✍️Core Principles

Core Principles 📜

Liquidity Incentive Challenges

The DeFi sector has expanded significantly through liquidity mining and UNI V2-supported DEXs. But current liquidity rewards often end up in low-utilization pools. We target a more balanced distribution with our gauge voting approach, directing rewards to higher fee-producing pools. This strategy bridges the interests of token owners and liquidity suppliers, tackling the prevalent inefficiencies and enhancing revenue opportunities.

Static Rewards Issue

Liquidity mining, with its token rewards, has propelled DeFi's growth, driving actions like liquidity provision. While DEX groups concentrate on boosting revenue by refining rewards for high fee-yielding pools, it creates obstacles for emerging protocols with restricted volume. This system builds entry barriers, hindering broader participation.

Our Gauge Voting Mechanism

Within the Skydrome ecosystem, incentive directions follow gauge weight votes, echoing Curve Finance's "vote-escrowed" framework. Weekly, veSKY token possessors decide on emission amounts during epochs. As epochs approach completion, emission shares mirror the consensus of the votes. Skydrome's Gauge Weight Voting system, combined with the Bribing Marketplace, enables protocols and token initiatives to offer incentives for veSKY votes, guiding gauge results. At an epoch's close, those backing a gauge savor the benefits of their selected route.

Understanding Solidly

Introduced by the brilliant Andre Cronje on Fantom, Solidly is a mesmerizing automated market maker (AMM) and liquidity platform. It offers affordable transactions with minimal slippage for both closely and distantly related tokens. Solidly diverges from traditional AMMs, focusing on fee generation and a harmonized liquidity reward strategy. Addressing primary AMM challenges, it delivers consistent fee allocation, appealing liquidity mining, and efficient bootstrapping, while emphasizing amplified rewards, enticing incentives, and the potency of vote-escrowed tokens, without compromising features like the flash loan-resistant TWAP.

Evolutions in Skydrome

Skydrome has overhauled the foundations of Solidly and Velodrome, guaranteeing the protocol operates flawlessly. This refinement allows for the compensation of liquidity providers against transient losses, synchronizing with the primary goal of enhancing fee production. Though Solidly faced significant barriers within the Fantom network, Skydrome has undertaken several enhancements:

  • Adjusted the emission timetable

  • Refined token economics

  • Improved the preliminary allocation

  • Partnered with a comprehensive set of launch allies

  • A devoted team persistently fine-tuning the system

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