New but outdated defi, ve(3,3) design
1/ Andre Cronje’s ve(3,3) design is a new #DeFi token economy that combines Olympus DAO’s (3,3) design with Curve’s voting escrow token (ve). What does it mean and why is it important?
1/ Andre Cronje’s ve(3,3) design is a new #DeFi token economy that combines Olympus DAO’s (3,3) design with Curve’s voting escrow token (ve). What does it mean and why is it important?
2/ Olympus DAO’s (3,3) design encourages users to stake or bond their tokens instead of selling them. This creates positive feedback loops for the token price and the protocol treasury. Staking and bonding are both rewarded with more tokens.
3/ Curve’s ve design incentivizes users to lock their tokens for long periods of time (up to 4 years!) in exchange for voting rights and trading fees. This reduces token supply and aligns the interests of token holders and liquidity providers.
4/ ve(3,3) combines these two designs by creating vote escrowed NFTs (veNFTs) that represent locked tokens. Users can own multiple veNFTs with different lock durations and trade them on secondary markets or borrow against them.
5/ veNFT holders can also vote on which liquidity pools get more emissions and receive swap fees from those pools as rewards. This creates a dynamic incentive system that adapts to market conditions and user preferences.
6/ ve(3,3) aims to reduce reliance on large liquidity providers, encourage fee generation, and create value for token holders without dilution or inflation. However, it also has some drawbacks such as complexity, illiquidity, and volatility risk.
7/ ve(3,3) is a new concept that has been implemented by some projects such as Solidly Exchange (by Andre Cronje), Voltswap (on Theta), and Mettalex (on Binance Smart Chain). Will it become the future of tokenomics? Time will tell!
#Cronje #Andre #ve #Gametheory #VoteEscrow #FTM
#Cronje #Andre #ve #Gametheory #VoteEscrow #FTM
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