MATIC and Elk Liquidity Score

Not a day goes by that someone does not ask us on our Telegram chat about the next airdrop and what it means to be a strong holder. Meanwhile, the team is hard at work on our next integration: MATIC.

• Sir, wen MATIC? We do not want to announce a date just yet, but rest assured: it will be very soon :-)
• Sir, wen airdrop? The next ELK airdrop will be on MATIC, immediately available upon release of the platform.

Read on for more details, including how we will compute liquidity scores for holders for the next airdrops (not just on MATIC) and how you get some more $ELK.

Next Airdrop on MATIC

As always, our goal is to achieve a widespread and fair distribution of $ELK, while favoring our long-term supporters and people contributing to the ELK ecosystem.

The next airdrop on MATIC will be made of 3 components:

• Strong holders airdrop: 50,000 $ELK to be distributed
• Telegram channel members: 6,350 $ELK to be distributed
• $QUICK holders on MATIC: 10,000 $ELK to be distributed

This next airdrop will need to be claimed and it will require that you use MetaMask configured to work on MATIC.

We expect other launches on other chains to roughly follow a similar pattern.

Let us break this down, shall we?

Strong Holders Airdrop

Every holder of $ELK on AVAX and every liquidity provider of $ELK on AVAX is eligible to claim a fraction proportional to their ELK Liquidity Score of $ELK 50,000 on MATIC up to a maximum of $ELK 2,000 per wallet. In order to be eligible to claim, holders must achieve a minimum liquidity score of 10.

What is the ELK Liquidity Score? More details are provided below including formulas and resources so you can check your own score, but in short, every wallet is assigned an ELK Liquidity Score based on how much $ELK, how long the $ELK has been held, and how much liquidity it provides to ELK pairs.

Why is there a cap on the maximum amount of $ELK per wallet? The answer is simple: we do not want whales to claim most of the airdrop as this is unhealthy for the community and the long term. We have seen this happen with other projects and this is our attempt at limiting the impact of this issue for ELK.

If you are an ELK whale, worry not! Your participation and liquidity provisioning in ELK will be rewarded by NFTs that will allow you to claim more ELKs over a longer period of time. You have our word that you will also be rewarded in kind for your participation but we want to first focus on achieving wide-distribution.

No form is required for this but in order to claim your ELK on MATIC, you must use the same wallet address as you use in Avalanche. This is easily achieved using MetaMask.

Telegram Channel Members

This airdrop is reserved for our faithful Telegram members (most of which are also early ELK adopters). As of today, March 27 at 23:59 UTC, we have 635 members across our Telegram channels and support chats. Each of these members is now eligible to claim $ELK 10 on the MATIC network!

If you are on our Telegram, please fill in this form to claim your airdrop, and thanks again for your support! The form will ask you for a secret code that was posted on the Telegram announcements channel. Note: the deadline for filling this form is April 1 at 23:59 UTC. If you do not fill the form by then, you automatically forfeit your claim.

If you are not on our Telegram, you are not eligible for this airdrop and there is no point filling in the above form. However, at this point, you may have noticed a pattern, so what are you waiting for to join us on Telegram?…

$QUICK Holders

Every holder of $QUICK on the MATIC chain at block number 12,722,721 is eligible to claim a portion of $ELK 10,000 on MATIC. The amount of $QUICK you are holding is not proportional to the size of your claim. Every wallet address with $QUICK will be allowed to claim 10,000/N $ELK where N is the number of addresses holding $QUICK at block number 12,722,721. No form is required for this: just hold $QUICK on MATIC.

Liquidity Score for ELK Holders

The liquidity score for ELK holders is computed using two scores:

• For every $ELK held in your wallet for a duration of 1 day (pro-rated to the second), your HODL score gains 1 point.
• For every $ELK held in a liquidity pair for a duration of 1 day (pro-rated to the second), your LP score gains 1 point. Note that it does not matter if your ELK Liquidity Pair (ELP) is staked in a yield farm or staying in your wallet: it accrues points either way. Also, note that the score takes into account the amount of $ELK you put in the ELP, not the amount that it may contain later on. In other words, if the price of $ELK increases relative to the second token in the pair, your score is not penalized (and remains completely oblivious to any impermanent loss).

The liquidity score is then computed as follows:

ELK Liquidity Score = HODL score + 3 * LP score

In other words, providing liquidity to ELK pairs earns 3 times the score earned by simply holding the $ELK. By increasing the weight of the LP score in the final score, we aim to incentivize people to actively participate in the ELK network and compensate early liquidity providers that may have suffered some impermanent loss at launch.

This may sound complicated, so let us consider a few examples:

• Alice received $ELK 50 in the AVAX airdrop and held it in her wallet for a week. Her liquidity score is therefore 50 * 7 + 3 * 0 * 7= 350.
• Bob received $ELK 50 in the AVAX airdrop and immediately put it in an ELK-AVAX pair for a week. His liquidity score is therefore 0 * 7 + 3 * 50 * 7 = 1050.
• Charles received $ELK 50 in the AVAX airdrop and immediately put it in ELK-AVAX for a week. Two days after the airdrop, he bought another $ELK 50 and left it in his wallet. Finally, Charles removed $ELK 10 from his ELK-AVAX pair three days ago and left it in his wallet. His HODL score is 50 * 5+ 10 * 3 = 280, his LP score is 50 * 4 + 40 * 3 = 320. His liquidity score is 280 + 3 * 320 = 1240. Note that even if Charles suffered impermanent loss and can only retrieve $ELK 30 from his ELK-AVAX pair, his score is computed using the original amount (50–10).
• Eve received $ELK 50 in the AVAX airdrop and immediately sold them. Her liquidity score is therefore 0 * 7 + 0 * 7 = 0.

Sounds complicated?… Introducing the ELK Liquidity Score calculator! Using blockchain analytics, we computed every wallet's score until AVAX block number 780,000. You can check your score at any time (including a detailed breakdown) by visiting https://elk.finance/score.html and entering your address. We will be updating the scores on a regular basis (and improving the interface) so you can always have up-to-date information.

The liquidity score should be considered beta at this point. If you have any concerns or you think your score is wrong, please reach out to us on Telegram.

Sir, but how many $ELKs will I get in the airdrop?

It depends. Chain analytics and ELK Liquidity Score will be computed on every chain. Every airdrop will distribute $ELK to wallets proportionally to these scores.*

Regarding the MATIC airdrop, you can find the current snapshot of scores and the estimated amount of $ELKs that each wallet can claim here. Note that this spreadsheet represents the situation as of now (midnight March 28, 2021). The actual amounts of $ELK claimable for each wallet will only be finalized 2 hours before launch on MATIC (date and time not yet announced). Therefore, there is still time to increase your ELK liquidity score :-)

*Disclaimer: Team Elk reserves the right to exclude wallets or limit the amount of airdropped $ELK if suspicious activity is detected and we reserve the right to adjust the weights or the way the liquidity score is computed.

Have a great weekend, Baby Elks!

— Team Elk