Last updated
Last updated
Solidly and Andre Cronje, at the time, introduced a groundbreaking concept as an Automated Market Maker (AMM) designed for the community and a blockchain ecosystem. This initiative combined some of the most innovative ideas in the decentralized finance (DeFi) space.
A foundational-layer Automated Market Maker (AMM) aimed at blockchain projects, securing their support by distributing initial ownership of voting power in the form of veNFTs.
Encourage trading commissions instead of passive liquidity by offering bonuses to voters in a pool. This strategy directs liquidity to where it is most needed and effective.
The ve(3.3) mechanics reward those who proactively engage in locking, preventing the dilution of governance power.
Velodrome has implemented crucial adjustments to the initial idea, unlocking the full potential of Solidly as an Automated Market Maker (AMM). This transformation positions it as the next-generation base layer for ecosystem liquidity management.
If you're not acquainted with Velodrome's improvements over Solidly, here's a brief overview.
Enhanced Mechanics: The protocol mechanism has been refined to better align incentives for voters and liquidity providers (LPs).
Refined Emissions Program: Emission adjustments have been made to align more closely with the original Solidly documentation, enhancing the sustainability of the protocol.
Enhanced Initial Distribution: The distribution mechanism has been adjusted to be more "fair launch" oriented, promoting a fairer and more inclusive distribution approach.
Improved Voting: The system now ensures that protocols are incentivized to maintain voting power, and voters are encouraged to vote for pools that generate the most shares. This adjustment promotes a more dynamic and responsive voting ecosystem.
Bribe Fix: Addressed issues with the bribe layer to rectify vulnerabilities that allowed bounties to be transmitted and votes to be altered within the snapshot system.
Implemented Controlled Whitelists: Safeguards have been established to prevent the abuse of whitelists, enhancing security and preventing potential misuse.
Enhanced User Experience: Identified and addressed known bugs, leading to an overall improvement in the user experience.
Human Element Integration: Establish a dedicated team and/or DAO to support and continually enhance the protocol and community, ensuring ongoing development and support.
Equilibre has incorporated several enhancements into its protocol to establish a more secure and comprehensive application environment:
As a Velodrome fork, Equilibre inherits all the enhancements made by Velodrome to Solidly's core. Furthermore, Equilibre builds upon this foundation by incorporating its own set of improvements:
Tying Rewards with Emissions
Voters are permitted to make only one "active" voting decision within each epoch.
Trading fees, categorized as internal incentives, operate similarly to Solidly, being distributed to the voters who cast their votes in favor.
Bribes, categorized as external incentives, can only be claimed once the next epoch has commenced. This implies that any bribe introduced at any point during an epoch will be claimable by anyone who has voted for that liquidity provider (LP) during that epoch, once the new epoch begins.
The objective with these adjustments is to create a more level playing field between voters and bribers, achieving the following:
Bribing early attracts more potential voters, while bribing late provides more information about other bribes.
Voting early may result in missing out on larger bribes, while voting late means casting a vote with less veNFT power.
Productive Gauges
We introduced an on-chain governor to oversee the whitelisting of tokens used in the gauges.
Additionally, we removed the option to whitelist pairs through a fee payment.
An emergency "Commissioner" has been implemented with the authority to remove any gauge deemed unproductive to the overall ecosystem.
Prolonged Emissions Decay
We observed that emissions decay too rapidly in Solidly's model. Therefore, we have made adjustments to ensure that, while early adopters continue to be rewarded, the protocol remains an attractive opportunity for future users and protocols:
We have eradicated negative voting due to its perceived zero-sum nature.
We have eliminated the LP emissions "boost" for voters. Instead, these emissions are now reallocated to all liquidity providers (LPs), irrespective of veNFT ownership status. This adjustment ensures that voters can effectively incentivize external liquidity.
We have adjusted the emissions growth function in the following manner:
(veVARA.totalSupply ÷ VARA.totalsupply)³ × 0.5 × Emissions
White Glove Support
At Solidly, the absence of a dedicated "team" resulted in a lack of post-launch support. Our aim is to guarantee that our protocol offers white-glove support for our partners and other stakeholders. To ensure our team has ample resources for compensating contributors and expanding our product offerings, 6% of emissions will be allocated to our team wallet.
We've crafted a new generation of user interfaces to provide a seamless user experience. This interface will continuously evolve to meet user needs, aiming to make DeFi as simple and fast as possible. Here are a few features from the current 2.8 version of the dApp:
General:
Footer containing information related to the project.
The visual design maintains consistency across all sections, ensuring a cohesive and clear overview for the user.
We have consistently enhanced loading times across all columns.
Integrated Options Token features in the appropriate locations.
No generation of dust occurs during actions such as swapping, adding/removing liquidity, claiming, and locking.
Swap:
Cross-Chain Widget implemented for an improved on boarding experience for users.
Accurate display of input numbers up to 8 decimals with measures in place to prevent dust.
The output input box is editable.
The routing chart is visible to the user.
Automated slippage for swaps, including scenarios involving Tax Tokens.
Automatic warning messages for tax token swaps/routes and a notification for excessively high price impacts, including swap blocking for impacts exceeding 40%.
The mobile user interface (UI) and user experience (UX) have been enhanced and thoroughly tested on various device types for optimal performance.
Liquidity:
Simplifying the pool overview.
Filter Toggle and Ordering features to guiding.
Showing the Pools Type and the amount in Token / $.
Clear logic for Stake / Unstake to show the Status.
Vote:
Temporary "Clear Votes" button functionality is available during the voting process.
The "Cast Votes" logic now displays and clears the status of each NFT, providing a clearer overview.
The addition of a "Rewards Only" toggle and ordering features to assist and guide the user.
Implemented the calculation of Estimated Rewards per 1000 veKELL and also showing the Vote APR.
Locks:
The implementation of an ordering feature for the first column in the Locks table.
Implemented features for veNFTs including Transfer, Merge, Extend Locktime, Reset, Add, Withdraw, and Create new Locks.
Voted Gauges and their respective status are visible for each veNFT.
Rewards:
A simplified overview of the four reward types.
Implemented features allowing users to claim all rewards at once.
Rebasing for all NFTs can now be claimed in a single transaction.
Now, trading fees and bribes per NFT can be claimed in a single transaction.
The emission of all LPs can now be done in a single transaction.
Now, you can lock KELL from all Rewards Cards in a single transaction.
Amounts are displayed in Token / USD.
