The talk of the crypto town hall:
Solidly ve(3,3).
Let me break it down for you:
🧵 👇
Solidly ve(3,3).
Let me break it down for you:
🧵 👇
Overview of this thread:
• Revolution of Dexes
• What is Solidly Ve{3,3} Model?
• How to Capitalize on this model
• Solidy Forks
• Revolution of Dexes
• What is Solidly Ve{3,3} Model?
• How to Capitalize on this model
• Solidy Forks
🔘 Revolution of Dexes
If you look back in time to how Decentralized exchanges functioned, you’d discover that real yield generation only occurred through swap fees.
Now the catch was:
-Decision making power through the governance token
&
- High APR rewards to attract users
If you look back in time to how Decentralized exchanges functioned, you’d discover that real yield generation only occurred through swap fees.
Now the catch was:
-Decision making power through the governance token
&
- High APR rewards to attract users
At the early stage—due to the urge for a decentralized finance world,
where decision making power were based on accumulation of the governance token,
it was seen to cause an appreciation in the token’s value but then on the long run, whales were seen dumping their tokens…
where decision making power were based on accumulation of the governance token,
it was seen to cause an appreciation in the token’s value but then on the long run, whales were seen dumping their tokens…
for the purpose of compounding their LP positions,this act lead to the depreciation in the value of the governance token.
And this decrease in the price caused a simultaneous decrease in APR.
Hence the two major problems encountered by Dexes causing investors to lose interest:
And this decrease in the price caused a simultaneous decrease in APR.
Hence the two major problems encountered by Dexes causing investors to lose interest:
-Insufficient Liquidity
-Impermanent Loss
We saw this happen to $CAKE of pancakeswap & $UNI of uniswap.
Chart illustration:
-Impermanent Loss
We saw this happen to $CAKE of pancakeswap & $UNI of uniswap.
Chart illustration:
In search for the answer to resolving this Dex limitation,there have been series of proposals from different protocols.
Now let’s take a deep look into different protocol proposals,the Benefits and Problems of each:
1/ @CurveFinance:
The proposal was locking of the
Now let’s take a deep look into different protocol proposals,the Benefits and Problems of each:
1/ @CurveFinance:
The proposal was locking of the
governance token $Crv to earn $veCrv which takes a period of 1-4years.
Rewards in 2 ways:
-Users can stake $Crv to earn $Crv as rewards.
- Users can lock $Crv for $veCrv and get higher rewards
Ve means (Vote-escrowed)
High rewards attract more stakers leading to more…
Rewards in 2 ways:
-Users can stake $Crv to earn $Crv as rewards.
- Users can lock $Crv for $veCrv and get higher rewards
Ve means (Vote-escrowed)
High rewards attract more stakers leading to more…
liquidity provided to the pool
Benefits:
•Voting on which pool receives higher $CRV rewards.
•Circulating supply reduction due to locking of tokens.
•100% boost in rewards to Liquidity providers.
-PROBLEM: Does not check the level of trading on a pool before incentivizing.
Benefits:
•Voting on which pool receives higher $CRV rewards.
•Circulating supply reduction due to locking of tokens.
•100% boost in rewards to Liquidity providers.
-PROBLEM: Does not check the level of trading on a pool before incentivizing.
2/ Olympus Dao :
Is a decentralized reserve protocol that utilizes the Game theory ve(3,3) model and also an alternative to ‘liquid mining model’ via bond mechanisms.
It supports three types of user actions:
• Bonding
• Staking &
• Selling
To fully understand each…
Is a decentralized reserve protocol that utilizes the Game theory ve(3,3) model and also an alternative to ‘liquid mining model’ via bond mechanisms.
It supports three types of user actions:
• Bonding
• Staking &
• Selling
To fully understand each…
application, Olympus Dao benefits aswell, as the Problem leading to $OHM plummeting in value.
Read this Medium article for deep understanding ⬇️
medium.com
Read this Medium article for deep understanding ⬇️
medium.com
🔘What is Solidly Ve{3,3} Model?
—Firstly ,as earlier stated “Ve”means Vote escrowed.
—{3,3} signifies the Game theory.
“The Game theory” in simple terms explains how the decision making of each player affects the outcome of all the players involved.
▫️A typical example:
—Firstly ,as earlier stated “Ve”means Vote escrowed.
—{3,3} signifies the Game theory.
“The Game theory” in simple terms explains how the decision making of each player affects the outcome of all the players involved.
▫️A typical example:
The prisoner’s dilemma where if two prisoners confess they are both sentenced for 5 years but if only one does ,that person is granted immunity while the other who resists is sentenced for 20 years.
This Solidly model was introduced by @AndreCronjeTech who brainstormed how the
This Solidly model was introduced by @AndreCronjeTech who brainstormed how the
existing problems faced by Dexes could be resolved
He proposed that these locked tokens do not get incentives from all protocols but instead get rewards from the pools voted for.
