Solidly, Taking the Wars to a Higher Level.
— By Ibrahim Quabboua
I think most of you have heard what the DeFi wizard is cooking under the table. with the huge hype of AMMs and “the wars’’, I think a new exciting one is revealing its shape, in a better way, a fairer way, the Cronje way.
In this blog, we will discuss what makes Andre's project an interesting piece to keep an eye on, how he truly understands the Ve(3,3) spirit, and how it revels through his work.
So how the thing works?
As all the AMMs one of the ways you can benefit from them is to provide liquidity to earn a share from the fees accruing on the protocol (that’s how you can benefit from the curve for example) + you earn CRV tokens that can help you later in voting. But what Andre changed is that the only way to have access to the solidly token is by staking your LP tokens and forfeiting your fees, yup you lose this juicy 20%. why? you will know later.
Ve (3,3) token that the LP provider will receive can be locked like curve for up to 4 years, and in return, he receives an NFT to represent his position. And guess what, this NFT is transferable so it can be used for other DeFi applications later (swapping, lending, moving to cold wallet ..)
This Ve(3,3) token can be used to vote on the pool for the rewards that we all love, but instead of unlocking 2M CRV tokens/week like what curve finance is doing regardless of the effect of the circulating supply of the token (which I personally had a problem accepting that) Solidly will provide 2M token * circulating supply/week
What does it mean? the more the tokens are locked, the less the circulating supply, the less the Ve tokens are distributed, and the protocol can later on in the future run on the fees only, GENIUS
Any time there is an emission which means distribution of “solidly”
Token, the supplied amount will be divided between the Ve(3,3) holders and the LP provider. And by this way, the Ve(3,3) holders are not diluting themselves from the voting power.
The forfeited fees that were not distributed in the 1st point will be given as is for the people who voted, and it will be given with the pair they voted on. (because if they voted on FRAX-MIM for example, that will mostly mean that they are interested in this pair) and to be mentioned that if you vote on x pair, you will only get a percentage from the fees of that pool, and not a percentage of the protocol as a whole.
So people will most likely be driven automatically to vote on the pool that getting higher fees, which will attract automatically more liquidity in this pool, which will reduce automatically the slippage.
The Frog bishop has done his move, and I can’t say but the move was better than ever.
The blog has finished but the idea is still in the beginning.
So stay tuned, because Ve (3,3) is hotter than ever.