CZ released a tweet yesterday, followed by Binance announcing that THE will be listed today at 18:00. Its current circulating market value is about 50 million USD, with some mistakenly thinking it is 200 million; in fact, it is 170 million locked for two years and is voluntary from users.

This token is the key to CZ's layout of the underlying logic of the BNB ecosystem.
THE is the ve33 model (Flywheel 33), which is different from traditional DEXs. The feature of the ve33 model is that all income from DEX goes to ve33 stakers, making the token yield-bearing, unlike UNI and CAKE tokens which have no yield. The innovations are as follows:

  • When providing token LP, rewards are given in non-traditional LP tokens, but directly in THE, avoiding impermanent loss. The LP emission APY is decided by votes from THE stakers.

  • Voting occurs weekly to determine the emissions for the next week. Project parties can bribe voters (the voting interface has bribes), and voters' earnings include THE’s inflation emissions, transaction fees, and bribes from project parties. Currently, the weekly voting earnings for THE are approximately 300,000 USD (when unknown), with nearly 20 million USD accumulated after listing, and during active market periods, it reached 1.2 million USD per week.


The average lock-up amount for the staker is 1.78 years, with a maximum lock-up of two years, nearly 80% locked-up, and the minimum annualized return during the bear market's freezing point is 35 - 40% APY.
Among the ve33 model tokens, the base chain Aero is relatively successful, with weekly revenue reaching 8 million USD and a circulating market value of about 800 million (total market value 1.7 billion). The circulating market value is about 50 million, with an income of 400,000 last week. Compared to Aero's market value, there is a potential increase of 15 - 20 times. The flywheel feature of 33 is that after receiving chain support, like Aero, it will impact chain liquidity and other DEXs, absorbing liquidity, ultimately allowing Aero to occupy 80% of the chain's TVL.
Binance listed this token due to strategic considerations; the ve33 model will create a liquidity-sucking effect. For example, the Sol project crosses chains to Base to establish LP in Aero. The LP emissions are given to the LPs, who will lock up their voting, enhancing their own LP APY emissions and receiving fee token emissions, creating a flywheel effect. The value is bolted to the value of the token, representing a three-party game (multiple pools and multiple project parties), reducing the potential for project parties to act maliciously, as project parties will purchase the token for locked voting to establish base pool APY, preventing price dumping.
The project is less than two years old and is the latest version of ve33. The ve33 was invented by the CTO of the FTM chain, and FTM's equal has shortcomings like short lock-up periods, lack of stickiness, and being entirely PVP, making it difficult for the flywheel to turn.

The second-generation Velo on OP attracted a large number of penny-pinching big holders due to its equal success, with a four-year lock-up resulting in a lack of motivation for project parties and being controlled by large holders, which is detrimental to the ecosystem. Later, the Base Foundation invited them to establish a new company in Base, which is Aero, leading to the emergence of this project and the upgrade to the ve33 model. Recently, Binance has restructured the BSC ecosystem, and ve33 can reshape the trading model of the BNB chain; CZ has had intentions to promote this for a long time.

Summary:

Suggested by Big Brother, just dive in!!!