With the recent Solidex offer to partner with Beefy, we took the chance to invite 0xbasmag to explain a bit more about the project. There are a few things to consider for Beefy and $BIFI holders, so let’s jump in and learn more about the opportunities available for Cowmoonity stakers.
What is Solidex?
Solidex is a new project that aims to be the Convex of Solidly (Andre Cronje’s latest Fantom “experiment”). Solidex optimizes rewards, voting power, and liquidity provisioning on Solidly, providing boosted SOLID emissions to Solidly LPs. The mechanism is similar to how Curve and CRV works, where Solidly LPs will earn SOLID emissions for providing liquidity.
Earned SOLID can then be vote locked into veSOLID (for a max of 4 years). The longer you lock, the greater rewards and benefits. veSOLID lockers earn trading rewards from the protocol, as well as voting power to direct future SOLID emissions.
Solidex has no VCs, investors, or advisors and is a small team of DeFi veterans.
Where does Solidex fit in with Solidly?
Solidex has a few use cases for Solidly users:
1. If you have SOLID tokens you wish to lock, Solidex allows you to earn a larger share of trading fees and rewards. You also share boosted SOLID emissions received by liquidity providers in exchange for you providing a boost to the protocol.
2. If you want to be a Solidly liquidity provider, using Solidex means you earn boosted SOLID rewards without having to lock SOLID yourself for several years, as well as additional SEX rewards. SEX is the protocol’s native token that controls Solidex voting power and allows users to claim rewards.
3. If you want to maximize your voting power and influence over SOLID emissions and gauges, Solidex ensures veSOLID is always max locked to maximize voting power. It is locked continuously for four years and extended.
You can use your maximized voting power via the SEX token that can be locked for up to 16 weeks to earn additional rewards. Solidex has no deposit or withdrawal fees and takes a small performance fee of SOLID earned by LPs. This is then distributed to SOLID and SEX lockers in its entirety.
What benefits does Solidex offer to the protocols that join the project as partners?
Projects that partnered with Solidly are all in line to receive an NFT by Andre. These partners can then deposit the NFT into Solidex and bootstrap its boost.
Only a limited number of projects can join Solidex, why is that? How will this partnership benefit Beefy?
Solidex provides partners a share of ownership in the protocol through SEX token allocation. This is designed so partners will be strictly equal or better off by joining rather than going at it alone. There are also special benefits for early partners.
Beefy will gain liquid tokens corresponding to its NFT deposited into Solidex, An equivalent amount of SOLIDsex tokens will also be distributed to the protocol. This avoids the need for Beefy to fractionalize the NFT itself and extend its lock. Beefy will also get a share of the SEX supply for all perpetuity.
Partners get an exclusive advance allocation of SEX tokens, roughly estimated at 3 months worth of emissions. This means partners have SEX tokens to lock at launch before anyone else, even the team.
What percentage is Solidex earning and in which form?
The performance fee is 15% and shared amongst two groups:
1. Those who converted SOLID to SOLIDsex and staked this in the protocol receive 10% of all SOLID earned by the protocol as vanilla SOLID tokens.
2. Those who have locked SEX receive the other 5% as SOLIDsex. This allows a good equilibrium between Solidly liquidity providers and SOLID lockers.
With Solidex’s current partners, what percentage of the ve(3,3) supply do you control?
Partners that hold 28% of total veSOLID power have so far joined us. Andre has also added negative votes to Solidly, meaning you can agree to downvote other gauges you don’t want to receive solidly emissions
However, if you join early, Solidex launch partners will receive… Contraception! Up to two gauges of a partner’s choosing are protected from being down-voted by negative votes from other Solidex users.
Which ways would you say this partnership will be positive for $BIFI token holders?
This depends on Beefy’s actions. If it wants to “cash out” from the NFT immediately, it will have two token amounts:
These are ERC-20s Beefy can airdrop to the Cowmoonity. Beefy could also play the “voting power game” and try to maximize its head-start advantage.
By max locking SEX constantly (16 weeks max), the rewards earned from ve(3,3) expansions are put into SOLIDsex staking, which gives Beefy SEX to max lock. Beefy can then compound the SOLID performance fees you earn from LPs (15% spread over these two pools).
The less SEX that is max locked, while Beefy max locks and compounds it, the greater voting power (of Solidex total) you end up being in command of. This means the more partners that join, the less likely it will be all play the game optimally, meaning you get more of their power.
We heard that 0xDAO is doing something similar to Solidex, is this accurate?
You will probably know more than me about what they are doing, but we are talking with 0xDAO folks and are welcoming them to team up with us. I don’t know if any specifics of their plans have been announced yet. On our side, we are ready to launch
Solidex is written from the ground up, from first principles. We are not releasing any code in advance so as not to attract forkers. But we have an audit scheduled already to start soon and will publish the results of that once it is available
The team share seems high at 20%? What was the decision behind that? (Weso)
We are bootstrapping the entire protocol ourselves, and have no “treasury”, we will finance all work required to grow the protocol
All this sex diplomacy ain’t gonna pay itself! 😅
Solidly is designed to print in perpetuity and has no capped supply. Andre designed it to last forever, so Solidex has done the same thing.
SEX token emission is a constant function of the amount of SOLID that the protocol earns. Every time a Solidex LP earns 4.2069 SOLID, they get 1 SEX. This also means that Solidex does not earn any tokens if the protocol is not used
The team gets nothing until LPs are earning SOLID from the protocol, and it only continues to receive SEX tokens if they do.
Vote on Beefy’s future with Solidex
With the chance of a possible partnership, the Beefy DAO needs to make a decision. For more information follow our Twitter, we will be announcing everything there. If you hold $BIFI you can be part of it through our Snapshot governance vote to help decide the path Beefy should take.