Proposal details
Project Name
VeSwap
Project Type
New DApp (Defi)
Proposal Description
Overview
VeSwap Is an Automated market maker building on IOTEX. VeSwap brings significant
improvements compared to the current decentralised-exchanges(majorly uniswap forks) with the following features.
- Supports both Stable Swaps and Uniswap Style volatile swaps.
- Dex with minimal Fees of just 0.15 percent, some of the lowest in defi.
- Support uniswap style LP and curve-inspired Gauges for a better and decentralized liquidity incentivization.
- Allows permissionless access to create bribes on any LP pools
- Fully Decentralised from day one, with ve tokenomics. ve Holders control the protocol, revenue, and token emissions.
Core Concepts
1. Volatile and Stable AMM
veSwap liquidity pools support one of two different price invariant formulas to accommodate either stable or volatile liquidity pairs.
Volatile Pools
x × y = k
The Volatile Pools use a Uniswap v2 style constant-product curve which is the industry standard for non-correlated pairs, such as WETH and USDC.
Stable Pools
x³y + y³x = k
The Stable Pools use a hybrid price invariant curve based on Curve Finance’s Stable Swap, which is best suited towards highly correlated assets like stablecoins. Curve achieves extremely efficient stablecoin trades by implementing the StableSwap invariant, which has significantly lower slippage for stablecoin trades than the constant product invariant.
2. Protocol Fees and Incentives
Swap Fees: Traditional uniswap based AMM, charge swap fees of 0.3%, meanwhile initial swap fee for veSwap is just 0.15%, some of the lowest available in DeFi, out of which the liquidity provider keeps 80%,
the remaining is deposited to the treasury for continued protocol development.
Gauges and liquidity Pools:
If both tokens of a liquidity pool’s pair are whitelisted by veVESW holders to be staked in gauges and receive VESW emissions rewards, then liquidity providers of that pair will not receive swap fees. The profits expected by the liquidity providers staking on gauges are solely derived from VESW emissions.
In contrast, veVESW Lockers who voted to incentivize a particular gauge with emissions will receive all the swap fees from the liquidity pair that they voted for.
If a liquidity pool is not whitelisted to be staked in the gauge, it will receive all the swap fees it generates but has no VESW emissions.
3. VESW Emissions
The rate of emission of VESW tokens is dynamic and depends on the proportion of the total supply locked in veVESW. The greater the proportion of VESW tokens locked in veVESW, the less intense the distribution of emissions to veVESW and Liquidity Providers.
The initial supply of $VESW is 100M.
The initial tokenomics is covered here.
Weekly emissions start at 20M $VESW (20% of the initial supply) and decay at 2% per week.
4. Bribes
The concept of bribes was made popular by Convex which came to control a large share of Curve voting power. As users kept chasing high CRV rewards, protocols realized they could grow their protocol and on-chain liquidity by bribing veCRV holders to vote for their pool.
veSwap natively supports anyone to attach bribes onto a gauge and those who vote for it are then able to claim them. Bribes are distributed only to voters on that pool, proportionally to their share of pool votes.
These rewards are available for the claim after the epoch flips and are proportional to the voting power cast by a voter ($veVESW).
Development RoadMap
Q4 2022 - Q1 2023 (Phase 1)
| Tasks | Status |
|---|---|
| Release of VeSwap Docs/LitePaper | DONE |
| VeSwap Smart Contract Readiness | Ongoing |
| VeSwap Frontend Development | Ongoing |
| VeSwap Testnet Release | TODO |
Q1 2023 (Phase 2)
| Tasks | Status |
|---|---|
| Bug Bounty Launch | TODO |
| Incentivized Testnet for Community | TODO |
| VeSwap Mainnet Launch | TODO |
| Listings on listing platforms like coinMarketCap, coingecko, etc | TODO |
| Integrating with defillama, dexscreener, etc | TODO |
Q1-Q2 2023 (Phase 3)
Development of new features like ve-launch an IDO launchpad without tiers for veNFT Holders.
More Details here
| Tasks | Status |
|---|---|
| Incentivized Testnet/Bug Bounty for veLaunch | TODO |
| veLaunch Mainnet Release | TODO |
Q2-Q3 2023 (Phase 4)
Development of ve-boost a yield Optimiser for veSwap. More Details here
| Tasks | Status |
|---|---|
| Listing of VESW on at least 1 centralised exchange | TODO |
| Incentivized Testnet Launch for veBoost | TODO |
| Audits/Bug Bounty for veBoost | TODO |
| veBoost Mainnet Release | TODO |
Why VeSwap?
