AMM DEXs must discover innovative ways to attract users and their capital to increase their liquidity.
But what makes a DEX truly attractive to traders?
The answer is here:
"Show me the incentives, and I will show you the outcome."
🧵 : Solidly & its Forks; PART 2
RT for Others
Two central problems with most AMMs are:
• Low liquidity and,
• Impermanent loss.
- Liquidity refers to the ability of the market maker to buy or sell assets at a fair price.
It is a concern because AMMs typically rely on a smaller pool of liquidity providers.
- Impermanent loss refers to the potential loss of value that a liquidity provider may experience when supplying assets to an AMM.
This prompted Curve to introduce a new AMM model 👇
. Curve Finance $Crv is an Automated Market Maker that uses a constant product formula and a bonding curve algorithm.
It aims to address the problem of impermanent loss and increase liquidity on available pairs to provide low-slippage trading.
Curve also uses a governance token $Crv and veCRV to vote on the DAO’s proposals.
⚠️(Detailed explanation in the next thread)⚠️
But there's a saying that goes thus:
"For every problem solved, you consciously or unconsciously create another problem."
. @AndreCronjeTech , however, spotted a few problems with these DEXs.
He created the ve (3,3) model with Solidly; this model was designed to improve the initial tokenomics models by Curve.
#Solidly is the first Protocol-to-Protocol Automated Market Maker (AMM) built on the Fantom network.
It allows the swapping of correlated and uncorrelated assets.
And it is based on Uniswap V2 and incentivizes fee revenue instead of liquidity, providing a unique advantage over competitors in the saturated AMM market.
Solidly was built on four essential components;
- Locking
- Trading fee
- Emissions
- Bribes
It also introduces the concept of negative voting.
This allows users to prevent emissions from going to a pool.
However, Solidly also doesn’t come without its flaws either.
The forked version of Solidly improved some critical drawbacks like:
📌 Centralized the whitelisting process for pools.
📌 Implemented higher swap fees to encourage productive pools.
📌 Removed LP boost and negative voting features.
📌 Reduced weekly emissions to make protocol more sustainable.
Some upcoming developments for Velodrome include:
- UI overhaul and improvements
- Optimization of voting through a relay
- New pool types, upgrades to voting mechanisms
- Zapping and composability of veNFTs.
📌 Equalizer addresses the gap left by Solidly's downfall and the migration to the ETH mainnet.
📌 It has adopted elements of the Solidly model to create a sustainable DEX that rewards holders and revolutionizes the traditional DEX model.
📌 Equalizer differs from Solidly in essential areas such as:
- Shorter max veLOCK period
- Fairer initial token distribution
- Sustainable fee structure
- No negative voting and a bonus for Ve locking.
📌 It also aims to increase $ETH trading pair volume, particularly on the Fantom chain, which currently has a disproportionate $ETH volume compared to other EVM-compatible chains.
📌 Hermes also centralized the pool whitelisting process to prevent large holders (whales) from creating personal pools, voting on them, and collecting all the rewards.
📌 Introduced a one-week vote lock to fix the bribe-farming exploits.
📌 Omnichain DEX and with concentrated liquidity.
📌 Hermes has also revamped its tokenomics by introducing a burning mechanism.
This replaces the previous continuous management-intensive locking mechanism with a more hands-off approach.
• I will stop here today!
• Follow me @SamuelXeus for more insightful content.
• Like and RT the first tweet.
• Anticipate a detailed part 1
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$BTC To $100k, $ETH To $10k
We are all caught up in the cycle of predicting the upside and downside of the financial market.
Some have built an outstanding skillset in predicting the price movement of assets but have not been able to earn from it
I have something for you🧵👇 #RT
. @playyolorekt
Yolorekt is a short-term prediction market platform built on the blockchain.
Prediction markets allow you buy and sell predictions about future events (price movement of assets).
Yolorekt provides the platform for users to bid on the price movement of assets on the blockchain and earn money while doing that.
How does this work?
For instance, if you bid up on $BTC in round 10 and the strike price(the price where the upside or downside is determined from)
The “web3 job” space is not saturated, not yet. In fact, 70% of the jobs in web3 are yet to be explored.
So, why don't you have a job?
Here is what no one is telling you about web3 jobs.
A Thread🧵, RT for others.
The strategy you used to get a job last month or two will likely not work again now; why?
Because after every market narrative, the market evolves, jobs evolve, trading evolves, etc.
But you’re not getting any jobs because you are unaware of these meta-shifts.
Almost every brand in web3 shares the same audience, which is detrimental to business growth in the long term.
As a result, these brands will branch out of Twitter and web3 to other social media platforms to further strengthen their audience base and adoption.
The Crypto Space have had the most adoption this year and this is majorly as a result of Men taking their time to put people on.
Educative threads, Educative spaces, Opportunities, Giveaways, Support, the list goes on and on.
Tag your Fav Crypto Dude, tell them Thank You👇
You lost money due to the recent market conditions or FTX?
Here is how to bounce back X100 better.
A thread🧵, retweet for others.
⚠️ CAUTION;
This thread is not to motivate you. This thread came from my heart as someone who has gone down to zero few times in this industry and bounced back easily.
So, allow me to talk to you.
The worst thing that can happen to you in this space is not losing money.
I noticed that when people lose money, they tend to give up, which does not make sense.
The next big airdrop you’re looking for will come from platforms you aren’t paying attention to.
Here’s how to be positioned for the next 1000x Airdrop.
A thread🧵 ... Retweet for others.👇
Many a time, you miss the main information in your attempt to feel like a “Pro Researcher.”
However, one of the major skills of a good researcher is your ability to pay attention to details even the tiniest details.
Over the years, we have seen the world transition into the newest or biggest innovation.
Likewise, the web2 firms are finding their way into web3 leveraging blockchain technology to scale their platforms, incentivize their users and improve user experience.