Protocol Overview

veSync is a cutting-edge Decentralized Exchange (DEX) built on the zkSync network, seamlessly combining liquidity, voting, and rewards to create an unparalleled DeFi experience. Offering fast, cost-effective transactions and a robust ve(3,3) incentivization model, veSync empowers its community through permissionless pool creation, democratic voting, and fee accumulation for ve lockers.

These key factors drive a more engaged and dynamic DeFi ecosystem, establishing veSync as a leading platform in the decentralized finance space.

zkSync Integration

By building on top of the zkSync network, veSync leverages the power of zk-rollups and zero-knowledge proofs to offer faster, more efficient transactions with significantly lower fees than traditional Ethereum-based platforms.

This integration helps address the scalability issues faced by many existing DEXes, making veSync an attractive choice for DeFi users and protocols.

Reward with Emissions

The veSync protocol ensures a balanced and efficient distribution of rewards and emissions. Voting rewards can only be claimed after the emissions associated with a specific vote have been committed. Additionally, during each epoch, voters can make only one “active” voting decision, and the protocol distinguishes between bribes originating from fees and those from external sources.

This carefully crafted mechanism promotes a healthy balance between voters and external bribers, encouraging strategic voting behavior and providing incentives for early participation in the protocol. By optimizing the reward and emission process, veSync fosters a sustainable and thriving DeFi ecosystem.

Ensuring Productive Gauges

To promote productive gauges within the veSync ecosystem, several measures have been implemented:

  1. On-chain governor for whitelisting pairs: An on-chain governor has been introduced to whitelist pairs used in gauges. Voters require a minimum of 0.02% to submit a proposal and 4% to achieve a quorum. By eliminating the ability to whitelist pairs through a fee, the protocol ensures that those participating in the whitelisting process are economically aligned with the system. Please note that the on-chain governor will not live at the protocol launch immediately.

  2. Increased initial swap fee to encourage productive liquidity: The initial swap fee has been doubled from 0.01% to 0.02%, providing voters with twice the incentive to direct emissions towards productive liquidity. Despite the increase, this rate remains lower than alternative exchanges (e.g., Curve at 0.04%). Different fees apply to stable and volatile pairs, both adjustable up to a maximum of 0.05%.

These enhancements aim to foster a more productive and efficient environment within the veSync protocol, ensuring emissions are directed toward beneficial liquidity sources.

Prolonged Emissions Decay:

To strike a balance between rewarding early adopters and maintaining the protocol’s appeal for future participants, veSync has implemented several measures that extend the emissions decay process:

  • Refined emissions growth function: The formula (veVS.totalSupply ÷ VS.totalsupply)³ × 0.5 × Emissions has been employed to calibrate rewards for both early and late entrants. This adjustment guarantees that early participants secure a larger portion of rewards while preserving enticing incentives for new users joining veSync.

  • Elimination of negative voting: Negative voting fostered unhealthy competition and accelerated emissions decay. By removing this feature, veSync encourages a more cooperative atmosphere among voters and extends the emissions decay timeline.

  • Redistribution of LP emissions “boost”: Rather than amplifying emissions for voters, veSync reallocates these rewards to all LPs, irrespective of their veNFT ownership status. This strategy incentivizes external liquidity providers to partake in the protocol, resulting in a more sustainable emissions decay rate over time.

These enhancements ensure a more balanced and prolonged emissions decay for veSync, providing rewards for early adopters while continuing to attract new participants. By optimizing the emissions decay process, veSync promotes a sustainable growth trajectory and long-term value for all stakeholders in the ecosystem.

Premium Support

Embracing the ethos of sustainable development, the protocol is dedicated to delivering top-tier support for all partners and stakeholders involved. A percentage of perpetual emissions is allocated to the team’s multi-sig, guaranteeing ample resources for team members and facilitating product growth. This robust support framework ensures ongoing development and enhancement of the protocol, ultimately benefiting everyone within the ecosystem.

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