Solidly (SOLID)

ve(3,3) is built on Fantom and will include an emission-based incentive structure and an AMM.

Basics

• Based in:
• Started in / Announced on: 6-1-2022
• Testnet release:
• Mainnet release: 10-2-2022
• An AMM (with the ve(3,3) voting mechanism at its core) enabling near-zero slippage trades on correlated pairs and allowing for efficient stable swaps whilst still hosting all the standard AMM features that were popularized by Uniswap V2.

History

• Got launched with a lot of traction in February 2022 but it's co-founder Andre Cronje announced his departure from DeFi in early March, leaving people wondering what will happen with Solidly from here on out.

• From this blog (8-3-2022):

"On January 6, 2022, Andre Cronje, the (now ex) lead technical advisor of the Fantom Foundation & architect of Yearn Finance, revealed his new ve(3,3) Automated Market Maker (AMM) incentive model, a synthesis of Curve Finance’s vested escrow model & OlympusDAO’s concept of (3,3) game theory. In a joint partnership with Danielle Sestagalli, founder of Wonderland Money, Andre Cronje decided to conduct an ecosystem-wide distribution for their new project utilizing the new ve(3,3) model, where locked veNFTs will be given to the top 20 protocols by TVL, with its snapshot ending on Jan. 25, 2022. Leading up to the snapshot, the Fantom ecosystem experienced a massive influx of capital as protocols started to offer attractive yield farming rewards to attract TVL. The ecosystem’s native token, FTM, hit an all-time high of $3.49 while its TVL peaked at a high of $12.8 billion, briefly surpassing the (then) Binance Smart Chain (BSC) ecosystem to become the third largest Layer 1 blockchain by TVL, just behind Ethereum and Terra respectively. In order to attract more TVL, new protocols such as 0xDAO, veDAO and Radial offered their own protocol’s token emissions at highly lucrative yields through their liquidity mining programs, enabling liquidity providers to earn as much as ~3000% APR on their crypto assets. 0xDAO alone managed to amass a whopping $4.33 billion TVL in the first four days of its inception.

On Feb. 10, 2022, the Solidly Exchange was deployed to Fantom’s mainnet without its token. In a move that stole the limelight from BEETS, the SOLID token launched two weeks later along with the protocol’s token emissions and veNFT gauge votes. On the back of this, Solidly managed to quickly amass over  $2.37 billion in TVL over the next few days, even momentarily overtaking SpookySwap to become the largest DEX on Fantom for a period of time as yield farmers started to take advantage of the attractive liquidity mining rewards that were made available on the platform.

However, and just as the Solid Wars were getting started, rumors were flying around that Andre Cronje had left the Fantom Foundation. Along with the fact that his Twitter account was deleted or deactivated, Cronje’s updating of his LinkedIn page further reinforced these rumors. Finally, @AntonNellCrypto formally confirmed said rumors to be true by dropping a bombshell via Twitter on Sunday evening (Asian trading hours), announcing that he and Cronje will be leaving the crypto and DeFi space, and will no longer be contributing to it. As of the time of writing, the future of Solidly and the other projects related to Cronje and Nell are still very much up in the air, and will hinge a lot on whether other teams will take up the mantle to continue their services."

Audits & Exploits

• Bug bounty program can be found [insert here].

Bugs/Exploits

• From Blockthreat (28-4-2022):

"Solidly Exchange patched a griefing vulnerability reported by belbix."

• From Blockthreat (16-2-2022):

"Solidly Exchange patched a critical NFT double counting vulnerability after it was responsibly disclosed through its bug bounty program."

Token

Token Allocation

• Its project NFT will be released for the top 20 projects in Fantom chain in terms of TVL.
• From this thread (11-1-2022):

"On a weekly basis, 2000000 tokens are available as incentives on pools. Tokens are then distributed based on current voting weights. Locked ve(3,3) will be given to projects in Top 20. These projects can then decide how to direct incentives."

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Fantom
• Has been forked multiple times such as Velodrome (Optimism), Thena (BNB Chain), Satin Exchange (Matic), and Ramses (Arbitrum)

How it works

• From this thread (11-1-2022):

"1/ Weekly emissions adjusted as a % of circulating supply As more tokens are vested, impact of emission is decreased

2/ Ve lockers increase holdings proportional to weekly emission

3/ Ve locks are NFTs As opposed to the non-transferrable ve mechanics, tokenizing the lock position allows locks to be traded on the secondary markets."

• From this deep dive (7-2-2022):

"Starting with its ve-tokenomics, Solidly behaves very similarly to Curve, with some major caveats. For Curve, veCRV holders receive 50% of fees no matter what gauges they vote for. This, of course, can be problematic as someone who owns veCRV could vote for a pool that generates no fees for Curve, yet they still receive 50% of the protocol’s aggregate fee revenues. Solidly attempts to solve this issue by making it that you only receive fees from the pools you vote for. Therefore, participants are incentivized to vote for the pools with the highest fees as that is the only way in which they receive cash flows from the protocol.

The other caveat has to do with emissions. For Curve, emission of future CRV tokens is based on a pre-determined release schedule. Every day, X number of tokens will be emitted according to the project’s code. Although how those tokens get emitted is based upon the incentivized pools, the aggregate amount of CRV tokens released daily is predicable for the foreseeable future. Solidly takes a different approach for how emissions should be done (From here on out, the token of Solidly will be referred to as ROCK).

Another caveat is an anti-dilution provision. Solidly aims to emit ROCK without diluting older holders of ROCK. It does this in a simple manner, actually. If you lock your ROCK as veROCK, you receive the necessary number of weekly emissions to maintain your previous share over Solidly. If your locked position amounted to 1% of Solidly, your position would remain at 1% even after any further emissions occur. In order to not get their % of Solidly diluted, ROCK holders are incentivized to lock as veROCK, thus ve(3,3)!

The last difference with the Curve ve system is that veROCKs are NFTs. By making them NFTs, it allows veROCK to be traded in secondary markets and used as collateral. Effectively, you do not lose out on the capital efficiency of ROCK by locking it as veROCK."

Staking

• From this thread (11-1-2022):

"ve(3,3) will not distribute fees in native token, or as a stable, but instead as the asset in which fee was accrued, and it is passed on."

Roadmap

• Can be found [Insert link here].

Competition

• It's a new exchange, an AMM, but instead of being controlled by liquidity providers (LPs), it's controlled by the protocols.

Team, Funding and Partners

Team

• Full team can be found [here].
• Andre Cronje & Daniele Sesesta, however, after the 0xSifu drama, Andre distanced himself from Sestagalli, stating that his sole focus is to develop Solidly (28-1-2022). Then Andre left the crypto space completely (3-3-2022).

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