ve(3,3) and SOLID: A Deep Dive into Andre Cronje's Fantom Project

[00:00:00]welcome back to a new video and today we're covering some really juicy news relating to andre and daniela's new coin so i know there's been a lot of interest in this new secret project that's coming out i'm getting a lot of questions how do i buy it what is it how does it work and today i'm going to attempt to break down exactly how the token will work based on the information we have and how you'll actually be able to get access to the token before anyone else obviously we don't actually have that much info about the token yet so we're just going off the medium articles that andre himself has posted um but what i'm going to do in this video is i'm going to go through the articles that he's posted kind of give you my thoughts my take on what the new protocol is what the new coin is um and then i'm going to go through some other creators threads which give you a better explanation in simpler terms of what the token actually does and how it's going to operate because right now we're just going off data that andre's posted so it's all up for interpretation and a little bit of speculation but i guess we should start here that daniella has hopped on the phantom train and has implied big things are coming in 2022 daniela and andre karnier is a match made in heaven don't underestimate the power of the frog nation daniella actually said you'll be using phantom without knowing you're using it that's how me and andre will build d5 6.9 sexy and pretty much what he's saying here is he's going to use phantom as his test bed him and andre are actively developing on phantom we've seen the developer activity on phantom exploding recently and they're incentivized to come back to phantom work on projects on phantom which will give a major boost to the blockchain but i know everyone wants to know what ve33 is and i'm going to attempt to explain in this video but firstly what actually does v33 stand for um and if we go here it stands for vested equity or ve lock token 33 is the rebasing to prevent dilution for ve stakers sounds complicated i know but in this video we're going to break it down we're going to break down what it actually does um and given the data that we know what it actually all means for the sake of this video i'm going to call it v33 because it's a lot easier for me to say than ve33 this was the very first article that andre posted and it gives us a little bit of a background on the current state of the market in relation to this token he said maker dow has a buyback and burn fees accrued in diet are used to purchase mkr off the market then mkr is burnt um he's basically talking about different buybacks amongst different protocols and how he can actually fix this with his new token so here's the problem token emission is considered a bootstrapping mechanism when a protocol starts it usually has zero fees in blockchains you need security this is provided by proof of work proof of stake at the start of a network it has zero fees now assume there were no block rewards and only fees were distributed to validators would you run a validator if you receive zero awards so instead these chains are bootstrapped with block rewards but the goal is for these block rewards to eventually stop and fees alone should be enough incentives for participants so basically if you don't understand what he's saying there is he's pretty much saying at the moment emissions are the main bootstrapping mechanism for new protocols um they don't incentivize fees they incentivize emissions and the problem with this is you actually dilute token supply over time um and it makes these protocols a lot less sustainable so he wants to fix this by aligning emissions to incentives the problem with a lot of current amm designs automatic market maker if you don't know what amm stands for is that it is easier to incentivize liquidity instead of fees i know a lot of these terms are a bit complicated and he's being very technical on purpose and and he's being a little bit cryptic in these articles but once we start getting into the threads later in the video i'll start breaking down more what these things mean but we have to set the scene here with andre's articles to give you an idea of the vision and the problems that he's actually trying to solve because andre he's a master builder one of the best if not the best developers on phantom um he wants to solve problems he wants to be innovative so through these articles he's telling us why and he's going through his mission as to why he's actually working on this project so the goal itself is to simply give the most incentives emissions to the liquidity holders with the highest fees pretty much they've established a few things via looking at these mechanisms so they want fees earned by the protocol to go to v33 lockers um so pretty much if you lock your tokens um the fees and to the protocol are distributed to holders we've seen this amongst um multiple kind of rebase tokens it isn't a new theme here a mission by the protocol should go to the pools with the highest fees so once again we're incentivizing fees here over liquidity um which overall will make the protocol a lot more sustainable we want to align where lockers vote and ideally have them vote for the pools that generate the highest fees once again this solves a lot of issues um because you're being more efficient with your reward distribution this means that lockers will earn 100 of all fees generated on the pools they vote for the benefit here is that it incentivizes fees for the protocol obviously this means they can pay higher payouts to lockers emissions will promote highest fee earning pools which will increase liquidity on those pools to allow for better rates so they're paying more fees to holders they're paying better rates than