⚙️ Technical Concepts

ve(3,3)

Tokenomics model combining vote-escrow locking with (3,3) cooperative game theory

Definition

ve(3,3) is a tokenomics model combining Curve's vote-escrow (ve) mechanism with OlympusDAO's (3,3) game theory. Pioneered by Andre Cronje's Solidly and refined by Velodrome, it aligns incentives by letting veToken holders vote on gauge emissions and earn fees from the pools they vote for. The (3,3) element encourages cooperative behavior — everyone benefits most when participants lock tokens rather than sell.

ve(3,3) is a technical term used to understand Tokenomics model combining vote-escrow locking with (3,3) cooperative game theory. In practice, it matters because it affects how users evaluate protocols, compare opportunities, and avoid hidden assumptions.

Example

Velodrome on Optimism uses ve(3,3): VELO holders lock tokens as veVELO, vote on gauges to direct emissions, and earn 100% of trading fees from pools they vote for.

How it works

In practice, the concept shows up like this: Velodrome on Optimism uses ve(3,3): VELO holders lock tokens as veVELO, vote on gauges to direct emissions, and earn 100% of trading fees from pools they vote for.

Why it matters

ve(3,3) matters because small misunderstandings in DeFi can turn into bad pricing, liquidation, governance, custody, or smart-contract risk. A good mental model helps you compare protocols without relying on marketing language.

What to check

Treat it as infrastructure: understand what it automates, what trust assumptions remain, and how failures propagate. The main checks are: Ponzinomics criticism; Emission sustainability; Governance capture.

Risks to Consider

Ponzinomics criticism
Emission sustainability
Governance capture

Common Questions

Is ve(3,3) sustainable long-term?

The sustainability depends on the protocol generating real trading fees that justify emissions. Velodrome has shown the model can work when the DEX achieves sufficient volume, but many Solidly forks failed due to insufficient organic demand.

What does ve(3,3) mean in DeFi?

ve(3,3) means Tokenomics model combining vote-escrow locking with (3,3) cooperative game theory. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.

How is ve(3,3) used in practice?

A practical example: Velodrome on Optimism uses ve(3,3): VELO holders lock tokens as veVELO, vote on gauges to direct emissions, and earn 100% of trading fees from pools they vote for.