User Flow
Providing a win-win solution for all parties
Last updated
Providing a win-win solution for all parties
Last updated
The Ve(3,3) framework ensures that the interests of all participants in the Cellana Finance ecosystem are aligned. This encompasses voters, liquidity providers, traders, and protocols.
New projects/protocols have the flexibility to add any amount of incentives in order to attract voters to support their LP. As a result, the liquidity pool will receive a portion of CELL token emissions, thereby enhancing the depth of the liquidity pool.
CELL holders have the option to lock their tokens for veCELL and become voters on the Cellana platform. By becoming voters, users gain the ability to utilize their voting power to vote on liquidity pools.
This allows them to earn trading fees and the opportunity to receive additional incentives from the specific liquidity pool they have voted for. Typically, voters are motivated to select liquidity pools that exhibit high trading volume or offer attractive incentives, which maximizes their potential returns.
Liquidity providers are frequently motivated to contribute liquidity to pools that offer the highest token emissions. After supplying liquidity to a specific pool, these providers are required to stake their LP tokens in the protocol gauge to qualify for CELL token emissions.
Trader will enjoy low slippage rate thanks to the deeper liquidity pool.
In summary, the Ve(3,3) economic model offers mutually beneficial solutions for all parties involved as the following:
Projects/protocols add incentives to bootstrap their liquidity pools and thus attract voters.
Voters participate in voting for liquidity pools that offer high incentives, enabling them to earn profits. As the number of voters selecting a particular pool increases, the pool receives a greater allocation of CELL emissions.
As the pool presents an appealing opportunity for CELL emissions, liquidity providers will contribute liquidity to the pool and stake their LP tokens to receive CELL emissions, thereby enhancing the depth of the liquidity pool.
A deep liquidity pool enables traders to swap with lower slippage, enhancing their trading experience. This increased liquidity will also attract a more significant number of traders to participate in swaps on the DEX, resulting in a higher generation of trading fees.