For Users/Traders:
- Easy to use dex, with low slippage for stable swaps and with minimal fees.
- Fully community-centric and decentralized with veNFT, veHolders decide which LP pair should be incentivized, and get swap fees and emissions.
For LP Providers:
- LP Provider can provide liquidity and receive VESW emissions and/or swap fees.
- LP provider get boosted rewards if they also hold veNFT.
For Iotex Ecosystem:
- veSwap will help bring in liquidity from other chains, hence boosting the overall TVL.
- New Protocols will be able to incentivize their liquidity by creating bribes for their LP pairs, thus improving their token liquidity and reducing slippage.
- New Protocols will also be able to utilize the IDO launchpad, to launch their project on IOTEX.
Milestones
-
Milestone 1:
- Duration (weeks): 3 weeks
- Post-completion of Development Phase 1
- Funds request (USD): 2,500 USD
- Deliverables: veSwap (Dex) deployed on IOTEX testnet, with features of swapping assets (stable and volatile), providing liquidity, gauge creation/staking, permissionless bribe creation, veNFTs, and reward distribution.
-
Milestone 2:
- Duration (weeks): 3-4 weeks
- Post Completion of Development Phase 2
- Funds request (USD): 3,500 USD
- Deliverable: veSwap (Dex) deployed on IOTEX mainnet, with features of swapping assets (stable and volatile), providing liquidity, gauge creation/staking, permissionless bribe creation, veNFTs, and reward distribution.
-
Milestone 3:
- Duration (weeks): 2-3 weeks
- Post Completion of Development Phase 3
- Funds request (USD): 4,000 USD
- Deliverable: veLaunch (LaunchPad) Deployed on IOTEX mainnet, to provide more utility to veNFT.
-
Milestone 4:
- Duration (weeks): N/A
- Deliverable: Total Daily Volume above 25k$ on VeSwap, and TVL greater than 2.5M$
- Funds request (USD): 4,000 USD
-
Milestone 5:
- Duration (weeks): 10-12 weeks
- Post Completion of Development Phase 4
- Funds request (USD): 4,000 USD
- Deliverable: VeBoost (Yield Optimiser) Deployed on IOTEX mainnet.
-
Milestone 6:
- Duration (weeks): N/A
- Deliverable: Total Daily Volume above 50k$ on veSwap, and TVL greater than 5M$ along with
TVL greater than 2.5M$ on veBoost. - Funds request (USD): 4,000 USD
Total funds requested
22000$
Please checkmark the following if you agree
Although these options are not mandatory, please consider committing to them for the greater benefit of the IoTeX ecosystem.
-
We commit to open source the project: [ Other - Smart Contract code will be open sourced, frontend and other code will remain private till the protocol is stabilized]
-
We commit to donate [ PERCENTAGE ] of [ OUR TOKEN ] to the IoTeX Foundation: [ YES ]
About your Team
The veSwap team comes from diverse backgrounds and has significant experience in building and operating
defi protocols. The current team consists of four core team members, three developers, and one designer.
The team previously launched Oracle Finance (June 2022), a yield generating, deflationary multi-utility protocol on polygon network.
Oracle Finance raised around 100k in presale, and after a few months of operation became a part of mdb gravity (https://www.mdb.fund/)
Previous Works: Oracle Finance · GitHub
The team is pseudo-anonymous but is willing to share more information/KYC details privately with IOTEX team.
Metrics
- VeSwap (Dex) Expected TVL to be greater than 2.5M$ in the next 3-4 months.
- VeSwap (Dex) Expected Daily Volume to be greater than 25k$ in the next 3-4 months.
- VeSwap (Dex) Expected TVL to be greater than 5M$ in the next 6-8 months.
- VeSwap (Dex) Expected Daily Volume to be greater than 50k$ in the next 6-8 months.
- VeBoost (Yield Optimiser) Expected TVL to be greater than 2.5M$ by end of 2023.
Links
GitHub: VeSwap · GitHub
Docs: https://docs.ve-swap.com/
Website: https://www.ve-swap.com/
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