In this edition, we’re filling you in on Retro, a Thena-friendly fork on Polygon.
Gain some insight into new tokenomics tweaks, how the ve(3,3) DEX has performed recently, and the project’s fork on Polygon zkEVM, ZERO…
Stay alert, stay informed ⬇
Background on Retro
Retro Finance is a Thena Finance friendly fork on Polygon.
The protocol is a decentralized exchange (DEX) and Automated Market Maker (AMM) that introduces ve(3, 3) tokenomics.
It serves as a liquidity incentivization and revenue generation solution for protocols operating on the Polygon network.
The protocol features concentrated liquidity and its ve(3,3) model incorporates Stabl Labs’ $CASH yield-bearing stable index token, providing additional benefits and bribe revenue to veRETRO voters.
ve(3,3) Tokenomics & TVL
Retro’s Founder Tony draws parallels between ve(3,3)’s functionality and upgrading stats in video games, underlining the trade-offs and the constant balancing act.
He stresses the need to ensure equilibrium between benefiting the user and ensuring benefits for the LPs.
There are potential threats to token prices if lockers are excessively benefited.
Tony has also highlighted the often overlooked psychological component in tokenomics, which plays a role in user decisions.
It is very important to drive maximum fee generation, specifically the strategy of incentivizing blue-chip pools.
Tony believes that the current market has discerning participants who can distinguish valuable TVL from meaningless numbers.
Tony argues that TVL should be capital efficient and cautions against reliance on mercenary stablecoin farmers.
Implementing effective tokenomics and understanding market dynamics are key to ensuring value optimization.
Introducing ZERO
Retro is launching a new project, ZERO, on the Polygon zkEVM.
ZERO is a Retro fork with some new features and changes in the tokenomics for ZERO including distribution and changes related to the rebase mechanism.
The rebase mechanism will be implemented in a way so that only those with max locked tokens can claim rebases.
If one isn’t max locked, claiming a rebase will cause you to be max locked.
If one doesn't claim the rebase, it gets burned.
The project’s $ZERO token presale is currently live.
Together, the teams at Polygon and ZERO built a specified grant program to stimulate activity and DeFi development on Polygon zkEVM.
Volume & Fees
Retro saw an increase in volumes from August 24th to September 23rd, which resulted in more fees being generated. Daily fee APR for the averaged 7.5%.
Retro used the following allocation for fees generated:
Retro's Progress and Future Plans
Retro has faced some issues with ve(3,3) but they are addressing them, and have garnered a significant amount of bribes.
When it comes to bribes, they are now given out in the form of $bveRETRO.
$bve system tokens are the same as $oRETRO oTokens, but can only be exercised as a max-locked ve position.
This helps to keep bribes in the system and eases selling pressure.
The team also released the automated ve-manager that can handle voting, bribes, claims, and more, powered by Gelato.
The project has a long-term grant with Polygon which ensures sustained activity for a considerable period.
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