How popular is the AC new project? It ignited the Vampire War on Fantom overnight

Original Author: 0x137

Do you remember the protracted Curve War? Protocols fought fiercely for their voice. Now, the "Curve War" has been replicated on the Fantom chain, called by YFI founder Andrew Cronje, and everyone's attention is focused on a new war ignited on Fantom ------ the Vampire War.

At the beginning of this month, AC announced the upcoming "new version of Curve" ve(3,3), and declared that ve(3,3) Tokens would be allocated to the top 20 protocols on Fantom based on TVL locking rankings. If you are not familiar with ve(3,3), you can read “What is ve(3,3) that AC is promoting so desperately?”.

In the past few weeks, various protocols have been desperately trying to increase their TVL, but this battle for ve(3,3) still hasn't attracted enough attention. However, just yesterday, veDAO suddenly emerged, raising its TVL ranking to 2nd place in just one day. It is worth noting that AC's TVL snapshot is expected to take place on January 23, and the emergence of veDAO has undoubtedly caused panic among many "non-competitive" protocols, which quickly formed alliances to reclaim their TVL from veDAO.

Thus, the battle for TVL ignited overnight across the entire Fantom ecosystem, becoming the ongoing Vampire War.

The Advancing veDAO: Sniping TVL

veDAO is a DAO built on intensive capital guidance, with the sole purpose of seizing as much ve(3,3) as possible in the shortest time.

veDAO has no seed round and no private placement. 10% of the total token supply will be allocated to the Information Token DAO to continuously support the development of veDAO; 5% will be allocated to veDAO team members who hold multi-signatures for the growth and development of the protocol as well as ongoing operational expenses.

The strategy for veDAO to quickly increase its TVL is: people can earn veDAO's governance token WeVE through a 4-week yield farming and liquidity mining, and the holders of WeVE, i.e., DAO members, will collectively manage the allocation of ve(3,3).

In other words, veDAO exchanges WeVE Tokens for users' USDC, WFTM, ETH to increase its TVL. Clearly, this strategy has been a great success: in just one day, veDAO's TVL reached $1.5 billion, currently ranking 2nd.

Even KOLs like Shen Yu have participated.

The Protocols' Counterattack

The rapid rise of veDAO has caused dissatisfaction among many "Fantom OG" and native protocols. A Twitter user named MOTH, a Fantom enthusiast, believes that veDAO is hired capital from the "Ethereum antique chain," purely aiming to snipe and poach the TVL of native protocols, which is of no benefit to the Fantom ecosystem.

Interestingly, not only Fantom enthusiasts have stepped up, but many native protocols have also responded quickly. Five quality FTM protocols—SpookySwap, Scream, Liquid Driver, Hundred Finance, and RevenantFinance—immediately formed 0xDAO, with the goal of reclaiming their TVL.

Their reasoning is simple: native Fantom projects have diligently cultivated TVL for a long time and should not lose to a TVL poacher in just one day.

0xDAO adopts a strategy similar to veDAO but is more thorough, as all OXD Tokens will be allocated to LP providers. 0xDAO hopes to attract funds staked in veDAO through this method. The decision-making power of 0xDAO will be 100% owned by the community, and OXD holders will be able to participate in decisions, determining whether to sell ve(3,3) airdrops or distribute dividends to OXD holders.

However, 0xDAO does not want to be a flash-in-the-pan organization; its goal is to provide a fully decentralized infrastructure, maximizing 0xDAO's profits, capital efficiency, and voting power, creating a free market for established protocols on Fantom to increase liquidity. The team's expectation is that as 0xDAO's treasury gains more voting power, other protocols will be more willing to use ve(3,3) to incentivize liquidity and thus bribe OXD holders.

The Firestarter Participants

It is evident that the Vampire War unfolding between veDAO and 0xDAO has quickly attracted significant attention and a large amount of capital. For some protocols, this is undoubtedly a huge opportunity. Here are these firestarter participants:

Grapes Finance

Grapes Finance, inspired by Convex, intends to become the new Convex on Fantom, aggregating ve(3,3) NFTs obtained from other projects.

In the protocol's GRAPESEED plan, projects that pre-lock ve(3,3) will become partners of Grapes Finance, jointly owning up to 15% of the protocol. Protocols that pre-lock ve(3,3) will receive GRP Tokens for governance of Grapes Finance, staking farming, or providing liquidity to users. Protocols can redeem their ve(3,3) by returning GRP Tokens.

Additionally, Grapes Finance will airdrop 1% of rewards to Convex holders and 3% of rewards to the communities of projects participating in the GRAPSEED plan to incentivize more participants.

Radial Finance

Radial also claims to be a protocol similar to Convex. It generates compound interest by automatically locking veTokens, allowing LPs to earn higher rewards without having to lock their own Tokens. In addition to optimizing gas and the allocation of ve(3,3), the protocol aims to serve as a focal point for coordination between LPs and DAOs and as a repository for various veTokens.

veRwards

veRwards is even more interesting. It is a project similar to veDAO and 0xDAO, but if the protocol succeeds, users will be able to obtain the maximum number of ve(3,3) Tokens in the shortest time through staking.

The protocol believes that the problem with veDAO and 0xDAO is that their token issuance cycles are not concentrated enough. Taking veDAO as an example, its issuance cycle is about 28 days, meaning people need to stake for 28 days to fully capture the value of ve(3,3) allocated to the DAO. However, since the TVL after the snapshot no longer affects the allocation of ve(3,3), the TVL contributed by users after the snapshot is essentially wasted.

In contrast, VEREWARD's issuance period will start from the protocol's launch and end after AC's snapshot. This means users only need to stake for about 2 days to obtain the full value of their contributed TVL.

The reason veRwards can set such a short emission cycle is that it is merely a temporary DAO, solely aimed at helping users obtain as many ve(3,3) Tokens as possible. Once the ve(3,3) acquired by the DAO is fully allocated to users, this organization will dissolve.

What Happens Next?

At this moment, the war is in full swing. From KOLs to ordinary retail investors, from native protocols to newly established DAO organizations, everyone is pouring significant funds into the TVL projects they support. Many of the protocols mentioned above have even accumulated a large amount of TVL without passing audits. In the project Discord, many participants are even unaware of what ve(3,3) and the participating protocols are, simply rushing in.

Now, it seems that no one cares about what will happen after the snapshot ends and the risks that come with it. This overnight Vampire War has completely mobilized protocols and users across the Fantom ecosystem. In anticipation of a snapshot in a few days, the entire Fantom ecosystem has gone mad. Will there be a dark horse emerging in the coming days? Will these protocols collapse after the end? Let’s wait and see.