βοΈSolidly's Solution
Capital Efficiency is Key
How is Solidly Different?
Solidly is a self-optimizing decentralized exchange. It optimizes primarily for capital-efficient acquisition of healthy TVL. Healthy TVL is defined as capital that is traded in high volumes and thus generates a continuous stream of revenue through trading fees.
The Solidly protocol accomplishes this by directing pool fees to voters who have cast their votes for a particular pool, ensuring that voters are directly compensated for promoting high-efficiency pools. Each week starts a new voting cycle during which the most efficient pools, those that generated the largest amount of fees for voters, will receive the most SOLID emissions, which in turn deepens its liquidity: The original Solidly Flywheel
Solidly distributes 20% of the fees to veSOLID while also providing 100% dilution protection, the only ve(3,3) DEX in existence to do so.
In the following chapters we go into more technicalities to better illustrate how Solidly works under the hood.
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