GM, this is your Daily Bolt briefing.
In today’s edition, we're providing you with another abridged breakdown report. This briefing includes a selection of some of the most important data points from our project breakdown on SolinSnek, a ve(3,3) exchange recently launched on Avalanche, with plans to implement a perpetual futures trading exchange, concentrated liquidity, and more.
The full SoliSnek report, released on tuesday, is available for Free and Premium members alike. Sign up for a Revelo account today to get access to a growing number of in-depth reports.
Continue reading to learn more about the Solidly scene on Avalanche, how SoliSnek differentiates itself from other Solidly forks, interesting developments to keep an eye on from the team, and more.⬇️
Over and out.
Overview
Solisnek is a decentralized and self-optimizing DEX on Avalanche built on the principles of Solidly and the ve(3, 3) model.
Solisnek tweaks the original vision of Andre Cronje’s original version of Solidly (100% rebase) by adding anti-dilution mechanics (capping rebases at 20% for retail users and 70% for partners), and coming up with a veNFT maturity curve.
One of the key differentiators of Solisnek with respect to other Solidly forks will be the introduction of perpetual futures, which will increase the amount of fees and revenue that can be generated by the protocol.
Roadmap
veSNEK improvements to support merge, split, and tiered revenue sharing streams.
Rebase system update to implement a value-driven participation mechanism.
veSNEK bell maturity curve as a modified version of the original Reliquary exponential maturity curve.
Perpetual futures as an extra source of revenue for veSNEK holders.
Concentrated liquidity to improve the competitiveness of the protocol pools. This is especially relevant for every Solidly fork, due to the importance of revenue accrual from protocol fees to kickstart the flywheel effect.
Economics & Fee Breakdown
Solisnek fee structure for swaps attempts to find a sweet spot such that traders can access a great execution price while the protocol can still generate significant revenue for veSNEK voters. This will lead to an increase in both locking and token incentives for liquidity providers.
vAMM fee: dynamic fee up to a max of 5%.
sAMM fee: dynamic fee up to a max of 0.05%.
The protocol’s native pairs (vAMM AVAX/SNEK and vAMM USDC/SNEK) initially have a swap fee of 2%.
The transaction fees on protocol pools can be used strategically to capture maximum revenues for veSNEK voters and can be adjusted in either direction to increase Solisnek’s competitivity and efficiency in response to market conditions.
Governance can also adjust individual pools without affecting others.
Tokens
SNEK:
Total supply: 500,000,000
Initial supply: 200,000,000
The team vesting period starts on April 20 2023, where 15% will be claimable from epoch 1 with the rest of the tokens being claimable on a linear vesting schedule for the remaining period. This can be checked at the llamapay’s vesting contract.
All tokens in the reserve are held as liquid SNEK but will only be given out as max-locked veSNEK. This will be used to subsidize operational expenses such as marketing, advisors, initial liquidity incentives…
Similar to other Solidly forks, the maximum supply is uncapped. However, Solisnek introduces a decaying emission rate of 1% per epoch up to epoch 92, after which the emission rate will be 1,000,000 per epoch.
Partnerships
Granary Finance is a money market that introduces the concept of Nitro pools to increase the capital efficiency of the protocol by deploying idle collateral assets to farm yield on external protocols.
Deus Finance is a protocol building on-chain derivatives using bilateral agreements.
Liquid Driver is a multichain yield aggregator that seeks out the best revenue-generating opportunities in DeFi and distributes the yield to its users.
Inverse Finance will be bribing voters to attract additional liquidity for their DOLA stablecoin.
Tarot Finance is a decentralized money market and leveraged yield farming protocol where users can earn yield by supplying tokens that are lent out to borrowers. Borrowers can then use these tokens to leverage their yield farming positions and earn higher APRs on their liquidity positions.
Byte Masons, the team behind OATH, Reaper Farm, Granary, and Ethos Reserve.
fBOMB, home of MCLB’s fBOMB the wrapper and BOMB SWAP SHRAP.
Guru Network DAO, a multi-faceted growth hacker helping with on-Chain dApp discovery, utility, tools and bespoke services to users and devs.
GMD Protocol, a yield aggregator and optimizer on the Arbitrum network.
Yieldfarming Index, a DeFi hedge fund built on the Arbitrum ecosystem that uses sustainable, delta-neutral strategies to provide real yield for holders and stakers.
Based Labs, an ecosystem of omnichain multi-faceted DeFi protocols for diverse revenue strategies.
Fantom Starter, a crypto investing protocol.
Chronos Finance, a Thena fork on Arbitrum with a zero-rebase model and maturity-adjusted returns using the Reliquary.
Frax Finance, the creators of the FRAX stablecoin and products like Fraxswap, Fraxlend, and frxETH.
QiDao, a CDP-based protocol powered the MAI stablecoin and that allows users to borrow at 0% interest against their crypto holdings.
Beefy, a multichain yield optimization present across 18 chains.
Firebird Finance, a Multichain aggregator with the best rates that pays you to swap.