We are thrilled to announce the upcoming launch of Enosys Loans, a friendly fork of Liquity V2 by Liquity, deployed on the Flare Network. This marks a historic milestone in the DeFi landscape as the first-ever Collateralized Debt Position (CDP) protocol to leverage XRP (FXRP) as collateral to mint a stablecoin.

Initially supporting FXRP and wFLR as collateral — but with plans to expand support to include staked XRP (stXRP), FBTC (Bitcoin bridged to Flare), and other assets — Enosys Loans is poised to unlock unprecedented utility for major cryptocurrencies like XRP and Bitcoin in decentralized finance. By harnessing Flare’s advanced infrastructure, including the Flare Time Series Oracle (FTSO) for decentralized collateral pricing, Enosys Loans is set to redefine how non-smart contract assets participate in DeFi.

Unlocking DeFi for XRP

For the first time, XRP holders can use their assets as collateral in a CDP to mint a new stablecoin, enabling participation in DeFi applications such as lending, borrowing, and yield generation while still maintaining exposure to the underlying FXRP. This is a transformative step for XRP, which, due to the XRP Ledger’s lack of native smart contract functionality, has historically been excluded from the broader DeFi ecosystem. The planned inclusion of FBTC will further extend this capability to Bitcoin, unlocking the potential of two of the most valuable cryptocurrencies-representing trillions in market capitalization-for DeFi use cases.

A Friendly Fork of Liquity V2: Proven and Enhanced

Enosys Loans builds on the robust foundation of Liquity V2, a leading CDP protocol on Ethereum known for its efficiency, low fees, and user controlled interest rates. By forking Liquity V2, Enosys inherits its battle-tested mechanics while tailoring the protocol to Flare’s unique capabilities. This friendly fork enhances Liquity’s model by integrating Flare’s decentralized infrastructure, ensuring Enosys Loans is optimized for scalability, security, and interoperability.

Flare FTSO: Decentralized and Reliable Price Feeds

A cornerstone of Enosys Loans is its use of the Flare Time Series Oracle (FTSO) for decentralized collateral pricing. Unlike traditional oracles that may rely on centralized data sources, FTSO aggregates price feeds from independent signal providers, delivering highly accurate and tamper-resistant data for assets like FXRP and FBTC.

This ensures that Enosys Loans maintains precise collateral-to-debt ratios, protecting users from volatility and enabling trustless, secure borrowing. With the FTSO’s ability to scale to thousands of data feeds (as seen with FTSO V2), Enosys Loans is future-proofed for supporting an expanding range of collateral types.

Delegation Rewards and FlareDrops

In keeping with the Enosys ethos, all wFLR that is used as collateral will be delegated on the owners behalf. This wFLR will receive delegation rewards and FlareDrops which will be claimable by the owner when distributed by the Flare systems.

Expanding Collateral Options

Enosys Loans will initially support FXRP and wFLR as collateral, enabling XRP holders to mint a stablecoin for use in Flare’s DeFi ecosystem. However, the protocol’s roadmap includes support for stXRP, FBTC, and other F-Assets, creating a versatile platform that caters to diverse user needs.

This expansion will position Enosys Loans as a multi-asset CDP, allowing users to leverage a variety of high-value cryptocurrencies while maintaining the protocol’s decentralized and trustless ethos.

Current Status

Enosys Loans has finished an initial audit by @coinspect with a second audit commencing soon, and is currently in internal testing on Coston 2.

Read more here : https://enosys.global/products/loans

Docs can be found here (will be updated with parameters and addresses as we go live): https://help.enosys.global/enosys/enosys-ecosystem/enosys-loans

We’ve previously discussed the differences between DEX V2 and V3 in terms of how the liquidity curves function and liquidity positions. In this article, we will discuss how DEX V3 optimizes liquidity to earn fees and incentives.

Fees

On DEX V2, fees are paid passively to the liquidity pool, shared proportionally across LP token holders. This is because, as we discussed before, every LP token is fungible and backed by the same balance of assets. One holder of 10 LP tokens will receive the same share of fees as another holder of 10 LP tokens.

However, those fees are automatically accumulated to the LP, and are not claimed manually by the position holder.

It works like this:

Let’s say there is an LP with $10,000 of Token A and $10,000 of Token B, and a fee of 0.3%.

A user comes to the LP and wants to swap $100 of Token A for Token B.

Rather than requiring the user to pay $100.30 of Token A, the LP instead takes the $100 and returns only $99.70 of Token B. (for this example we will ignore slippage for simplicity).

The LP now contains $10,100 of Token A and $9,900.30, a net gain of $0.30 whether counted in Token A or Token B.

Say a second user comes and swaps $100 Token B for Token A. The new LP balance is $10,000.30 Token A and $10,000.30 Token B. (Again, ignore slippage)

If this LP were held fully by one user, that user just made $0.60 by providing liquidity for $200 worth of swaps. However, say 10 users had equal $1000 shares of the LP. They each made $0.06.

In DEX V3, the fees are collected and distributed in a different way.

Because each liquidity position is non-fungible, the fees cannot just be added directly to the LP. This means that the fees are accumulated for each swap that occurs and then made claimable in proportion to each liquidity provider’s contribution to active liquidity during the swap.

Any liquidity position that crosses the active trading range during a swap will earn fees. However, a more concentrated position will receive proportionally more fees per swap than a less concentrated position because a higher share of their liquidity was utilized.

This ability for liquidity providers to optimize for fees generally results in much higher fee returns relative to liquidity provided, making the risk/reward calculation of concentrating liquidity in certain pools essential to efficiently deploying capital.

Position holders can claim the fees owed to their liquidity at any time on the Liquidity position UI, and will receive fees in the tokens making up both sides of the pair.

Incentives

The differences between V2 and V3 regarding fees are very similar to those in incentives.

In DEX V2, liquidity incentives are separate from the liquidity pool itself. Because each position is represented by fungible LP tokens, we are able to create an incentive Farm pool in which LP tokens are deposited to receive a proportional share of incentive emissions based on the number of LP tokens.

DEX V3 requires a very different approach, due to the non-fungible nature of positions.

We wanted to create a way to incentivize active liquidity, such that the risk of concentrating a position is reduced and offset. DEX V3 uses a novel solution which closely resembles the way fees are handled. It uses an epoch system, initially set to 6 hours, in which the liquidity that is used to facilitate swaps is tracked and earns rewards proportionally to the amount of position liquidity that was active vs the full active liquidity in the LP.

This means that a more concentrated position that remains in the active range for more of the epoch will earn more rewards than a less concentrated position or one that spends less time in the active range.

The emissions of incentives are constant per epoch, but one of the features of this system is that we can run multiple incentives on the same liquidity pool. This means that Ēnosys can supply Apsis incentives to an LP like F-XRP/USDX, and then the Flare Foundation can provide FLR incentives, Hex Trust can provide USDX incentives, and Kinetic can provide Joule incentives, all on the same pair! And that’s on top of the native Delegation rewards and FlareDrops that liquidity providers continue to receive in any SGB or FLR LPs.

Because of the system's modular nature, we can be very flexible and targeted in how incentives are deployed. If a new launch or event is upcoming or a new market opens for an asset, we can add new incentives to the relevant asset pools to ensure that there is sufficient liquidity available to smooth the scaling process.

Hopefully, this article has shown the importance of liquidity management on DEX V3 and how the fee and incentive systems are designed to provide greater rewards to those that provide actively traded liquidity.

In the last article we went over the differences in DEX V2 and DEX V3 in terms of how liquidity functions, but in this article we will focus on what it looks like to be a liquidity provider.

DEX V2

In DEX V2, new liquidity is added in a 50/50 value split at whatever pool ratio is currently trading. If a user wants to provide $100 of FLR to the FLR/HLN LP, they must also add $100 of HLN to balance the position. Depositing this liquidity results in fungible ERC-20 LP tokens that represent the share of the total pool being minted to the depositor, which can then be held, traded, or staked in a Farm where available. When trading occurs against the LP, every position moves in the same way so that every LP token is backed by the same amount of each asset relative to the other LP tokens.

