$THE CZ tweeted yesterday, followed by Binance announcing that it would be listed today at 18:00. Currently, $THE has a circulating market value of around 50 million dollars. Some people believe it could reach 200 million, but in fact, 170 million is locked for two years and it is voluntarily locked by users. I believe that once you understand, you will also lock it. Many people misunderstand and think it is just another VC coin. This coin is definitely a strategic layout behind CZ to reconstruct the BNB ecosystem. Next, I will analyze this coin.
$THE is based on the ve33 model, known in Chinese as the flywheel 33. Unlike traditional dex, the biggest feature of the ve33 model is that all income from the dex goes to the ve33 stakers. This makes the token a truly profitable token, unlike UNI and CAKE which are useless tokens.
There are several innovative points here.
1. In the lp provided by the THE, the rewards distributed are no longer the lp tokens as in traditional dex, but directly the THE, thus avoiding impermanent loss. The apy of the lp distribution is determined by votes from the THE stakers.
2. Voting is conducted weekly, deciding the distribution for the next week. Some project parties may choose to bribe voters to increase their own project's lp apy, which is added as a bribe in the voting interface. Therefore, the income for voters includes three parts: inflation distribution of THE, transaction fees, and bribes from project parties. Currently, the weekly voting income for THE is approximately 300,000 U.S. dollars (this is under unknown circumstances).
Since its listing, THE has accumulated revenue of nearly 20 million U.S. dollars. When market trading volume is active, it has previously reached as high as 1.2 million U.S. dollars per week.
Currently, the average locking period for THE stakers is 1.78 years, with a maximum lock of two years. This is essentially equivalent to being permanently locked. The lock-up ratio is close to 80%.
The minimum annualized yield for locking, even during the bear market when trading volume is at its lowest, can be maintained at 35-40% apy. (Large funds locking up after hedging to earn interest is the most favored.)
Currently, the most successful token based on the ve33 model is Aero on the Base chain, which has weekly earnings currently reaching 8 million U.S. dollars. The circulating market value is approximately 800 million (total market value 1.7 billion). Currently, THE's circulating market value is about 50 million, with last week's revenue at 400,000. To reach the current market value of Aero, it could have a potential increase of 15-20 times. The characteristic of the flywheel 33 is that once the flywheel starts turning (receiving support from the chain, similar to Aero on Base), last month BNB has already invested in THE.