Ellipsis.Finance, an authorized Curve fork on Binance Smart Chain (BSC) has decided to do a series of airdrop equalling to 25% of all EPS tokens to veCRV holders.
So if you had vote locked your CRV into veCRV on Curve, you are eligible to this airdrop. Note that you can still participate in this airdrop if you decide to vote lock CRV even today as the airdrop is allocated to a weekly snapshot of veCRV happening each Thursday.
It is quite difficult to provide a detailed percentage as the airdrop received depends on the total veCRV locked in Curve each week so it might change but just as an indication we receive approximately 4-5% in EPS on the first week, so for 100 veCRV we got 4-5 EPS.
How to play the airdrop?
Every week you get free EPS tokens, which can be claimed and are vested for 6 months. But there is a trick to withdraw it, either you wait for the vesting to be over (6 months) or you withdraw it directly and you can a 50% withdrawal fee.
In our case, here is our strategy and what we did:
We took the withdrawal fee and got half of our EPS.
We staked and locked it for 3 months in the protocol to get extra EPS inflationary rewards and additional BUSD fees. Currently, APYs are 2650% in EPS and 20% in BUSD.
It is better to take the 50% withdrawal fee than wait for 6 months because you will get more EPS once you lock for 3 months in about a week and on top you get BUSD fees. Rewards are not locked and can be claimed without penalty.
Depending on EPS price, we plan to either sell part of our EPS rewards and/or stake and lock once again to get more inflationary rewards and BUSD fees.
So far Yearn, the biggest veCRV holder (given their backscratcher strategy for veCRV has not planned to sell their EPS. That supports greatly the Ellipsis project and EPS price.
In our case, we decided to take a long term approach with Ellipsis. We could have decided to withdraw and sell our EPS airdrop on a weekly basis and get extra free money but we do see that the Ellipsis project has a great chance to take Curve’s place on BSC and whether you like BSC or not, there is a market for stablecoins and synthetic BTCs there as well, just like in the Ethereum world.
We do believe that it is worth holding your EPS and see where this project goes in 6 months - 1 year because it could as well be very successful and being part of this could mean sitting on another cash cow, for free.
Staking and locking your EPS is a free call option on the integrity and dedication of Ellipsis’ team to make their protocol successful in the long term.
It is a bet we are willing to take.
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