This means that when you pair 2 assets at a certain ratio, you are entering a trading position in which you are willing to swap one asset for the other as their respective value ratios change. In V2 this range extends from approaching 0 to infinity which means only a small portion of your actual liquidity is being used for market making swaps at any given time. This limits the actual asset balance change of one directional price movements on your position (IL), but also limits the fees you are gaining since only a small portion of your actual LP is being utilized for swaps.

DEX V3

In DEX V3, every liquidity position is unique.

The balance of tokens required to open a position is determined by the selected tick ranges and their relation to the current trading price. Tick ranges involve complex math based on a calculation of trading fee and liquidity, but it is more easily understood as essentially being a price range into which liquidity is concentrated. Because a liquidity position can be opened at any price range, including both in range and out of range positions, each position has a unique ID and is represented by a unique NFT.

This NFT is the key to accessing the underlying position liquidity, as well as claiming fees, delegation rewards, FlareDrops, and incentives.

Because DEX V3 allows you to set the specific trading range in which you would like to provide liquidity, liquidity providers have much more control over where and when their assets are traded. However, this also means that the relative balance of assets in your position changes much more quickly and has endpoints. If the relative value of Asset A falls to the bottom of your range, then you would be 100% in Asset A. If it rises to the top of your trading range, you would be 100% in asset B. This means that within that range, more of your liquidity is being used for swaps, up to 100% of each side of your LP at the extremes of the range. This increases the effects of IL from one directional movement, but also increases your fees gained because more of your assets are being used for swaps.

Position Examples

For example, let’s say you open a concentrated liquidity position for FLR/eUSDT with a current price of 0.027 eUSDT/ 1 FLR, and set a tick range of 0.02–0.035. If the price of FLR dropped to 0.02, all of your eUSDT would have been swapped for FLR. However, if the price were to rise to 0.035 then all of your FLR would have been swapped for eUSDT. If FLR trades within this range, then your ratio would move back and forth between the two assets while generating far more trading fees per $ than a v2 pool would.

Effectively, you would be entering a trading position in which you DCA into FLR as the price falls, and take profits as the price rises. The rate at which you DCA in or out is determined by how broad of a range you set, with 100% in or out being the extremes.

You can also open out of range, single sided positions which would function similar to a limit order. In this way you could open a position with 100% eUSDT at 0.015–0.02 and if the FLR price fell to that level, then your eUSDT would begin to be swapped for FLR at 0.02. Or, open a position with 100% FLR at 0.035–0.04 and then if the price ratio of FLR increased to 0.035, your FLR would be used to swap for eUSDT within that range.

But why stop at one position? In DEX V3, liquidity providers can open as many positions as they would like at whatever ranges they choose. If you were to combine the 3 examples above, you would have:

• A 2-sided position which covered the current active range, earning you fees and incentives as long as FLR traded in the 0.02–0.035 range.
• A single sided FLR position which would begin to sell FLR for eUSDT from 0.035–0.04.
• And, a single sided eUSDT position which would begin to buy FLR with eUSDT from 0.02–0.015.

Using a straddle strategy like this you could provide various amounts of liquidity along the price curve, earning fees and taking advantage of volatility spikes.

Making it Easy

Now, while unlimited flexibility can be a great thing, we understand that sometimes having unlimited choices can be overwhelming. That’s why we created 3 preset liquidity options to offer alongside the custom option.

• Aggressive : This strategy sets a relatively narrow range across the current price. Targets higher fees and incentives, but increases risk.
• Conservative : This strategy sets a wider range across the current price. Better for longer term positions that seek to accumulate fees and incentives within a broad trading channel.
• Full : This strategy creates a position that covers the full range from 0 to infinity and will act very similar to a DEX V2 position.
• Custom : This option allows full flexibility where in range and out of range positions can be input numerically or using the liquidity slider available on the liquidity chart.

DEX V3 adds unparalleled levels of flexibility (and complexity) to the current trading environment available on Ēnosys.

Hopefully this article provided a little more insight into how liquidity positions work and how liquidity providers can create near limitless trading strategies directly on the DEX.

In the next article, we will talk about fees, L1 rewards, and the novel incentive system we have built into DEX V3.

Ēnosys DEX V3 is a Concentrated Liquidity Market Maker (CLMM) based on the Uniswap V3 architecture. But what does that actually mean?

To understand CLMM’s let’s first talk about AMMs and how AMMs like DEX V2 handle trades, liquidity and positions.

In this article, we will discuss trading and how they differ between CLMMs and CPAMMs.

CPAMMs and Trading

DEX V2 is a Constant Product Automated Market Maker (CPAMM).

CPAMMs utilize the function XY=K where K is a constant determined by the initial liquidity ratio for X and Y. Changes to the balances of X and Y are controlled by the demand that K remain constant.

When a swap occurs in the pool, the input, output and resulting price are calculated on the XY=K curve.

For example, let’s say we are going to swap some FLR for some HLN. This swap can be written as:

dX = Amount of FLR going in

dY = Amount of HLN going out

When applied to the equation XY = K, we get (X+dX) (Y-dY) = K.

X is the amount of FLR in the pool before we added dX FLR because we sold FLR to the pool, and Y is the amount of HLN in the pool before we removed dY HLN because we bought HLN from the pool.

Visually, this trade would look like this if graphed on the curve

You can see that the point on the curve has moved down the Y axis, because we removed HLN from the pool, and moved out on the X axis, because we deposited FLR.

Now, this equation is relatively simple and produces very predictable trading based on available liquidity. However, due to the curve extending from 0 to infinity on each axis, the amount of liquidity being utilized at one time is very low compared to the total value in the LP. Generally, CPAMMs only utilize about 0.5% of total liquidity within each +/- 1% price range. This means that to have $10k worth of liquidity within 1% of the current price, the LP TVL would have to be around $2M.

This also means that every unit of liquidity is fungible because it covers the same range as every other unit of liquidity. This is why DEX V2 positions are represented by an ERC20 LP token which is fungible and receives the same share of fees generated as every other LP token.

Ok, now that we got that out of the way, you can forget all about it!

CLMM vs CPAMM

DEX V3 is a CLMM, which differs greatly from CPAMMs in that liquidity providers can choose the range on the liquidity curve to which they provide liquidity rather than passively providing liquidity to the full range.

This means that where a CPAMM pool would have to hold $2M of liquidity to achieve a $10k 1% spread, a CLMM could achieve the same $10k of liquidity with…$10k!

It works like this. Let’s once again consider the FLR (X) and HLN (Y) LP where we measure the price of FLR in terms of HLN. When you provide liquidity for this pair, you chooses a price range [𝑝𝑎, 𝑝𝑏] in which you would like to provide liquidity. Together with the current price 𝑝, this determines the ratio of the two tokens you need to deposit. The exact amounts of both tokens the LP decides to deposit then determines the amount of liquidity 𝐿 provided to the interval. Creating a position which does not cross p is called an out of range position, but we will talk about that in a later article.

For now, just understand that range bound (concentrated) positions create what is referred to as the virtual reserves where trades happen on the XY=K curve as though your $10k of liquidity were $2M of liquidity in a CPAMM . This means that as more liquidity concentrates within a certain price range, it takes more input of X to move the price ratio with Y.

Visually, it looks something like this:

You’ll notice that the virtual reserves appear very similar to the 0 to infinity curve of xy=k, whereas the real reserves have an actual x and y intercept. This is because the real liquidity in a concentrated position has a terminus at each end where all of asset X has been sold to buy Y, or vice versa.

On the virtual curve, when a position is fully traded and the price moves out of range, the constant K is recalculated to take into account the new level of real reserves in the trading range based on the liquidity available in the currently in range positions.

It’s not important that you understand fully how the math works, but it is important to understand that as the current price moves out of higher liquidity areas on the curve, the trading efficiency decreases and slippage increases unless liquidity providers rebalance, or add new liquidity to the new trading range.

This also means that only liquidity positions that have real liquidity in the current trading range will receive fees for trades in the LP. If the current trading range moves outside of your position’s price range, you stop receiving trading fees because your liquidity is no longer being used. If the trading range moves back into your position’s price range, you begin earning fees again. Generally, these fees will be much greater per unit of liquidity than in a CPAMM where only a small fraction of your liquidity is being utilized at any given time.

