Ve（3,3）on Fantom

[TL;DR]

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1. Fantom Chain is now the third-largest Decentralized finance chain by TVL on the back of the Ve (3,3) hype.

2. Andre Cronje released a blog post series explaining the different features for his new DeFi project, Ve(3,3), on the Fantom chain.

3. Emission-based incentive structure and an automated market maker (AMM) will be included in the project

4. ve(3,3) incentivizes investors when they lock their tokens in a system for a specific amount of time while also providing them more control over the protocol.

5. A TVL War followed the announcement of The New Ve (3,3) project on the Fantom chain.

6. On January 18, an anonymous protocol known as VeDAO appeared on the scene, declaring its sole objective to gain access to Andre Cronje's latest DeFi project on Fantom, Ve (3,3).


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Essential Features of Ve (3,3) on the Fantom blockchain

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Andre Cronje explains the details of his new Fantom blockchain project and token in a blog post series. He named the project "ve(3,3)" and described it as an "Emission-Based Incentive Structure" that balances ecosystem participants."

In contrast to other projects, Ve(3,3) will incentivize fees rather than liquidity provision. This method strives to create an optimized system, with users having full access to pools and liquidity. Native support for introducing third-party tokens and incentives will also be available.

Users will also deposit a base token in exchange for a protocol-locked non-transferable token. In exchange, they will receive transferable incentive tokens. However, 2 million fresh tokens will also be distributed as incentives to the top 20 DeFi projects every week.

Cronje also stated that the project would not be a decentralized autonomous organization (DAO), meaning that the votes of token holders will not govern it. Emission rates or the number of newly produced tokens are affected by the circulating supply, and rewards will be higher if fewer tokens are locked across the entire network.

In his final Medium post, he also indicated that a new automated market maker (AMM) mechanism would be built as part of the protocol, a method to assist DeFi applications issue and manage Token assets. The project will also facilitate swaps between most forms of assets. A 0.01 percent fee will be imposed on traders, paid in basic assets.

Fantom Chain TVL War began after Andre Cronje announced the New Ve (3,3) project.

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Andrew Cronje introduced the new project Ve(3,3) on January 6 and stated that the application's Token would be airdropped to the top 20 DeFi applications on the Fantom chain TVL. As soon as the news broke, the application on the chain began a TVL competition to obtain the empty investment status of the Ve(3,3) application Token.

The Ve(3,3) application is yet to be listed as of January, and its relevant material is limited to the basic information provided by Andre Cronje on Twitter and Medium. From the information that has been provided, It's said that the most genuine value of Ve(3,3) is to promote the expansion of TVL on the Fantom chain.

The Ve(3,3) on the Fantom chain — AMM & VeNFT

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The original name of the new DeFi application is "Solidly," and Ve(3,3), for short, as stated by Andre Cronje in his Medium post on January 23, in which he further disclosed the operating mechanism and attributes of the project.


Ve(3,3) is a token issuance protocol based on the automatic market maker (AMM) mechanism. According to AC, the current DeFi market suffers from unequal interests, and project applications frequently lose revenues due to users' "active engagement," losing surviving funds, and sometimes, even miscarriage. The DeFi application market also has this dilemma about a project being hot for a short period but not growing sustainably.

The current AMM mechanism is primarily used by decentralized trading applications. It is a method of providing liquidity that differs from the order book model used by centralized exchanges. The system is guided by incentives that encourage users to participate as market makers. Liquidity is provided for users of Token trading or exchanges to ensure that assets can be exchanged in a decentralized manner.

Based on this situation, Ve(3,3) seeks to solve the problem of token distribution and management of DeFi applications via the “Ve-Token” of the stable coin protocol Curve, which is called the lock-up mechanism of VeCRV, and the “3,3” protocol of the algorithm stable coin Olympus (OHM) community. It should be noted that Ve(3,3) is not a decentralized exchange but rather a re-construction of the application on the AMM mechanism, which tries to allocate application tokens in a more developed way.

