0x22Ce is an experimental trading account, focused on the Optimism Ecosystem DeFi.
0x22Ce is an experimental trading account, focused on the Optimism Ecosystem DeFi.
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Liquidity Depth is financial bandwidth for DeFi Protocols. LP Incentivization is an operating cost for DeFi, and veVELO leaderboard protocols are seeking efficiency.
Velodrome is an $OP DeFi Protocol owned, LP - Cooperative.
Target Owners:
Protocol Treasuries seeking to indefinitely farm their own Protocol Owned Liquidity.
Protocols compound accumulating veVELO on max lock, to govern which pools benefit most from dilution.
SNX | [THALES | LYRA | KWENTA] LPs
An example of a block of protocols on the veVELO Leaderboard.
VELO LPs
OP LPs | [wETH and public goods stables.]
~77% of supply is locked for an AVG. of 3.7 years.
This ratio adjusts weekly along a deterministic inflation curve.
Enlistment of Co-Op Members is accomplished through a series of subsidies:
[The Bait -- Epoch 1 to 60]:
The Tour de OP incentivizes Protocols to build positions aggressively over the next 8 months by offering $OP Rebates & Bribe Matches.
Ends ~Epoch 60, August ‘23 -- Beginning the veRebase Decline.
[The Hook -- Epoch 60 to 110]:
During the Lock-In Period, the protocols who built a position using $OP Subsidies and Bribe Matches, will compete to carry the burden absorbing dilution, so they do not lose the advantage gained in the first Subsidy.
May also be PvP Bribe capture.
Ends ~Epoch 110, April ‘24 -- Beginning of Tapered Inflation Rate.
[Hype -- Epoch 110 to 200]:
The BTC Halving is around ~March ‘24, theorizes a new bull cycle. The final subsidy is in the pumping of $VELO price as the Total Supply tapers toward flat.
Bribes are also inflated in value.
[good to incentivize exit liquidity.]
When Inflation approaches Total Supply, the price of VELO ought to be within the upper range of ATH.
[POL Fees Subsidy -- Epoch 200+]:
The highest periods of fee generating trade volume, when LPs most need to be incentivized are the first cascading liquidations of the next bear market. Those fees can go toward protocols whose treasury management understands how to hedge LP.
.:.
The $VELO Emission Curve is a weekly token accrual game between OP DeFi Protocols, in order to see which pools will facilitate the next bear market.
The VELO Team has max-locked its entire Team Allocation, and is living off of the bribes and subsidies.
https://twitter.com/taowatts/status/1605061422446252032?s=20&t=RJfDkrXjMdKej-d4-NcrQw
.:.
[Conclusions:]
Approximately 77% of Circulating Supply is locked for 3.7 years, and incentives are designed to maximize competition to maintain or increase this ratio and extended lock rate until after Epoch 110.
Volatile LPs will likely start to become profitable Epoch 110 [April ‘24]
ATH for VELO will likely occur between Epoch 150 [March ‘25] & Epoch 190 [Dec ‘25].
~23% of the supply available on the market.
$VELO is the high beta LP Co-Operative owned by the $OP DeFi Index.
The Winners of the veVELO Leaderboard will be be the Treasuries and Market Makers of the $OP DeFi Index.
.:.
[Minimize Dilution Thesis:]
The game played is about competing for a percentage of ownership of the cooperative, while also trading a macro $OP DeFi Index.
Any action which leads toward a greater capture of the $VELO inflation curve or the $OP DeFi Index is a winning action. Such as building a protocol on $SNX Liquidity, or $VELO Liquidity.
[Bribe Farmer Thesis:]
Building a $veVELO position, and dumping bribes to build $LINK | $SNX collateral.
$veVELO Risk Continuum
[Minimize Dilution] ------------------------------------------------------ [Bribe Farmer]
Liquidity Depth is financial bandwidth for DeFi Protocols. LP Incentivization is an operating cost for DeFi, and veVELO leaderboard protocols are seeking efficiency.
Velodrome is an $OP DeFi Protocol owned, LP - Cooperative.
Target Owners:
Protocol Treasuries seeking to indefinitely farm their own Protocol Owned Liquidity.
Protocols compound accumulating veVELO on max lock, to govern which pools benefit most from dilution.
SNX | [THALES | LYRA | KWENTA] LPs
An example of a block of protocols on the veVELO Leaderboard.
VELO LPs
OP LPs | [wETH and public goods stables.]
~77% of supply is locked for an AVG. of 3.7 years.
This ratio adjusts weekly along a deterministic inflation curve.
Enlistment of Co-Op Members is accomplished through a series of subsidies:
[The Bait -- Epoch 1 to 60]:
The Tour de OP incentivizes Protocols to build positions aggressively over the next 8 months by offering $OP Rebates & Bribe Matches.
Ends ~Epoch 60, August ‘23 -- Beginning the veRebase Decline.
[The Hook -- Epoch 60 to 110]:
During the Lock-In Period, the protocols who built a position using $OP Subsidies and Bribe Matches, will compete to carry the burden absorbing dilution, so they do not lose the advantage gained in the first Subsidy.
May also be PvP Bribe capture.
Ends ~Epoch 110, April ‘24 -- Beginning of Tapered Inflation Rate.
[Hype -- Epoch 110 to 200]:
The BTC Halving is around ~March ‘24, theorizes a new bull cycle. The final subsidy is in the pumping of $VELO price as the Total Supply tapers toward flat.
Bribes are also inflated in value.
[good to incentivize exit liquidity.]
When Inflation approaches Total Supply, the price of VELO ought to be within the upper range of ATH.
[POL Fees Subsidy -- Epoch 200+]:
The highest periods of fee generating trade volume, when LPs most need to be incentivized are the first cascading liquidations of the next bear market. Those fees can go toward protocols whose treasury management understands how to hedge LP.
.:.
The $VELO Emission Curve is a weekly token accrual game between OP DeFi Protocols, in order to see which pools will facilitate the next bear market.
The VELO Team has max-locked its entire Team Allocation, and is living off of the bribes and subsidies.
https://twitter.com/taowatts/status/1605061422446252032?s=20&t=RJfDkrXjMdKej-d4-NcrQw
.:.
[Conclusions:]
Approximately 77% of Circulating Supply is locked for 3.7 years, and incentives are designed to maximize competition to maintain or increase this ratio and extended lock rate until after Epoch 110.
Volatile LPs will likely start to become profitable Epoch 110 [April ‘24]
ATH for VELO will likely occur between Epoch 150 [March ‘25] & Epoch 190 [Dec ‘25].
~23% of the supply available on the market.
$VELO is the high beta LP Co-Operative owned by the $OP DeFi Index.
The Winners of the veVELO Leaderboard will be be the Treasuries and Market Makers of the $OP DeFi Index.
.:.
[Minimize Dilution Thesis:]
The game played is about competing for a percentage of ownership of the cooperative, while also trading a macro $OP DeFi Index.
Any action which leads toward a greater capture of the $VELO inflation curve or the $OP DeFi Index is a winning action. Such as building a protocol on $SNX Liquidity, or $VELO Liquidity.
[Bribe Farmer Thesis:]
Building a $veVELO position, and dumping bribes to build $LINK | $SNX collateral.
$veVELO Risk Continuum
[Minimize Dilution] ------------------------------------------------------ [Bribe Farmer]
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