Below is a visualization of the liquidity differences between a CPAMM where the liquidity is even spread along the entire curve, a CLMM position where the liquidity ends at the edges of the price range, and an LP with multiple positions (including full range positions) where liquidity is most concentrated at the current price, thereby supplying the deepest liquidity where it is needed the most.

Hopefully this has provided some basic understanding on how CLMMs work and how they increase capital efficiency vs traditional CPAMMs.

In the next article we will discuss creating positions on Ēnosys DEX V3 and some simple strategies that can be considered.

Dear Ēnosys Community,

As we welcome the dawn of 2024, I find myself reflecting on a journey that has been both challenging and exhilarating. I am reminded of a profound insight from Indra Nooyi, who eloquently stated, “Leadership is hard to define, and good leadership even harder.” This resonates deeply with our journey at Ēnosys, where we have embraced leadership challenges in the dynamic realm of blockchain technology. This ethos has been the bedrock of our evolution from FLR Finance to Ēnosys, a transformation that symbolizes more than a mere change of name but a deepening of our commitment to innovation and community. Our path has been one of relentless innovation, guided by a vision to advance and transform how blockchain technology integrates into and enhances our daily lives.

This past year has been a testament to our resilience and adaptability. From the successful deployment of the Ēnosys Bridge across multiple networks to the strides we’ve made with Clover and Ermis protocols, our collaborative ventures in the Velocity Series and with Art On Internet represent more than just technological milestones. They symbolize our commitment to you, our valued community, whose trust and engagement have been the cornerstone of our progress. Embracing Larry Fink’s philosophy of purposeful leadership, we’ve strived to drive economic growth and harness the transformative power of blockchain technology for the greater good. Our journey has been about more than navigating the complexities of technology; it’s been about creating a platform that resonates with and enriches the lives of those it touches.

Our journey through 2023 was marked by challenges that tested our resolve and spurred our growth. One of the most significant challenges was ensuring the seamless integration and functionality of the Ēnosys Bridge across various networks. This endeavor pushed us to innovate beyond conventional boundaries, teaching us the importance of meticulous planning and execution in uncharted technological territories.

Another pivotal learning area came from our continuous efforts to enhance the Clover and Ermis protocols. This allowed us to release the Gateway of Destiny event, the mechanics of which have the potential to revolutionize marketing campaigns for brands worldwide in multiple industries. The development process highlighted the critical need for balancing speed with quality. We showcased that thorough testing and careful implementation are just as crucial as innovation in blockchain technology. This understanding led us to introduce additional testing phases and adopt a more rigorous deployment process, setting new standards in product development within our industry.

The rebranding from FLR Finance to Ēnosys was more than a mere change in identity; it was a strategic shift that broadened our vision and deepened our commitment to our users. This transition taught us valuable lessons about clear communication and brand alignment with our evolving goals and values. It reminded us that our brand reflects our mission to unite networks and communities.

As we look ahead to 2024, our vision sharpens. We are dedicated to enhancing the user experience of our Super App, making blockchain technology more accessible and beneficial for everyone. Our goal is to bridge the gap between complex technology and everyday use, ensuring that the revolutionary benefits of blockchain are within reach of all.

We remain committed to innovation, transparency, and community engagement in this pursuit. We understand that the path ahead may present new challenges, but we are equipped with the lessons of the past and the resilience of our team. Together, we will continue to navigate the ever-evolving landscape of blockchain technology, driven by our mission to empower and unite communities through our platforms and services.

We are excited to expand the Ēnosys ecosystem onto more networks, embracing our omnichain vision. The upcoming year will see us focus on key developments like Governance, APYCloud, and a more efficient AMM model, following our rigorous development cycle of Testnet → Canary Network → Mainnet. We are also exploring new ways for our community and others to engage with the Ēnosys ecosystem.

As we embark on this journey, your insights and participation are more valuable than ever. We invite you to join us in shaping the future of Ēnosys as we continue to break new ground in the blockchain space.

Wishing everyone a healthy and peaceful 2024. Your support and engagement have driven our success, and we eagerly anticipate continuing this journey with you.

With deepest affection,

Nik (bannik) Christodoulakis
CEO
Ēnosys

The Gateway of Destiny Event is almost ready to begin!

This event utilizes our updated Clover Protocol architecture on the Songbird Network which features a tier system in which prizes are added as event goals are met. Users will spend Canary Dollars (CAND) to mint Quark Boxes which contain various digital and physical prizes (redeemable through Ermis). As more Boxes are minted, more prizes are added to the Prize pool. The goals of this event are threefold:

1. Accumulate Canary Dollars (CAND) from the system, 100% of which will be burned to pay off bad debt in the EXFI Loans protocol.
2. Test scalability of the Ermis Protocol by introducing over 400 new physically redeemable NFTs to the Songbird Network, including the first NFTs redeemable for 18 Karat Gold Bars.
3. Test the new Clover Protocol architecture from both a technical and a market perspective.

Each of these goals is equally important, as we see a bright future for the Clover and Ermis Protocols and their contributions to the APY Cloud.

Now let’s get into some details about the Event!

Event Details

The Gateway of Destiny Event features 6 prize tiers covering a total of 10,000 Quark Boxes. Each Box will cost 100 CAND which means we are looking to accumulate up to 1,000,000 CAND to be used to repay debt. If you don’t have any CAND, you will be able to use the integrated swap to purchase some during the minting process.

Holders of The Delorian NFT receive a 5% discount on the mint price for Quark Boxes.

Quark Boxes and their revealed prizes can be listed for secondary sale. Half of the royalty on secondary sales through Enosys Gallery will go to the APY Cloud.

Every Quark Box contains a prize, although the rarity and value of those prizes increase as the tier reached increases. The minimum prize is set at 0.01 SFIN, while the top prize is a 200g, 18K Gold Obelisk set with Black Diamonds in a custom Supaku-themed display case!

Let’s go through the tiers:

Tier 1

Initially available prizes

• Samurai NFT (Rare) — Redeemable x10

Redeemable to receive one Samurai NFT (Rare) from The Loyalists’ Collection.

• XUMM ARKPlate x10

Redeemable through the Ermis protocol for an Ēnosys brand XUMM ARKPlate.

These custom ARKPlates are created by https://tiproject.xyz/ and have been designed for home users to quickly and very easily back up their XUMM Wallet App Recovery Numbers in their own home onto a solid plate of 316 Stainless Steel that is waterproof, fireproof, hackproof, and permanent.

• The Rhodium Necklace — Redeemable x1

Redeemable to receive one ‘The Rhodium Necklace’ NFT, which may be redeemed through the Ermis Protocol to receive a physical Rhodium plated necklace from Ēnosys.

• Ēnosys Socks — Pilot Edition 100/100

Redeemable through the Ermis protocol for a pair of Ēnosys — Pilot Edition Socks, a limited edition run of 100 High-quality, Ēnosys Brand Socks.

• Nintendo Switch x1

Redeemable through the Ermis protocol for a Nintendo Switch.

Tier 2

Prizes unlock after 1,000 Boxes

• Samurai NFT (Rare) — Redeemable x10

Redeemable to receive one Samurai NFT (Rare) from The Loyalists’ Collection.

• The Rhodium Necklace — Redeemable x2

Redeemable to receive one ‘The Rhodium Necklace’ NFT, which may be redeemed through the Ermis Protocol to receive a physical Rhodium plated necklace from Ēnosys.

• Ledger Nano S Plus x5

Redeemable through the Ermis protocol for a Ledger Nano S Plus.

• Ēnosys Hat — Pilot Edition 50/50

Redeemable through the Ermis protocol for an Ēnosys — Pilot Edition Hat, a limited edition run of 50 High-quality, Ēnosys Brand Hats.

• Legacy FLR Finance Gold Bar — 88g 1/1

This NFT can be redeemed through the Ermis protocol to receive a one-of-a-kind 88g, 18 Karat Gold bar displaying the legacy FLR Finance branding.

Tier 3

Prizes unlock after 2,500 Boxes

• Samurai NFT (Rare) — Redeemable x10

Redeemable to receive one Samurai NFT (Rare) from The Loyalists’ Collection.

