Issues with veSync

In the meantime, we have noticed that there is a DEX with ve(3,3) tokenomics that has successfully deployed: veSync. As a fork of Velodrome Finance, veSync shares similarities in design and function while leveraging the strengths of the zkSync Layer 2 scaling solution. But veSync has not been as successful as Velodrome, the reason is mainly due to the initial supply problem of its Native Token VS. The Distribute Detail of VS is as follows:

• veVS Airdrop to Protocol (18%): 18,000,000

• VS/veVS Airdrop to Users (22%): 25,000,000

• VS/veVS IDO (10%): 10,000,000

• Ecosystem(20%): 20,000,000

• Initial DEX Liquidity (5%): 5,000,000

• Marketing/Reserve (7%): 7,000,000

• Team(18%): 18,000,000

Despite the locked veVS, at launch, more than 15% of the initial distribution tokens flowed freely in the market, which caused huge selling pressure on the project. At the same time, the LP reward for the 1st epoch is only 4.25% of the initial total supply, which is more than three times lower than the circulation at this time. This has led to low enthusiasm for LPs and then a low pool depth. Therefore, when a large amount of selling pressure appeared in the market (mainly from 10% IDO token), the price of VS fell sharply. The value of VS decreased, which further affected the enthusiasm of LPs to provide liquidity and lock positions of VS holders, which also caused the negative spiral of the protocol.