With forewarning, CoinMarketCap Alexandria brings a deep dive into Solidly Exchange. The new DeFi AMM built on Fantom by star developer Andre Cronje. Definition Of Solidly Exchange And unique features Tokenomics And Price Prediction
How Does Solidly Exchange work, What Are Bribes, Unique Features of Solidly Exchange, Solidly Exchange Tokenomics, Solidly Exchange Price Prediction, and Future Outlook
On New Year’s Day 2022, Andre Cronje tweeted the following:
I’m deploying a new experiment on Fantom this month— Andre Cronje 👻 (@AndreCronjeTech) January 1, 2022
Currently, virtually two months later, complete the details of his project. Finally announced named Solidly Exchange and the first protocol-to-protocol market-maker (AMM) in decentralized finance (DeFi). Having a possibility to start a new era of product innovation in decentralized finance, every accolades to the star power founding the protocol. After it is Andre Cronje and Daniele Sestagalli, two of the best-most famous DeFi developers in the space. Cronje rose to fame with YFI, a yield aggregator service and one of the first DeFi protocols that kickstarted DeFi Summer 2020. Cronje is one of the most creative and brilliant developers in crypto, and he hasn’t had rest on his laurels and developed KP3R since. Not a shock that the DeFi space is enthusiastic, but Cronje’s Kobe has a Shaq in his team, too: Daniele Sestagalli.
More Info On Solid Exchange
Proved by Daniele over messages. pic.twitter.com/qSfWNnQPhr
— zachxbt (@zachxbt) January 27, 2022 The subsequent shitstorm didn’t stop Dani and Cronje from cooperating on their new blockbuster project. Solidly drew a war for total value locked (TVL) on Fantom, and emissions are designed to start on Feb. 24, 2022. But what is Solidly Exchange, and why did Cronje dub it ve(3,3) in his Medium posts?
Definition Of Solidly Exchange And unique features Tokenomics And Price Prediction
How Does Solidly Exchange Work?
Solidly Exchange is defined as an automated market maker, a way for traders to trade without an order book model delivering liquidity. I’ve been tracking $SOLID for weeks now, and the Solidly token, once known as ve (3,3), will finally be live and tradeable in 2 days.
In a refinement of Andre Cronje’s token finally coming to market, final price prediction and my position going into the launch will be given.
— Jack Niewold (@JackNiewold) February 22, 2022
When AMMs first came out, they were intense for their capacity to offer a liquid trading book and trade not involving slippage. But the AMM market has developed quickly, and they are now a dime a dozen as everyone and their grandmother can copy a functional AMM and call it an exchange. Nevertheless, Solidly Exchange is distinct because it concentrates on fees rather than liquidity.
For example, holding the Solidly token, you will be satisfied that the protocol is endeavoring to maximize its profit (fees), which is why so many people are excited about it. We still do not have any idea how Solidly Exchange would work. What we do know is that protocols will be able to swap stable tokens as well as uncorrelated assets. Cronje divulged that there will be a 0.01% fee on swaps, and interfaces will be consistent with Uniswap. Pool creation will be permissionless, as will be an asset for bribes.
What Are Bribes?
The ve (3,3) meme comes in here, a combination of the (3,3) meme popularized by Olympus DAO and the ve which stands for the “Vote Escrowed” mechanism of Curve Finance. Comprehending bribes, you must understand what ve and (3,3) stand for (skip this section if you know both). (3,3) had its peak in fall 2021 and rose to fame thanks to the Olympus DAO, supported by a treasury of other tokens that attempts to find long-term stability via this mechanism. (3,3) was the meme that indicated the game theory behind Olympus’ tokenomics. As a matter of fact, users can select between staking and selling OHM, with a third option of bonding, presented in our deep dive into Olympus DAO. If all investors stake, everyone profits from the astronomic APY delivered by Olympus, which contradicts the constant emission of new tokens.
Definition Of Solidly Exchange And unique features Tokenomics And Price Prediction
A stablecoin exchange, to incentivize keeping its CRV token for the long run. As a matter of fact, CRV token holders have the same governance rights as all protocols. Nevertheless, by staking the CRV token, you can receive veCRV – Vote escrowed CRV – which enables your fee shares and voting rights. The longer you stake CRV for, the more veCRV you receive, but you cannot unstake your CRV before the desired stacking date. Bribes are a way of getting more ve-tokens for a protocol. A protocol can effectively present a user with a bribe in its native token to acquire the voting power associated with their staked tokens. You can read more about this complex topic in our deep dive into the Curve Wars.
Therefore, what makes Solidly Exchange distinct from Curve Finance, and where do the bribes come in?
Unique Features Of Solidly Exchange
The most distinct feature of Solidly Exchange will be how it uses its native token, — $SOLID.
On Curve Finance, you receive 50% of the protocol fees nonetheless of which pool you vote for. You can vote for a pool that yields no fees for Curve, and you will still get half of all the remaining fees. This is inadequate for Curve because it doesn’t incentivize cash flow for the protocol.
On Solidly Exchange, you will only receive fees from the pool you vote for. Nevertheless, liquidity pools have an incentive to keep fees low to attract traders, which counterbalances a potential race to the top. Similarly, CRV emissions are known on the curve because they are pre-tenacious. Weekly emissions of the native Solidly token will rely on the amount that is staked. If no tokens are staked, the most are emitted. If all tokens are staked, no new tokens are issued. Moreover, the native token will be emitted without diluting other holders. If you have staked 50% of the Solidly token, you will receive 50% of the new token emissions. That is why it is beneficial to stay (3,3)-to stay staked.
Conclusively, the staked Solidly tokens issued as NFTs. The NFT will serve as a receipt of your position and will permit investors to trade it in secondary markets and use it as collateral, expanding the capital efficiency of the native token.
Solidly Exchange Tokenomics
The Solidly tokenomics established solely on the TVL of the top 20 Fantom protocols since the protocol creation on Fantom. Read our deep dive into the Fantom ecosystem to know more about it. After the judgment pronounced in January. A lot of money flowed into the ecosystem to get a greater share of the future Solidly token. Founded on the snapshot taken, the token distribution will look like this:
Solidly also reported a bug bounty with bounties of up to $200,000 to get the protocol operating smoothly as shortly as possible. Definition Of Solidly Exchange And unique features Tokenomics And Price Prediction
Solidly Exchange Price Prediction And Future Outlook
Computation through proxy protocols by Average Joe’s Crypto generated a target price of $18 for Solidly Exchange. Providing it a market cap of $350 million. The DEX launched on Feb. 17, and Solidly’s TVL reached $10 million quickly.
— Solidly (@solidlyexchange) February 16, 2022
Most individuals desire this project to develop genuinely quickly and take the DeFi scene on Fantom to the upper level. Given Cronje’s track record, it is favorably feasible that it will influence crypto as a whole. Nevertheless, with colossal requirements mulling heavy on the whole cryptocurrency market, it would not be a shock to see Solidly get off to a disappointing start. Few protocols have developed as high anticipations as this one. Remaining whether Cronje’s and Sestagalli’s protocol-to-protocol AMM; DeFi gamechanger.
Definition Of Solidly Exchange And unique features Tokenomics And Price Prediction