Solidly allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets. The protocol incentivizes fees instead of liquidity. Liquidity providers (LPs) are given incentives in the form of token, the amount received is calculated as follows;

• 100% of weekly distribution weighted on votes from ve-token holders

The above is distributed to the gauge (see below), however LPs will earn between 40% and 100% based on their own ve-token balance.

LPs with 0 ve* balance, will earn a maximum of 40%.

AMM

What differentiates Solidly's AMM;

Solidly AMMs are compatible with all the standard features as popularized by Uniswap V2, these include;

• Lazy LP management
• Fungible LP positions
• Chained swaps to route between pairs
• priceCumulativeLast that can be used as external TWAP
• Flashloan proof TWAP
• Direct LP rewards via skim
• xy>=k

Solidly adds on the following features;

• 0 upkeep 30 minute TWAPs. This means no additional upkeep is required, you can quote directly from the pair
• Fee split. Fees do not auto accrue, this allows external protocols to be able to profit from the fee claim
• New curve: x3y+y3x, which allows efficient stable swaps
• Curve quoting: y = (sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)/(3 2^(1/3) x) - (2^(1/3) x^3)/(sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)
• Routing through both stable and volatile pairs
• Flashloan proof reserve quoting

token

TBD

ve-token

Vested Escrow (ve), this is the core voting mechanism of the system, used by BaseV1Factory for gauge rewards and gauge voting.

This is based off of ve(3,3) as proposed here

• deposit_for deposits on behalf of
• emit Transfer to allow compatibility with third party explorers
• balance is moved to tokenId instead of address
• Locks are unique as NFTs, and not on a per address basis

function balanceOfNFT(uint) external returns (uint)

BaseV1Pair

Base V1 pair is the base pair, referred to as a pool, it holds two (2) closely correlated assets (example MIM-UST) if a stable pool or two (2) uncorrelated assets (example FTM-SPELL) if not a stable pool, it uses the standard UniswapV2Pair interface for UI & analytics compatibility.

function mint(address to) external returns (uint liquidity)
function burn(address to) external returns (uint amount0, uint amount1)
function swap(uint amount0Out, uint amount1Out, address to, bytes calldata data) external

Functions should not be referenced directly, should be interacted with via the BaseV1Router

Fees are not accrued in the base pair themselves, but are transfered to BaseV1Fees which has a 1:1 relationship with BaseV1Pair

BaseV1Factory

Base V1 factory allows for the creation of pools via function createPair(address tokenA, address tokenB, bool stable) external returns (address pair)

Base V1 factory uses an immutable pattern to create pairs, further reducing the gas costs involved in swaps

Anyone can create a pool permissionlessly.

BaseV1Router

Base V1 router is a wrapper contract and the default entry point into Stable V1 pools.

function addLiquidity(
    address tokenA,
    address tokenB,
    bool stable,
    uint amountADesired,
    uint amountBDesired,
    uint amountAMin,
    uint amountBMin,
    address to,
    uint deadline
) external ensure(deadline) returns (uint amountA, uint amountB, uint liquidity)

function removeLiquidity(
    address tokenA,
    address tokenB,
    bool stable,
    uint liquidity,
    uint amountAMin,
    uint amountBMin,
    address to,
    uint deadline
) public ensure(deadline) returns (uint amountA, uint amountB)

function swapExactTokensForTokens(
    uint amountIn,
    uint amountOutMin,
    route[] calldata routes,
    address to,
    uint deadline
) external ensure(deadline) returns (uint[] memory amounts)

Gauge

Gauges distribute arbitrary token(s) rewards to BaseV1Pair LPs based on voting weights as defined by ve voters.

Arbitrary rewards can be added permissionlessly via function notifyRewardAmount(address token, uint amount) external

Gauges are completely overhauled to separate reward calculations from deposit and withdraw. This further protect LP while allowing for infinite token calculations.

Previous iterations would track rewardPerToken as a shift everytime either totalSupply, rewardRate, or time changed. Instead we track each individually as a checkpoint and then iterate and calculation.

