed dataframe can be used to contest proposed orders coming from validators in the network as well as the overall positions held in the network. For more information on how validators process dataframes, please reference the [Validators](/technical-architecture/validators) section. # deUSD - Deprecated deUSD was previously a core component of the Elixir ecosystem. ### Claims for previous deUSD holders are now live We’re effectuating 1-1 USDC claims for any deUSD or sdeUSD holders, which for the purpose of this communication includes LPs who supplied sdeUSD/deUSD collateral on lend/borrow platforms, AMM LPs, Pendle LPs, etc. **deUSD holds no value and the asset has been sunset.** Please do not buy or make investments into deUSD, including through AMMs The claim page is now live, access it via the link here: [elixir.xyz/deusd/claims/](https://t.co/gd3KysZeAg) # The ELX Token ELX is the native utility and governance token of the Elixir ecosystem, powering consensus and allowing for holders to direct the future of the network. With the launch of ELX alongside the Genesis Validator program, Elixir has fully decentralized. The goal of the ELX token is to (1) encourage effective governance structures to form, (2) be utilized as a cryptoeconomic security incentive, and (3) ensure that the network's decentralized and permissionless state is maintained at all times. ### Node / Validator ELX Staking Requirements The node and validator infrastructure that rests at the core of the network is economically secured by ELX tokens. All validators and nodes are required to stake a minimum of 9,000 ELX to keep their infrastructure active and in good standing. As broken down within the [Network Architecture](/technical-architecture) section, validators ensure the security and proper function of the network. By requiring that these parties stake a non-zero amount of ELX, the network imposes a cryptoeconomic incentive for validators to act honestly. **The Elixir ecosystem relies on ELX for security, making it a crucial component of the platform's architecture.** ### Governance The ELX token is also the sole governance token within the ecosystem, granting holders and network participants the ability to propose and vote on proposals shaping future growth of the network. ### Potential Fees Upon the upcoming launch of the Elixir DAO, ELX holders will have full governance rights over the network and control the direction/use of fees generated by the network. # Staking / Delegation Users can stake ELX and delegate their tokens to consensus validators to secure the network. The stability and security of the Elixir network relies on its consensus validator set, both of which are economically secured by ELX tokens. To participate and maintain good standing, validators and nodes must stake a minimum required amount of ELX. This requirement strengthens the network by ensuring alignment between participants’ incentives and the network's integrity. Validators play a critical role in maintaining network security and efficiency. By enforcing a staking mechanism, the Elixir Network leverages cryptoeconomic security guarantees to encourage honest behavior among validators. ELX staking is integral to the network’s security and overall operational framework. Here's what you need to know:
What is staking? ELX staking describes the process of users depositing their ELX into a smart contract that enables for delegation to any of the active consensus validators powering the network. This ensures that participants have a vested interest in the network’s integrity, while also allowing users to earn from a stream of fixed token emissions distributed to consensus validators
What is ELX's role in staking? By requiring validators to stake ELX, the network creates a crypto-economic incentive for honest behavior. If a validator acts maliciously or fails to meet network requirements, they may face penalties — per an auditing process described in the "[Network Architecture](/technical-architecture)" section of the docs.
Is there a cooldown period to unstake ELX? Yes, ELX unstaking has a 7-day cooldown period.
What are staking rewards? All consensus validators earn a linear stream of token emissions as part of Elixir's validator incentive program. Delegators earn a share of these ELX token rewards based on their share of the validator's total delegation.\ \ These emissions are presently set to 12% of the total token supply over 20 years.
How many ELX are required to run a validator? To be considered an active validator eligible to participate in consensus, the infrastructure host must delegate themselves a minimum of 9,000 ELX tokens.
Where can I stake my ELX? Navigate to the [Elixir Validator](https://elixir.xyz/validators) page to begin the staking and delegation process.
What happens if the validator I delegate to misbehaves? If a validator violates network rules by pushing inconsistent compute outputs that deviate from consensus, they may face penalties, including slashing (loss of staked ELX) or removal from the validator set. Delegators should carefully choose validators with strong reputations to minimize risks. In the case of a slashing event, only the validator's initial delegation (supplied by the one running the infrastructure) would be reduced — users who delegated would not be impacted.
Do I need technical expertise to stake ELX? Running a validator requires some baseline of technical knowledge and infrastructure setup. However, if delegating, non-technical users can avoid the validator onboarding flow and start earning ELX emissions simply by delegating their tokens to an existing validator.
What is the user-flow to delegate ELX? Recipients of the recent ELX airdrop have been auto-delegated to the "elixir-foundation" validator, and can view their rewards and manage their tokens on Elixir's "Validator" page. For users holding non-airdropped ELX, they can choose to delegate their tokens to any existing validator, including running their own validator if they meet the requirements. After the initial 3-month network stabilization phase, users can undelegate and withdraw their tokens at any time or redelegate to a different validator, such as one they operate themselves. Unlike airdrop recipients, regular holders must observe a 7-day cooldown period when unstaking. Staking and delegating ELX tokens enable users to participate in securing the network and to earn staking rewards proportional to their stake. This flexibility supports decentralization and governance participation in the Elixir network.
