According to Deep Tide TechFlow news, Delphi Digital has released a report titled 'Elixir: Democratizing Liquidity Provision in the Order Book Era', which details the evolution of DEX liquidity provision, its inherent flaws, and the innovative solution proposed by the DeFi project Elixir Network as a decentralized order book liquidity protocol: Elixir Network employs an off-chain validator delegated proof-of-stake (dPoS) architecture, a randomized market-making algorithm, and introduces the decentralized stablecoin deUSD as the core settlement and collateral asset.
In addition, through modular design, Elixir supports liquidity provision for multiple DEXs such as Vertex, RabbitX, BlueFin, ApeX, and Orderly. The protocol is based on a customized version of the Avellaneda and Stoikov models, dynamically adjusting the bid-ask spread, optimizing inventory management, enhancing capital efficiency, and reducing slippage and loss rebalancing (LVR) issues.
It is reported that Elixir Protocol is a modular decentralized staking network, allowing users to directly provide liquidity to trading pairs on order book exchanges and earn market maker rewards similar to those from AMMs, helping to enhance liquidity for decentralized order book exchanges. deUSD is the decentralized synthetic dollar asset launched by Elixir, aimed at challenging Ethena's USDe. Currently, the first phase of the Elixir mainnet has been launched, which is a brief phase before the mainnet launch, initially operated by a genesis node composed of institutional validators.