In the ever-evolving world of cryptocurrency, the latest buzzword is VeNFT, a combination of "vote escrow system" and "NFT" (Non-Fungible Token). While NFTs have been around for a while now, VeNFT’s are a relatively new phenomenon that is taking the crypto world by storm.

What are VeNFT’s?

VeNFT’s are voting NFT’s tokens that represent ownership of a vote escrow system based on the algorithm behind them(backed by a locked token) which has been vested (locked). Unlike traditional NFTs, VeNFTs are designed to be liquid, meaning they can be easily bought, sold, and traded. This makes them an attractive investment option for those looking to put their money into the crypto world for a longer duration and earn while doing so.

Ok let’s try to clear the air here, NFT’s are non- fungible tokens which ranges from photos, videos, files, music, videos and other form of collectibles, but veNFT’s are a little bit different but also having the same concept of an NFT. To make this easier lets work with an example, Imagine trying to wrap a token on a particular chain (let’s say Binance Smart chain) just as in the photo below.

Now here is what’s going on here, the WBNB (wrapped BNB) and the BNB has the same value, meaning it does not loose value irrespective of the amount wrapped i.e

the value of WBNB : the value of BNB.

If you understand this concept then kudos, so let’s step a bit further. Imagine wrapping BNB but instead of getting WBNB you get the WBNB as an NFT, does that sound confusing? Ok here is what happens when we talk about veNFT’s whenever we lock our staked tokens in a pool for a duration an NFT is minted to your address. This NFT’s acts as an agreement between the contract and the owner of the token “YOU” and can be issued out upon expiration of the proposed time.

The best part of this is that the NFT minted from locking your tokens can be traded (depending on the platform) but in most cases all are tradeable.

Here’s a veNFT sample from the Velodrome collection

Here are what the veNFT contains

Token id - the NFT serial number

Balance of - the balance of the NFT

Locked end - the duration of the lock

The Benefits of VeNFTs

One major drive towards traditional NFT’s are the use case of the NFT, here VeNFT’s offer a large number of benefits over traditional NFTs, including:

Liquidity: As mentioned, VeNFT’s are highly liquid, meaning that they can be quickly and easily bought, sold, or traded. This makes them an attractive option for those looking to put their money into the crypto world.

Accessibility: Unlike traditional NFTs, which can be expensive and difficult to obtain, VeNFT’s are designed to be accessible to a wide range of people. This means that anyone can invest in VeNFT’s, regardless of their financial status.

Transparency: VeNFT’s are stored on a blockchain, meaning that all transactions are publicly visible. This adds a level of transparency that is not present in traditional NFTs, and helps to prevent fraud and counterfeiting.

Decentralization: VeNFT’s are not controlled by any central authority, meaning that they are not subject to censorship or manipulation. This makes them an attractive option for those looking for a decentralized investment option.

Here are some platforms where you can interact with which leverages on the veNFT concept:

Velodrome Finance - Built on the Optimism chain, Velodrome addresses these issues and presents an attractive alternative by addressing the core issues in Solidly and adding its own improvements. To recall, the key innovation of Solidly was to align protocol emissions with fees generated, not simply liquidity. To do this, it would allow protocols and other large stakeholders to become veNFT "voters", using their locked voting power to direct future emissions and collecting fees (termed bribes in Solidly) from the pools they voted for.

Equalizer Exchange - Built on the Fantom Chain Equalizer Exchange is a DEX that uses a vote escrowed model to drive Liquidity to the highest volume pairs. Join Our Community. You can call this the Velodrome of the Fantom chain, another similar, fast growing veNFT supported platform which potential is yet to be discovered.

Plenty - Built on the Tezos chain, the goal of the Plenty is to better align emission of tokens to beneficial actions and solve the problem with current AMM designs where liquidity provision is temporarily subsidized while fee generation -the more sustainable incentives-generating mechanism- is not.

Similarities between Velodrome, Equalizer & Plenty (all three protocols possess these features)

Bribes: The concept of bribes was made popular by Convex which came to control a large share of Curve voting power. As users kept chasing high CRV rewards, protocols realized they could grow their protocol and on-chain liquidity by bribing veCRV holders to vote for their pool.

Votes: Users can allocate their voting power towards one or more gauges to earn trading fees and bribes attached to the liquidity pool. Gauges receive newly minted VELO/EQUAL/PL proportional to its vote weight. Each user with a veVELO/veEQUAL/vePLY NFT can change their preference at any time.

Swap: Users can trade their tokens for supported tokens which are listed on the protocol dex.

Vest: This involves locking of VELO/EQUAL/PLto receive veVELO/veEQUAL/vePLY

Pool: There are often two different liquidity pool types based on token pair needs, Stable Pools and Variable Pools.

The protocol router evaluates both pool types to determine the most efficient price quotation and trade execution route available. To protect against flashloan attacks, the router will use 30-minute TWAPs (time-weighted average prices). The router doesn't require upkeep (external maintenance).

The deeper the liquidity of a given pool (higher value locked), the smaller the slippage it will offer.

Epoch: A period of time between changes in the gauge weights. An epoch in the new ve "vote escrow system" system of Plenty is one week.

Differences between Velodrome, Equalizer & Plenty

Outside being deployed across different chains and having different APY’s I feel that is only the difference they all have. Since all chains have unique characteristics.

