Thread by @JackNiewold

The final info on ve(3,3) came out last night.

The brainchild of @andrecronjetech and @danielesesta (now officially named Solidly) is fully public and just needs someone to press 'deploy.'

Here's a breakdown of the new alpha and why I'm more bullish on it than ever:

Thread 👇

To get you up to speed, Solidly (token: $ROCK) is a new AMM with improved incentive mechanics (based on OHM and CRV) that:

• make protocols less beholden to liquidity providers
• improve fee revenues for $ROCK holders
• is issued as a locked NFT to the top 25 $FTM protocols

Based on the docs, Solidly will be a direct competitor to Curve: a protocol designed for more efficient swaps for both stables and normal crypto assets.

A more complex liquidity model means that it's structured for fee revenue instead of attracting mercenary liquidity to pools.

So, how did the token distribution go?

A few surprising things happened.

More TVL on Fantom yielded a bigger allocation of tokens, so it wasn't an even distribution top the top 20.

Unexpectedly, tokens went to all top 25 protocols, not just top 20.

Distribution below:

Let's look at TVL (today) against token allocation.

Token distribution was based on a snapshot of TVL, so projects that could bootstrap TVL quickly (veDao, Morpheus Swap, OxDAO) got lots of tokens.

We don't know if this TVL from the so-called 'Vamp Wars' will stick around.

Looking at token allocation/market cap ratio is interesting as well, although we don't know how many protocols will distribute their $ROCK tokens.

The biggest winners are Morpheus Swap ($PILLS) and OxDAO (OXD).

These protocols got lots of tokens for smaller TVLs and Mkt Caps.

Morpheus Swap sits at a crazy $4 million mkt cap, but managed to grab about 2.5% of token allocation thanks to a collab with Wonderland Finance.

In all likelihood, it will receive more $ROCK than its current market cap.

$PILLS will split their allocation w/ $TIME, but still.

It's also among the 5 protocols outside of the top 20 that didn't expect an allocation, but ended up getting one:

The other four protocols that unexpectedly snuck in are:

• Hundred Finance / $HND
• Liquid Driver / $LQDR
• Saddle / $SDL
• Tarot / $TAROT

Tokens are currently locked up as veNFTs, but at some point will unlock and the protocols will distribute.

Interestingly, the projects receiving tokens will own 25% of protocol revenue in perpetuity. This % will remain fixed, and it's a reason these protocols are pumping today.

Another piece of new news: bribes are natively integrated into Solidly.

So no need for things like Votium (off-chain voting) as with $CVX.

Gauges and bribes are built directly into the protocol and bribes can be collected with a simple call function.

Finally, some clarity on previously mentioned ideas:

• LPs will only make 40% of possible fees if they hold no $ROCK tokens, with more tokens owned meaning more fees
• Hodlers won't earn rewards from pools they haven't voted for
• Base pairs will be $MIM and $USDT

Bit by bit, the curtain is being pulled back on Solidly. Now we just have to wait for a deployment, then see how the whole thing plays out.

Should be a good time.

If you want some more alpha:

1. Give me a follow: @jackniewold
2. Check out my newsletter about the assets and narratives shaping cryptocurrency, linked below:

cryptopragmatist.com/sign-up/

Lastly, if you enjoyed the thread, please help us out with a like/RT on the first tweet to help it get seen by more people!

Linked here👇

https://twitter.com/JackNiewold/status/1486064098253049856?s=20

And you want to dive into $ROCK in more depth, check out:

• github.com/andrecronje/so…
• andrecronje.medium.com

Corrected token allocation/Mkt Cap calculation, thanks @coinmamba for spotting the issue.

No data for Iron Bank and Saddle