CVP Proposal Solidly

Approved CVP
1

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Introduction

Solidly is a cutting-edge concentrated liquidity DEX. It has achieved significant improvements over existing solutions:

1. Concentrated Liquidity

Solidly offers a concentrated liquidity AMM, which increases capital efficiency in comparison to traditional AMMs by factors of thousands. The intuitive UX allows users to provide liquidity in preset ranges such as “Narrow”, “Balanced”, “Wide” and “Full Range”. Expert users can also provide their liquidity in custom ranges, in whichever liquidity shape they desire. Talks are being held with several ALMs who will incorporate Solidly into their automated management suites.

2. JIT Protection

A long-standing issue of CLAMM Dexes such as Uniswap V3 has been so-called “JIT liquidity”. It’s the predatory practice of big funds providing liquidity in 2-tick ranges, extracting all fees from honest and loyal LPs. Solidly completely solved this issue with its innovative in-house merkle processor, which automatically filters out any JIT attacks as they occur.

3. Gas Savings

One of the big features of Solidly is its gas savings against existing DEX solutions. Solidly has achieved up to 42% swap gas savings, and up to 60% for mints & burns (rebalancing) vs Uniswap V3. This allowed it to achieve highest capital efficiency of any CLAMM DEX on mainnet as of today. It may be less important on Metis, but it’s still a factor. Whenever L1 gas spikes, so does L2, and that’s when the competitive factor increases even more.

4. IL Reduction

An issue as old as DEXes itself: IL. Many retail users are wary of providing liquidity because of the high IL they incurr on traditional solutions. Solidly employs a variable & automatic pool fee mechanism, which frontruns toxic CEX flow before it arrives on-chain. This leads to higher fees for LPs and reduced IL due to toxic flow. In a showcase in October it provably demonstrated on-chain to even front-run veteran MEV bots.

Uniqueness factor

Unique features of Solidly:

  1. Lowest gas CLAMM DEX in the world, proven on-chain and via various test suites.

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  2. The Solidly Flywheel
    Solidly emits $SOLID token on a weekly basis according to the pools that veSOLID lockers voted for. Currently this amounts to over $240k USD per week in incentives. Voters earn 20% of fees from the pools they vote for, thus they’re incentivized to vote for pools which provide them the highest returns. This in turn allocates SOLID emissions to these hyper-efficient pools, which then in turn again deepen their liquidity, leading to a positive filtering of high-value pools.

  3. Solidly bribing mechanism
    Protocols that are looking to create or deepen liquidity of their token pairs can do so by either attaching liquidity incentives to their pools directly, or alternatively by bribing voters to vote for their pool(s). Multiplier effects possible.

  4. Merkle Rewarder
    Solidly has created its in-house solution for distributing all reward types (LP fees, LP emissions, LP bribes, Voter bribes, Voter fees). This gives Solidly the unique value proposition of being able to incentivize custom liquidity ranges among filtering out predatory JIT attacks.

  5. SolidSync Omnichain Bridge
    Solidly has recently unveiled its in-house crosschain messaging aggregator. It uses a x of y of z secure signature setup, which accompanies all of its chain deployments. Solidly has recently launched its first deployment using the SolidSync bridge on Fantom, it became the #2 DEX by volume within 40 hours, outcompeting year-long solutions due to high efficiency deltas.
    SolidSync was granted early mainnet access by Chainlink and it’s used in a 2/3 setup with CCIP, LayerZero and Axelar. Find out more about SolidSync in this X thread: https://twitter.com/SolidlyLabs/status/1738609337738662269

  6. Perpetuals
    Through its exclusive and strategic stake in SYMMIO, Solidly will offer cutting-edge intent-based perpetuals trading. Deployment is expected to happen in Q1 2024. More info here.

Value Proposition

Solidly provides a cutting edge platform for high-efficiency liquidity provision. The Solidly flywheel ensures that emissions and incentives get allocated in the most effective way and to ensure deep liquidity in the healthiest and most volume-generating trading pairs. Furthermore it enables protocols to deepen the liquidity of their pools in a highly efficient and automated way with a friendly UX, allowing for multi-week and future-dated incentives, something which Lido Finance is currently actively using on Ethereum mainnet. Through its strategic partnership with Symmetrial, Solidly will enable intent-based perp trading on Metis for the most cutting-edge on-chain perp experience.

Benefits for Users

Solidly will enrich the Metis community and ecosystem with its innovative solutions and friendly UX. It’s not just another copy-paste fork, it’s a truly unique protocol which has been building through all the bear and has seen astronomic growth in the past weeks.

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Roadmap

Jan 2024 - Deployment Solidly CLAMM DEX & SolidSync omnichain crosschain message aggregator

Mar 2024 - Deployment Perp Engine

Audits

Solidly has been triple audited and will start its 4th audit with Cyfrin next Monday (Jan 8th 2024).

Find all past audits here:

Summary

Solidly proposes to deploy the Solidly CLAMM DEX, SolidSync omnichain messaging aggregator and Solidly Perp engine to Metis.

Official Links

Website https://solidly.com

Twitter https://twitter.com/SolidlyLabs

Discord Solidly

GitHub SolidlyLabs · GitHub

Docs https://docs.solidly.com

4 Likes
2

Nice proposal by the way

But here is my question?