they would be um if they went with another mechanism and it aligns with emissions with protocol incentives which means participants can self-optimize the system sounds crazy i understand um but we're going to go into a thread now to break it down a little bit more because um jack did a really good thread today on one um everything we know about the protocol a little bit of speculation on the protocol and how to play the trade so he does a really good job of breaking this down so we're going to go through his thread i'm going to give you my takes on some of the stuff he says because i know it's very complicated the reason andre is being cryptic is because not all the details are out at the moment um we've got some details we have a lot of details that we can break down and like make educated guesses on but we don't know 100 um how it will look or operate so that's why we're going to break down this thread so the token currently referred to as ve33 it's speculated from the below sensor image that it will be called solid if we actually look at this image here um we can see the solid text is kind of blurred out in the background and not transparent so we think it's going to be called solid ve which stands to vote escrow mechanics as protocols like convex and curve stacking dilution mechanics 3 3 as olympus down so this is combining the mechanisms of olympus dow so the rebase tokens and it's combining the vote escrow tokenomics from protocols like convex and curve so if we actually combine these together taking the best elements of both we can create a token that's much more efficient can pay higher rewards to holders and is more sustainable over time the problem with a lot of olympus dow so ohm forks is that we've seen crazy dilution mean that the protocols just aren't sustainable whereas with a protocol like this some of the tokenomics is introducing means it can be sustainable um and that's some of the stuff we're gonna keep diving into so vote escrow stands for locking for longer periods of time which gives you higher rewards and a larger share in voting the governments of the protocol but you have to lock and thus kind of cannot sell your tokens so basically the protocol will incentivize people to lock your tokens and obviously you can't sell them which means that we're reducing the circulating supply here which obviously increases the price over time that's the gist behind it if we actually look into the dynamics of this you can look into the curve wars um jack does a really good thread on that i highly recommend checking it out basically the protocol is worth a minimum of its treasury value it trades at a premium to its treasury value so that means the larger the premium the higher the apy the higher premium it trades that to its base value the more they can actually pay out to holders um so the tokens rebase over time so it will take elements of olympus dow so it'll be a rebase token which rebases over time which actually gives you more tokens but lowers the asset value backing of each token obviously as more tokens are diluted which means omitted into the market or distributed to holders i should say fees get added to the treasury like ohm but here's the thing you can't sell most ve tokens so you can't just unstake them sell them flood them on the market they're actually stuck in your wallet because they become nfts and this is why this protocol is so powerful because if we look at the own forks and all these rebase tokens where people can just unstake and sell and list on the market there's constant supply side pressure which suppresses the price because over time tokens are constantly being emitted onto the market but andre has stepped back and he said well we shouldn't incentivize this we should actually incentivize people holding the token so how can we do that well they become nfts the va tokens become nfts meaning you can sell them on the open market but what this does is this creates a secondary market for locked governance tokens which is a way to sell voting power now obviously like we've seen in curve with the curve and the convex bribes the more governance a protocol has the more power it has over that protocol so there could be a huge incentivization here to actually stack governance so this could open up a secondary market which increases demand for these nfts in addition to owning the base tokens so i know that's kind of complicated but the gist of it is having them as nfts means you can sell them on the open market it creates a secondary market which is a better alternative to just having the supply dumped on the original token market and this also increases and incentivizes governance which is really awesome so they're combining an asset with a deflationary supply ve an ability to free float relative to treasury a way to distribute fees directly and a secondary market for government so it's pretty much as jack actually said on january 3rd i don't know if you had intel here but an own fork that pays you a higher apr for longer lockups this is exactly what andre is doing um and this is really really awesome and super innovative so the tokenomics are higher percentage of supply va locking yields less emissions incentivizing more locking so you're actually incentivized to lock and lock for longer a longer ve locking yields a higher apr obviously you're incentivized to lock you're incentivized to lock for longer this reduces circulating supply really important tokenomics which make this protocol more sustainable than other rebases we've seen but what does it do and how does it make money and this is the thing right you might be wondering how they're actually paying out this apy on these crazy crazy rewards how they're gonna pay them out we don't know what the rewards will be but i imagine they'll be pretty crazy because it seems like very efficient tokenomics