Now this creates room for voting for pools which actually provides value to the protocol through:
He proposed that these locked tokens do not get incentives from all protocols but instead get rewards from the pools voted for.
Now this creates room for voting for pools which actually provides value to the protocol through:
• Providing bribes to liquidity providers
• High volume generation from swaps.
This improves the growth and adoption of this Dex because token emissions aligns with the productivity of that pool.
VeNFTs —> this locked Ve solid tokens,can be wrapped into VeNFTS which serve
• High volume generation from swaps.
This improves the growth and adoption of this Dex because token emissions aligns with the productivity of that pool.
VeNFTs —> this locked Ve solid tokens,can be wrapped into VeNFTS which serve
as collateral,they are liquid and can be traded in the secondary market.
In Summary, Solidly Tokenomic model entails the following:
-locking
-Swap fees
-Bribes
-Token emission
-Anti-dilution mechanism via (Rebase)
A detailed article by Andre cronje ⬇️
andrecronje.medium.com
In Summary, Solidly Tokenomic model entails the following:
-locking
-Swap fees
-Bribes
-Token emission
-Anti-dilution mechanism via (Rebase)
A detailed article by Andre cronje ⬇️
andrecronje.medium.com
🔘How to CAPITALIZE on this model:
So many Dexes integrating this model have seen a surge in TVL growth,research on the newly launch Dex with this model.
Ex: Let’s say a project SoliIzu and it’s token $IZU is built on BSC.
-Deposit in a LP providing BNB/BUSD
-Earn $IZU as …
So many Dexes integrating this model have seen a surge in TVL growth,research on the newly launch Dex with this model.
Ex: Let’s say a project SoliIzu and it’s token $IZU is built on BSC.
-Deposit in a LP providing BNB/BUSD
-Earn $IZU as …
yields
-lock $IZU for more rewards.
- Then you are ‘Allowed’ to vote for a pool hence getting access to bribes.
NB: You benefit more when you’re early and when you have long term in view.
🔘SOLIDLY FORKs:
📍Arbitrum
- @RamsesExchange
-@solidlizardfi
-@ChronosFi_
📍FTM
-lock $IZU for more rewards.
- Then you are ‘Allowed’ to vote for a pool hence getting access to bribes.
NB: You benefit more when you’re early and when you have long term in view.
🔘SOLIDLY FORKs:
📍Arbitrum
- @RamsesExchange
-@solidlizardfi
-@ChronosFi_
📍FTM
-@equalizer
📍BSC
-@ThenaFi_
📍AVAX
-@FlairDefi
-@solisnekfi
📍ZKsync
-@velocorexyz
📍Polygon
- @SatinExchange
Am I missing any?
(Let me know)
In my next threads ,I would be doing a deep dive into a few of these solidly forks listed above which would want my to cover?
📍BSC
-@ThenaFi_
📍AVAX
-@FlairDefi
-@solisnekfi
📍ZKsync
-@velocorexyz
📍Polygon
- @SatinExchange
Am I missing any?
(Let me know)
In my next threads ,I would be doing a deep dive into a few of these solidly forks listed above which would want my to cover?
Tagging OG’s with amazing contents I love & you should follow:
~@LadyofCrypto1
~@crypthoem
~ @TheDeFISaint
~ @CryptoGirlNova
~ @VanessaDefi
~ @Zaqueen_
~ @Slappjakke
~ @Simple_simeon
~ @DOLAK1NG
~ @kendrickNoble7
~@SamuelXeus
~ @defiprincess_
~@LadyofCrypto1
~@crypthoem
~ @TheDeFISaint
~ @CryptoGirlNova
~ @VanessaDefi
~ @Zaqueen_
~ @Slappjakke
~ @Simple_simeon
~ @DOLAK1NG
~ @kendrickNoble7
~@SamuelXeus
~ @defiprincess_
~ @Ebubechi_GMI
~ @DeFiMinty
~ @0xSalazar
~ @ChadCaff
~ @fitforcrypto_
~ @milesdeutscher
~ @_BillionAireSon
~ @DefiPlayGirl
~ @david_choya
~ @_Quivira
~ @Tob_a_e
~ @coinesper
~ @DeFiMinty
~ @0xSalazar
~ @ChadCaff
~ @fitforcrypto_
~ @milesdeutscher
~ @_BillionAireSon
~ @DefiPlayGirl
~ @david_choya
~ @_Quivira
~ @Tob_a_e
~ @coinesper
Thank for reading;
I remain your Favorite DeFi educator
Want more educational contents?
Follow me:
(@izu_crypt )
For more DeFi insights and protocol reviews.
To show support 💜;
RT & Like the first post⬇️
I remain your Favorite DeFi educator
Want more educational contents?
Follow me:
(@izu_crypt )
For more DeFi insights and protocol reviews.
To show support 💜;
RT & Like the first post⬇️
Loading suggestions...