veZard DEX
Last updated
Last updated
Similar to any other DEX, you can swap tokens on veZard Finance for others. The slippage and price of the trade are determined with direct regards to the amount of total value locked in the liquidity pairs, and whether arbitrage has evened out the pool to its appropriate market rate. On veZard Exchange there are two types of Liquidity Pools, which have two types of swap curves:
Volatile (UniV2-Style): The most basic of them all is the volatile 50/50 liquidity pool. This means that each volatile pool will have an equal weight (in dollar value) of each token paired with one another.
The volatile swap curve used is:
Stable (Curve-Style): The stable curve used by veZard Finance is a more efficient implementation of stable swaps than other DEXes. The original Solidly stable swap curve was well thought out by Andre, and we want to honor that innovation by maintaining it as much as possible. Near-zero slippage is achieved with the innovative swap model.
The stable swap curve used is:
This make veZard Finance a great variable and stable swap.
The main purpose of the veZARD is to direct emissions to LP token pairs. This is achieved through voting for the pair. Emissions are distributed proportionally to the total percentage of votes in the epoch.
The expected emissions can be calculated using a simple division formula as such:
For example, in the first epoch 5,000,000 $ZARD will be distributed. If 10% of all votes are allocated to the vAMM-USDC/WETH pair; that pair will receive 500,000 $ZARD tokens distributed linearly throughout the epoch.
A core feature of the ve(3,3) DEX model is bribing. There are two types of bribes within the system:
Vote Bribes - Users/Protocols can bribe voters to direct emissions to specific token pairs, and in return receive a proportional distribution of the bribes.
Gauge Bribes - Similarly to emissions, tokens can be bribed directly to LP stakers to incentivize liquidity growth of the targeted pair. This is mainly useful for protocols who want to bootstrap liquidity efficiently on the veZard DEX.
At the core of it all, managing your veZARD positions is a crucial part of the veZard Finance model. Whether you are a user, or a protocol, it is important to routinely visit the vesting page to adjust your ve lock lengths, merge, or create a new veZARD position. The existing functions within the vesting page are:
Create Lock
Manage Lock
Increase Lock Amount
Increase Lock Length
In the veZard Exchange model, LP providers do not earn swap fees since 100% of fees go to veZARD holders. Instead, staking gauges are implemented to incentivize users to provide LP tokens to earn attractive APRs. The more votes allocated to a pair, the more $ZARD that will be emitted to the gauge in the following epoch.