Remember the long-running Curve War? The agreements fought fiercely for the right to speak. Now, “Curve War” has been replicated on the Fantom chain. At the call of YFI founder Andrew Cronje, all eyes are focused on a new war detonated on Fantom – Vampire War.
At the beginning of this month, AC announced its upcoming “new version of Curve” ve(3,3), and announced that the ve(3,3) Token will be allocated to the top 20 protocols on Fantom according to the TVL lock-up ranking.
The various protocols have been desperately trying to boost their TVLs over the past few weeks, but this ve(3,3) battle still hasn’t caught enough attention. But just yesterday, veDAO burst out and raised its TVL ranking to No. 2 in one day. You know, AC’s TVL snapshot is expected to be held on January 23. The appearance of veDAO undoubtedly made many “non-rolling” agreements panic immediately, and formed an alliance to retake their TVL from veDAO.
In this way, the battle for TVL burned through the entire Fantom ecosystem overnight, becoming the now fierce Vampire War.
Attack on veDAO: Sniper TVL
veDAO is a DAO built with intensive capital guidance, and its sole purpose is to grab as much ve(3,3) as possible in the shortest time possible.
veDAO has no seed round and no private placement. 10% of the total Token supply will be allocated to the Information Token DAO to continuously support the development of veDAO; 5% will be allocated to veDAO team members who master multi-signature for the growth and development of the protocol and ongoing operating expenses.
veDAO’s strategy to rapidly increase TVL is: people can obtain veDAO’s governance token WeVE through 4-week yield farming and liquidity mining, and the holders of WeVE, namely DAO members, will be able to jointly manage ve(3 ,3) where the distribution goes. In other words, veDAO uses WeVE Token in exchange for the user’s USDC, WFTM, and ETH to increase its TVL. Clearly, this strategy has been a huge success: in just 1 day, veDAO has reached $1.5 billion in TVL and is currently ranked #2.
Even KOLs like Shenyu have been involved.
The agreement’s counterattack
The rapid rise of veDAO has caused dissatisfaction among many “Fantom OG” and native protocols. A Fantom fan named MOTH on Twitter believes that veDAO is the employment capital from the “Ethereum Antique Chain”, and it is simply trying to snipe and poach the TVL of the native protocol, which is not beneficial to the Fantom ecosystem.
What’s exciting is that not only Fantom enthusiasts have stood up, but many native protocols have also responded quickly. Five FTM high-quality protocols, SpookySwap, Scream, Liquid Driver, Hundred Finance, and RevenantFinance, immediately formed 0xDAO with the purpose of regaining their TVL. Their reasoning is simple: the Fantom native project has worked diligently to farm TVL for a long time and shouldn’t lose to a TVL poacher in 1 day.
0xDAO adopts a similar strategy to veDAO, but more thorough, as all OXD Tokens will be distributed to LP providers. 0xDAO hopes to attract funds staked in veDAO in this way. The decision-making power of 0xDAO will be 100% owned by the community, and OXD holders will be able to participate in the decision-making to decide whether to sell the ve(3,3) airdrop or distribute dividends to OXD holders.
But 0xDAO doesn’t want to be a one-hit organization, its goal is to provide a fully decentralized infrastructure that maximizes 0xDAO’s profits, capital efficiency, and voting rights, creating a free market for established protocols on Fantom to Increase liquidity. The team’s expectation is that as the 0xDAO treasury gains more voting power, other protocols will be more willing to use ve(3,3) to incentivize liquidity and thus bribe OXD holders.
Combatants on fire
It is obvious that the Vampire War between veDAO and 0xDAO quickly attracted a lot of attention and a lot of capital. And for some protocols, this is undoubtedly a huge opportunity. Here are the fighters who added fuel to the fire:
Inspired by Convex, Grapes Finance intends to be the new Convex on Fantom, aggregating ve(3,3) NFTs obtained by other projects.
Projects that pre-lock ve(3,3) in the protocol’s GRAPESEED program will become Grapes Finance’s partners, jointly owning up to 15% of the protocol’s ownership. The protocol that pre-locks ve(3,3) will obtain GRP Token, which is used to manage Grapes Finance, pledge Farming or provide users with liquidity and other functions. The protocol can redeem its own ve(3,3) by returning GRP Token.
In addition, Grapes Finance will airdrop a 1% reward to Convex holders and a 3% reward to the project community participating in the GRAPSEED program to incentivize more participants.
Radial also bills itself as a Convex-like protocol. It generates compound interest by automatically locking veTokens, enabling LPs to obtain higher rewards without having to lock up their own Tokens. In addition to optimizing the way gas and ve(3,3) are distributed, the protocol also wants to act as a focal protocol for coordination between LPs and DAOs and a repository for various veTokens.
veReward is more interesting. It is a project similar to veDAO and 0xDAO, but if the protocol is successful, users will be able to obtain the maximum amount of ve(3,3) Tokens by staking in the shortest time.
The agreement believes that the problem with veDAO and 0xDAO is that their Token issuance cycle is not centralized enough. Taking veDAO as an example, its issuance cycle is about 28 days, which means that people need to stake for 28 days to capture 100% of the ve(3,3) value allocated to DAO. But because the TVL after the snapshot no longer affects the allocation of ve(3,3), the TVL contributed by the user after the snapshot is basically wasted.
The release period of VEREWARD will start when the protocol is launched and end after the snapshot of Brother AC. This means that users only need to stake for about 2 days to get the full value of their contributed TVL.
The reason why veRwards can set the emission period so short is because it is just a temporary DAO, purely to help users get as many ve(3,3) tokens as possible. Once the ve(3,3) obtained by the DAO is fully distributed to users, the organization will dissolve.
What happens next?
At this time, the war was in full swing. From KOLs to ordinary retail investors, from native protocols to new DAO organizations, everyone has piled a lot of money into the TVL projects they support. Many of the protocols mentioned above have accumulated a lot of TVL before they even passed the audit. In the project Discord, many participants don’t even know what ve(3,3) and the protocol it participates in are just one word: rush.
Now, no one seems to care what happens after the snapshot, and the risks that come with it. This overnight Vampire War completely mobilized Fantom’s protocols and users. For a snapshot a few days later, the entire Fantom ecosystem has gone into a frenzy. Will there be a dark horse in the next few days? Will these agreements collapse when the search is over? let us wait and see.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-hot-is-the-new-ac-project-detonate-fantoms-vampire-war-overnight/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.