Solidly and its forks, which were popular with AC a year ago, how are they now?

Leo

23-08-28 14:00

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Original author: surf, a cryptocurrency KOL

Original translation: Leo, BlockBeats

Solidity has been a hot topic in the cryptocurrency industry for a year since it was proposed by "DeFi King" Andre Cronje. Solidity & ve(3,3) significantly improves DeFi returns and provided a clear path for the saturated market at the time. Looking back now, the hype around Solidity has temporarily subsided. Cryptocurrency KOL surf has written an article reviewing the development and current status of Solidity's forked projects over the past year. BlockBeats has compiled the following translation:

Before we delve deeper, it is crucial to understand the working principle of a Solidly-based DEX. The core of a Solidly-based DEX is:

-veNFT

-Gauge voting process for LP reward determination

-Bribery market (providing additional rewards to attract votes)

veNFT represents the voting rights of users. When users lock their utility tokens in DEX during the selected time period, they obtain veNFT. Like all other NFTs, veNFT can be traded on the market, allowing users to immediately enter or exit positions.

veNFT holders have the right to vote on the liquidity pool and LPs who receive votes will send a certain amount of utility tokens to liquidity providers as a reward for providing liquidity. The details are as follows:

-veNFT holders subsequently receive transaction fees generated by the liquidity pool they voted to support, as well as any bribes allocated to the liquidity pool.

- Liquidity providers can receive practical token emission rewards.

-veNFT voters earn transaction fees and bribes.

Since the concept of Solidly was born, many protocols have improved its shortcomings and endowed themselves with unique innovations. Among countless forks, 6 forks are ranked at the forefront with their innovations.

Velodrome

Velodrome is the only Solidly fork that receives its OP chain support through OP donations. The grant was used for their carefully designed incentive program: Tour De OP. As a result of this incentive program, every $1 of OP spent provides $8 of value to liquidity providers and veVELO voters, allowing Velodrome to achieve the highest TVL among 6 forks projects.

THENA

THENA has added additional features on top of OG Solidly:

- A collection of NFTs that can be staked to earn a portion of the protocol fees.

-Recommendation code system that attracts traders.

They are not just staying there. veTHE will provide more practical features:

- Increased holders' income through its Perps platform ALPHA.

- Get new tokens in advance through WARP (the LaunchPad accelerator for this project).

Chronos

Chronos also has an NFT collection called chrNFT that allows for earning protocol fees. However, unlike Thena's collection, it has a maturity-adjusted return, which means that liquidity providers who provide liquidity for a longer period of time can receive more emission rewards.

LP providers who earn CHR by pledging LP tokens will also receive maNFT. As time goes on, LP providers will receive more emission rewards, up to a maximum of 3 times (after 3 months).

Pearl

Pearl aims to become the liquidity center of RWA and is the only project among the six protocols that has a sustainable source of bribes to incentivize voters. This is because all listed assets are paired with USDR (a stablecoin that generates tangible returns), and the returns generated by USDR are redirected as bribes, which also increases the amount of bribes as Pearl's TVL grows.

RAMSES

Its token economy has added unique improvements, including xRAM, which works similarly to RDNT in RDNT Capital. xRAM can be immediately converted to veRAM to reduce asset setting values, or can be converted back to xRAM at a 1:1 ratio within 90 days.

Equalizer

Equalizer's veEQUAL holders not only earn fees from their AMM Dex, but also from their Perps platform (Equity). Additionally, THENA hopes to use SYMMIO as another source of income for veTHE holders.

Among these 6 forks, Velodrome is undoubtedly the king of Solidly forks. In the past month, only Thena has had a higher trading volume than Velodrome.

Velodrome is also the only Solidly Variant in the entire DeFi ecosystem that has entered the top 10 in terms of TVL.

Another point worth noting is that, except for Pearl which has only been around for two months, all Solidly Variants have experienced a decrease in TVL. Among them, Velodrome has the slowest TVL loss rate. Chronos has the most severe loss rate, losing 95% of its historical highest TVL within three months.