powering this protocol um it's a new exchange and amm like uni swap sushi swap joe etc but the exchange isn't being controlled by liquidity providers it's being controlled by the protocols it's pretty much a ground up amm giving projects more control over inflation's slash emissions so super super unique here um it's a response to the mercenary lps that have controlled your exchanges we're basically giving power back to the people here and that's what andre said when he first wanted to launch this token that it's for the people um it's basically made by the people for the people right it feels like it really suits fanta because we have this really tight-knit community since it incentivizes locking longer term lock up staking i feel like it's really going to play into the community aspect of phantom so what better of a chain to build build this new project on than phantom if we keep scrolling down here we've actually got some info that you can't buy this token on the open market so i'm gonna skip part two because it basically goes through a whole lot of lingo that i don't think will be particularly informative in this video but i will link all these in the description if you want to check out these articles if we go on to the third article that he posted we start getting some detailed info on how these tokens will be distributed and earned um which is really important because you're probably sitting here wondering right now okay how do i buy this when this is launched how do i buy obviously it's going to be a great project great rewards i want in i will tell you how to get in but it's not as simple as you think because you can't just buy this on the open market but we're going to go through this article and break it down step by step and then i'll tell you how you can actually get in fees are paid out in base assets not converted once again really important for the sustainability of the protocol emission incentivizers fees instead of liquidity huge issue in crypto which andre's solving lockers increase holdings proportional to a mission no dilution dilution once again um meaning how many tokens is emitted has been a major downfall of rebases recently so having no dilution means the protocol can be a lot more effective locks are represented as nfts which obviously opens up the secondary market and allows for higher capital efficiency of locks rather than just staking your rebases essentially so if we just skip through this and get to the juicy stuff because i know everyone here wants to know about the initial distribution every week a potential new two million tokens are available as incentives on pools these two million tokens are distributed based on current voting weights for pools with an initial distribution of zero that means no one can vote which means no distribution can occur to kick-start the system there has to be an initial distribution so we went through a few options and the option they have picked is ecosystem distribution which means before launch they will take a tv or snapshot of d5 llama right so they're going to go into d file llama they're going to look at the top 20 protocols so we've got spooky swap scream beefy abracadabra spirit swap liquid driver and they're going to distribute tokens based on tvl right so locked ve33 tokens will be given to each project in the top 20 it is then up to each project to create their pools and vote for their initial distribution or have their communities vote for their initial distribution so how these individual protocols on phantom like spooky swap like spirit actually siphon off um and issue these new tokens as rewards is up to them so you'll have voting on each different protocol which basically determines how these tokens are distributed so if we go back to jack's thread he's got some bad news for you degenerates you can't just buy this token on the open market and that's what i was saying before it will be distributed to the top 20 protocols unfounded by tvl some people might be disappointed to hear this but i'm going to get into later in this video why this is mega bullish for the phantom ecosystem and it's going to drive a lot of liquidity to the phantom ecosystem this means that the whole phantom ecosystem will draw attention and tvl if this succeeds people want to put liquidity into these protocols to be able to receive these tokens back as rewards so if you're staking on liquid driver you're going to be able to receive ve33 tokens back as rewards right because they're being distributed to the top 20 protocols the only way to get indirect ownership of the token for now is to own any or several of the top 20 tokens on fanta by tvl going back to what andre said this is exactly how it will be distributed it's being distributed to the top 20 so the only way to get access is through those top 20 protocols but there are other plays like keeper which you can actually get exposure to the same mechanisms without having to invest across multiple protocols which is a little bit inefficient in terms of gaining direct exposure to ve33 so if you buy keeper which is currently on the ethereum network but soon to come out on phantom you can get your hands on this model so the ve33 model but without having to own this new token directly obviously this is a little bit inefficient because keeper's not exactly the same as this new token um it's on ethereum right now but it's coming to the phantom network in the future so if you want to see how this v33 model with the with these tokenomics that i've just been describing operates keepers also going to have them if you don't know anything about keeper it is also a project developed by andre cronier it's on ethereum it's been out for a while now um it basically has something to do with um exchanges with real currency i don't know too much about the protocol itself but i know they're