Thread by @JackNiewold

Solidly Swap has officially deployed.

Andre Cronje's DEX governance experiment teased as ve(3,3) is underway, and in 1 week, tokens will begin to come onto the market.

So what's going on? Are Solidly tokens going to moon? And how should you play the launch?

🧵👇

First, a TL;DR on Soldily Swap:

It's new type of DEX, with tokenomics (veTokens) designed to maximize cooperation and fee revenue. It's been airdropped to the top 25 protocols by TVL on $FTM

For a more comprehensive look, check out the thread below:

https://twitter.com/JackNiewold/status/1481007067142008838?s=20&t=MsVIb1YGrFoYhMlXWp1A1Q

Solidly launched last night at midnight, but with next to no fanfare. Dani Sestagalli drama really slowed down the hype.

And it takes a while for DEXes to get rolling.

For now, there's almost no liquidity in the system, so trading won't get going until LPs come onboard.

When will that most likely be?

When token emissions (LP rewards) begin, exactly 1 week from today.

So while the DEX is live for now, for most pairs there will be a lot of slippage. It's simply not yet efficient to trade yet.

Also, there are some UX issues.

The voting systems are already in place, which will allow Solidly Token ($ROCK) holders to vote on which liquidity pools get rewards.

For now, though, you need a veNFT to access them.

However, anyone can create a trading pair (I think).

Say I want to launch a new token. I need liquidity so people can trade it back and forth.

I launch my token, then pay some bribes to attract assets to that liquidity pool.

I can also buy $ROCK, lock it up, and vote for my pool, which means LPs will earn $ROCK tokens for LPing.

Anyone can create a bribe to incentivize liquidity, and a few already have.

This feature will be widely used and its protocol-level integration is one of the new features that Solidly brings to crypto.

At launch, the promised tokens were distributed to the top25 protocols in the form of airdropped veNFTs.

In exactly one week:

• LP rewards will go live
• veNFTs will unlock and protocols will distribute tokens

This means that it will be another week until the real gold rush begins. Pay attention for some serious action next Wednesday at midnight.

Until then, we'll probably see some positioning from the protocols that received veNFTs.

But for now, we know everything we have to.

Once rewards go live, LPs will rush into Solidly Swap to suck up $ROCK tokens and bribes that get placed in the system.

Protocols will use their VeNFTs to get liquidity.

Liquidity will likely migrate from big exchanges ($BOO, $SPIRIT) to take advantage of Solidly rewards.

Last night, some weird things happened around price action.

Most protocols that got airdropped $ROCK didn't do much. I'm sure they will once $ROCK becomes tradeable.

VeDAO pumped at launch, but rough market conditions today ruined the party.

As far as playing the release of the token itself, you have a few options:

• Get ready to start LPing whatever pair has the best rewards
• Buy VeDAO, who have promised to distribute $ROCK tokens to holders

Or, the route I'm taking:

Buy Iron Bank ($IB) and Morpheus Swap ($PILLS), the 2 protocols that received more $ROCK tokens relative to their market cap.

Iron Bank is the best, and Morpheus Swap a close second. They've competed for the #1 spot.

There is a risk: we don't know how they'll distribute $ROCK

Like the thread? Please do me a favor!

1. Give me a follow: @JackNiewold, I write data-backed threads on altcoins
2. Give that first tweet a favorite/RT. It helps the thread get seen by more people.

https://twitter.com/JackNiewold/status/1491911652396077059?s=20&t=MsVIb1YGrFoYhMlXWp1A1Q

Last thing: I'm the founder of Crypto Pragmatist, a research publication on small-cap altcoins.

We save all the best research for this list. You can subscribe by clicking on the link below:

cryptopragmatist.com/sign-up/