Before we get started, this is not a recommendation or endorsement to buy any token mentioned.
Previously, we covered the launch and growth of the ve(3,3) DEX Velodrome Finance on Optimism, which is a fork of Andre Cronje’s DEX design Solidly that failed in spring 2022. Another new AMM to implement the ve(3,3) design on Arbitrum is SolidLizard. SolidLizard launched in early February, following the shift in market momentum that involved countless new DeFi protocols gaining attention on Arbitrum.
As a DEX on Arbitrum, SolidLizard offers low-cost transaction fees, reduced swap fees (0.02% on stable pools), and uses a governance model called the ve(3,3) system, whereby those who lock their tokens for longer, get to claim bribes + trading fees from LPs while voting to direct token emissions as a reward to liquidity providers. The net result of this ve(3,3) AMM is to increase token yield, reduce inflation of native tokens while controlling the circulating supply of the token, and create an environment where users can choose to collaborate and create a cycle of growth that reinforces itself over time.