A 🧵 explaining @solidlyexchange, @SolidexFantom, @0xDAO_fi, @_veDAO_.
$SOLID $SEX $WEVE $OXD
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@solidlyexchange is a new DEX by @AndreCronjeTech (founder of $YFI and $KP3R) that launched last week.
There has been much hype about Solidly for months, and in just a few days since launch, @solidlyexchange managed to accumulate over $2B in TVL.
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$SOLID follows a similar model to $CRV.
• Cheap, low-slippage stableswaps.
• Lock $SOLID for $veNFT (voting power)
• Direction of emissions is decided by voters
• Voters receive bribes
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If you're unfamiliar with $CRV, check out this thread I wrote a few weeks ago.
The $CRV wars are one of the most significant things happening in #DeFi right now, and will give you a feel for how the $SOLID wars are evolving and why.
twitter.com/shivsakhuja/status/1494159690946646022?s=21
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So why is @solidlyexchange better than a DEX like @SpookySwap or @Spirit_Swap?
• Cheap, low slippage swaps
• Community chooses where emissions are directed
• Lockup / voting mechanism for $SOLID = good tokenomics
• Andre Cronje is involved (hype + trust + quality)
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Now, what about the other players in this fight?
$SEX (@SolidexFantom) & $OXD (@0xDAO_fi) are to $SOLID what $CVX is to $CRV.
$WEVE (@_veDAO_) is kind of similar to $BTRFLY (@redactedcartel). i.e - it's goal is to accumulate governance tokens, and direct emissions.
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Just like @ConvexFinance, @SolidexFantom adds it own emissions (in $SEX tokens) on top of $SOLID farming rewards to encourage people to deposit to Solidex.
@0xDAO_fi will be similar to @SolidexFantom, though it hasn't begun allowing people to deposit Solidly LPs yet.
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The yields from emissions for liquidity providers on @solidlyexchange and @SolidexFantom were very juicy, especially early on:
• $FTM-$TOMB @ 600%+ APR
• $SPIRIT-$linSPIRIT @ 3000%+ APR
• $USDC-$MIM @ 60%+ APR
• $HND-$FTM @ 1400%+ APR
• $BOO-$xBOO @ 2000%+ APR
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This led to a ridiculous inflow of TVL in a matter of days.
• The $FTM chain TVL went from $9B to $13B+ in 2 days.
• $FTM ecosystem coins pumped a lot during those days
• @solidlyexchange and @SolidexFantom scooped up $2B+ on TVL.
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@SolidexFantom has it's own token $SEX as well as it's own locking / voting mechanism.
I won't go into the details of that as there's a lot to explain and there are other people who have already written about it (linked at the end of this 🧵)
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This Medium article by @SolidexFantom explains the @solidlyexchange mechanics in detail.
medium.com/@solidsex/all-about-solidly-9b31ae57b60f
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What about @_veDAO_ $WEVE?
@JackNiewold has a great thread about it
twitter.com/JackNiewold/status/1498865022998622209?s=20
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There's a lot more I'd like to write about each of these projects but I don't want to ramble about how they work when you can read that elsewhere.
Let's discuss some actionable strategies on how you can get involved, depending on your viewpoint.
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The @solidlyexchange launch has been so hyped for so long, that the $FTM network has gotten super congested as a result.
Pro-tip: If you're willing to pay, I'd recommend bumping up the gas price when confirming transactions in MetaMask to avoid tx getting stuck.
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Currently, all the farming strategies are using @solidlyexchange and @SolidexFantom.
@SolidexFantom rates have dropped considerably since the launch, but they're still some of the best in the $FTM ecosystem.
I'm also excited to see what @0xDAO_fi comes out with.
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Strategy #1: $SPIRIT bull
• $SPIRIT-$linSPIRIT LP @ 400% APR
Instead of $linSPIRIT, you can use $rainSPIRIT, $binSPIRIT, $sinSPIRIT, etc for 2000%+ APR, but I don't know much about those.
