<summary> I thought that we... | Bartender Loopy🍸│Ⓜ️Ⓜ️T OKX Feed

1d ago

I thought that we need to create official creator content for @MMTFinance and @buidlpad, and I wanted to write another post about ve(3,3). Since it was a post I wrote early on in my account... This time, I will do it more properly. To summarize, If you lock a token for a long time, you receive ve tokens (voting rights), and with those votes, you decide which LP pool will receive more rewards. As a result, LP rewards increase → trading volume increases → fees increase → those who locked also share in the profits, creating a flywheel (positive feedback loop). 1. What is ve? It stands for vote-escrowed token. Example: (hypothetical) Lock MMT for T period → acquire veMMT (voting rights). The longer you lock, the heavier the vote (usually there is a "lock period weight"). veMMT typically grants rights to receive fees/bribes/incentives and voting power. 2. What is mixed in LP pool rewards? LP revenue = swap fees + token emissions (incentives). Fees: Realized revenue generated when people exchange. Emissions: The protocol distributes new tokens to the pool every epoch (e.g., weekly) as rewards. → This emission "distribution ratio" is determined by ve voting. → Therefore, ve becomes a powerful authority. 3. Why (3,3)? The meme originates from the game-theoretical message "If everyone cooperates, everyone wins (3,3)." The interpretation realized is ve(3,3): - The more people long lock, - The more rewards are directed to the pools that need liquidity through votes (veMMT), - LPs and traders gather more, - Fees/activities increase → Lockers also share more → The design is such that the longer everyone is "locked," the bigger the pie grows. 4. Let's understand it with a diagram. 5. Bribe = Voting bribe (legal incentive) - A specific pool (or token project) offers additional incentives saying, "Please vote for our pool." - veMMT holders give votes and receive bribe rewards. - As a result, the combined revenue of emissions + bribes is observed, leading to vote shifts → "Bribe Wars" can occur. 6. Why is this structure popular? Natural incentive alignment: - Votes are concentrated in pools where real use (trading/fees) occurs, And lockers, LPs, and swappers have aligned interests. Governance is directly linked to real-world (liquidity distribution): - Votes = lever for reward distribution. - It’s not just a "voting game"; actual APR and transaction costs change. Ultimately, another way to make money has emerged, and this concept may be unfamiliar to everyone... That's the point. Adapt quickly to the coming era, BOZA...

2d ago

<How to Optimize Returns on Momentum🔥> 🎉 This is the 4th installment of the officially designated topic series by @MMTFinance and @buidlpad~ (Refer to previous topics for quotes) Yield optimization I’m going to summarize all the yield optimization-related actions that are good to know when farming on DEXs like Momentum. First of all, it’s important to at least know what strategies I can choose, even if I don’t know anything else, right? It’s definitely beneficial if I can see the market situation well and have insight into which price range my invested coin price might fluctuate. If not, it’s better to farm stable coin pairs... If you can read graphs to some extent and understand the market situation, I recommend utilizing the strategies below well. Here are six important points to consider when strategizing on Momentum. 🔥 (Reading this won’t hurt at all...) 1. Price Range Design (Classic CLMM Leverage) - Narrow Range: Capital Efficiency↑, Fee APR↑ possible / Risk of Range Deviation↑ - Wide Range: Easy to Maintain / APR Dilution - Practical: Identify key ranges (tick bands where trades frequently occur) based on volatility and volume patterns, and perform dynamic rebalancing before and after events. 2. Gauge Voting (Emission Routing) - ve holders vote on which pool 'rewards should go to' → Increases the liquidity APR of that pool. - Strategy: Concentrate votes on pools with high actual volume/fees + high reward multiples (including bribes) compared to votes. 3. Utilize Bribe Markets - Specific pools offer incentives to ve holders to gain votes. - LPs can increase reward distribution by getting bribes into the pools they are staking → Optimize net profit. 4. Automatic/Semi-Automatic Rebalancing - Reallocate as you approach tick boundaries, reset range width before and after significant volatility. - Execute in parts (TWAP/partial rebalance) to minimize gas, slippage, and price impact. 5. Reinvest Fees (Compound) - Periodically reinvest LP fees/emissions to secure compound effects. - Timing: When reaching the minimum efficiency threshold considering gas/slippage (I actually wanted to calculate this part mathematically rigorously, but gas and slippage are dynamic, so GG..) 6. Risk Diversification - Compare single asset pools vs stable pairs. Recommend combinations with low correlation (to hedge risks). - Mix volume-centric pools + defensive pools to manage portfolio APR and Drawdown. Just being familiar with these strategies will help me know which areas I can focus on for additional actions... It’s important to know them first...

2.51K

The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.