• The Rhodium Necklace — Redeemable x2

Redeemable to receive one ‘The Rhodium Necklace’ NFT, which may be redeemed through the Ermis Protocol to receive a physical Rhodium plated necklace from Ēnosys.

• Understanding the Crypto Economy — Signed Edition x7

Redeemable through the Ermis protocol for a copy of ‘Understanding the Crypto Economy’ signed by author Panos Mekras.

This book is a comprehensive guide that will help you understand everything you need to know about the crypto economy. From what is money and how the banking system works to the technical information of how a blockchain network operates and how you can invest or use many different applications in the crypto world.

• Nintendo Switch x1

Redeemable through the Ermis protocol for a Nintendo Switch.

• Ēnosys T-Shirt — Pilot Edition 100/100

Redeemable through the Ermis protocol for specific sizes of the Ēnosys — Pilot Edition T-Shirt.

10x(S), 25x(M), 30x(L), 25x(XL), 10x(XXL)

Pilot Edition T-shirts are a limited edition run of 100 High-quality, Ēnosys Brand T-shirts.

Tier 4

Prizes unlock after 4,500 Boxes

• Samurai NFT (Super Rare) — Redeemable x5

Redeemable to receive one Samurai NFT (Super Rare) from The Loyalists’ Collection.

• FLR Finance Golden Necklace x1

Redeemable for a 5.82 gram, 18 Karat Gold necklace from Ēnosys through the Ermis Protocol.

• Golden Hand of Supaku Necklace 1/1

Redeemable through the Ermis protocol to receive the Golden Hand of Supaku necklace. This necklace is hand crafted from sterling silver with a gold plating.

• Nintendo Switch x1

Redeemable through the Ermis protocol for a Nintendo Switch.

• Ēnosys Hoodie — Pilot Edition 20/20

Redeemable through the Ermis protocol for specific sizes of the Ēnosys — Pilot Edition Hoodie.

6x(M), 8x(L), 6x(XL)

Pilot Edition Hoodies are a limited edition run of 20 High-quality, Ēnosys Brand Hoodies.

Tier 5

Prizes unlock after 7,000 Boxes

• Samurai NFT (Super Rare) — Redeemable x10

Redeemable to receive one Samurai NFT (Super Rare) from The Loyalists’ Collection.

• FLR Finance Golden Necklace x2

Redeemable for a 5.82 gram, 18 Karat Gold necklace from Ēnosys through the Ermis Protocol.

• Golden Sword of Supaku Necklace 1/1

Redeemable through the Ermis protocol to receive the Golden Sword of Supaku necklace. This necklace is hand crafted from sterling silver with a gold plating.

• Golden Flare Tag Ring 1/1

Redeemable through the Ermis protocol to receive the Golden Flare Tag Ring. This Ring is hand crafted from sterling silver with a gold plating and holds a Flare Network Tag.

• Sony Playstation 5 — Digital Edition x1

Redeemable through the Ermis protocol for a Sony Playstation 5 — Digital Edition.

Tier 5 is also where the event unlocks the Whale Prize!

The Whale Prize is a 1 of 1, 100g, 18K Solid Gold Obelisk in a custom Supaku-themed display case. After the minting phase, this redeemable NFT will be awarded to the address with the largest number of Quark Boxes. May the biggest Whale win!

Tier 6

Prizes unlock at 10,000 Boxes, concluding the event

• Golden Ring of Supaku 1/1

Redeemable through the Ermis protocol to receive the Golden Ring of Supaku. This Ring is hand crafted from sterling silver with a gold plating.

• Sony Playstation 5 — Digital Edition x1

Redeemable through the Ermis protocol for a Sony Playstation 5 — Digital Edition.

• MacBook Air — M2 x1

This NFT can be redeemed through the Ermis protocol for an M2 chip MacBook Air.

• The Gold Obelisk — 200g 1/1

Redeemable through the Ermis protocol to receive the 200g, 18 Karat Gold Obelisk, inlaid with Black Diamonds.

This Gold artifact is hand-crafted to display art related to the FLR Finance and Supaku brands and comes in a custom Supaku display case.

The Endgame

If all 10,000 Quark Boxes are minted, we can pay off 950,000–1,000,000 CAND worth of debt from the Loans system.

We will also introduce 433 new Physically redeemable NFTs to the Songbird Network and the Ermis Protocol.

And, we will have proven that the Clover Protocol is both technically sound and marketable, opening the door to many digital and real world applications.

We are excited to launch this event, and can’t wait to allow you all to participate!

We have finished testing and are putting the finishing touches on everything before the imminent release.

Let’s have some fun!

With our listing on Gate.io and the upcoming multi-chain expansion offering our product suite to a new audience, we wanted to write up a brief introduction to those of you who may be finding us for the first time.

First of all, a warm welcome from the Ēnosys Global team and Community! We are glad you have found your way here and hope you will take the time to learn about what we have built, are building, and will be building in the future.

Below, you will find a brief overview of what Ēnosys is, where we are right now in our development process, and what we are building toward. If you want to learn more about our products, please visit https://enosys.global/ for more detailed information. Welcome to the journey — we’re thrilled to have you with us!

Part One: A Little About Us

Ēnosys is a research and software development center currently building a multichain Super-app for DeFi, interconnected via a central yield aggregator (APYCloud). We pioneer research and development in blockchain technology, offering a suite of innovative products for seamless access to various applications across multiple chains.

We initially deployed on the Songbird Canary Network and are now in the process of our Mainnet launch on the Flare Network. Ēnosys utilizes Web3 capabilities to allow people to engage with our products and services “trustless-ly” without giving up custody of their funds.

Part Two: What Drives Us, And Why It Matters

Our team built Ēnosys to solve some of our biggest frustrations with today’s web3 environment:

1. First of all, the siloed approach to product building we have seen in Web3 makes us uncomfortable. Most of today’s solutions serve one specific purpose, meaning users need to keep track of multiple communities and assets to get access to all of the services they need. That is an experience that would be unacceptable outside of Web3. By walking into a store or a bank, you can access a wide range of available products or services. In fact, we believe that this is one of the fundamental elements slowing Web3 adoption — which we aim to tackle.
2. Second of all, as the premise of yield is near ubiquitous in Web3, one of the main challenges we were driven to solve is inflationary yield. In contrast to most Web3 yield propositions, the APYCloud, which connects our entire ecosystem, provides yield to Enosys stakers based on the ecosystem fees and not an inflationary token. This gives a completely different perspective on yield, especially as the Cloud will collect yield from all the chains the ecosystem expands to.

What does this allow us to provide you? Essentially, the user experience aspect of our one-stop-shop in its multichain form is something that our space strongly needs to improve. The Ēnosys Ecosystem allows users to interact with multiple aspects of the blockchain world, from DeFi to NFTs, RWAs, and Infrastructure products, without leaving our “counter”. That aligned with the multichain nature of the ecosystem gives the user unprecedented flexibility.

In addition, the APYCloud will allow for diversification of yield for the holders of the Ēnosys ecosystem tokens using a unique non-inflationary mechanism.

Finally, the heavy research focus of Ēnosys and the attention to detail that our development process gives allows us to build unique products and discover new avenues with products such as Ermis, Clover, and Skopos. Being a research playground and having an ecosystem of products allows us for both vertical and horizontal expansion, which allows for infinite possibilities as we can expand to new chains while experimenting with new products.

Part Three: Our Destination

Our vision for Ēnosys is to be a pioneer in pushing the boundaries of blockchain technology and bringing unity among blockchains. The end state of the Ēnosys Ecosystem is to be an omnichain one-stop shop for consumers and businesses in the crypto and blockchain industries.

We are building a platform where you can trade assets like your ETH for your XDC without considering which network they are on. A seamless and familiar experience for all your blockchain-related, day-to-day interactions is what we are working toward with our product suite. From chain-agnostic trading to NFTs across all networks, you can experience and trade cross-chain Artworks and RWAs with a few clicks. And, with our multichain expansion, this vision is getting closer by the day.

Part Four: Ēnosys Today

Today, we are nowhere near the end of Ēnosys journey — and our team is working diligently to achieve our ambitious vision. Currently, the Ēnosys product Suite is deployed on the Songbird Network and the Flare Network, with some products also deployed on the Ethereum Network.