changing their model to this new ve33 model which will obviously incentivize staking keeper tokens which should drive up the price theoretically i need to do a lot more research on it um i might even do a video on it soon but that is one of the options you've got here so the first option would be to ape into the top 20 protocols the protocols um the best protocols obviously that you like that are going to be issuing these tokens as rewards or you can buy the keeper token if you want exposure to the model so if you think the model that andre has got going is really really awesome and you want exposure to it then you can go into keeper that's the other option because if this works it will completely change how protocols operate and could help fix expensive protocol emissions so what andre is doing here is quite revolutionary in my opinion um it's pretty pretty massive and obviously give jack a massive like um and a follow for this awesome thread but we're going to keep getting into the news because i have more info on this token because we have a thread here which goes into some of the tokenomics and also mentions keeper being the plane to the big leagues pretty much when we look at this new v33 model so andre the godfather of d5 has released a series of blog posts detailing the tokenomics of his new project as we've just been going through andre's new tokenomics will work like this vested equity or va lock token ohm and butterfly 33 rebasing so it's basically the ve mechanism combined with the ohm style rebasing um which is kind of merging together to create um this really awesome new innovative technology which prevents dilution for ve stakers and they receive fees which are streamed separately from lp incentives the token positions are nfts obviously as we talked about before which opens up the secondary market um sounds amazing where to ape the problem is you can't ape as we just discovered the new project tokens will be distributed to the top 20 protocols on phantom rank by tvl so if you want access to the narrative he goes in and says keeper is the best way to get exposure um obviously i must make this clear keeper is a separate protocol from the new phantom protocol which i think is going to be called solid it is completely separate it's on ethereum but andre actually developed both and they both follow a similar model so if you believe in the model and one exposure keeper is a great option however you could also just wait um invest in the major phantom ecosystem projects and you'll get exposure to to the phantom project itself that is another way to do it um just wait it out and be patient but if you want to check out keeper check out this thread um really awesome and i'll also link that in the description but we have to get on to when this is happening and andre literally tweeted today final commit sent off for peer reviews audits and third party reviews which means they'll have a tvl snapshot by the end of next week this is happening super soon um i said phantom january was going to be massive and we're actually seeing it probably launching this month or early february which is awesome because that's going to coincide with the release of the felix centralized exchange which is going to offer these ecosystem tokens on a centralized exchange which can unwrap new users um which increases phantom accessibility so the phantom ecosystem is exploding right now i can't stress this enough it is going to go parabolic and it is going parabolic we're going to do some price analysis at the very end of the video and have a look at some of the ecosystem project prices and how you can get entries because you probably want these tokens but obviously you need exposure to the ecosystem to get them so one week for voting and bribes then a mission starts website will be up next week so we're getting tons of info next week on this project it sounds to me like the last week of january this is all launching this is all happening because if they're sending it off this week they've got the tvl snapshot next week and then a week of voting with the website coming out that indicates to me the last week of january we'll be getting it so that's the info on when when airdrop is the question going around on twitter at the moment but i want to talk about now why this is bullish for phantom because you you know a little bit more about the token now we know it's going to be an ohm style rebase token with the new ve vested tokenomics uh which will be done through nft so super super innovative mechanisms but you probably want to know how does this benefit phantom how does this benefit my favorite projects you might own spooky mind on spirit liquid driver how does this benefit us apart from receiving these tokens what happens when you have all the top projects fighting for governance and bribes tvl skyrockets what happens when tvl skyrockets new liquidity floods into the phantom ecosystem what then happens to the price of both phantom and its ecosystem projects they rocket and pretty much what we've got at the moment and i'll have to go into more detail on this in a future video but we've got this spiderweb liquidity happening right now where every protocol is fighting for governance fighting for bribes um on other protocols so they can offer higher rewards so we've got liquid driver buying up in spirit so they can have governance voting rights over what pools to boost so they can offer higher rewards to liquid driver holders we've got a similar thing happening with ve now that could incentivize bribes similar to curviers we've obviously got frax and liquid driver who have just partnered frax wants in they know the easiest way to get in is partnering with liquid driver we've got massive amounts of spirit being brought up from uh the spirit wars essentially that are commencing in a slightly different fashion