Incentive-Driven Community Dex, Dystopia, Brings ve(3,3) to Polygon’s DeFi Ecosystem

Dystopia, a decentralized exchange (DEX) designed to offer improved emissions and incentive mechanisms, is launching on Polygon. The platform is the first DEX on Polygon to use the ve(3,3) model and provides users with a seamless swap experience for both closely correlated and non-correlated asset pairs at a nominal 0.05% trading fee. The platform enables users to cheaply execute very large or small trades without experiencing high slippage.

Based on Uniswap v2 and Curve Stable Swaps, Dystopia combines incentive mechanisms alongside a new liquidity foundation that sets it apart from typical DEXs.

In brief, ve(3,3) is an incentive mechanism that rewards investors for locking their tokens within a particular protocol over a set period of time. By locking the native token, DYST — by staking it for veDYST (vote-escrowed DYST) — investors can tap into governance opportunities and earn rewards from the protocol to incentivize their liquidity contribution. 

Those who choose to lock DYST for veDYST are eligible to earn protocol fees in a way comparable to that of traditional staking. Similarly, those who provide liquidity to the DEX will also be entitled to earn DYST rewards to further incentivize the provision of liquidity to support the entire ecosystem. This grants investors access to the DEXs governance infrastructure and increases the community’s contributions to the wider protocol. 

Since DYST holders want to maximize their fee revenue, the protocol is designed to naturally arrive at an equilibrium of locked DYST and DYST emissions. In essence, Dystopia’s ve(3,3) setup incentives users to deposit their assets into liquidity pools instead of their DYST. 

As part of the launch, Dystopia will provide 10% of its initial token supply to the Polygon DAO enabling proceeds from the project to support future DeFi offerings. In doing so, Dystopia will bolster the development of the Polygon ecosystem and the DeFi protocols seeking to harness the power of the Polygon ecosystem for the greater good. 

To learn more about Dystopia, head over to their medium blog

Visit our blog for the latest on the Polygon ecosystem!

Website | Twitter | Ecosystem Twitter | Developer Twitter | Studios Twitter | Telegram | Reddit | Discord | Instagram | Facebook | LinkedIn

More from the Polygon Blog
Data Availability is Not Data Storage

Recall this grade school experience: you raise your hand and ask, “Can I go to the bathroom?” To which your teacher responds with “I don’t know. Can you?” Might seem far fetched, but this is a perfect entry point to understanding the difference between data availability and data storage. Let's bring this analogy close to […]

Read More
The Future is Now for Ethereum Scaling: Introducing Polygon zkEVM

We all know that Ethereum needs to scale, and we at Polygon believe that zero-knowledge (ZK) tech is the most promising pathway to get there. But that path has often seemed as if it would be long and winding. The conventional wisdom has been that the crypto space would need many years to develop Layer […]

Read More
Polygon Reaches First Sustainability Milestone by Achieving Network Carbon Neutrality

Polygon has made a major first step toward becoming carbon negative with the retirement of $400,000 in carbon credits representing 104,794 tonnes of greenhouse gasses, or the entirety of the network’s CO2 debt since inception.  The milestone comes after Polygon in mid-April released its Green Manifesto, part of its broader vision for sustainable development. The […]

Read More
Polygon Avail Launches on Testnet to Turn Monolithic Chains Modular

If we want the entire world to join Web3, blockchains will need to handle more transactions. Monolithic blockchains can’t scale because they’re asked to perform too many tasks (execution, settlement, and data availability) at once. But if chains were able to focus on just one part of the stack at a time, the entire ecosystem […]

Read More
Polygon Leads $25 Million Fund For Web3 Venture Studio SuperLayer

Polygon is pleased to reveal that it has led a $25 million funding round for Web3 venture studio SuperLayer. This partnership and funding will help spread SuperLayer’s vision of accelerating the most promising Web3 platforms and projects. SuperLayer is led by managing partners Kevin Chou and Mahesh Vellanki, both founders of multiple leading Web3 companies, […]

Read More
Polygon zkEVM Within Vitalik’s Framework: Gaining Clarity and Looking Ahead

The Ethereum community has recently seen a flurry of zkEVM (zero-knowledge Ethereum Virtual Machine) announcements, including the unveiling of Polygon zkEVM. Given how new these technologies are and how many different approaches are being tried, it comes as no surprise that there has also been a lively debate around key concepts and terminology. What is […]

Read More
Polygon is Coming to ETHMexico With Blu3house #onPolygon 

Polygon is coming to Latin America as a presenter-tier sponsor of ETHMexico.  The annual gathering of Ethereum's brightest minds organized by ETHGlobal will be held on Aug. 19 - 21 in Mexico City. In preparation for the 36-hour-long hackathon, Polygon will host and mentor 25 top women builders in Web3 at our Blu3house #onPolygon. These […]

Read More
crossmenuchevron-down-circle