We also have our Bridge deployed, connecting the XDC and Songbird Networks, and connecting Ethereum to the Songbird and Flare Networks.

Some of our products are also living on networks such as Kava, Ethereum, and XDC.

TVL, or Total Value Locked, is a common DeFi metric used to measure the economic activity and liquidity that is engaged on a Network or in a product. Our recent launch on the Flare Network created significant increases in both Network TVL and trading volume. With the TVL increase reaching almost 20000% with only 4 trading pairs available on our DEX, we see this as a positive indicator of growth to come as we expand the multichain aspect further into our ecosystem.

Part Five: What You Can Expect From Us Next

We believe in a multichain future, and the Ēnosys ecosystem is transitioning towards this. That means the addition of new assets, such as wETH, USDC, QNT, PAXG, and more, will be added from our existing instance on the Flare chain and other chains. Additionally, as the Ēnosys ecosystem expands to other chains, HLN and APS will be bridged to those and utilized accordingly. The chains initially considered are Arbitrum, Base, and Hedera, but we look forward to expanding that list over time.

In the world of NFTs, the last drop of the Velocity Series will close an extraordinary season for the Velocity Pass, which we are extremely proud to be a part of. Some quite exciting partnerships will follow it, and of course, the long-awaited Gateway of Destiny event, which will start a new era of RWAs for Songbird but, of course, also Flare.

As we grow and innovate at Ēnosys, we invite you to join us. Dive into our world of cutting-edge DeFi and blockchain solutions, from seamless trading to unique NFTs. Connect with us and our community on Discord or Telegram to share your thoughts and stay updated. Visit https://enosys.global/ and participate in the exciting future we’re building at Ēnosys. Welcome aboard!

Introduction

The design of a healthy cryptocurrency ecosystem consists of multiple vectors, one of which is the macroeconomic design of its native tokens, aka the tokenomics. As the traditional theory of economics and fiat currency regulations do not apply to cryptocurrencies, the dynamics of these systems are typically designed in an ad-hoc fashion, potentially leading to unstable situations and damaging the system as a whole. Ēnosys’ overarching goal is to mitigate potential risks stemming from this arbitrary design of tokenomics. To that end, the design philosophy of Ēnosys’ tokenomics is articulated into the following subgoals, which constitute the backbone of the distribution of tokens presented below.

1. Decentralization: Ēnosys aims to deliver a truly decentralized ecosystem and as such the vast majority of its native tokens are distributed to the community. In fact, Ēnosys distributes to community-oriented purposes 70% and 85% of the two governance tokens, Helion and Apsis, respectively.
2. Sustainability: Ēnosys’ objective is to deliver an ecosystem that is viable in the long-term, thus calling attention to two vital design principles: first, some of the funds of Ēnosys should be allocated to bootstrap and maintain the cash flow, i.e., to operational costs and investors; second, fail-safe mechanisms against potential financial spirals are necessary in cryptocurrency ecosystems that tend to be volatile. The first principle is easily met by allocating a small but critical percentage to the Ēnosys investors and to expected operational costs. The former was subject to financial negotiations, while the latter was determined through cost projection based on Ēnosys’ previous financial needs to maintain and promote the ecosystem. The second principle, on the other hand, is trickier and demands an elaborate design of fail-safe mechanisms to ensure the viability of the ecosystem. This task is implemented with the APY Cloud of Ēnosys, that is, in a nutshell, a macroeconomic mechanism to maintain a healthy ecosystem via rewarding active governance users. As this component is critical for the longevity of Ēnosys and simultaneously rewards users contributing to decentralization, a significant amount of tokens is reserved for this purpose.
3. Agility: Governance proposals allow users to actively participate and modify the circulation of tokens, e.g., modify the APY Cloud minimum threshold, and therefore directly affect the economic policies of Ēnosys. This is in sync with both goals of Ēnosys for decentralization and agility as the economic policies can gradually be changed on-demand by the users.
4. Reciprocity: A fundamental design principle of Ēnosys is to reward loyal users that sustain the ecosystem. For this purpose the following mechanisms are in place: (i) A significant amount of tokens are reserved in the APY Cloud that will be eventually distributed to active governance stakeholders. (ii) A small percentage of the circulated tokens will be awarded to the users with CAND staked in the EXFI Loans Stability Pool as a “token of appreciation” for their vital contribution so far. (iii) EXFI holders and Ēnosys investors have been the cornerstone for the operation of the company so far and thus will be rewarded accordingly. (iv) Posterior analysis of past Airdrops showcases that the vast majority of users (e.g., as high as 93% in similar cases) sell their tokens immediately as they value more the “free money” they receive than any future participation in the ecosystem. This behavior does not align with the reciprocity principle of Ēnosys, which leverages two mitigation techniques deduced from previous examples: using a vesting schedule for unlocking the tokens and distributing the tokens to a high number of users. We note that both users and investors follow a vesting schedule, to alleviate “pump and dump” schemes commonly found in cryptocurrencies.

The exact distributions of the two governance tokens of Ēnosys, Helion and Apsis, which embody the aforementioned design principles, can be found below. Apart from the four design principles, one guiding rule in the distribution of tokens was remaining consistent with information already presented to the community to continue to foster trust in the ecosystem.

Helion (ex YFLR)

Helion (HLN) is the ecosystem’s secondary Governance token. It has a variety of use-cases, but mainly serves as secondary Governance under Apsis.

Its use-cases include but are not limited to:

• Replacing exchange fees on Ēnosys DEX.
• Secondary Governance under Apsis (APS).
• Voting on new token listings on Ēnosys DEX.
• Voting on new trading pairs on Ēnosys DEX.
• Staking it on Ēnosys Farm.
• Participating in liquidity pools on Ēnosys DEX.
• Participating in Launchpads on Ēnosys Farm.
• Replacing fees on Ēnosys Bridge.
• Providing it as collateral for loans on Ēnosys Loans.
• Providing it as coverage on Ēnosys Mutual.
• Use it in order to trade NFTs on Ēnosys Gallery.

Helion and its available use cases will continue to expand as more products begin to build on the Flare Network, within the Ēnosys ecosystem and beyond.

Helion (HLN) will maintain a max supply of 150,000,000 tokens and by default, does not have the capabilities to mint further tokens. These token distributions will be detailed in the “Token Supply Schedule” section below.

Token Supply Schedule

70% of the Helion tokens will be distributed to the community while the rest will be equally distributed to investors (15%) and to operational costs (15%). In particular, 20% of the max supply will be Airdropped, whereas 31.93% will be reserved in the APY Cloud for future distribution, 0.4% will be awarded to EXFI Loans Stability Pool stakers, 0.67% is reserved for DFLR earned during beta-testing, and 17% will be used at the discretion of the community for various purposes, as illustrated in the table below. A detailed exposition of the distribution can be found below.

Community Airdrop

The production network token DaoFlare (DFLR) will be distributed based on the Helion Airdrop Algorithm outlined in the following section. DFLR allows holders to participate in the Initial DAO Offering (IDAO) for Helion (HLN). The IDAO is a period where holders of the valueless DAO Claim Token, DFLR, can claim Helion 1:1. The max supply of Helion tokens will be 150,000,000 with a precision of 18.

Once distributed, DFLR on the Flare network will utilise a unique token design which will enforce a 30 day window in which DFLR can be burned to claim HLN. At the expiration of the 30 days, any remaining DFLR will automatically be removed and the claiming contract of that month will be locked, effectively burning any unclaimed HLN. This means the total circulating supply of Helion will vary based on the number of participants who claim the free IDAO.

Helion Airdrop Algorithm

The objective of the airdrop algorithm is multifaceted: the first goals are to reward previous contributions and foster future engagement within the Ēnosys ecosystem. Concurrently, the airdrop aims to provide incentives for high system utilization by bestowing rewards on users who generate revenue for the Ēnosys ecosystem, thereby enhancing the overall functionality and robustness of the ecosystem. To realize these objectives, we outline below the specific algorithm implemented for the Ēnosys Helion (HLN) airdrop.

