After the Solidly hype subsides, what is the current status of the ve (3,3) DEX project?

Original author:surf, crypto KOL

Original compilation: Leo, BlockBeats

It has been a year since Solidly became popular, and it was also one of the hot topics in the currency circle last year. A concept proposed by the King of DeFi Andre Cronje, Solidly ve (3, 3) significantly increased DeFi returns and provided guidance to the saturated market at the time. found a clear path. Now lets see that the hype of Solidly has temporarily subsided, and the encryption KOL surfThe author reviews the development and current status of the Solidly fork project in the past year. BlockBeats compiles it as follows:

Before we dive in, its important to understand how a Solidly-based DEX works. The core of a Solidly-based DEX is:

-veNFT

-Gauge voting process to determine LP rewards

- Bribe market (provide extra rewards to attract votes)

veNFT represents the voting rights of users, and users get veNFT when they lock utility tokens in DEX for a selected period of time. Like all other NFTs, veNFTs can be traded on the market, allowing users to enter or exit positions instantly.

veNFT holders have the right to vote in the liquidity pool, and the LPs who receive the vote will send a certain number of utility tokens to the liquidity provider as a reward for providing liquidity, as follows:

- veNFT holders then receive the transaction fees generated by the liquidity pools they voted for, and any bribes allocated to the liquidity pools;

-Liquidity providers can obtain practical token emission rewards;

-veNFT voters earn transaction fees and bribes;

Since the birth of the Solidly concept, many protocols have improved on its shortcomings and given their own unique innovations. Among countless forks, 6 forks rank at the forefront with their innovations.

Velodrome

Velodrome is the only Solidly fork that receives support for its OP chain in the form of OP donations, which are used for their carefully designed incentive program: Tour De OP. The result of this incentive plan is that every $1 spent on OP will bring $8 in value to liquidity providers and veVELO voters, allowing Velodrome to reach the highest TVL among the 6 forks projects.

THENA

THENA adds additional functions based on OG Solidly:

- A collection of NFTs that can be staked to earn a portion of protocol fees

-Referral code system to attract traders

Thenas innovation doesnt stop there, veTHE also provides more practical functions:

- Increased income for holders through its Perps platform ALPHA;

- Obtain new tokens in advance through WARP (the projects LaunchPad accelerator).

Chronos

Chronos also has a collection of NFTs that can earn protocol fees: chrNFT, but the difference from Thena is its Maturity-Adjusted Return, so that the longer the liquidity provider provides liquidity, the more More emissions incentives.

LP providers who earn CHR by staking LP tokens will also receive maNFT, and over time, the LP providers will receive more emission rewards, up to 3 times (after 3 months).

Pearl

Pearl aims to be the liquidity hub for RWA and the only project among the 6 protocols that has a sustainable source of bribes to incentivize voters. This is because all listed assets are paired with USDR (Tangibles revenue-generating stablecoin), and the revenue generated by USDR is redirected into bribes, which also causes the bribe amount to increase as Pearls TVL grows.

RAMSES

Its token economy adds unique improvements, including xRAM, which works similarly to RDNT in RDNT Capital, xRAM can be converted into veRAM instantly for reduced asset set value, or within 90 days at a 1:1 ratio Convert back to xRAM.

Equalizer

Equalizers veEQUAL holders not only earn fees from their AMM Dex, but also from their Perps platform (Equity). In addition, THENA also hopes to use SYMMIO as another source of income for veTHE holders.

Of the 6 forks, Velodrome is the undisputed king of the Solidly fork. Only Thena surpassed Velodrome in transaction volume in the past month.

Velodrome is also the only Solidly Variants in the entire DeFi ecosystem whose TVL has entered the top 10.

It is also worth noting that, with the exception of Pearl, which is only two months old, all Solidly Variants are experiencing TVL decline, with Velodrome losing the TVL at the slowest rate. Chronos was losing the most speed, losing 95% of its all-time high TVL in 3 months.

The following is the Solidly indicator chart of Eliteness Network;

Conclusion

The Solidly model has had a very positive impact on DeFi and may continue to be a highlight of DEX innovation and development in the future because it can adjust token emissions and transaction volume. In the current low-yield, volatile market, trading volume is also the biggest test for Builders.

Some inspirations have been obtained through the analysis of the above six projects. Projects need to find ways to maintain the growth incentive flywheel. The reference is as follows:

Product version: Perps (Thena)

Bribe rewards: RWA rewards (Pearl), OP grants (Velo)

Capital Efficiency: Gamma’s Treasury w Conc liq

Emissions exp: Dynamic Emissions (Velo)