Bribe

Gauge bribes are natively supported by the protocol, Bribes inherit from Gauges and are automatically adjusted on votes.

Users that voted can claim their bribes via calling function getReward(address token) public

Fees accrued by Gauges are distributed to Bribes

BaseV1Voter

Gauge factory permissionlessly creates gauges for pools created by BaseV1Factory. Further it handles voting for 100% of the incentives to pools.

function vote(address[] calldata _poolVote, uint[] calldata _weights) external
function distribute(address token) external

veNFT distribution recipients

Name	Address	Qty
Multichain	0x5bDacBaE440A2F30af96147DE964CC97FE283305	800000
0xDAO	0xa96D2F0978E317e7a97aDFf7b5A76F4600916021	2376588
SpookySwap	0x95478C4F7D22D1048F46100001c2C69D2BA57380	1331994
Yearn Finance	0xC0E2830724C946a6748dDFE09753613cd38f6767	1118072
veDAO	0x3293cB515Dbc8E0A8Ab83f1E5F5f3CC2F6bbc7ba	1070472
Curve	0xffFfBBB50c131E664Ef375421094995C59808c97	1023840
Tomb Finance	0x02517411F32ac2481753aD3045cA19D58e448A01	864361
Geist Finance	0xf332789fae0d1d6f058bfb040b3c060d76d06574	812928
Beefy Finance	0xdFf234670038dEfB2115Cf103F86dA5fB7CfD2D2	795726
RenVM	0x0000000000000000000000000000000000000000	763362
Synapse	0x224002428cF0BA45590e0022DF4b06653058F22F	727329
Radial	0x26D70e4871EF565ef8C428e8782F1890B9255367	688233
Iron Bank	0xA5fC0BbfcD05827ed582869b7254b6f141BA84Eb	681101
SpiritSwap	0x4D5362dd18Ea4Ba880c829B0152B7Ba371741E59	677507
Scream	0x1e26D95599797f1cD24577ea91D99a9c97cf9C09	676304
Abracadabra	0xb4ad8B57Bd6963912c80FCbb6Baea99988543c1c	642992
SushiSwap	0x0000000000000000000000000000000000000000	609195
Frax	0xE838c61635dd1D41952c68E47159329443283d90	598412
Reaper Farm	0x111731A388743a75CF60CCA7b140C58e41D83635	591573
Beethoven X	0x0edfcc1b8d082cd46d13db694b849d7d8151c6d5	587431
Hundred Finance	0xD0Bb8e4E4Dd5FDCD5D54f78263F5Ec8f33da4C95	542785
Morpheus Swap	0x9685c79e7572faF11220d0F3a1C1ffF8B74fDc65	536754
Saddle	0xa70b1d5956DAb595E47a1Be7dE8FaA504851D3c5	518240
Liquid Driver	0x06917EFCE692CAD37A77a50B9BEEF6f4Cdd36422	511920
Tarot	0x5b0390bccCa1F040d8993eB6e4ce8DeD93721765	452870

Testnet deployment

Name	Address
wFTM	0x27Ce41c3cb9AdB5Edb2d8bE253A1c6A64Db8c96d
USDT	0x8ad96050318043166114884b59E2fc82210273b3
MIM	0x976e33B07565b0c05B08b2e13AfFD3113e3D178d
BaseV1	0x0673e1CF8EE91095232CFC98Ee1EbCeF42A1977E

Name	Address
BaseV1Factory	0xd231865CE0eDB0079F0D0d7BB2E647458aa60d11
BaseV1GaugesFactory	0x1649BE15FeA4F94075CC69c3502B1Ba4C341bBEa
BaseV1Voter	0xd2F7fF8e5b362bafE2b57a82c5865B4355F884Ae
BaseV1Router01	0x612003865305a7E9915Cb3b1b06cC2485F03dD29
ve3	0xBE6bb6d9F4B1Bc2Ea1C0d69a17471b98bd164ab6
ve3-dist	0x4Dc46A325B141751E09871279F9c7Fe214DA422C
BaseV1Minter	0x3230F944a26288f49F5010b11BA96b0b9dC84e79