Initial airdrop

The fundamental concept involves capturing a snapshot of EXFI token holders and their utilization patterns, which will subsequently be used for the first distribution of tokens. Specifically, during the initial airdrop, 26.67% of the community airdrop tokens, equating to 8M HLN, will be distributed as DFLR. All of these 8M tokens will be immediately spendable.

The precise initial airdrop quantity allocated to each EXFI holder will be calculated using the following static multipliers, measured by the number of tokens in the corresponding Ēnosys protocols (as captured by the snapshots):

• EXFI in personal wallets = 1x
• EXFI in staking (Single side Farm Pools, Governance, Loans staking) = 1.25x
• EXFI in Loans as collateral = 1.5x
• EXFI in Ēnosys LPs = 2x (due to being paired with equal value)

The objective of the initial airdrop is to acknowledge the users who have participated in the Ēnosys ecosystem so far and to give an advantage to those who have been actively participating. This is done with the aim of enhancing the trust already vested in the Ēnosys platform.

Monthly airdrops

The remaining 73.3% of tokens, which corresponds to 22M Helion tokens, will be distributed as DFLR based on different metrics. The aim is to disburse an equal quantity of 2M tokens each month from the remaining allocation, thus completing the distribution of the total 30M Helion tokens over a 12-month period.

These airdrops have three primary objectives: (i) to stimulate active engagement of Helion holders in the Ēnosys platform, (ii) continue to stimulate active engagement of EXFI holders on the Songbird Network, and (iii) to promote and reward users who generate revenue for the Ēnosys ecosystem, thereby actively contributing to the APY Cloud, which ensures the financial stability and vitality of the ecosystem. To meet these goals, monthly airdrops will be distributed as follows:

Quarter 1:

75% (1.5M DFLR) distributed based on a randomly selected HLN snapshot within the month, weighted using the following static multipliers:

• HLN in personal wallet = 1x
• HLN in Staking (Single side Farm Pools, Governance, Loans staking) = 1.25x
• HLN in Loans as collateral = 1.5x
• HLN in LPs = 2x (due to being paired with equal value)

25% (0.5M DFLR) distributed based on a randomly selected EXFI snapshot within the month, weighted using the following static multipliers:

• EXFI in personal wallets = 1x
• EXFI in Staking (Single side Farm Pools, Governance, Loans staking) = 1.25x
• EXFI in Loans as collateral = 1.5x
• EXFI in LPs = 2x (due to being paired with equal value)

During the first quarter following the initial airdrop, the Ēnosys team will be monitoring the platform expansion and analysing fee based revenue generation. Once the full platform is brought online and platform usage has exited the initiation phase, a portion of the monthly airdrop will be allocated based on user fee generation during the preceding month. The first allocation to fees will encompass fees from platform launch through that snapshot date. The amount of DFLR allocated to fee generation will be capped at 50% of the value of total fees generated, not to exceed 25% of the total monthly airdrop. The remainder of the airdrop will continue to be split 75/25 between HLN and EXFI holders.

Quarters 2–4:

Up to 25% (<0.5M DFLR) distributed to users who generated fees for the Ēnosys ecosystem during the month (via Bridge, DEX, Gallery, Simple Stake, and Loans), weighted based on the USD value of the generated fees.

After the amount of DFLR to be distributed based on fees has been calculated, the remainder of the monthly 2M DFLR will be split 75/25 between the HLN and EXFI snapshots.

75% of the remainder(2M — a. generated fee share) distributed based on a randomly selected HLN snapshot within the month, weighted using the following static multipliers:

• HLN in personal wallet = 1x
• HLN in Staking (Single side Farm Pools, Governance, Loans staking) = 1.25x
• HLN in Loans as collateral = 1.5x
• HLN in LPs = 2x (due to being paired with equal value)

25% of the remainder(2M — a. generated fee share) distributed based on a randomly selected EXFI snapshot within the month, weighted using the following static multipliers:

• EXFI in personal wallets = 1x
• EXFI in Staking (Single side Farm Pools, Governance, Loans staking) = 1.25x
• EXFI in Loans as collateral = 1.5x
• EXFI in LPs = 2x (due to being paired with equal value)

We anticipate that this airdrop algorithm will ensure suitable incentives and foster sound financial practices among Ēnosys token holders, promoting the ecosystem’s overall long-term utilization and health. By limiting our supply and rewarding the high utilization of the Ēnosys platform, the Helion token is projected to operate as a valuable utility token, contributing to the ecosystem’s health.

APY Cloud

The 31.93% of tokens reserved in the APY Cloud will be distributed to the users that stake their governance tokens when the ecosystem’s health is at risk or, in other words, when the APY of the pool drops below the minimum threshold. The Ēnosys team, alongside its academic arm, will initially define the minimum APY threshold. The community can then alter the minimum APY through a governance vote.

Foundation

The Foundation pool of tokens is designated for ecosystem-related purposes, such as grants, incentives, and other community growth initiatives. Any token grants from the Foundation to developers building tools or additional protocols around the APY Cloud, will be granted through governance voting and dispersed based upon the completion of milestones approved by the Community. These tokens are anticipated to be distributed over a ten-year period:

• 5,000,000 Helion available initially to support current and future ecosystem projects, grants, and other community growth initiatives voted via community governance.
• 5,000,000 Helion available initially to support the Ēnosys Foundation growth initiatives.
• 1/120 of the remaining tokens for the community and the Foundation are anticipated to unlock each month for the next 10 years.

Core Contributors and Investors

All investors and current core contributors are subject to a three-year lock-up schedule, excluding staking rewards if applicable, from mainnet launch that unlocks according to the following schedule:

• No Helion available for the first twelve months.
• 2/36ths of such tokens unlock on the 13th month after mainnet launch, and each month after that up to and including the 24th month.
• 1/36th of the tokens unlock each month after that, beginning on the 25th month after mainnet launch so that all such tokens are unlocked on the third anniversary of mainnet launch.
• Investors cannot stake Helion into farming pools until the end of the 12-month cliff period and are advised not to stake until the end of their vesting period (i.e., 3 years). They are, however, advised to utilize their tokens for the purpose of governance to have a healthy and growing ecosystem.

Operating Expenses

By operating the Experimental Finance suite, our team identified ongoing capital needs such as development costs, market making, and supporting various initiatives. Initially, the team will distribute capital for market-making purposes and fundraising to support product development and community expansion. These tokens will be available on-demand for operations needs and will not follow a vesting schedule.

DFLR Holders

1,000,000 DFLR (0.666% of the max supply) were distributed as beta tester rewards on the Songbird Network, meaning 1,000,000 Helion from the max supply will be available for claiming to the beta rewards holders on the Songbird Network alongside the Community Airdrop. This claim will be facilitated through a separate Snapshot and Airdrop specifically for Songbird DFLR holders. This snapshot will only capture DFLR which is held in personal wallets, so please ensure that your DFLR is not being utilised in a contract as that DFLR will be ineligible for the snapshot and airdrop. Once DFLR has been distributed on the Flare Network and the 30-day claim window has initiated, DFLR on Songbird will have no further use.

Loan Holders

0.4% of the max supply will be distributed to those who participated and will participate in the EXFI Loans Stability Pool to fix the EXFI Loans system issue unless the stability pool has been liquidated by the time of the snapshot. If the EXFI Loans Stability Pool is liquidated before the snapshot, then the 600,000 HLN allocation will be returned to the APY Cloud reserve.

A Note to Oryy Wallet Users

Oryy multisig wallets use contract addresses and are therefore not continuous across networks. This means that an airdrop sent to the same address on Flare where the snapshot was taken on Songbird will not be accessible by the same user. To compensate for this issue, we will be releasing a method for Oryy wallet users on Songbird which will allow them to provide a Flare address to which they would like to receive any airdrop associated with a snapshot of their Songbird Oryy wallet. It is essential that Oryy users complete this process if they would like to receive their DFLR airdrops.

