Cellana Finance, built on the Aptos network, is a decentralized exchange (DEX) that empowers voters to influence token emissions through a voting process. Unlike traditional DEXes like Pancakeswap and Uniswap, which struggle with sustainable revenue distribution and rely heavily on liquidity mining with continuous token emissions, Cellana addresses these issues. While excessive token emissions can devalue tokens over time on other platforms, Cellana Finance’s model ensures that token holders and liquidity providers are aligned.

What is Cellana Finance?

Cellana Finance is a first-ever ve(3,3)-based decentralized exchange platform on the Aptos network. The platform offers features like trading, liquidity provision, and staking, with future plans to add advanced trading tools, fiat on/off-ramps, and integration with DEX aggregators. It allows users to lock CELL tokens to receive veNFTs, which give voting power (veCELL) over liquidity pool rewards. Users can vote for pools to earn trading fees and incentives.

Cellana Finance Background

Cellana Finance is a division of Ocean Floors Technology Ltd. that provides blockchain services and was founded in 2023. The protocol has conducted two funding rounds on Spores Network and raised over $400k; some of the investors include Gui Inu, SwapGPT, ARIES and Amnis Finance. Andy Hoang is the current CEO of Cellana Finance.

What is the Ve(3,3) model?

The Ve(3,3) model is a tokenomics design that motivates users to lock their funds for a longer period and rewards. The model was first introduced by the founder of Yearn Finance, Andre Cronje. The model mechanism combines the Curve’s vote escrow (ve) model with game theory principles from the (3,3) concept popularized by OlympusDAO. In this model, users lock their tokens to receive ve-tokens, which grant voting power and access to rewards. The Ve(3,3) model solves the following issues through a unique fee and incentive structure:

• Directing all trading fees to voters.
• Attracting liquidity providers with CELL emissions.
• Empowering projects to add incentives into liquidity pools to attract voters as voting power represents a share of token emissions.

How does Cellana Finance work?

Swap

Cellana Finanace uses different swap algorithms depending on how assets are correlated to one another. This hybrid algorithm includes vAMM and sAMM.

• vAMM: Cellana follows the curve swap algorithm to provide services for assets with low price correlation.
• sAMM: Cellana uses the solidly stable swap algorithm for highly correlated assets.

To mitigate the risks of high volatility, Cellana Finance divides its swap pools into two categories: Volatile pools are defined as assets that have no direct correlation in price, like APT/CELL. Stable pools are defined as assets that have a direct correlation to each other, like USDT/USDC. The platform adjusts swapping fees dynamically based on market conditions, ranging from 0% to 10%. By default, volatile pools have a 0.1% fee, and stable pools have a 0.04% fee in version 2 (V2) pools.

Liquidity Pool

Users can provide liquidity in the pool to earn LP tokens. Staking LP tokens in the gauges makes users eligible for CELL emissions. Users can see every pool and APR on their dashboard to calculate rewards. Earned LP token rewards can be staked to get eligible for CELL emissions. Liquidity providers will get these CELL emissions every week from each pool, which depends on the accumulated voting power for the selected pool. The liquidity structure is based on the Ve(3,3) model and creates a “liquidity war” where users compete to provide liquidity to high annual percentage rate (APR) pools, aiming to earn higher CELL emissions by attracting more votes.

Lock

CELL token holders have the option to lock their tokens to earn veCELL, with a locking period ranging from 2 weeks to 2 years. The longer the tokens are locked, the greater the veCELL earned, increasing voting power and rewards. Upon locking, users receive veCELL as an NFT, which can be transferred or traded, and users can also extend the lock-up duration at any time. This feature offers flexibility while boosting governance participation and potential rewards. For example, if user:

• Locking 100 CELL for the maximum duration of 2 years will result in receiving 100 veCELL.
• Locking 100 CELL for 1 year will receive 50 veCELL.

Vote

Voting power comes when the user locks their CELL token for veCELL in the lock function by participating in 7-day voting rounds (epochs). Based on their voting power, veCELL holders can vote on liquidity pools (LPs) and receive trading fees and other incentives. They can also apply different strategies to optimize their returns. Protocol may offer additional incentives to veCELL holders to influence votes toward specific LPs.

Reward

Cellana Finance offers a reward system that benefits its users through various platform features. veCELL voters can claim rewards such as trading fees and additional incentives based on their voting activity. At the same time, liquidity providers are eligible to receive new token emissions from the liquidity pools they participate in.

Incentivize

Cellana Finance allows projects and users to incentivize veCELL voters by adding rewards to selected liquidity pools. These incentives can consist of any tokens supported by the platform, encouraging veCELL voters to allocate their voting power toward specific liquidity pools.

Cellana Finanace Roadmap

Cellana Finance’s roadmap outlines several key phases for 2024. It includes the mainnet launch, introducing trading, staking, and liquidity provision features. Future updates will focus on advanced trading tools, the introduction of fiat on/off-ramps, and integration with decentralized exchange (DEX) aggregators. These steps are designed to support long-term DeFi growth in the Aptos ecosystem by overcoming liquidity challenges and reducing costs for both emerging and established protocols.

Cellana Finance Launchpad

The Cellana Finance Launchpad is designed to support projects in raising capital within the Aptos ecosystem. It provides a platform for emerging projects to gain exposure, attract investors, and overcome initial liquidity challenges. Any user can participate in this project by assuming the associated risks.

What is a CELL Token?

Cellana Finance (CELL) is a utility token of the protocol on the Aptos network. It plays a central role in liquidity provision and the platform’s incentive structure. By locking CELL tokens, users earn veCELL, gaining voting power and the ability to receive rewards like trading fees and token emissions with the rebase for a fairer voting power. The CELL token also enables liquidity providers to participate in liquidity pools, and its emission is influenced by the votes of veCELL holders, promoting an aligned and sustainable DeFi ecosystem.

What is veCELL?

veCell is a governance token of Cellana Finance that can be earned in the form of NFT by locking the CELL token. This NFT is transferable and tradable, offering flexibility in managing voting power and rewards. The amount of veCELL earned depends on the length of the token lock-up, with a minimum period of 2 weeks and a maximum of 2 years. veCELL gives users voting power in governance decisions and determines how rewards, such as trading fees and token emissions, are distributed. veCELL has four distinct utilities as follows:

• Voting Power: Holders can vote weekly for liquidity pools. Based on the voting results, the CELL emissions for the following epoch will be redirected to liquidity pools.
• Governance: Holders will participate in voting for protocol proposals.
• Fee earning: veCELL voters receive 100% of the trading fees generated by the liquidity pools they voted for each epoch.
• Incentives: Voters earn 100% incentive rewards for the pools they voted for each epoch. Revenues are determined by your weighted voting power for each liquidity pool.

What is veNFT?

The NFT users receive after locking the CELL token is called veNFT. It represents the user’s veCELL and confers voting power, allowing participation in governance and the distribution of rewards such as trading fees and token emissions. These veNFTs can be merged, split, and traded on the secondary markets.

Conclusion

The aim of Cellana Finance is to create a sustainable reward system based on active voting rather than passive token holding. This structure ensures that incentives are aligned, promoting long-term liquidity and protocol growth without relying solely on holding or inflating the token supply.