$IOTX IOTX Internet of Things AI
Good morning, Dragon Prince III is on duty!
Today I will briefly introduce to you the new Defi project Loxodrome on IOTX. In fact, friends who participated in the AMA of the community last week should have a clear understanding of it. Here I will only explain its economic model. (If you want to know about the IOTX ecological project, you can join the IOTEX Chinese Telegram group).
Loxodrome is the first decentralized exchange on IoTeX that focuses on DePIN, and is committed to building the first native liquidity market for DePIN.
Economic model: Loxodrome adopts the ve(3,3) model that combines Curve's ve model and OlympusDAO's (3,3) game model, and the ve33 protocol mechanism. The combination of the two attempts to balance the holders and traders in the supply, bringing more protocol income to projects joining the Ve(3,3) protocol (especially initial projects) while improving the efficiency of issuing rewards when leasing liquidity.
ve is the abbreviation of Voting Escrow, which is the step of exchanging governance tokens for pledge locks to obtain more rewards as LPs. Ve was launched to strengthen incentives for long-term token holders. (3,3) comes from OlympusDAO's (3,3) game theory (derived from Nash equilibrium theory). This term comes from the standard notation in game theory, which is used to describe an important feature of the game: the strategies and payments of the game participants. In this notation, the first number in the brackets represents the number of strategies available to the first participant (usually the actor), while the second number represents the number of strategies available to the second participant (usually the opponent). The first number in the brackets represents the profit of participant 1, and the second number represents the profit of participant 2. The larger the number, the more profit, and the negative number represents a loss.
ve(3,3) provides certain protocol token rewards to liquidity providers, which enables ve(3,3)-type DEXs to have an innate ability to launch new coins. Newly launched protocols do not need to hire any market makers. They only need to import ve(3,3) protocol rewards into their own token liquidity pools, and users will provide liquidity for the liquidity pools. Here, the ve(3,3) protocol can also empower lockers through Launchpad, thereby increasing the lock-up rate of the protocol and improving the health of the protocol.
