The long-awaited evolution of Solidly has finally arrived! We’re happy to provide you with an exact overview of new features, functions, migration details and a small peek into what’s to come in the future.
Over the past 6 months we have worked hard to make Solidly a fully functional DeFi product, we went over basic functions, bugs, tokenomics, governance and also introduced new features and improvements to Solidly.
Basic functionality
- Each week veNFT owners can vote for their favorite liquidity pair
- Liquidity providers will receive SOLID emissions representing their vote capture in addition to potential gauge bribes
- Voting bribes can be collected by veNFT owners for the pair(s) they voted for immediately after midnight on voting day
- Trading fees for each pair can be collected at the end of each epoch by the respective veNFT voters
- Full dilution protection for veNFTs
- veNFTs can be locked for a maximum of 4 years for the most voting weight
In the previous iteration of Solidly, some of the things mentioned above didn’t work as expected. We have extensively analyzed the code-base, identified all issues and resolved all of them.
In addition to refactoring all of the existing issues, we have made some design improvements:
New Features
- veNFT malleability has been improved: in addition to the already existing merge() function, we’re introducing a split() function. The intended purpose is to improve competition between layers building on top of Solidly, such as 0xDAO and Solidex. Users will be more willing to deposit their veNFT into second-layer protocols knowing that they can reverse the deal in case they’re not happy with the service or another protocol offering better yields.
Example: a veNFT with 100,000 SOLID and a lock-time of 3 years can be split into 2 new veNFTs with 10,000 and 90,000 with the same lock-time
Both 0xDAO and Solidex will adopt the split function, oxSOLID and SOLIDsex will be redeemable for a veNFT on a 1:1 basis - Votes on the base-layer will automatically reset after midnight on voting day, the intended purpose is to increase ecosystem efficiency and remove inactive voting
- Default fees for volatile pairs will be 0.2% and 0.02% for stable pairs. There will be an override function, in order to be able to individualize fees for specific pools of interest
- Whitelisting will be permissioned in the beginning, a proper smart-contract solution will be implemented within 1 year of the Solidly upgrade
- Initially the relevant smart-contracts will have an administrator and upgradability function controlled by the Solidly team multi-signature wallet. After it is deemed that Solidly is fully functional and secure, the governance of all relevant functions will be transferred to an on-chain governance
With all of the new features out of the way, let’s talk about the migration!
Migration of SOLID, veNFT, oxSOLID, SOLIDsex, OXD and SEX
- The burn contract will be open for 30 days, starting tomorrow September 1st 2022 and ending September 30th 2022 midnight
- veNFTs have to be locked for 4 years prior to migrating
- SOLID, oxSOLID, SOLIDsex, SEX and OXD tokens don’t have any requirements
- After the burn period, you’ll be able to claim the same token that you burned on a 1:1 basis
- Unburned SOLID and veNFT will be considered permanently burned and won’t be reintroduced, although the Solidly team reserves the right to keep up to 1 million of the unburned SOLID, to be used to establish liquidity of the new token and future ecosystem incentives
- In order to preserve the 1:1 redeem ratio of oxSOLID and SOLIDsex for veNFTs in 0xDAO and Solidex, respectively, a snapshot of unburned oxSOLID and SOLIDsex will be taken at the end of the burn period and all unburned oxSOLID and SOLIDsex will be airdropped.
- 50% of the unburned tokens will be proportionally airdropped to veNFT holders
- 25% of the unburned tokens will be equally airdropped to 0xDAO and Solidex treasuries
- 25% of the unburned tokens will be airdropped to the Solidly team
- same handling for SEX and OXD - Users who have vlOXD and vlSEX at the time of the snapshot will receive them as OXD and SEX, respectively, on a 1:1 basis
- Top 25 veNFTs will be re-evaluated on an individual basis and if no long-term alignment or value creation can be established, those veNFTs will be assigned to new protocols who we see as long-term value creators
- The original tokenomics of 100,000,000 SOLID with tail emissions will be respected
Launching on Ethereum and multichain strategy
After extensive discussions and various analytics, we’ve arrived at the conclusion that it’s in the best interest of Solidly to launch on the Ethereum mainnet. It’s the ecosystem with the most active users, volume, capital, fees and activity and has so far been more resilient to the bear-market than other chains. Rather than speculating on another chain’s activity, we’re moving to where the activity and majority of fees are now, while keeping the options open to expand onto other chains, once we see the value of doing so. That way we bring most value to existing stakeholders.
We’re actively evaluating the integration of Solidly with Anycall (https://docs.multichain.org/developer-guide/anycall), in order to facilitate deployment on other chains. Although we can already say that such an integration won’t be ready for launch.
Governance
In the beginning the governance will be in the sole hands of the Solidly team in order to ensure a smooth launch and to have the ability to react to any unforeseen issues. We’re planning to establish a Swiss non-profit organization called Solidly Labs, which will support the development and decentralization of Solidly and its ecosystem. Once we deem Solidly to be fully functional, secure & mature, we will slowly move the governance from the team’s multi-signature wallet to an on-chain governance structure.
A glimpse into the future
We are very excited to finally share this announcement with you all. We truly believe in the great potential of Andre Cronje’s idea for a new generation of decentralized exchanges. We are fortunate to have a very competent team of people who are able to iterate and expand on that idea. Amongst other things, we will explore ideas such as on-chain leverage contracts built as a layer-2 product on top of Solidly. We are thrilled to see what the future brings and hope you will join us on this journey.
Follow the latest announcements, developments and news on our official social media and community channels:
Twitter: https://twitter.com/SolidlyETH/
Discord: https://discord.gg/Solidly
Website: https://solidly.com/
Much love,
Solidly Team