to curve but are still happening in some form nonetheless obviously we've got f beats also factoring into this every project is linked and i have not seen a development in a d fire ecosystem so robust and innovative and just interesting than what's happening on phantom right now because we're seeing all these protocols are working together or against each other but they're indirectly um boosting the phantom tvl overall which obviously is bullish for the phantom token because as tvl and phantom continues to gain traction and other chains significantly declined phantom is becoming the king of d5 and all this is without v e three three which is going to attract mass liquidity mass liquidity will only flood onto the phantom ecosystem as people are buying up the top 20 projects to get access to these tokens via rewards um and also the total value locked will increase as this project shines a light on phantom and how the d5 ecosystem is evolving so i think it's really really massive this spider web liquidity is huge on phantom you can't underestimate what's happening right now and if we look at d file armor and we go on to chains we can actually see phantom is up 5.61 for the day against celina that's down two and a half percent phantom is the only project in the top 10 um obviously apart from harmony and arbitrary that is up uh we have solana down sixteen percent we have luna down ten percent avec's down eight percent phantom's actually up um and it's gaining it's at seven and a half billion dollars in tvl and it has a tvl market cap ratio of 0.85 this means you're getting a massive discount on phantom in tvl terms compared to other chains still hugely undervalued and we haven't even seen the massive boost in liquidity that these new projects like andre and danny are coming out with are going to have on the ecosystem it's going to be absolutely massive if we go into phantom quickly and we look at these top 20 projects because you're probably thinking i want in i want to buy these projects if we go and have a look their tvl is increasing rapidly we have spirit swap up 14 for the week spooky swap up 16 for the week um liquid drive up 37 for the week literally liquid driver is dominating the phantom space i have multiple videos coming on liquid driver soon because i think what's happening over there is so innovative and is really honestly dominating phantom right now but you have these top projects and we're seeing that reflect in the price for the day some of these projects are up ridiculously screams up 58 turret is 47 these are both lending borrowing platforms so obviously that demand to come in and borrow phantom and borrow those ecosystem tokens um or borrow against phantom 4 tokens um is massive because obviously as the token price appreciates um people can actually collateralize them and lend more capital to be able to deploy into the phantom ecosystem which further boosts liquidity obviously that comes with risks of liquidation etc but we've seen these tokens perform really well liquid driver up 41 for the day um beethoven up 40 for the day spirit swap 32 um phantoms up 15.8 which is usually massive but it's being shadowed by these other projects exodia which is a rebase up 20.9 so we're seeing the ecosystem explode please don't fomo i know it's really tempting to fomo um in times like this um because you're seeing all these developments take place and you want in but take an objective view keep buying dips literally just yesterday we had a massive dip and pretty much all of my twitter was super bearish and i was posting bullish news and people were giving me backlash for it look at this today we've exploded 40 since then um and everyone giving me backlash is kind of a little bit quieter now aren't they so it's kind of like look you have to buy dips and you have to learn to enjoy the dips because the dips actually create opportunities um buying pumps obviously isn't advised i know it's tempting to come in and buy liquid driver at 25 bucks but you're probably better off waiting for a little pullback in my opinion or at least farming in the meantime before you can get more exposure to the tokens themselves because this was up at 28 it's come down a little bit but just a few days ago we're at 18 and just a month ago we were at two bucks and now we're at 25. obviously your financial situation is your financial situation and your goals are your goals so this is not financial advice everyone's situation is entirely different this video is for entertainment purposes only but i sincerely hope you've enjoyed it um hope you've enjoyed learning more about this new token i'll be posting more videos on this token on liquid driver and the phantom ecosystem soon um because i know it's complicated but i'll be doing more videos to kind of break it down i just wanted to get this video out there get some news out there about this new token because i'm super excited for it i know a lot of other people are super excited for it if you have any questions i pretty much answer all my comments in the youtube comments section so if you have any questions if you're unsure about anything make sure to let me know follow the twitter and yeah obviously make sure you subscribe because lots of these new videos will be coming out i want you guys to be uh at the top of the market have an edge on the market by getting um to the news faster than anyone else so if you have notification bell on um if you subscribe to me and obviously are following my twitter you have a little bit more of an edge because you know i post a lot of content this is my full-time job i basically post phantom all day i'm researching phantom all day and i try to get news out to you guys as soon as possible hence this video right now so hope you've enjoyed smash the like button have a lovely day and i'll see you in the next one peace out