Solidly ve(3,3) on Fantom: protocol-owned AMM and NFT-based launch
Quote446 words
Explains Solidly's ve(3,3) design where emissions flow to the pools with the highest fees and lockers earn fees only on pools they vote for. Covers the launch via ve lock NFTs airdropped to the top 20 Fantom TVL teams and the resulting wrapper DAOs.
Key claims
SOLID ve lock NFTs go to the top 20 Fantom protocols by TVL
veDAO and 0xDAO reached $460m and $3.6bn TVL within days
ve NFTs create a secondary market for locked governance power
0/ @solidswap coming soon!👻👀
@solidswap is a highly versatile $FTM-based AMM DEX. It combines @CurveFinance (swap of correlated assets) & @Uniswap (originally mainly uncorrelated assets) in one & adds cross-chain functionality on top
A few thoughts on $SOLID (0/13) 🧵👇
1/ The difference with @solidswap is that other than relying on liquidity providers (LPs) to provide sufficient liquidity to the pools, liquidity is controlled by the protocol, which is owned by the ve lock holders (protocols), thereby giving projects more control over emissions
2/ In the form of ve(3,3) ouroboros, @AndreCronjeTech has also introduced ideas concepts regarding governance / fee distribution in voting escrow models like the one @CurveFinance uses
3/ In (ve3,3) ouroboros, the goal is to simply give the most incentives (emission) to the liquidity with the highest fees
4/ This is similar to @CurveFinance's ve model so far. But other than with $CRV, ve(3,3) lockers receive fees only for pools they voted for, which introduces some additional benefits
5/ There is way more to this, check out the following articles by @AndreCronjeTech to learn more
andrecronje.medium.com/ve-3-3-ouroboros-part-1-fee-distribution-5dcf131dc82e
andrecronje.medium.com/ve-3-3-ouroboros-part-2-fees-explored-c8e026841ae
6/ The launch strategy is exciting as well. In ve(3,3), lock positions (that have power over $SOLID distribution) are NFTs. As @AndreCronjeTech said, $SOLID will be launched by airdropping each of the top 20 Fantom TVL teams one NFT
7/ How the protocols distribute those tokens among their community / users is up to them. But it's likely, that projects will use $SOLID incentives to reward loyal users (e.g. LP providers, etc)
8/ Right now top 20 looks like this:
(1/2)
$MMULTI $OXD $BOO $YFI $GEIST $WeVE $CRV $BIFI $SCREAM $SPIRIT
9/ (2/2)
$REN $SPELL $BEETS $LQDR $TAROT $HEC $SYN $QI
10/ Crazy how 2 DAOs with the sole purpose of reaching top 20 by TVL in order to get 1 of the ve lock NFTs, have made top 10
@_veDAO_ & @0xDAO_fi have reached an insane $460m and $3.6bn in TVL in days
$SOLID will distributed among $WeVE & $OXD holders that staked in their farms
11/ But back to the ve lock NFTs, which are especially interesting because they enable secondary market trading for locked governance tokens, which is essentially a way to buy/sell voting power in DAOs
12/ Morever, $SOLID being locked in ve lock positions are likely to cause $SOLID supply to be deflationary, while also providing a direct fee distribution mechanism as outlined earlier
13/ By changing the game from protocol owned liqudity to protocol owned AMM, the ve(3,3) model could have a massive impact on governance and liquidity wars exemplified by the "Curve Wars", which might be huge
In any case, I'm super excited for @solidswap & $SOLID
$FTM 👻🧙♂️
QUOTING @
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