fxstreet.com
- Andre Cronje revealed new features for his new DeFi project, ve(3,3).
- The project will run on the Fantom blockchain, which will include an automated market maker and an emission-based token structure.
- Users will be able to deposit and lock a base token, and in return receive incentive tokens as a reward.
Andre Cronje, the architect behind decentralized finance giant Yearn, has revealed new features for his upcoming new project on Fantom. In early January, he stated that he will be deploying a new experiment, including a new token on the Fantom blockchain.
New project to synergize with decentralized exchanges
As part of the new project launch, Cronje revealed that there will be a new automated market maker (AMM) introduced as part of the protocol. The project will support most swaps between different types of assets, with a 0.01% fee paid out in base assets.
In Cronje’s blog post, he explained that the AMM arena is quite saturated, and his team did not want to launch an AMM to compete with existing projects.
Therefore, his solution was to have a design that would allow existing AMMs to integrate the new AMM into their own design, while allowing them to accrue all fees to their own systems without losing out on any fees, volume or liquidity.
Cronje added that the new project, ve(3,3) will feature an emission-based token structure for ecosystem participants. Users will be able to deposit a base token and in return, they will receive a non-transferable token which will be locked in the protocol. During this process, users will be able to receive rewards in the form of transferable incentive tokens.
The rate at which new tokens will be created, the “emission rate,” will depend on the circulating supply. If there are fewer tokens locked in the protocol, the rewards will be higher.
Once users decide to lock their tokens, the “lock” will be represented by a non-fungible token (NFT), which will allow users to circulate the locks. Cronje stated that by extending locks into NFTs, “it addresses the capital inefficiency problem of the assets, as well as concerns over future liquidity.”
Cronje’s project aims to create an optimized system by incentivizing fees rather than liquidity provision. Users who lock funds will receive 100% of the fees generated by the pools that they have voted for. Pools will be able to set high fees.