What is THENA fiercely recommended by CZ? What's different about dex in ve(3,3) mode?

When it comes to ve(3,3), we have to introduce Solidly first. As the pioneer of ve(3,3), Solidly is a project initiated by Andre Cronje, known as the 'Decentralized Finance father', on the Fantom network. Within two months of announcing that Andre Cronje would launch Solidly on-chain on Fantom, Fantom's Total Value Locked (TVL) soared to third place on DefiLlama. However, after Andre Cronje announced his withdrawal from the Decentralized Finance world through his article 'The Rise and Fall of the encryption Culture', both Solidly and Fantom's TVL plummeted significantly.

Nevertheless, the ve(3,3) mechanism used in Solidly continues to have a significant impact on the Decentralized Finance sector. According to DefiLlama's data, Solidly has been forked 40 times, ranking fourth in this indicator, and sixth in terms of TVL. If we include projects that have not directly forked Solidly but have modified or improved the ve(3,3) mechanism, Solidly's influence will be even more significant.

What's the difference with Solidly?

Solidly is a self-optimizing decentralized exchange. What does it optimize? Acquiring healthy TVL in a capital-efficient manner.

Unlike Uniswap or Curve (which respectively return 0% or 50% of the fees to UNI or veCRV), Solidly allocates 100% of the fees to its governance token. In return, liquidity providers will receive 100% of the protocol issuance and LP bribes. Solidly improves on the best of both worlds: combining Uniswap's pioneering AMM design with Curve's vested custody and stable pool innovation, packaging them into a capital-efficient ve(3,3) reward incentive system to attract fee-generating liquidity. Solidly's platform aims to maximize the benefits for Solidly stakeholders and become an effective tool for protocol liquidity deepening. Another benefit of Solidly is the predictable income for liquidity providers. Regardless of the trading volume, income is defined as a fixed token flow once a week, including issuance allocation and LP bribes.

**How is the emissions distributed?**‍‍‍

Liquidity providers earn SOLID tokens (ERC-20), which can be sold or locked in veSOLID NFT positions (ERC-721), a financial NFT, with lock-up periods ranging from 1 week to 4 years. The longer the lock-up period, the higher the voting power, revenue share, and dilution protection. veSOLID can be used to vote for specific trading pairs, which will receive a SOLID issue in proportion to the number of votes they receive, and in turn, voters will only receive a fee from the pool they vote for, which is proportional to the voting weight of each pool. Fees are paid in the underlying assets of the trading pair, and the voting process takes place once a week. Voters will vote for the pool that gives them the most rewards, and the cumulative rewards include bribes and fees, which in turn creates more incentives for LPs, allowing them to generate the highest yields for voters, resulting in increased liquidity, reduced slippage, and a better trading experience, thus achieving "self-optimization". LPs are motivated to earn SOLID rewards because veSOLID is able to increase the rewards by up to 2.5x and give them control over the pairs that incentivize themselves, in addition to participating in future on-chain governance.

Dilution Protection:

Solidly has already solved the incentive structure problem in Curve, but still faces challenges. An important issue is the lack of effective mechanism to prevent CRV inflation leading to the devaluation of the token. To combat the depreciation of SOLID, Solidly has implemented a dilution protection mechanism based on the (3,3) model of Olympus DAO.

On other platforms, users' rights are almost always diluted. If they want to maintain their influence, they must spend money indefinitely. In contrast, Solidly has implemented a unique feature in the encryption currency industry; our anti-dilution mechanism can protect locked users from the impact of future inflation. veSOLID positions enjoy 100% anti-dilution readjustment and linear reduction during the 4-year lock-up period.

How does THENA do it specifically?

1. In the LP that provides tokens, the emitted rewards are the tokens, which avoids gratuitous losses, and the LP's emission APY is determined by the votes of the token lockers.

2. Voting is conducted weekly to determine the emission for the following week. Some project parties may choose to bribe voters in order to increase the APY of their project's LP emissions. This bribery can be added in the voting interface. Therefore, the income of voters includes three parts: the inflation emission of THE, transaction fees, and the bribery from project parties. Currently, the weekly voting income of THE is estimated to be around 300,000 U (under unknown circumstances).

Since its listing, it has accumulated revenue of nearly $20 million. When the market trading volume is active, it has reached a peak of 1.2 million u per week.

The feature of ve33 (Flywheel 33) is that, after the flywheel starts to spin (supported by the chain it is on, similar to base's aero, last month bnb chain has invested in the), it will have a dimensionality reduction impact on the overall liquidity and other dex. Gradually start to absorb liquidity, eventually, just like aero, 80% of the TVL of the entire chain belongs to it.

Conclusion

Solidly has a major flaw, the lock-up period in actual applications is only six months, the stickiness is not enough, it is all PVP, the flywheel cannot turn at all. Thena has learned from this and extended the lock-up period, and chose to develop on BNB on-chain. The advantage of BNB is that there are many project parties and retail investors, and the on-chain trading volume is very large, which can support the flywheel to start turning.

The game of ve33 has greatly improved the playability of MEME coin, which is a very promising solution for the current serious PVP.