Anticipated Circulating Supply Changes

Ēnosys consists of multiple products operating in various chains, many of which may affect Helion circulation. Moreover, the agility and decentralization principle in Ēnosys’ design, although highly desirable, leads to an ecosystem that is highly influenced by its users in unpredictable ways. Nevertheless, specific actions enabled in the Ēnosys ecosystem predictably affect the Helion supply, such as the following:

• The circulating supply will increase as DFLR token holders utilize DFLR to claim Helion.
• When the APY is below the minimum threshold, meaning that the ecosystem fees are very low in comparison to the staked Helion tokens, Helion (from the APY Cloud reserve) will be distributed to governance stakers to make up the deficit, thus increasing the circulating supply.
• The Helion supply is heavily affected by the rewards of each product in the ecosystem. As all rewards and reward mechanisms are also modifiable via on-chain governance, governance can significantly affect Helion circulation.

Apsis (ex YFIN)

Apsis (APS) is the ecosystem’s primary Governance and rewards token. It has a primary focus on service across the entire ecosystem and maintains a higher authority in swaying the outcome of various forms of Governance proposals in the ecosystem. Unlike HLN, it cannot vote on new token listings and trading pairs on the Ēnosys platform. Additionally, it does not serve as a fee replacement token on Ēnosys DEX nor Ēnosys Bridge.

As the primary Governance token, APS allows its holders to engage in voting on protocol-related operational changes. Beyond Governance, it serves as the primary rewards token on Ēnosys Farm.

Once farmed, APS, has several use cases within the Ēnosys ecosystem including, but not limited to:

• Primary Governance over Helion (HLN)(1:10,000).
• Participating in liquidity pools on Ēnosys DEX.
• Staking it on Ēnosys Farm to earn more Apsis (APS).
• Participating in Launchpads on Ēnosys Farm.
• Providing it as collateral for loans on Ēnosys Loans.
• Providing it as coverage on Ēnosys Mutual.
• Use it in order to trade NFTs on Ēnosys Gallery.

Apsis and its available use cases expand as more products are built on the Flare Network within the Ēnosys ecosystem.

Apsis will maintain a max supply of 15,000 tokens and by default, does not have the capabilities to mint further tokens. These token distributions will be detailed in the “Token Supply Schedule” section below.

Token Supply Schedule

The production network token Apsis (APS) will be distributed as follows (also illustrated in the table below): 55% to farming pools and other product-related incentives, 20% to APY Cloud reserves, 10% to community reserves and 15% to operational costs. The max supply of the Apsis tokens will be 15,000 with a precision of 18.

We emphasize that the majority of the max supply (55%) are dedicated to farming pools and will be distributed through incentive mechanisms. Therefore, the amount of the circulating supply heavily relies on the users of the ecosystem. These tokens will be available as soon as the DEX and Farms are launched on the Flare Network.

10% of the max supply is planned to be distributed during the first year. Changes to the distribution schedule may be necessary based on the ecosystem’s expansion, as the addition of protocols, pools, and chains may require additional incentive disbursements.

APY Cloud

The tokens reserved in the APY Cloud will be distributed to the users that staked their governance tokens when the health of the ecosystem is at risk, or in other words when the APY of the pool drops below the minimum threshold. The Ēnosys team alongside its academic arm will initially define the minimum APY threshold. The community can then alter the minimum APY through a governance vote.

Foundation

The Foundation pool of tokens is designated for ecosystem-related items, such as grants, incentives, and other community growth initiatives. Any token grants from the Foundation to developers building tools, or additional protocols around the APY Cloud, will be granted through governance voting and dispersed based upon the completion of milestones approved by the Community. These tokens are anticipated to be distributed over a ten-year period:

• 750 Apsis available initially to support ecosystem projects, grants, and other community growth initiatives now and in the future for the Community category distribution subject to Community Governance Voting.
• 1/120 of the remaining tokens for the community and the Foundation are anticipated to unlock each month for the next 10 years.

Operating Expenses

By operating the Experimental Finance suite, our team identified ongoing capital needs such as development costs, market making, and supporting various initiatives. Initially, the team will distribute capital for market-making purposes and fundraising to support product development and community expansion. These tokens will be available on-demand and will not follow a vesting schedule.

Product Incentives

The remaining 55% of the token supply will be distributed over a 5-year period to provide platform incentives for various products. This pool will provide the primary incentive for all products linked to the APY Cloud, regardless of the underlying blockchain network. This means that Apsis may be bridged off of the Flare Network to provide platform incentives on other connected blockchains, but would need to be bridged back to the Flare Network to participate in Governance and the APY Cloud.

Anticipated Circulating Supply Changes

Ēnosys consists of multiple products operating in various chains, many of which may affect the Apsis circulation. Moreover, the agility and decentralization principle in Ēnosys’ design, although highly desirable, leads to an ecosystem that is highly influenced by its users in unpredictable ways. Nevertheless, specific actions enabled in the Ēnosys ecosystem affect predictably the Apsis supply, such as the following:

• As DFLR token holders utilize DFLR to claim Helion and stake it to receive Apsis through various mechanisms, the circulating supply will increase.
• When the Apsis APY is below the minimum threshold, meaning that the ecosystem fees are very low in comparison to the staked Apsis tokens, Apsis (from the APY Cloud reserve) will be distributed to governance stakers to make up the deficit, thus increasing the circulating supply.
• The Apsis supply is affected by the rewards of each product in the ecosystem. As all rewards and reward mechanisms are also modifiable via on-chain governance, governance can significantly affect Apsis circulation.

Conclusions

Ēnosys is one of the few cryptocurrency ecosystems that aimed to design its tokenomics based on solid design principles, conducting preliminary research and leveraging “lessons learned” regarding the sustainability and economic viability of previous token launches. Despite the ad-hoc nature of determining the token distribution in general, our team in collaboration with our academic partners contemplated (i) historical and statistical data, (ii) Ēnosys’ four design principles: decentralization, sustainability, agility, and reciprocity, and (iii) Ēnosys past promises to the community to maintain the trust of our users and contributors, to deliver the aforementioned distribution of tokens. This updated tokenomics can also be seen on our existing whitepaper here.

Disclaimer

THIS IS NOT AN OFFERING OR THE SOLICITATION OF AN OFFER TO PURCHASE TOKENS. THIS DOCUMENT CONTAINS HYPOTHETICAL, FORWARD-LOOKING AND PROJECTED FIGURES WHICH ARE NOT GUARANTEED; ACTUAL NUMBERS MAY VARY. ENOSYS MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE COMPLETENESS OR ACCURACY OF THIS PRESENTATION AND IT IS SUBJECT TO CHANGE WITHOUT NOTICE.

The Excitement Begins

ETHGlobal Waterloo 2023, a 36-hour hackathon, provided the perfect stage for brilliant minds to bring innovative ideas to life. Our team proudly represented the XDC Foundation and engaged with the community of developers, sponsors, and enthusiasts.

We shared our knowledge about the XDC Network, its technologies, and how it could empower developers to build groundbreaking applications. Our CEO, Nik, even led a workshop on “Mastering DApp Development on XDC: WalletConnect, WAGMI Integration, and Enhancing User Experience.”

Innovation in Action

Each submission was a testament to the power of perseverance, innovation, and the capabilities of the XDC Network. We saw a wide array of ideas come to life during the event.

• JPEGated won the token gating prize for their unique ticketing system, exclusively serving specific NFT holders, with access regulated by the Lit protocol.
• TrustReviews, claiming third place, developed a reliable app for Waterloo students to leave unbiased reviews on nearby rentals. Without any prior blockchain knowledge, this team showcased a powerful blockchain application for transparency and community building.
• Fund AI Training DAO took home the crowdfunding prize for their DAO that crowdsources and manages the creation of large AI models, even demonstrating its ability to find bugs in Solidity contracts.
• Tokenbound Titans presented an intriguing implementation of ERC-6551 for NPC gaming, along with dynamic generative NFTs. Although their submission wasn’t fully deployed on XDC, the potential of their idea deserves mention.
• Luban the Paymaster, the first-place winner, designed a customized paymaster that allows users to hold assets on one EVM chain and sponsor transactions on all others.
• Friend.fi — Collateral-Free F2F Lending clinched second place with their collateral-free lending protocol, utilizing a friend-to-friend trust network.

New Bonds Formed

ETHGlobal Waterloo 2023 was not just about technology but also about people. We welcomed numerous teams to the XDC Network, and the event became a melting pot of ideas, collaboration, and shared learning. We were pleased to see participants leave the event with newfound knowledge and interest in the network.

