Stepping Up the Game: Yield IQ Supercharges Retro’s Ve(3,3) Model

Published in
5 min readAug 1, 2023

Retro and Yield IQ join forces to provide a more inclusive, efficient and rewarding DeFi experience.

We are thrilled to unveil the groundbreaking combination of Yield IQ’s innovative single-sided liquidity strategy with Retro’s Ve(3,3) model. This powerful fusion leverages the force and finesse of Yield IQ and Retro, complemented by the Merkl reward system, to revolutionize liquidity provision and participation within Retro’s ecosystem.

The introduction of a Ve(3,3) style DEX further enhances the voting experience. By locking your tokens, you gain influence over emission destinations, earning fees and rewards from the pools you support. This incentivizes users to thoughtfully consider their votes and helps steer the DEX in the right direction, promoting a community-driven ecosystem.

Each RETRO token holds significant value as it becomes a voting power, redirecting cashflows — directly influencing the trading fee allocation. For example, you can deposit BTC, USDC or ETH and vote yourself into the income stream that yields the most returns, as you have the power to support the pool which you have deposited into. Yield IQ allows you to deposit single-sidedly — only the token that trades against RETRO and you’re able to use your RETRO for votes.

Why Yield IQ? Simplicity and results. It offers:

  • Single-token liquidity deposits
  • Automated management that grows deposits of this token
  • Vigilantly adjusts the liquidity composition between the two tokens, mitigating the risk of over-selling the deposited token

Deposit major assets: You can earn yield on $RETRO pools without depositing $RETRO tokens. Instead, use your $RETRO tokens for voting and deposit major assets like wMATIC, wETH, wBTC, USDC, USDT, $CASH, agEUR, MAI, LINK, or stMATIC against $RETRO. Our unique single asset deposit algorithm allows you to supply the supplementary side and start earning rewards. The $RETRO tokens that were previously locked for liquidity provision can now be freed up and locked for veRETRO, where you’ll enjoy boosted returns and gain voting rights.

This means you can use veRETRO in voting to drive more rewards to these major asset pools. Merkl’s reward system keeps track of LPs positions and seamlessly allocates the $oRETRO emissions for those who vote.

Flip the coin, and you’ll find Retro as the exclusive provider of $RETRO in the liquidity pool — meaning it is building protocol owned liquidity. The best part? Voters are rewarded with all the trading fees from the pool for bringing in the major assets that trade against $RETRO.

The strategy behind integrating Yield IQ and the Merkl reward setup is three-fold:

Unlock $RETRO for Ve(3,3) Participation: Let’s not keep your $RETRO tokens tied up in liquidity pools. In Ve(3,3) models, the highest purpose of the token is to be locked for voting rights and benefits. Yield IQ ensures your tokens are put to their best use. Gain the upper hand in voting for trading fee allocation and enhancing returns.

It has proven tricky to manage Uniswap V3 liquidity: Protect your deposits with an advanced strategy to avoid ending up with the least valuable token. Eliminate the complexity and time-consuming nature of swapping token mixes and setting price ranges. With Yield IQ, this intricate process is simplified and streamlined. Experience a deposit process as effortless as staking, where you can securely deposit your tokens and let our algorithm diligently manage and grow your deposited token.

It introduces Protocol Owned Liquidity (POL): Many web3 projects falter once initial incentives dwindle. Retro aims to avert this by being the lone contributor of $RETRO liquidity in all $RETRO pools and seeding $250k worth of major assets. This approach increases the buy-side pressure for the $RETRO token through POL. The optimized Merkl reward mechanism ensures fair distribution of rewards, incentivizing the injection of major assets and aligning perfectly with the principles of automated market makers (AMMs). Retro’s strategy takes a long-term view and aims to sustain and enhance the project’s ecosystem.

Single Sided $RETRO Pools Benefit Liquidity Providers

Let’s walk through a hypothetical deposit to the wMATIC-$RETRO pool between a traditional 50/50 strategy and Yield IQ.

Traditional 50/50 liquidity strategies require users to deposit their $RETRO tokens into the liquidity pool, resulting in missed opportunities for token locking and voting rights, as well as reduced returns. Moreover, users may experience higher permanent losses due to the absence of token over-sell protection.

Yield IQ’s single-sided liquidity provision offers a game-changing alternative. Users can now save their $RETRO tokens and lock them for veRETRO, while still earning fees from the pool. This approach allows users to enjoy boosted returns and additional incentives on top of fee returns, while benefiting from deposit token over-sell protection, resulting in a smaller permanent loss.

Recognizing the clear advantages, Retro has optimized its $RETRO pools and enabled single-sided liquidity provision exclusively via Yield IQ vaults. This means that every user now has the opportunity to safeguard their $RETRO tokens and maximize their payouts from liquidity provision.

Table 2. Hypothetical Deposit & Return Comparison

Final thoughts

The collaboration between Yield IQ and Retro marks a significant step forward in revolutionizing liquidity provision and governance participation within Retro’s ecosystem. By combining Yield IQ’s innovative single-sided liquidity strategy with Retro’s Ve(3,3) model, users gain newfound simplicity, efficiency, and enhanced rewards in their liquidity provisioning journey.

The ability to unlock $RETRO for Ve(3,3) participation, along with the introduction of Protocol Owned Liquidity (POL), positions Retro as a leader in sustainable and community-driven DeFi projects. With single-sided $RETRO pools now benefiting liquidity providers, users can enjoy boosted returns and voting rights without sacrificing valuable $RETRO tokens. Embracing this cutting-edge approach sets a new standard for decentralized finance and solidifies Retro’s commitment to creating a robust and prosperous ecosystem for its community. As we venture into this exciting new era, Yield IQ and Retro pave the way for a more inclusive, efficient, and rewarding DeFi experience.

Can’t wait to get started?

Yield IQ on Retro is available at Experience smarter liquidity provision.

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