Feeling confused? Not to worry I've got new series upcoming and I would take time to elaborate more on each protocol

Twitter : khrispyshots1

In the ever-evolving world of cryptocurrency, the latest buzzword is VeNFT, a combination of "vote escrow system" and "NFT" (Non-Fungible Token). While NFTs have been around for a while now, VeNFT’s are a relatively new phenomenon that is taking the crypto world by storm.

What are VeNFT’s?

VeNFT’s are voting NFT’s tokens that represent ownership of a vote escrow system based on the algorithm behind them(backed by a locked token) which has been vested (locked). Unlike traditional NFTs, VeNFTs are designed to be liquid, meaning they can be easily bought, sold, and traded. This makes them an attractive investment option for those looking to put their money into the crypto world for a longer duration and earn while doing so.

Ok let’s try to clear the air here, NFT’s are non- fungible tokens which ranges from photos, videos, files, music, videos and other form of collectibles, but veNFT’s are a little bit different but also having the same concept of an NFT. To make this easier lets work with an example, Imagine trying to wrap a token on a particular chain (let’s say Binance Smart chain) just as in the photo below.

Now here is what’s going on here, the WBNB (wrapped BNB) and the BNB has the same value, meaning it does not loose value irrespective of the amount wrapped i.e

the value of WBNB : the value of BNB.

If you understand this concept then kudos, so let’s step a bit further. Imagine wrapping BNB but instead of getting WBNB you get the WBNB as an NFT, does that sound confusing? Ok here is what happens when we talk about veNFT’s whenever we lock our staked tokens in a pool for a duration an NFT is minted to your address. This NFT’s acts as an agreement between the contract and the owner of the token “YOU” and can be issued out upon expiration of the proposed time.

The best part of this is that the NFT minted from locking your tokens can be traded (depending on the platform) but in most cases all are tradeable.

Here’s a veNFT sample from the Velodrome collection

Here are what the veNFT contains

Token id - the NFT serial number

Balance of - the balance of the NFT

Locked end - the duration of the lock

The Benefits of VeNFTs

One major drive towards traditional NFT’s are the use case of the NFT, here VeNFT’s offer a large number of benefits over traditional NFTs, including:

Liquidity: As mentioned, VeNFT’s are highly liquid, meaning that they can be quickly and easily bought, sold, or traded. This makes them an attractive option for those looking to put their money into the crypto world.

Accessibility: Unlike traditional NFTs, which can be expensive and difficult to obtain, VeNFT’s are designed to be accessible to a wide range of people. This means that anyone can invest in VeNFT’s, regardless of their financial status.

Transparency: VeNFT’s are stored on a blockchain, meaning that all transactions are publicly visible. This adds a level of transparency that is not present in traditional NFTs, and helps to prevent fraud and counterfeiting.

Decentralization: VeNFT’s are not controlled by any central authority, meaning that they are not subject to censorship or manipulation. This makes them an attractive option for those looking for a decentralized investment option.

Here are some platforms where you can interact with which leverages on the veNFT concept:

Velodrome Finance - Built on the Optimism chain, Velodrome addresses these issues and presents an attractive alternative by addressing the core issues in Solidly and adding its own improvements. To recall, the key innovation of Solidly was to align protocol emissions with fees generated, not simply liquidity. To do this, it would allow protocols and other large stakeholders to become veNFT "voters", using their locked voting power to direct future emissions and collecting fees (termed bribes in Solidly) from the pools they voted for.

Equalizer Exchange - Built on the Fantom Chain Equalizer Exchange is a DEX that uses a vote escrowed model to drive Liquidity to the highest volume pairs. Join Our Community. You can call this the Velodrome of the Fantom chain, another similar, fast growing veNFT supported platform which potential is yet to be discovered.

Plenty - Built on the Tezos chain, the goal of the Plenty is to better align emission of tokens to beneficial actions and solve the problem with current AMM designs where liquidity provision is temporarily subsidized while fee generation -the more sustainable incentives-generating mechanism- is not.

Similarities between Velodrome, Equalizer & Plenty (all three protocols possess these features)

Bribes: The concept of bribes was made popular by Convex which came to control a large share of Curve voting power. As users kept chasing high CRV rewards, protocols realized they could grow their protocol and on-chain liquidity by bribing veCRV holders to vote for their pool.

Votes: Users can allocate their voting power towards one or more gauges to earn trading fees and bribes attached to the liquidity pool. Gauges receive newly minted VELO/EQUAL/PL proportional to its vote weight. Each user with a veVELO/veEQUAL/vePLY NFT can change their preference at any time.

Swap: Users can trade their tokens for supported tokens which are listed on the protocol dex.

Vest: This involves locking of VELO/EQUAL/PLto receive veVELO/veEQUAL/vePLY

Pool: There are often two different liquidity pool types based on token pair needs, Stable Pools and Variable Pools.

The protocol router evaluates both pool types to determine the most efficient price quotation and trade execution route available. To protect against flashloan attacks, the router will use 30-minute TWAPs (time-weighted average prices). The router doesn't require upkeep (external maintenance).

The deeper the liquidity of a given pool (higher value locked), the smaller the slippage it will offer.

Epoch: A period of time between changes in the gauge weights. An epoch in the new ve "vote escrow system" system of Plenty is one week.

Differences between Velodrome, Equalizer & Plenty

Outside being deployed across different chains and having different APY’s I feel that is only the difference they all have. Since all chains have unique characteristics.

Feeling confused? Not to worry I've got new series upcoming and I would take time to elaborate more on each protocol

Twitter : khrispyshots1