It state here that protocols can create or deepen liquidity of their token pairs by either attaching liquidity incentives to their pools directly, or bribing voters to vote for their pool,

Pls how and what do you mean by bribing?
What effect will this have on Metis ecosystem.

3

Thank you for the kind words!

“Bribing” refers to protocols (or anyone who wants, really, it’s permissionless) who are interested in building liquidity for their token pairs. Solidly offers an integrated and seamless solution for this, let me show you:

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Next up you get into the bribe interface where you can select the amount and duration of your bribe, which means how long the incentive will stream (to either LPs directly or to voters)
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After depositing a bribe, the bribed amount will start streaming the following Thursday at 00:00 UTC after the epoch’s voting period ended. In the end this translates to an APR for the liquidity pair, which incentivizes people to deposit LP to earn yield (additionally to weekly $SOLID incentives and swap fees that the pair generates naturally).

Effectively the way this can benefit the Metis ecosystem is in providing a user friendly and seamless solution in incentivizing liquidity and helping grow the TVL of the overall chain by getting bridge inflows from other chains due to attractive APR offerings.

4

Saw someone about swap gas savings.

Metis currently is a layer 2 that provides the lowest gas so are up saying it would be even lower?.

Your unique factors are indeed unique :ok_hand:.

The bribing mechanism would definitely work people like earning for their services.

Good one :+1:

1 Like
5

I’m glad to see another concentrated liquidity protocol on Metis, but could you elaborate on how the intent-based perpetual trading aspect of Solidly’s partnership with SYMMIO will function, particularly regarding its expected impact on trading efficiency and user experience on the Metis platform?

What are the anticipated advantages of this approach compared to traditional perpetual trading?

7

Think of a DEX, when you trade in it, you encounter appropriate FEE payments. It sounds great. Solidly has undertaken one of these features.

8

The difference between SYMMIO and other more traditional on-chain perpetual trading you might find (for example GMX) is that the latter requires a lot of over-collateralization (capital inefficient) and the risk is rolled over to the entire pool. SYMMIO is purely peer-to-peer on-chain derivatives trading, where one counter-party (hedger) takes your trade (and most likely hedges that on a CEX) and basically just earns on the spread that they give you vs. what they receive in their delta-neutral setup.

For more info on how it works: How it works - SYMMIO

With respect to Solidly, SYMMIO is the infrastructure provider of this perp engine, which we will incorporate into our platform. Given that Solidly is the largest stakeholder in SYMMIO, we’re privy to excellent conditions.

1 Like
9

Nice proposal anyway

The fact that solidly will positively enrich the Metis ecosystem entirely together with its community, using the friendly ux and the innovative solutions.

I think solidly will have long way to go with Metis.

10

I like the idea behind the JIT Protection innovation and how it’s poised towards ensuring fair rewards for LP. Can this be clarified further?

11

We have an in-depth but simply explained docs entry for JIT protection on our website, I’ll gladly refer you there: JIT Protection - Solidly

In case you have more questions after that, feel free to ask!

12

Nice proposal…

My question is:
How does Solidly plan to ensure ongoing user engagement and adoption within the Metis community?

13

After careful examination, the idea of enriching the community and ecosystem makes Solidly stand out among others. You have made mention of innovative solutions, unique protocols, and friendly UX.

Can you kindly list out these unique protocols that will project Solidify to stand out among others?
By the way, your proposal is well-detailed. Kudos to the team.

14

First and foremost by offering a top-notch DeFi product that everyone is incentivized to use because it offers you the best deal for swapping. Secondly and also importantly, good UX, ongoing community engagement and of course our weekly $SOLID emissions that will be going to Metis farmers.

15

Thanks for your kind words!

Can you kindly list out these unique protocols that will project Solidify to stand out among others?

I did not 100% understand what you asked me, could you rephrase please?

16

Metis is currently a layer 2 with the lowest gas fees, so is it going to get even lower?

Your special features are truly one of a kind!

The incentive system seems like a good idea – people enjoy earning for their services. Nice one let’s keep building something amazing with Metis DAO guys :rocket:

1 Like
17

A very nice proposal, the benefits which the Metis community will get is really amazing
so I really wanted to ask, will the Gas fee go lower than this in the near Future?
or is it unpredictable?

18

Hello.

Could you tell us more about the technologies implemented by Solidly to achieve up to 42% swap gas savings and up to 60% for mints & burns compared to Uniswap V3?

19

It’ll be nice to have on-board, at least to solidify the Metis eco with concentrated liquidity but can you provide more details about any special features or instruments in the concentrated liquidity AMM that improve trading effectiveness or lessen fluctuating loss?

20

I’ve read through your proposal and even your docs too. It is super great having you on Metis Network, all the questions have been asked by others and you’ve provided quality responses.
I can even see that you’ve some unique advantages like JIT & IL Protection, over some DEXes already on the network. Also, I can see you are trying to solve some problems faced by DEXes across all chains. Kudos to you, looking forward to your launch and then seeing your Solidly in action.

1 Like
21

Going through your proposal, i would like to ask What measures does your project take to ensure the security of users’ assets? as well as What sets WAGMI apart from other protocols in terms of user experience?