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What exactly is ve(3,3) that AC is trying to advertise?

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Generally speaking, ve(3,3) is more like a group AMM, but it is not controlled by the liquidity provider (LP), but controlled by the agreement, so that the agreement can better control the inflation and emission rate of its own Token.

Original author: 0x137, Rhythm BlockBeats

Recently, Andre cronje, the founder of Yearn Finance and Keep3r Network, tried his best to promote his mysterious new project-ve(3,3) on social media. But so far, although AC has released many details of the project, its real veil has not been lifted. After collecting relevant information, the editor of Rhythm sorted out the content of the following article.

AC's project will be with Daniele, who built Abracadabra. money, Popsicle Finance and Wonderland Finance are hot projects. ve(3,3) will be established under the protocol-to-protocol service architecture and will not compete with existing projects. Generally speaking, ve(3,3) is more like a group version of Curve, but it is not controlled by the liquidity provider, but by the agreement, so that the agreement can better control the inflation and emission rate of its own Token.

The token of this project is currently called ve(3,3), but it can be speculated from the review diagram below that it will be called "SOLID" .

ve(3,3) of Tok how is the economy How does it work?

ve(3,3) will combine the "ve" voting custody mechanism of protocols such as Curve and the (3,3) rebase of DeFi 2.0 protocols such as OlympusDAO Pledge (rebase) mechanism. By locking Token for a longer period of time, users can obtain higher incentives and greater weight in protocol governance.

Same as OHM, the actual value of the ve(3,3) agreement is less than its treasury book value, but the total price of Token transactions is higher than the treasury value. The higher the transaction price, the higher the APY of the protocol. The number of tokens pledged by holders will increase over time, but the value of tokens will also be diluted to a certain extent. In addition, the fees generated by the agreement will also be added to the treasury.

But compared to Curve and OHM, ve(3,3) has a very interesting unique mechanism.

For Curve holders, the locked veCurve cannot be sold, and they are "trapped" in the user's wallet most of the time . However, the "veToken" of ve(3,3) can be converted into NFT, which means that holders can use them for transactions. In this way, the locked governance token has its own secondary market and becomes A way to sell voting rights.

To sum up, the value of ve(3,3) native Token is mainly driven by the following factors:

1. The locked Token will be given the voting right to guide the distribution of mining pool incentives

2. The weekly emission of Token will be based on the circulating supply As the tokens continue to be allocated, the pressure brought by emissions will gradually decrease

3. The number of locked Tokens will be proportional to the weekly emissions Increase

4. Locked Token can be converted to NFT

5. The ratio of locked Token to circulating supply is higher Smaller, the less emission distribution you get, and more holders are encouraged to lock their own tokens

6. Longer lockups will also generate higher APR , thus incentivizing long-term lockup

KP3R: a heavyweight helper for ve(3,3)

AC mentioned in the previous introduction article that ve(3,3) will not distribute fees in the form of native Token or stable currency, but will distribute energy The "fee asset" that continues to pass on the value of the fee, so that the selling pressure of the original Token is reduced.

KP3R (Keep3r Network) is currently the "fee asset" of Andre Cronje's project to accumulate fee value. It is a two-in-one ERC-20 Token. Its stakers have two revenue streams:

1. FixedForex platform fees: FixedForex is similar to Curve, but it is mainly aimed at the foreign exchange market with a potential scale of nearly one trillion US dollars. In 2022, as more and more international players join the crypto world, the demand for trading various currency-pegged stablecoins will also grow, bringing more platform fees to FixedForex.

2. Keep3r Network platform division: Keep3r Network mainly provides payment services for different protocols to help them entrust third parties to complete specific tasks.

KP3R will soon will be transformed , and built on the model of ve(3,3). Confirmed by AC, ve(3,3) is testing KP3R and will release it as early as this week.

Under the new ve(3,3) model, the number of vKP3R will no longer decrease over time, instead, it will incentivize more holders Continue to lock the position. If the user wants to get the fee distribution, he must lock the KP3R and receive vKP3R as a reward.

In the rhythm "Curve War upgrade CVX battle, wonderful power struggle Still Going On" mentioned that Convex transformed the Curve War into a war on Conevx by providing higher liquidity incentives, and attracted protocols such as Frax Share to join. And KP3R, which is based on a unique revenue-generating model and ve(3,3) new Token economics, is also likely to join and win this war.

Driving traffic for FTM and KP3R

According to the latest article of AC, the original Token of ve(3,3) will not be able to be purchased in the open market, it will be based on the Fantom public chain TVL is assigned to the top 20 agreements.

In this way, ordinary users want to capture ve (3,3) production value, there are only two choices:

1. Hold FTM and the Token of the top 20 protocols on FTM

2. Hold KP3R
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As Miles Deutscher said, when all the top projects in a public chain ecosystem start to compete for governance rights, TVL will soar. And new projects will be attracted by this, and further bring more liquidity to the ecology. Undoubtedly, the Token allocation strategy formulated by ve(3,3) will bring more attention to FTM and KP3R, and the future performance of the Fatom ecosystem is also worthy of attention.