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The Resurgence of Solidly Forks
Seth Zhuo
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Key Takeaways
16 min read

  • The Solidly ve(3,3) Model has experienced a resurgence this year, with Solidly becoming the third most-forked protocol and a prominent DEX model generating high fees and revenue.

  • The top protocols building upon the Solidly ve(3,3) Model are Velodrome on Optimism (46%), Thena Exchange on BSC (17%), Ramses Exchange on Arbitrum (7%), Equalizer on Fantom (6%), and Velocore on zkSync Era (4%).

  • Several wallets have been identified as active token holders of the top Solidly Forks, with a few active LPs who are invested in the Solidly Forks narrative as seen from their distribution of funds across the top Solidly Forks on different chains.

  • Potential catalysts for the growth of Solidly Forks on different chains include chain incentives, token listings, and further innovations on the ve(3,3) model. These innovations could potentially include the adoption of concepts such as Curve's crvUSD, as well as expanding beyond the current DEX model to include features such as launchpads and lending platforms.

  • While the ve(3,3) model can drive initial growth with high emissions, it is ultimately crucial for the protocol to achieve growth that aligns with the necessary emissions inflation rate in the long run.

A Brief Introduction: Solidly ve(3,3)

What is Solidly’s ve(3,3)?

Solidly is an Automated Market Maker (AMM) based on Uniswap v2, allowing users to swap between two tokens in a liquidity pool. Its uniqueness lies in its ve(3,3) model.

Solidly’s ve(3,3) model is derived from the two preceding concepts: The Vote Escrow (ve) Model pioneered by Curve Finance, and the (3,3) model pioneered by OlympusDAO. The Solidly model’s approach to fee distribution and sustainable liquidity mining addresses some challenges faced by new projects in bootstrapping liquidity and growth, unsustainable farming rewards, and sell pressure on reward tokens. Read more here.

**Why is Solidly’s...