One Article to Understand the Arbitrium Ecosystem's ve(3,3) Model DEX: SolidLizard
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One Article to Understand the Arbitrium Ecosystem's ve(3,3) Model DEX: SolidLizard
Understanding SolidLizard's Mechanism, Features, and Tokenomics
Navigating Web3 tides with focused insightsWritten by: xNEO
Compiled by: TechFlow
SolidLizard ($SLIZ) is a DEX on Arbitrium that has increased its TVL by $60 million over the past 18 days.
This article analyzes the project from aspects such as mechanism, features, and tokenomics.
What is SolidLizard?
SolidLizard is a permissionless ve(3,3) decentralized exchange. It is a fork of Solidly, a DEX originally launched on Fantom.
Mechanism and Features
SolidLizard employs the ve(3,3) governance model. This means users can lock their $SLIZ tokens to receive a ve token, which they can use for voting. The more tokens they lock and the longer the lock-up period, the greater their rewards and voting power from the ve token.
ve token holders can vote for liquidity pools they prefer. Only those who vote for a specific pool can earn fees from it. Voters determine which liquidity pools should receive higher rewards.
Different protocols can also bribe voters to vote for specific pools in exchange for their support. Voters receive their rewards at the end of each 7-day epoch. ve token holders earn rewards from trading fees, emissions, and bribes.
Liquidity providers are only rewarded through emissions, not via bribes or fees. Fifty percent of the fees go to voters.
SolidLizard also has POL (Protocol-Owned Liquidity), used to manage funding issues. Fifty percent of fees are used to repurchase SLIZ and deepen SLIZ/ETH liquidity, with a portion allocated for burning.
Tokenomics
SLIZ has no maximum supply. Its total supply is 40.7 million, with a current circulating supply of 18.6 million and a locked supply of 21.1 million. Market cap stands at $9.5 million, with an FDV of $19 million.
There was no venture capital or any form of external funding. SolidLizard distributes weekly emissions to LPs and ve token holders. LPs receive 62% of emissions, ve token holders receive 33%, and the team receives 5% of total emissions.
Emission levels depend on the total value of SLIZ locked. The greater the value locked, the lower the emissions. Emissions decrease by 3% each period (one week).
Initially, the team minted 5 million tokens and added them to liquidity (this liquidity is locked). Additionally, 15 million ve tokens were minted for the team and partners, locked for four years.
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