Question 1: The multisig will oversee important changes to Zero Protocol’s codebase through a multisignature process involving core team members, external members, and a timelock. This setup ensures that key decisions about the protocol remain are not solely controlled by one entity, but rather key and public members of the DeFi community. We would be happy to add a UF member on the multisig.
I’ll cover your questions 2 & 4 here: In the ve(3,3) model the trading fees generated from a pair are given to the veToken holders that vote for that pair. It incentivizes veToken holders to vote for the top fee generating pairs
What is ve(3,3)?
ve(3,3) is a tokenomics model for decentralized exchanges (DEXs) that was first proposed by Andre Cronje, with the project Solidly. The name “ve” stands for “vote escrow,” which refers to the mechanism by which users can lock their tokens in order to earn voting power (similar to Curve). The “3,3” refers to the rebase lockers would recieve, Zero there will be a rebase called “anti-dilution” rebase for the first few months, but might see the rebase get smaller over time eventually getting rid of it all together. I like to think of the 3,3 as the fact that users who lock their tokens receive these three benefits:
- Vote and earn your share of trading fees
- Vote and earn bribes for the pairs you vote for
- Receive a boost in your emissions by holding veTokens
How does ve(3,3) work?
In a ve(3,3) DEX, there are typically two types of tokens: the governance token and the voting escrow token. The governance token represents voting rights in the DEX’s ecosystem, while the voting escrow token is obtained by locking or “escrowing” the governance token for a period of time.
The amount of voting power that a user has is determined by the amount of voting escrow tokens they hold. For example, if a user holds 100 voting escrow tokens, they will have 100 times more voting power than a user who holds 1 voting escrow token.
Users can earn voting escrow tokens by locking their governance tokens. The longer a user locks their tokens, the more voting escrow tokens they will earn.
The trading fees generated by a trading pair are distributed to the veToken holders who voted for that trading pair to get emissions. Voters receive trading fees in proportion to their voting power.
Projects that want to list their tokens on the DEX can bribe users to vote in favor of their pair to get emissions. The amount of the bribes a voter earns is determined by the amount of voting power that the user has.
What makes ve(3,3) style DEXs unique?
The ve(3,3) model has several features that make it unique:
Examples of ve(3,3) style DEXs
Here is a more indepth article about the model https://firstname.lastname@example.org/a-simple-framework-for-simulations-of-the-ve-3-3-model-for-decentralized-exchanges-cd2fea1cb69a
Question 3: The decision for the seperate branding is because the two protocols will live independant of one another with thier own token systems. Each DeFi eco-system is unique and we wanted a cohesive branding distinction of the eco-system in which it will be deployed (Polygon zkEVM).
Question 5): Similar to Retro, Zero will be fully integrated with Merkl and they will handle the emission disstrobutions for Zero.
Question 6: The value to Zero is undoubtedly the status of being an official fork, as well as Zero Protocol will also receive access to existing and future tooling for Uniswap V3 (e.g., OkuTrade, Uniswap.fish, Seedle.finance etc.)