Solidly allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets. The protocol incentivizes fees instead of liquidity. Liquidity providers (LPs) are given incentives in the form of token, the amount received is calculated as follows;
100% of weekly distribution weighted on votes from ve-token holders The above is distributed to the gauge (see below), however LPs will earn between 40% and 100% based on their own ve-token balance.
LPs with 0 ve* balance, will earn a maximum of 40%.
What differentiates Solidly's AMM;
Solidly AMMs are compatible with all the standard features as popularized by Uniswap V2, these include;
Lazy LP management Fungible LP positions Chained swaps to route between pairs priceCumulativeLast that can be used as external TWAP Flashloan proof TWAP Direct LP rewards via skim xy>=k Solidly adds on the following features;
0 upkeep 30 minute TWAPs. This means no additional upkeep is required, you can quote directly from the pair Fee split. Fees do not auto accrue, this allows external protocols to be able to profit from the fee claim New curve: x3y+y3x, which allows efficient stable swaps Curve quoting: y = (sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)/(3 2^(1/3) x) - (2^(1/3) x^3)/(sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)
Routing through both stable and volatile pairs
Flashloan proof reserve quoting
token ~ transferable, used for incentives via emission
ve ~ non-transferable, locked up by depositing base token into the voting escrow contract, period from 1 week to 4 years
ve lockers vote which permissionless pools should be incentivized
ve lockers accumulate all protocol fees
total_supply = token.total_supply
locked_supply = ve.total_supply
circulating_supply = total_supply - locked_supply
If all participants lock, emission decreases to 0, if only 50% of participants lock, emission is 50%, however lockers increase proportionally to emission.
Thus; ve(3,3)