What is Arket?
Last updated
Last updated
As a successful token economic model, ve(3,3) has always faced a major challenge: how to motivate more token holders to lock tokens, thus energizing the entire token economy and flywheel. The CoffeeDex team, with their deep practical experience and understanding of the ve(3,3) economic model, has officially developed the ultimate optimization solution: Arket!
Note: Arket is not available on main net yet
Before we dive into the very details of Arket designs , we’d like to point out several problems of existing ve(3,3) mechanisms :
users are incentivized to lock their votes to get rewards (fees + bribes) but for retail user , it’s kind of tricky to max lock time , rebase , max profit vote , not to mention the gas cost of these operations. with Arket you will automatically accumulate the voting rewards by simply deposit and mint
users are worried about the inflation that caused the value of the tokens continuously goes down . if they are not optimistic about the token price and contiously voting rewards , they will tend to sell the tokens instead of locking it to get more yields. with Arket , you will get a token which will accumulate all the yields and fees to gurantee that the intrinsic RFV of the token minted to increase only . users will be incentivized to deposit and dont need to worry about the inflation since it can be redeemed whenever to the RFV represented by $ETH which will increase by time.
users are worried about the liquidity of veNFT tokens since although it is NFT and tradeable but it takes many efforts to close the trade since you can not trade to a pool like ERC20 . with Arket , first of all you can redeem the minted token to xCOFFEE or RFV to exit liquidity , secondly there will be a pair of the newly minted token so you can trade it with no effort.
In all , Arket is introduced to bring more values to the protocol by providing exit liquidity / RFV / fees to existing participants easily. it will benefit both users and the protocol and boost the flywheel. Now Let’s explore together how Arket functions!