Reflections and Future Plans

We took away valuable lessons from this experience. As we gear up for future events, we’re excited to add some new twists — eye-catching visuals to create buzz, identification wristbands to make networking effortless, and on-chain raffles to integrate blockchain fun.

We also felt the need for a smoother gateway into the blockchain world for developers, and we are committed to working on that.

Towards a Brighter Future

As we reflect on ETHGlobal Waterloo 2023, we can’t help but feel a sense of accomplishment. Our dedication to spreading knowledge and fostering innovation has gained recognition and established us as a vibrant part of the global blockchain community.

The journey doesn’t stop here. We’re excited to continue fostering an innovative and collaborative blockchain community in upcoming events, including ETHToronto and onXDC.

In conclusion, ETHGlobal Waterloo 2023 has been an unforgettable chapter in our journey. We sincerely thank each of you, our amazing community, for being part of it. Let’s keep the momentum going, continue to learn, innovate, and reach new heights together!

Join us on Discord to keep the conversation going and stay updated on our latest initiatives. We can’t wait to see what we can achieve together!

FLRWrap is a committee-based EVM blockchain bridge that currently connects XDC’s Mainnet with Flare Network’s Songbird Canary network. It will soon connect Ethereum with Songbird and Ethereum with Flare Network’s Mainnet. FLRWrap enables the transfer of assets between two EVM networks in the form of “wrapped” assets. Our bridge’s smart contracts and frontend will be in scope for this bug bounty program.

Assets In-Scope

Smart contracts:

• WrapMintBurn contract:
  https://github.com/flrfinance/bridge-contracts/blob/40c13a468908b7415204999b13114daea71cba45/src/WrapMintBurn.sol
  Deployed at:
  https://songbird-explorer.flare.network/address/0xD5308A4Bb2D7121A26d0bd11257245F0EFDa2bc4
• WrapDepositRedeem contract:
  https://github.com/flrfinance/bridge-contracts/blob/40c13a468908b7415204999b13114daea71cba45/src/WrapDepositRedeem.sol
  Deployed at: https://explorer.xinfin.network/address/xdcD5308A4Bb2D7121A26d0bd11257245F0EFDa2bc4
• WrapToken contract:
  https://github.com/flrfinance/bridge-contracts/blob/40c13a468908b7415204999b13114daea71cba45/src/WrapToken.sol
  Deployed at:
  https://songbird-explorer.flare.network/address/0xC54De96302981f87a6F80E4607593681B44d670c)
• Multisig library:
  https://github.com/flrfinance/bridge-contracts/blob/40c13a468908b7415204999b13114daea71cba45/src/libraries/Multisig.sol
• Wrap contract:
  https://github.com/flrfinance/bridge-contracts/blob/40c13a468908b7415204999b13114daea71cba45/src/Wrap.sol

Frontend:

• Frontend located at:
  https://bridge.enosys.global/

Documentation

Whitepaper:

https://enosys.global/papers/EnosysBridgeWhitepaper.pdf

Smart Contract Solidity API spec:

FLR Wraps Smart Contract Documentation

Impacts In-Scope

Smart contracts

Critical

• Any governance voting result manipulation
• Direct theft of any user funds, whether at-rest or in-motion, other than unclaimed yield
• Permanent freezing of funds
• Protocol insolvency
• Fee payment bypass

High

• Theft of unclaimed validator or protocol fees
• Permanent freezing of unclaimed validator or protocol fees
• Temporary freezing of funds (for >24 hours)

Medium

• Smart contract unable to operate due to lack of token funds (for >3 minutes)
• Block stuffing for profit
• Griefing (e.g., no profit motive for an attacker, but damage to the users or the protocol)
• Theft of gas
• Unbounded gas consumption

Low

• Contract fails to deliver promised returns, but doesn’t lose value

Frontend

Critical

• Retrieve sensitive data/files from a running server (this does not include non-sensitive environment variables, open source code, or usernames) such as blockchain keys
• Taking down the application/website
• Taking state-modifying authenticated actions (with or without blockchain state interaction) on behalf of other users without any interaction by that user
• Subdomain takeover with already-connected wallet interaction
• Direct theft of user funds

Malicious interactions with an already-connected wallet such as:

• Modifying transaction arguments or parameters
• Substituting contract addresses
• Submitting malicious transactions

High

Injecting/modifying the static content on the target application without JavaScript (Persistent) such as:

• HTML injection without JavaScript
• Replacing existing text with arbitrary text.

Changing sensitive details of other users (including modifying browser local storage) without already-connected wallet interaction and with up to one click of user interaction, such as:

• Email or password of the victim, etc.

Improperly disclosing confidential user information such as:

• Email address
• Phone number
• Physical address, etc.

Subdomain takeover without already-connected wallet interaction

Medium

• Changing non-sensitive details of other users (including modifying browser local storage) without already-connected wallet interaction and with up to one click of user interaction, such as.

Injecting/modifying the static content on the target application without Javascript (Reflected) such as:

• Reflected HTML injection
• Loading external site data
• Redirecting users to malicious websites (Open Redirect)

Low

Changing details of other users (including modifying browser local storage) without already-connected wallet interaction and with significant user interaction such as:

• Iframing leading to modifying the backend/browser state (must demonstrate impact with PoC)

Taking over broken or expired outgoing links such as:

• Social media handles, etc.

Temporarily disabling user to access target site, such as:

• Locking up the victim from login
• Cookie bombing, etc.

Informational

• Missing HTTP Headers without demonstrated impact
• UI/UX best practices recommendations

Out-of-Scope Vulnerabilities

The following impacts and attack vectors are out of scope:

• Attacks that the reporter has already exploited themselves, leading to damage
• Attacks requiring access to leaked keys/credentials
• Attacks requiring access to privileged addresses (governance, strategist), except in such cases where the contracts are intended to have no privileged access to functions that make the attack possible
• Broken link hijacking is out of scope

Smart Contracts:

• Basic economic governance attacks (e.g., 51% attack)
• Lack of liquidity
• Best practice critiques
• Sybil attacks
• Centralization risks

Frontend:

• Theoretical impacts without any proof or demonstration
• Content spoofing / Text injection issues
• Self-XSS
• Captcha bypass using OCR
• CSRF with no security impact (logout CSRF, change language, etc.)
• Missing HTTP Security Headers (such as X-FRAME-OPTIONS) or cookie security flags (such as “httponly”)
• Server-side information disclosure such as IPs, server names, and most stack traces
• Vulnerabilities used to enumerate or confirm the existence of users or tenants
• Vulnerabilities requiring unlikely user actions
• URL Redirects (unless combined with another vulnerability to produce a more severe vulnerability)
• Lack of SSL/TLS best practices
• Attacks involving DDoS
• Attacks requiring privileged access from within the organization
• SPF records for email domains
• Feature requests
• Best practices

Existing Audits and Known Issues:

• WatchPug Audits:

1. https://www.hacknote.co/17c261f7d8fWbdml/1864eff7124wF20G
2. https://www.hacknote.co/17c261f7d8fWbdml/187022e732aVega9
3. https://www.hacknote.co/17c261f7d8fWbdml/1877a33caa29y5CD

Rules of Engagement:

The following activities are prohibited:

• Any testing with mainnet or public testnet contracts; all testing should be done on private testnets
• Attempting phishing or other social engineering attacks
• Any attempt to compromise validator, admin, or pauser keys
• Denial of Service attacks
• Public disclosure of an unpatched vulnerability
• Automated testing of services that generates significant amounts of traffic to our frontend
• Disclosing vulnerabilities without the approval of the Enosys team
• Attempting to sell vulnerability information or exploits

Submission

To be considered for a reward, all bug reports must contain the following:

• Description of the suspected vulnerability
• Steps to reproduce the issue
• Your name and/or colleagues if you wish to be later recognized
• (Optional) A patch and/or suggestions to resolve the vulnerability

Please submit your bug bounty report by emailing us at bounty@enosys.global.

Program Reward Amounts

Critical: $3,000 USD

High: $2,000 USD

Medium: $1,000 USD

Low: $500 USD