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The ve (3,3) is the model envisioned by Andre Cronje while developing Solidly DEX on Fantom. The idea was to drive the synergy between 2 earlier successful models – ve (vote escrowed) model by Curve and (3,3) by OHM while removing the shortcomings of both.
The ve model of CURVE aimed to incentivize the liquidity providers on a DEX while getting as many users involved as possible in the governance of the protocol. The model requires users to vote lock emission token and acquire veToken.
The spirit of (3,3) - is simply “how can the community work together to maximize benefit”.
With ve (3,3), VOLT holders can now lock their tokens for up to four years in return for veVOLT, a NFT that grants boosted voting power on gauge weights to decide which Voltswap liquidity pools get directed the most weekly VOLT emissions. veVOLT holders will receive all the swap fees from the gauge they voted for through bribes.
All the effects of ve(3,3) act in confluence to create a system in which swap fee performance is incentivized rather than total liquidity.
As veVOLT holders dictate which liquidity pools get more emissions and receive swap fees as a reward, liquidity providers are encouraged to compete for generating the most swap fees. Voltswap also provides a bribe market to aid in rewarding specific veVOLT voting activities.
The act of cooperation in common interests by participants with different objectives is manifested through veVOLT voting for concentrating emissions in gauges that generates more swap fees while liquidity providers aim to receive most of VOLT emissions by depositing liquidity in these highly incentivized gauges. This is the spirit of ve(3,3).