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Strategy #2: $FTM ecosystem bull
If you're overall bullish on the FTM ecosystem, a similar strategy can also be used for:
• $LQDR-$FTM @ 400% APR
• $BOO-$xBOO @ 200% APR
• $BEETS-$fBEETS @ 250% APR
Also, $GEIST and $SCREAM.
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Strategy #3: Market neutral farming (if you're not bullish on $FTM or the overall market)
• Deposit $5k to $FTM-$TOMB LP on @Solidly
• Stake LP tokens to @SolidexFantom @ 200% APR.
• Short $5k $FTM (Borrow $FTM on @HundredFinance and sell for stables)
= ~100% APR
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Strategy #4: Betting on $SOLID.
• $FTM-$SOLID @ 400% APR
• $USDC-$SOLID @ 500% APR
• $SOLIDsex-$SOLID @ 400% APR
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Strategy #5: Farm non-FTM coins against FTM or USDC (still bullish on FTM but less exposure)
• $FTM-$HND @ 600% APR
• $FTM-$CRV @ 180% APR
• $FTM-$MULTI @ 400% APR
• $CRV-$g3CRV @ 200% APR
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Strategy #6: Bet on the $SOLID wars (other tokens in the game)
• $OXD-$USDC @ 500% APR
• $SOLID-$SEX @ 200% APR
• $SOLIDsex-$SOLID @ 350% APR
• $SOLIDsex-$g3CRV @ 850% APR
• $WEVE - $USDC @ 700% APR
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Keep in mind that all these strategies are high-risk.
• Tokens have price risk
• Protocols have smart contract risk
• LPs have Impermanent Loss risk
twitter.com/shivsakhuja/status/1482188295488430086?s=20
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Now what can you do with the rewards?
You could:
1. Harvest and sell for stables / crypto every day or so
2. Hold the $SOLID and use it to lock / vote / receive bribes.
3. Compound it into more LPs (manually or through autocompounders)
I'm doing a combination of 1 & 2.
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For example, let's say you invested $20,000 into a pool paying 365% APR.
You will receive 1% or $200 daily (subject to fluctuations of APR).
You could convert $100 daily into stables, and use the other $100 to add to your $SOLID lockup to vote and receive bribes.
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If you lock up, make sure to actually vote and claim bribe rewards.
Here are some of the tabs on the @solidlyexchange app:
• Vest: Lock $SOLID for $veNFT
• Vote: Vote for next emissions using your $veNFT
• Rewards: Claim bribes and swap fees.
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There are so many ways to play this, and so much happening.
Things are changing every day - this has been a really exciting one to follow in #DeFi.
I'll try to keep sharing / retweeting useful content about developments in the $SOLID wars.
Stay tuned!
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Some additional reading if you're interested:
@AvgJoesCrypto has put out some really $SOLID content (pun intended) on his substack:
avgjoescrypto.substack.com/p/a-beginners-guide-to-solidly-strategies?r=r78rm&s=w&utm_campaign=post&utm_medium=web&utm_source=direct
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Another post by @AvgJoesCrypto:
avgjoescrypto.substack.com/p/ve33-an-introduction-into-the-new?r=r78rm&s=w&utm_campaign=post&utm_medium=web
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@JackNiewold has been covering $SOLID in great detail for a while.
He has been awesome at staying on top these projects and sharing the research in digestible threads. I've learned a lot from his content.
Here's a 🧵 of his 🧶 on @solidlyexchange:
twitter.com/JackNiewold/status/1499177618377109510?s=20&t=IlPbUvWD44wuaJZ6jvYhZg
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@Prof_Crypto_B is a great follow as well (on Twitter + YouTube) - he's put out some helpful videos explaining some of the $SOLID / $SEX news recently:
twitter.com/Prof_Crypto_B/status/1498855603237703683?s=20&t=Rxr8DFF5vn3-EUBrIRjoqA
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If you liked this 🧵, you might like my past threads about all things #DeFi 👇
twitter.com/shivsakhuja/status/1470898910218440708?s=20