Velodrome with Solidly as a template is online, how to get benefits from it?
Original author: Jack Niewold
Original compilation: 0x9F, BlockBeats
This article is based on the views of Crypto Pragmatist founder Jack Niewold on his personal social media platform, and BlockBeats organizes and translates it as follows:
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What is a Velodrome?
Velodrome started with Andre Cronje's Fantom's native trading platform - Solidly. What is the basic idea of Solidly? A Curve-like Tokenomic/Emissions architecture, but not just for Stablecoins.
Compared to other AMMs, Solidly design There are mainly the following incremental improvements:
1. veToken economics has liquidity incentives for stable and unstable trading pairs
2. The fee model maximizes fee income
3. The income of veToken locked users will not be diluted
4. Directly distributed to the community
But this protocol also has flaws:
1. The released Token is extremely inflationary
2. There are serious flaws in the front end of the project
3. Hostile "voting" encourages PVP competition
The endgame: Andre Cronje leaves DeFi.
What are the opportunities and threats for Velodrome?
“Curve has had great success in providing liquidity to Stablecoin liquidity trading pairs with its veToken model, if we can apply the same dynamic model to unstable Is the liquidity transaction right?", I participated in Solidly with this view, but was abandoned by Andre.
But now Solidly is back and has managed to implement the above idea with the necessary tinkering - this is Velodrome (VELO), the team from veDAO. It is worth noting that when the project Token is launched, it will be distributed to the following cooperation agreements. They will obtain Token in the form of locked "veNFT", and have the right to vote on the release of liquidity pool Token.
Velodrome also airdropped to important DeFi users to Cater to a core group that may have a clear alignment with the project. This is one of the most interesting marketing methods I have seen in DeFi.
I hope this project will set off a wave of liquidity and TVL Rush into the wave of Optimism, and with it, more money-making opportunities to farm and trade around the Velodrome War. But clearly the team and project are facing headwinds.
VELO must strike a balance between:
Insufficient release: Insufficient release of Token will make the project unable to obtain liquidity
Inflationary release: If the supply Inflate too fast, and the value of Token will gradually shrink
Once this is messed up, the agreement will be powerless.
How to participate in the transaction?
Solidly taught us how to participate in transactions at the beginning of the release. If the release is large (and it should be), expect a rush at first. We can choose the following three profit methods:
Swing farming
Provide liquidity for any trading pair you like based on the existing income on the platform. I am following the two trading pairs BTRFLY/ETH, FRAX/FXS. But I think we'll have to wait and see if the gains come through.
Steady tillage
alUSD/USDC
DAI/USDC
DOLA/USDC
LUSD/USDC
sUSD/USDC
You don't need to hold any volatile assets to get a good rate of return, which is friendly to Xiaobai.
Trading Opportunities
When tokens start to be released, people will rush to the most profitable trading pairs. The protocols with the smallest market caps may see some buying action.
LYRA ($12 million in circulation)
THALES ($5 million in circulation)
HND ($2 million in circulation)
If you have Solidly PTSD, I have to say I hesitated too. But the veDAO team handled the "Solidly War" well under certain circumstances, and the value was maximized from the very beginning. I am very impressed with their communications, team and documentation.
Velodrome may be destined to suffer the same fate as Solidly - farm and dump. But anyway, try it out.
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