Meter To Deploy VoltSwap On Theta
Meter to deploy VoltSwap on Theta Network is now in a deliberation process. Over the past few months – juggling with Meter Network and ecosystem growth, Meter Passport V 1.5, and Sumer Money – the Meter Foundation is diligently working on ve (3,3) deployment for Voltswap on Meter Network.
Why ve (3,3)?
The primary rationale for evaluating a new design for Voltswap was to add more utility to the VOLT tokens and more engaged community governance.
ve (3,3) is a novel design that stood out for multiple reasons:
- Value accrual for VOLT due to design focused on fees (the real yield for protocol owners) instead of TVL.
- Community-driven incentive design based on the highly successful Curve model
- Tested code base across multiple deployments and multiple networks (Some of the other deployments with the code base are Solidly – Fantom, Velodrome – Optimism, Dystopia – Polygon)
- The ability of design to build an ecosystem around Voltswap – for e.g. yield optimizers
What is ve (3,3)?
The ve (3,3) is the model envisioned by Andre Cronje while developing Solidly DEX on Fantom. The idea was to drive the synergy between 2 earlier successful models – ve (vote escrowed) model by Curve and (3,3) by OHM while removing the shortcomings of both.
The ve model of curve aimed to incentivize the liquidity providers on a DEX while getting as many users involved as possible in the governance of the protocol. The model requires users to vote lock CRV and acquire veCRV.
The spirit of (3,3) – is simply “how can the community work together to maximize benefit”.
- Vesting (trading fees)
VOLT can now be vested (locked as veNFT) to receive 100% of the trading fees from Voltswap. In the current deployment, all trading fees were received by Liquidity Providers (LPs). LPs also earned VOLT rewards from emissions. With ve(3,3), VOLT holders receive 100% trading fees for the pools they voted for in proportion to their vote. Whereas, LPs earn rewards based on the weekly VOLT emission directed to their pool by veVOLT holders.
- Boosting
One of the main incentives for VOLT is the ability to boost your rewards on provided liquidity. Vote locking VOLT allows you to acquire voting power to participate in the VOTE and earn a boost of up to 2.5x on the liquidity you are providing on Voltswap. If the proportion of the users veVOLT in the Total Vote to direct emission to the pool is equal to their proportion of liquidity in the pool, the user could get the full boost. - Voting
Once VOLT holders vote-lock their veVOLT, they can start voting on the weekly emissions, governance proposals, and pool parameters. Every voting epoch lasts for one week, and users can vote at any time during the voting epoch. At the end of each epoch, rewards will begin to be distributed according to votes for one week.
With ve (3,3), the overall process is
- Weekly emissions are set by the team through governance proposals.
- VOLT holders vest the token over a chosen period (1 week to 4 years) to receive vote-escrowed VOLT (veVOLT). veVOLT received per VOLT depends on the duration of the vesting period. A longer vesting period means higher veVOLT per VOLT vested
- veVOLT holders vote to direct the x% (90% to 100%) of VOLT emission to pools with the potential to earn the most fees
- veVOLT vested receive (1-x)% VOLT emissions as supply expand through emission
- veVOLT holders who vote on a particular gauge receive all protocol trading fees for that gauge, regardless they provide liquidity for the gauge. Thus the voters have an incentive to vote on the gauge that generates more fees.
- Liquidity providers receive VOLT emissions directed to pools they deposit into
ve (3,3) deployment on Theta Network
Evaluating the available options, Meter Foundation suggests a new DEX deployment on Theta Network with its own incentive token.
The outline of the deployment suggested is below
- Deploy ve (3,3) model on Meter Network with a window to;
Enables users on Theta Network to move VOLT, TFUEL, and TDROP liquidity to Meter - Make ve (3,3) operational on Meter Mainnet
- Extend current deployment incentives on Theta for another month until ve (3,3) deployment on Theta
- Close Meter Passport Support for VOLT transfers between Meter and Theta
All VOLT on Theta will be exchanged 1: 1.3 for the new DEX token - Deploy new ve (3,3) DEX on Theta
Provide a window to enable users to remove liquidity from current deployment, add initial liquidity on ve (3,3), and exchange VOLT for new DEX Token - Add back VOLT exchanged to the supply available liquidity mining on Meter
Feel free to check and read the full details of the proposal here.
ABOUT Meter
Meter is a DeFi infrastructure with a built-in, crypto-native, metastable currency, MTR. It uses HotStuff-based PoS consensus with MTRG (Meter Governance Token) to manage the blockchain ledger. Meter functions as a highly-decentralized, high-performance side chain for Ethereum and other public chains.
ABOUT Theta Network
Theta Network is the next-generation media and entertainment-focused blockchain. Theta infrastructure enables existing video and media platforms to drive incremental revenues and reduce content delivery CDN costs while rewarding end-users for sharing their storage and/or bandwidth on any PC, mobile, Smart TV, or IoT device.
