Simple Explanation/ TLDR
What is a VE Dex? (Simplified)
Think of a ve DEX like an AMM with extra steps in its structure to decentralize key decisions.
A regular DEX is just a place to swap tokens. A veDEX adds a game where you lock up tokens to get power and rewards. The longer you lock, the more power you get.
$TYDE Token
Tydeshift's main token, $TYDE, has multiple functions, you can:
-Trade it.
-Lock it up for voting power.
-Earn it as rewards.
Locking (veTokens)
What happens: Lock your TOKEN for 1 week to 6 months. Get veToken in return. The longer the lock, the more your voting power.
Power ratios as follows:
-100 TYDE locked for 6 months = 100 veTYDE power.
-100 TYDE locked for 3 months = 50 veTyde power.
Lock longer = more power.
Voting
Every week, you vote on which trading pairs should get TYDE emissions.
How it works:
-See 10 trading pairs (like SUI/USDC, TYDE/SUI, etc).
-Split your veToken votes across the pairs you like.
-Whichever pair gets the most votes gets the most TOKEN rewards that week.
The pools you vote for will have fees available from trading that will be split among you and the other voters. Some will also have bribes, and regardless of your votes you receive a Rebase reward for being a veTyde Holder.
Bribes
How it works:
Project ABC wants votes for ABC/SUI.
-They put $10,000 worth of tokens in the bribe pool.
-You vote for ABC/SUI.
-You claim your share of the $10,000 (based on your vote percentage).
-You're getting paid to direct TYDE emissions to certain pairs.
Emissions
The DEX mints new TYDE every week and distributes it to liquidity providers based on votes. Some of these are paid straight to Tyde Lockers regardless of vote as alluded to above, called a Rebase. This is a dilution protection mechanism for all veTYDE holders.
Providing Liquidity
You don't need veTYDE to provide liquidity. Just deposit two tokens into a pair.
What you earn:
-Trading fees (0.15% of every swap).
-TYDE emissions (if your pair gets votes).
The Flywheel
This is how everything connects:
Lock TYDE - Get veTYDE
Vote for pairs - Earn trading fees
Collect bribes- Get paid
Your votes - Direct TYDE emissions
Emissions - Attract liquidity providers
More liquidity = More trading = More fees = More votes
More bribes = More people lock TOKEN
Repeat
What does this solve?
Projects need liquidity. They can either:
Pay LPs directly (centralised, often wrong, leaves someone always feeling left out).
Bribe veTYDE holders (cheaper, scalable).
veTYDE holders are kingmakers. They decide which pairs get liquidity. The team is entirely out of the decision making process unless they also vote.
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