# Running an Elixir Mainnet Validator Elixir Mainnet Validator Setup Guide Below is a step-by-step guide to running a validator on the Elixir Network's mainnet and helping to ensure security and effectiveness for building orderbooks. ## Preparations ### Hardware Requirements Most hardware is capable of running a validator node. However, it is recommended that you have a system that can be run 24 hours a day, with 8GB of memory and a reliable 100Mbit internet connection. Disk usage is minimal; in most cases, 100GB of storage should be enough. ### Docker Installation Running a validator will require a system configured with an up-to-date install of [Docker](https://www.docker.com/). Please follow the [installation guide](https://docs.docker.com/engine/install/) for your Operating System. Verify your installation works by opening a terminal and running `docker ps`. You should see something similar to the following output: ``` CONTAINER ID IMAGE COMMAND CREATED STATUS PORTS NAMES ``` If you receive an error, revisit the installation guide for your operating system. ### Validator Private Key Generation Elixir recommends using a dedicated wallet for your validator. This wallet will be used for signing transactions in the Elixir Network and the security of this wallet is paramount to earning rewards in the Elixir Network. You will need both the private key and public wallet address to set up and enroll your validator. #### Generating A Private Key In Metamask In Metamask, this can be done by clicking the "My Accounts" icon in the top right, and clicking "+ Create Account." You can obtain the private key by clicking Account Details from the ellipsis menu, and then clicking "Export private key". ***For security, this wallet should never be used for anything other than running a mainnet validator.*** ## Validator Setup ### **Download The Environment Template** Download the [validator environment template file](https://files.elixir.finance/validator.env) and open it up in a text editor. Set the values using the legend below:
Environment VariableValue
STRATEGY_EXECUTOR_DISPLAY_NAMEThis is the public-facing name for you or your organization. This will be visible on Elixir Network dashboards and your uptime and performance metrics will be tied to this name. Only alphanumeric characters, underscore, dash, and space allowed.
STRATEGY_EXECUTOR_BENEFICIARYSet this to the wallet address you want to receive your Elixir Network validator rewards (when available). This can be any wallet address--EOA, Hardware wallet, Multisig, etc..
SIGNER_PRIVATE_KEY

The private key that was generated in the Preparations steps above. This should be a new, never-used wallet and will never need funds.

Note: This field does not start with 0x

## Running Your Validator ### **Pull The Docker Image** Download the Docker image for the mainnet validator by running the following docker command: ``` docker pull elixirprotocol/validator ``` ### **Start Your Validator** Run the validator by executing the following docker command, replacing `/path/to/validator.env` with the full path to the validator environment file you created in the Validator Setup step: 
docker run -it \
  --env-file /path/to/validator.env \
  --name elixir \
  elixirprotocol/validator
#### Optional: Setting A Restart Policy For Your Validator Docker allows you to configure a restart policy for docker containers. Elixir recommends running your validator as a daemon with the `unless-stopped` restart policy: ``` docker run -d \ --env-file /path/to/validator.env \ --name elixir \ --restart unless-stopped \ elixirprotocol/validator ``` #### Optional: Running A Validator On Apple/ARM Silicon If you are running on a non-x86 architecture, you may need to set the `--platform` flag appropriately when starting the validator docker image: ``` docker run -d \ --env-file /path/to/validator.env \ --name elixir \ --platform linux/amd64 \ elixirprotocol/validator ``` #### Optional: Exposing Health Checks and Metrics The validator image exposes HTTP endpoints for running health checks and exposes metrics suitable for monitoring with Prometheus. To access this endpoint, you must open port `17690` on the docker container. Doing so will allow you to view the `/health` and `/metrics` endpoints in the container. ``` docker run -d \ --env-file /path/to/validator.env \ --name elixir \ -p 17690:17690 \ elixirprotocol/validator ``` ## Upgrading your validator As the Elixir team continues to improve the validator, you may need to pull the latest version of the validator. To do so, open a command line in the directory with your Dockerfile and execute the following commands: ``` docker kill elixir docker rm elixir docker pull elixirprotocol/validator ``` And rerun the docker command you used to start the validator. ## Where To Find Support ### Discord Our [Discord server](https://discord.gg/elixirnetwork) has a thriving and supportive community. Here is a short list of the important channels: * **#validator-announcements:** This is an announcements channel you can subscribe to in order to get alerts and notifications for new versions of the validator software. This will be the primary channel the Elixir team will use to notify when there is a new version of the validator software to pull or any version-specific instructions to follow. * **#node-operators:** A DevOps-focused channel where node operators can find peer support, share tips and