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- The architect behind Yearn, a decentralized finance giant, Andre Cronje on the New Year via a tweet announcement revealed that he is working on a “new experiment on Fantom this month.” Now, he made the announcement of various latest features in his ve(3,3) DeFi project on the Fantom blockchain in a blog series.
- In the final article of his blog series, he mentioned that an AMM or automated market maker will also be created. The project will also contain an emission-based incentive structure. Cronje did not reveal all the features of the project but said more information will be shared soon.
- In Exchange for a non-transferable token that is locked in the protocol, the users will be able to deposit a base token. They will also be rewarded for transferrable incentive tokens in return. The emission rates will be affected by the circulating supply and if fewer tokens are locked over the whole network, rewards will increase.
Andre Cronje has teased the features of his future ve(3,3) project on Fantom Blockchain in a series of blog postings.
Cronje Shares Details Regarding Emission-Based Incentive Structure
Last Week, Cronje announced that he is working on a new Fantom blockchain project and token. On Jan 1, he tweeted that he is deploying a new experiment on Fantom blockchain this month.
Even though Cronje is a prominent member of the Fantom team, the project appears to be independent of his official role. Daniele Sestagalli, a developer and the architect behind DeFi initiatives like Abracadabra and Wonderland, is also working on the project.
Cronje named the project “ve(3,3).” in a blog posts series over the last week. Describing the project he said, it is an “emission-based token [that balances] ecosystem participants.”
Users will now be able to deposit a base token in exchange for a non-transferable token that is locked in the protocol. They will be rewarded with transferrable incentive tokens in return.
The circulating supply will affect emission rates—or the number of newly produced tokens—and if fewer tokens are locked over the whole network, rewards will be higher.
When users lock their tokens, a non-fungible token would be used to signify that “lock,” allowing users to circulate those locks.
ve(3,3) will incentivize fees rather than liquidity provision contrary to some projects. This strategy aims to build an optimized system: because those who lock funds receive 100 percent of the fees made by the pools they vote for, pools will be able to set high prices in exchange.
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AMM To Also Get Feature In The Project
Cronje mentioned in his final article that as part of the protocol, a new automated market maker (AMM) will be created.
Swaps between most types of assets will be supported by the project. Traders will be charged a 0.01 percent fee, which will be paid in basic assets.
Cronje said that the AMM ecology is “saturated,” and that this AMM was created to take a protocol-to-protocol approach rather than competing with other AMMs. The AMM will be compatible with existing AMMs and will have a Uniswap v2 compatible interface.
2 million new tokens will be offered as incentives every week, which will be distributed according to voting weights. However, because there will be no voting at first, the group intends to start by distributing tokens to the top 20 DeFi projects.
Cronje also informed that the project will not feature a decentralized autonomous organization (DAO), that is the project will not be governed by token holders’ votes.
Users will have full permission to access pools and liquidity. “Native support for adding third-party tokens and incentives” will be available.
Cronje is likely to provide more information in the future. He mentioned that in his most recent post, he just listed “core features,” and that a more detailed description would be “reserved for a later article closer to release.”
Fantom Blockchain is now the market’s 30th largest blockchain, with a market cap of $5.7 billion for its FTM coin.
