OneRing and the Power of ve(3,3)
$RING LP providers capitalize on sustainable emissions across Optimism and Fantom
In recent weeks, long-term OneRing supporters and newcomers alike have become enchanted with lucrative APRs offered for providing $RING token liquidity on both Velodrome (Optimism) and Equalizer (Fantom) decentralized exchanges (DEX). The APY for $RING LP on both exchanges has surpassed a four-figure return when compounding and averages between 300%-500% APR!
How are such astonishing rates of return possible? Well, that is the power of ve(3,3) and the strategies OneRing has utilized to offer some of the best (non-inflationary) APRs in the entire crypto space. In this article, we take a look at what exactly ve(3,3) is and how you, too, can leverage your $RING to earn incredible yields.
What is ve(3,3)?
Introduced by Yearn Finance founder and Fantom Foundation director, Andre Cronje in January 2022, ve(3,3) combines vested vote escrow (“veNomics”) popularized by Curve Finance with the Nash Equilibrium for token emissions (“3,3”) made famous by Olympus DAO. Cronje pioneered ve(3,3) through his much-hyped Solidly DEX. Since Solidly’s release, there have been a number of forks of the protocol that aimed to further Cronje’s solution and improve on some of its limitations.
How does ve(3,3) work? In the interest of simplicity, let us describe the ve(3,3) processes while trying to avoid technical jargon as much as possible:
- The native DEX token is used to incentivize liquidity on the DEX via decaying emissions (i.e. higher emissions early to bootstrap liquidity).
- The native DEX token emissions are allocated to the DEX’s liquidity pools based on voting by native DEX token lockers. These token lockers receive voting power based on the number of tokens they lock and the length of the lock (one week, one month, one year, four years). The more tokens locked for longer, the more voting power obtained.
- Native DEX token lockers need not be concerned with token inflation as their native token holdings increase at the same rate as emissions.
- Native DEX token lockers receive their lock positions in the form of an NFT that is tradable allowing investors to exit a position without liquidating the underlying assets.
- Participants may also bribe native DEX token lockers to vote for their liquidity pool of choice increasing the pool’s APR and providing extra bribe rewards to voters.
- The voting period, termed an “epoch”, lasts one week. At the end of an epoch (Thursday 00:00 UTC) the ratio of native DEX token rewards allocated to each liquidity pool for the following week’s emissions is determined.
ve(3,3) ushers in a new era of capital efficiency in which the emission of tokens is tied to beneficial actions (locking tokens) and solves the problem of past AMM designs with highly inflationary native DEX tokens.
OneRing’s ve(3,3) strategy
OneRing has been incredibly bullish on the concept of ve(3,3) since its inception last year. With the rollout of our stablecoin yield optimizer platform on Optimism and the bridging of our native $RING token to the Ethereum layer 2 scaling solution, we felt it was the most opportune time to explore ve(3,3) strategies on the chain. That led us to Velodrome Finance.
Described as the “Trading and liquidity marketplace on Optimism”, Velodrome incentivizes liquidity provision through ve(3,3) with its native $VELO token. veVELO holders vote for which liquidity pools they want to receive $VELO emissions in the following epoch. We knew that moving to a new chain and attracting a new community to our platform would take a lot of blood, sweat, and tears… or perhaps some juicy yields would suffice.
The OneRing team immediately got down to business acquiring and locking $VELO for the max lock period of four years in order to maximize its voting power. Once we started accumulating our $VELO bag, we just couldn’t stop. Once you pop, you just can’t stop! Recently, the team reached its target position of 2 million veVELO that is being used to bootstrap liquidity on our RING-ETH pool by providing amazing APR to our $RING LP providers at no cost to the platform (aside from some weekly bribes) with zero $RING inflation! For bribes, every dollar bribed averages an additional $2 in emissions for LP providers!
We were having so much fun on Velodrome that we decided to go for the same ve(3,3) strategy on Equalizer DEX on our native Fantom Opera blockchain. We are currently accruing their native $EQUAL token with the aim of increasing our veEQUAL position thereby driving $EQUAL emissions to the RING-USDC pool on the DEX.
Moving forward, we are in solid position to provide sustainable lucrative yields on both Velodrome and Equalizer for providing $RING liquidity on both DEXs.
Velodrome Finance
- Connect your EVM compatible wallet to the Optimism Network and make sure you have a small amount of $ETH for gas.
- You can purchase $RING on Velodrome or bridge it from Fantom using Multichain.
- To provide vAMM-WETH/RING (Volatile Pool) liquidity on Velodrome Finance go to:
4. If you have locked $VELO, you can use you veVELO voting power to vote for the vAMM-WETH/RING (Volatile Pool) here: https://app.velodrome.finance/vote
*keep in mind that a new epoch begins every Thursday at 00:00 UTC and you should vote for the OneRing pool each epoch in order to continually receive bribe rewards.
5. To claim your accruing $VELO rewards go to:
https://app.velodrome.finance/rewards
Equalizer DEX
- Connect your EVM compatible wallet to the Fantom Opera Network and make sure you have a small amount of $FTM for gas.
- You can purchase $RING on Equalizer DEX or bridge it from Optimism using Multichain.
- To provide vAMM-USDC/RING (Volatile Pool) liquidity on Equalizer DEX go to:
4. If you have locked $EQUAL, you can use you veEQUAL voting power to vote for the vAMM-USDC/RING (Volatile Pool) here: https://equalizer.exchange/vote
*keep in mind that a new epoch begins every Thursday at 00:00 UTC and you should vote for the OneRing pool each epoch in order to continually receive bribe rewards.
5. To claim your accruing $EQUAL rewards go to:
https://equalizer.exchange/rewards
Please keep in mind that both Velodrome and Equalizer are decentralized exchanges and anyone can set up a liquidity pair and vote for it. For the most secure yield, you are advised to stick to the OneRing established liquidity pairs that are linked above.
That’s it! You are all set to earn incredible yields on your $RING holdings. OneRing continues to be the platform that yields them all!
About OneRing
OneRing is the first multi-chain cross-stable coin yield optimizer in the space. The goal of OneRing is to take away the complexity of DeFi and make things easy for the user. By this, we will be able to open the DeFi space for a whole new layer of users that want to receive yield on their stables instead of just having them sit in their wallets. With a strong network of partners, KOLs, advisors, and such, OneRing aims to go right to the top and set new benchmarks for DeFi.
EVM dApp || Solana dApp || Medium || Twitter || Telegram || Discord