best practices, and talk about any findings they have. Keep conversation in this channel direct and topical--no "GM"s. ### Report A Bug If you find a bug and need to bring it to the developers' attention, you can always file a report in the [Issue Tracker](https://github.com/ElixirProtocol/testnet-3-issue-tracker/issues). # Audits Elixir's full protocol audit was completed by Trail of Bits. Audit report here: {% file src="/files/Sq9W9uDfYwX9UN2seCy0" %} Elixir's deUSD token and related staking contracts were audited by Quantstamp. Audit report here: {% file src="/files/FkGry7CcUwncHZSYFZb7" %} Elixir's deUSD implementation in Move has been audited by Pashov. Audit report here: {% file src="/files/2LPhYS2xZpMsgFUV2rtn" %} Elixir's Solidity and CosmWasm contracts were also previously audited by Trail of Bits. Audit report here: {% file src="/files/pVldifH6xzrMbB1Azg0Q" %} The network also has an ongoing Immunifi bug bounty program, which includes technical protocol vulnerabilities and deUSD in scope: [link](https://immunefi.com/bug-bounty/elixirprotocol/information/) # Bug Bounty Via Immunefi, Elixir is hosting a bug bounty program to incentivize our community to report any bugs degrading user experience or leading to financial impact for users. Please review the bug bounty program here: [https://immunefi.com/bounty/elixirprotocol](https://immunefi.com/bounty/elixirprotocol/) # MiCAR White Paper This summary should be read as an introduction to the crypto-asset white paper. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law: # Socials Connect with the Elixir community! Website: Twitter: Discord: Telegram community: [@elixir\_network](https://t.me/elixir_network) # FAQ
How often do I receive rewards? For deUSD stakers, liquid rewards are accruing and can be claimable by the stakers at any time. For exchange LPs, reward epochs are determined by the exchanges building products powered by the Elixir Network. Usually, these rewards are claimable weekly. While Elixir powers liquidity in the backend, the native exchange features themselves are fully owned and hosted by exchanges themselves.
What is the difference between staked deUSD and unstaked deUSD? deUSD can be staked to allow for holders to receive the dollar's native yield. This APY can only be accessed by staking, which also provides a 2x potion boost (and has a 7 day withdraw cooldown).\ \ Staking deUSD is ideal for users who want to earn liquid yield accrued in deUSD. Alternatively, users holding unstaked deUSD can tap into higher potion multipliers (up to 10x) by interacting with various integrations.
How do I take deUSD cross-chain? Users can navigate to [bridge.elixir.xyz](https://bridge.elixir.xyz) to access the various bridging routes that take deUSD to ecosystems outside of Ethereum. In some cases, these bridging routes will output alternative assets (e.g. Sei launched fastUSD, their chain's native stablecoin which is wrapped deUSD). These assets are backed 1:1 by deUSD.
Where do the native yields for deUSD come from? deUSD generates native yield from both an the Ethereum funding trade which uses wstETH collateral to short ETH perps, providing a 1:1 delta-neutral position; and treasury-backed collateral (MakerDAO sUSDS).\ \ Users can monitor the backing composition of deUSD here: [dashboard.elixir.xyz](https://dashboard.elixir.xyz)
Is deUSD and the Elixir Protocol audited? Yes, audits can be found here: [Elixir Audits](/audit)
Do cross-chain implementations of deUSD (i.e. Sei's fastUSD) earn the same rewards? Yes, cross-chain implementations of deUSD also earn from the same potion reward pool. These can be found in the [Integration Rewards](broken://pages/Cn5i1yw9Haf61VtWKP4o) section. These implementations may also include additional rewards by the external ecosystems.
How can we get more deeply involved in the Elixir Network? Outside of supplying liquidity to Elixir-powered exchanges and using deUSD across the DeFi landscape, users can help secure the network by running a validator, or by delegating their tokens to a validator. Helping secure the network also provides staking rewards for users.
Can I redeem deUSD's underlying backing? At the moment only whitelabeled market makers are able to mint and redeem deUSD for its underlying collateral. However, the introduction of permissionless mints and redemptions early next year will enable this functionality for all users.
What is deUSD backed by? deUSD is currently backed by a delta-neutral Ethereum funding trade position (using wstETH collateral to short ETH perps), and treasuries via MakerDAO's sUSDS. deUSD is fully collateralized, meaning that its total underlying backing collateral is either equal to or exceeds the total value of existing deUSD. Users can monitor deUSD's backing onchain at anytime here: [dashboard.elixir.xyz](https://dashboard.elixir.xyz)
What does the "EBF" do? deUSD's Execution Buffer Fund (or "EBF" for short) is an "expense coverage" fund covering any cost of moving deUSD's backing into treasuries. Since MakerDAO enables 1:1 USDT conversions to DAI, this generally is near 0, and it's mostly used to determine when to move larger portions of the backing into US treasuries via sUSDS. As an example, in a period of prolonged negative funding (where the negative funding offsets the treasury yield for a sustained period of time), the EBF would decline, causing more of the deUSD backing to move into treasuries.