Ve(3,3) attempts to allow DeFi applications alternative Token inflation rates based on community co-governance rather than market action. Ve(3,3) is open to any DeFi application Token placed on the asset pool without auditing. Still, the reward distribution and rate of return are based on Ve(3,3) Token ownership, and voting is done.

Furthermore, Ve(3,3) is integrated into NFT, converting the lock-up certificate into VeNFT, which may be traded on the secondary market and used at any time. It backs VeNFT mortgages, financing, and so on and has voting governance rights.

It's worth noting that the present Ve(3,3) is still in the concept stage, and the product hasn't been released yet. The functioning mechanism that can be seen is based solely on the information provided by Andre Cronje, and the product's specific functionalities are still a matter of market speculation.

New Anonymous project "VeDAO" takes over as the second TVL application on Fantom.

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As previously stated, Ve (3, 3) is still in the conceptual stage, but an anonymous project known as "VeDAO" jumped at the chance to launch, triggering the Fantom chain's TVL war of applications.

The anonymous developer launched the VeDAO experiment on the evening of January 19th. The main goal is to collect enough TVL to place in the top 20 TVL ranks on the Fantom chain to meet the demands of VeNFT airdrop rewards. VeDAO is an organization that first issued Tokens to raise funds to compete for the Ve(3,3) airdrop. The number of funds locked up in VeDAO hit one billion dollars just 24 hours after it was introduced, making it the second TVL application on the Fantom chain.

VeDAO aims to rapidly expand to allow users to receive the project’s governance token "WEVE" as a reward through asset locking and liquidity mining for four weeks. Presently, WEVE hasn't been put to any use. But from public information, "WEVE holders will jointly administer VeNFT, choose the distribution method of VeNFT and the income of mining rewards," This type of commitment is extremely risky because VeDAO solely uses the WEVE token to exchange users' USDC, FTM, ETH, and other assets to improve the TVL of its app.

According to the data on CoinMarketCap, VeDAO's live price today is "$0.076902 with a 24-hour trading volume of $7,738,177." "VeDAO has also been up to 29.61% in the last 24 hours, with a max supply of 8,260,189 WEVE tokens. Its live market cap and circulating supply are both unavailable.


However, It should be highly noted that "VeDAO has not been audited, the project is anonymous, and the risk is high." Participants should be aware of the possibility of "running away."

Native applications on the Fantom chain formed 0xDAO in an attempt to fight back.

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The launch of the anonymous project VeDAO has heightened the alertness of seasoned Famtom applications. VeDAO, according to many project communities, is a speculator specializing in taking short-term liquidity from Fantom's long-term constructors and has attacked the TVL of the Fantom chain's native application. Once the VeNFT airdrop snapshot is finished, these funds will remove liquidity from Fantom, which is not suitable for the on-chain ecology.

Native applications on the Fantom chain such as the decentralized exchange (DEX) SpookySwap, the loan application Scream, and the machine gun pool Liquid Driver have all banded together to form 0xDAO, which is attempting to reclaim its TVL.

A counter-offensive battle begins, as the organization uses the slogan “guarantee the safety of users’ funds" to specifically target organizations that attract short-term liquidity from Fantom’s long-term builders. Still, the tactics are similar to VeDAO – users lock up a single Token or Provide liquidity in exchange for 0xDAO governance token OXD rewards. The single assets that currently support users lock-up are FTM, USDC, ETH, DAI, e.t.c., and the LP pool includes OXD-USDC.

Conclusion

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Ve 3,3 intends to reward Investors that lock their tokens in a protocol for a specific period. However, this gives them additional authority over protocol decisions. The tokens, which are only liquid as a non-fungible token (NFT), will be issued by TVL to the top 20 Fantom projects.

To manage the protocol, only 20 NFTs will ever be distributed. Cronje claims that each project will receive one NFT, but he doesn't seem concerned that a latecomer like VeDAO is disrupting a process intended to reward current Fantom ecosystem constructors.



Author: Gate.io Observer: M. Olatunji
Disclaimer:
* This article represents only the views of the observers and does not constitute any investment suggestions.
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