$THE CZ is optimistic about the project, and then Binance announced it, $THE . The current circulating market value is about 90 million US dollars. Some people think it is 150 million. In fact, 300 million is locked for two years and it is voluntary for users. I believe that after you understand it, you will also lock it. Many people don’t understand and think it is another VC coin. This coin is definitely an underlying logical strategic layout behind CZ to reconstruct the BNB ecosystem. Next, I will briefly analyze this coin.
$THE is the Chinese name of the ve33 model, Flywheel 33. Different from the traditional dex, the biggest feature of the ve33 model is that all the income of dex belongs to the ve33 locker. This makes the token a real profitable token, unlike uni and cake, where the tokens are useless.
There are several innovative points here.
In the platform's LP providing tokens, the emission rewards are no longer in the traditional DEX LP format but are directly given in the platform's token, thus avoiding uncompensated losses. The LP emission APY is determined by the votes of the token's stakers.
Voting is conducted weekly to determine the emissions for the following week. Some project parties may choose to bribe voters to increase their project LP's emission APY, which means adding bribes on the voting interface. Therefore, the income for voters includes three parts: the inflation emission of the token, transaction fees, and bribes from project parties. Currently, the weekly voting income for the platform is around 900,000 USD (this is under unrecognizable circumstances).
Since its listing, the platform has accumulated revenue of nearly 30 million USD. When market trading volume is active, it once reached as high as 1.5 million USD per week.
Currently, the average lock-up duration for stakers on the platform has reached 1.78 years, with a max lock of two years. This is essentially equivalent to being in permanent lock-up, with a lock-up ratio close to 80%.
The minimum annualized return on lock-up can be maintained at 35-40% APY even during the bear market when trading volume is at its lowest point. (Large funds often prefer to lock up for interest after hedging.)
Currently, the most successful token of the VE33 model is Aero on the Base chain, with weekly earnings already reaching 1.4 million USD. Aero's circulating market value is about 1.3 billion (with a total market cap of 2.5 billion). Currently, the platform's circulating market value is around 100 million, and last week's revenue was 1.4 million. To reach Aero's market value, there is still about a 13-20 times increase. The characteristic of Flywheel 33 is that once it is in motion (with support from the chain it's on, similar to Base's Aero, which was invested in by the BNB chain last month), it will form a downward pressure on the liquidity of the entire chain and other DEXs, gradually starting to siphon liquidity, ultimately resulting in a situation where 80% of the entire chain's TVL belongs to it, just like Aero.
Binance's consideration of this token also comes from a strategic perspective. The Flywheel 33 model, once it starts spinning, will create a siphoning effect across the entire chain. Many well-known projects on Solana have now cross-chained to Base and formed LPs on Aero. As mentioned earlier, although users can provide LPs, the interest they receive is in the LP's native currency. If the project party or large holders dump, the uncompensated loss will be extremely large. However, the LP on the platform is different; the LP emissions are directly given in the token. After LPers receive the token, they will continue to choose to lock it and vote for their own LP, thus continuing to enhance their LP's APY emissions, while also receiving the fee token emissions from their constructed LP. The tokens received can be used to further construct, which is why the flywheel keeps getting larger and faster. The final value is not only based on the project token but also adds the value of the platform itself. This is the meaning of the first '3' in VE33, which represents a three-party game, not the previous simple one-on-one PVP. Some project parties may add bribes in the last few minutes, potentially increasing APY by hundreds. The game of VE33 is very interesting. You may not understand it yet as you just encountered it; this is more fun than PVP, similar to a brawl where a group of people are fighting each other.
The three-party game is just a simple explanation. In reality, there is not just one pool on the platform, but multiple pools and project parties interacting with each other. The primary goal of the project parties is to increase market value. Through the VE33 model and the limitations of multi-party games, the possibility of project parties engaging in malicious activities is significantly reduced. Because the project parties that go live on the platform will also purchase and lock the token for voting to establish a base pool APY, since they hold the token themselves, they obviously won't dump it. This logic is clear. When the flywheel is large enough, taking Aero as an example, when the TVL is large enough, the VE33 token becomes more like a base currency. As long as there are always transactions on the BSC chain, all holders of this token can continuously earn profits.
As for Binance's logic in investing in the platform, Aero has already been so successful that Binance cannot afford to miss out. It has risen nearly 30 times this year, and once the flywheel starts spinning, it cannot be stopped. Currently, project parties on the Base chain are taking Aero as their goal because all liquidity is there. Without going to Aero, there is practically no liquidity. The VE33 model ensures that project parties cannot engage in malicious activities, such as pulling liquidity, making it very secure, equivalent to the entire chain’s endorsement.
This project has been out for less than 2 years. The current version is the latest VE33. Let me introduce the history of VE33. This was invented by Heizi, the CTO of the FTM chain, but the equal mechanism on FTM has flaws; its lock-up period is too short, only six months, which is not sticky enough and consists entirely of PVP, making the flywheel unable to spin. Then the second generation on OP is Velo, but because of the success of Equal at that time, too many stingy big holders entered. There were too many retail investors, and they directly locked for 4 years, leaving the project party without motivation and controlled by large holders, which had no beneficial effect on the entire ecosystem. Then, coincidentally, the Base Foundation found them, asking them to open a new project on Base, which formed the new company Aero. That was when the VE33 was born, summarizing and upgrading the entire VE33 model.
Recently, Binance has been restructuring the BSC ecosystem. VE33 can basically be said to be reshaping the trading model on the BNB chain. CZ wanted to promote this project before getting involved, but it has been shelved since then. I believe this decision must be part of CZ's strategic underlying logic for BNB chain trading, so the entire ecosystem cannot avoid this infrastructure.
The game of VE33 is very interesting. You may not understand it yet as you just encountered it; this is more fun than PVP.
