A Comprehensive Analysis of Solidly ve (3,3): Revolutionizing the DeFi Landscape Part 1 | by AdetolaO. | Coinmonks | Apr, 2023

  1. The Ve Model: Originating from Curve Finance, $veCRV stands for vote-escrowed $CRV. It represents $CRV tokens locked for a specific period, with longer lock times yielding more $veCRV. For instance, locking 1 $CRV for four years results in 1 $veCRV. Once $CRV holders vote-lock their $veCRV, they can participate in DAO proposals and pool parameter voting. $veCRV grants holders the ability to vote for their preferred pools and participate in governance.
  2. The (3,3) Model: Derived from OlympusDAO’s game theory, the (3,3) model presents users with three options: Staking (+3), Bonding (+1), and Selling (-1). According to this model, the most favorable position for both users and the protocol is staking. OlympusDAO has experienced exponential growth as the majority (87%) of its $OHM assets are staked.
  1. Ve: Non-transferable tokens locked up by depositing base tokens into the voting escrow contract for a period ranging from one week to four years.
  2. veNFTs: Token IDs conferred to users who lock their tokens for their ve counterparts, representing their voting power.
  3. Bribes: Incentives used by projects to attract veLockers to vote for their pools.
  4. ve Lockers: Individuals who vote on which permissionless pools should be incentivized and accumulate all protocol fees.
  5. Total Supply, Locked Supply, and Circulating Supply: Represent the total token supply, the supply of ve tokens, and the difference between the total supply and locked supply, respectively.
  • Difficulties in Bootstrapping for New Projects:
  • Unsustainable Liquidity Mining

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