Yearn Finance Creator To Launch New AMM, What It’s All About?

Famous for his motto “I test in prod”, Andre Cronje, inventor of Yearn Finance and other DeFi protocols, will launch a new platform. Called ve(3,3) it has been designed as an Automated Market Maker (AMM) to operate with a “protocol for protocols” architecture.

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This means that the new AMM can be easily integrated with other platforms in order to encourage their liquidity, and there will not be any tradeoffs. The protocols that decide to add ve(3,3) won’t lose fees, volumes, or liquidity, as the creator of Yearn Finance explained in an official post.

Cronje feels that AMMs utility changed from being used primarily to provide liquidity to becoming an additional tool in projects. Thus, ve(3,3) seeks to meet the demand of AMM’s new users; other protocols.

His new project, ve(3,3), will remove friction from the process of adding token incentives to a protocol’s liquidity, will make it simpler for projects to accrue fees from incentives, and will operate as a permissionless platform. Yearn Finance’s developer stated:

The above can be used to incentivize any project or protocol for liquidity.

Cronje’s new protocol will have multiple features, including the capacity to natively support swaps between closely correlated assets, and uncorrelated assets, Uniswap v2 compatibility which will let projects deploy its interface, the possibility to permissionless create pools, gauges, and bribes.

The protocol also requires a fee of 0.01% to operate. This fee must be paid in assets. Cronje’s protocol for protocols will let other platforms support delegation, increase “holdings proportional to emission”, and conduct locks with capital efficiency, amongst many other features.

Yearn Finance inventor to take AMM utility to its next phase?

As an additional incentive for projects to implement Cronje’s protocol, the platform will reward them with ve(3,3) tokens. These tokens will be awarded to the 20 top-ranked projects by total value (TVL), two weeks after Cronje’s protocol launches.

Cronje tweeted that the launch might take place next week. Cronje announced via Twitter that the platform would take a snap to decide which projects will get a share of the 2,000,000ve(3,3) reward points. Cronje added:

The selected projects will determine what incentive they choose, whether their tokens, stable coins, or another liquidity. From the time of protocol launch, distribution will begin in 2 weeks.

Yearn Finance’s native token YFI is trading at $32,139 as of press time. This represents a 2.7% profit within 24 hours.

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YFI is moving in the opposite direction on the 4-hour chart. Source: YFIUSDT Tradingview

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