With the launch of the Wavelength, AMM users are invited to get familiar with the Wavelength Ecosystem. The article will focus on the WAVE token, its value offering and utility, and the pools available upon launch.
The pools were carefully curated to offer a competitive liquidity environment, and the token reflects the evolution of the protocol functionality throughout the implementation of the roadmap.
1) Governance via veWAVE
Community governance will be available to users with the implementation of Phase II of the roadmap. Following the launch of Phase II, users will be able to begin staking their WAVE for veWAVE and begin transferring the guidance of the protocol to the community. Over time as the emissions schedule takes its course, the community will expand its voting power within the governance of the protocol, allowing for a smooth transition of the governing body into a decentralized structure.
Every proposal directed at the DAO will always be initiated as a discussion and brought to an on-chain vote only after strong interest in the implementation from the community. Governance ability is one of the primary utilities and value mechanisms.
The governance derivative veWAVE will also grant users the ability to participate in gauge voting. This means that users staking in the veWAVE contract would be able to compete to direct a part of the WAVE token emissions to their favorite pools on Wavelength, making veWAVE stakers eligible to participate in the decisions on which pools get an emission boost.
2) Value capture on Wavelength AMM
Wavelength Pools enable users to earn staking yield by depositing their tokens into the pool, in return, the pool gives the user an LP token which represents their share of the liquidity pool. Liquidity providers (LPs) will earn swap fees whenever swaps are routed through the pools. Swap fees earned from the pools are combined with liquidity provider rewards in the form of WAVE. This allows liquidity pools at least two consistent yield drivers — trading fees and WAVE emissions.
3) Value capture outside of Wavelength AMM
The upcoming launch of a lending platform partnering with Wavelength will grant users the ability to utilize Linear Pools integrated with the lending receipts of lenders, enabling users of the lending platform to carry their LP receipts to Wavelength and form a hybrid liquidity pool (Hybrid LP).
The Hybrid LP is a product consisting of an asset (e.g. USDT) and the lending platform LP (e.g. lent VLX receipt). Such a mechanism enhances the value offering of Wavelength by deepening available liquidity and maximizing overall capital efficiency. Additional benefits are derived from integrating WAVE token features across multiple protocols, therefore harnessing the value of a diverse functionality offering across the Velas ecosystem. All upcoming features are detailed in the Wavelength Documentation and Roadmap and will be implemented following the launch of the protocol. (link the ‘roadmap’ word to lead to the article)
Wavelength will run several community engagement programs to expand its reach across the Velas ecosystem, these will include the Waver of the Month (stay tuned for an announcement), various competitions, and initiatives through Velas. As a community endeavor, Wavelength is open to rewarding participants with WAVE for significant contributions to the Wavelength AMM from the perspective of the community. If you are interested and can add value, please feel free to join our community and ask about upcoming activities.
By announcing the first set of Liquidity Pools that will be available at launch, Wavelengh aims to provide a stable foundation for ecosystem growth and offer practical utility to users of the protocol. After careful consideration, a suite of pools was chosen based on expected trading volumes, user interest, swap-route efficiency, and community-voted requirements. With the goal of ensuring a stable experience and a competitive offering at launch, Wavelength AMM aims to provide the most efficient price curves currently available in the Velas ecosystem.
The composition of the pools available at launch are the following:
1. MicroWave: WAVE/VLX 80/20 (80%WAVE/20%VLX)
Dedicated to supporting the Wavelengh ecosystem and providing maximum exposure to the WAVE token.
2. DeepWave: WAVE/VLX 80/20 (50%WAVE, 50%VLX)
Provides core liquidity support for the WAVE token by pairing it with the ecosystem token of Velas blockchain.
3. Stable Trio: BUSD/USDC/USDT 33/33/33 ( 33% BUSD, 33%USDC, 33% USDT)
A diversified all-stablecoin pool provides liquidity depth for the Velas ecosystem.
4. Quad Core: BTC/ETH/VLX/BUSD 25/25/25/25 (25%BTC, 25%ETH, 25%VLX, 25%BUSD)
A diversified pool offering a pairing of the most popular offerings in the industry with VLX and a hedge in stablecoin.
5. Velonian: WVLX/BUSD 50/50 (50%VLX, 50%BUSD)
As the core pool of the current Velas Defi ecosystem, this pool provides primary VLX liquidity on the Wavelengh protocol.
6. Leadership: BTC/ETH/BUSD 33/33/33 (33%BTC, 33%ETH, 33%BUSD) Combining the most essential product offerings in the industry, this pool serves as an industry benchmark within the Wavelengh protocol.
7. Stability: BUSD/USDC 50/50 (50%WAVE, 50%VLX)
A classic pair serving to enhance stablecoin liquidity on Wavelengh
8. EVM Quarter: AVAX/BNB/MATIC/VLX 25/25/25/25 (25%AVAX, 25%BNB, 25%MATIC, 25%VLX)
Comprised of four of the most exciting EVM initiatives to date.
Wavelength perceives protocol development on Velas as having a great potential opportunity and expects that Velas blockchain is on a trajectory to increase its standing within the EVM product offerings. With the anticipated growth of the ecosystem, it is expected that more protocols will be built on and integrated with Velas, which would lead to process scaling and aggregation and become significant on-chain volume drivers.
Wavelength’s pools will likely be used to route the vast majority of trades due to their efficiency and liquidity depth. Such a scenario would consequently benefit Liquidity Providers and WAVE holders, earning them more in fees and furthering the value of WAVE.
After this short introduction to the base Liquidity Pools and WAVE value creation mechanisms, we invite users to follow the progress of the protocol in implementing the roadmap and community initiatives. Both are designed in the best interest of Wavelength and its users. We welcome feedback and criticism, which only serves to improve Wavelength product offerings and user experience. Feel free to reach out on Telegram and/or Discord and address any remaining questions.
Remember to regularly check the Wavelength social channels to keep up with the progress of the protocol.
This article and any information contained in it are subject to Legal Notice. Please carefully review the Legal Notice as it contains important legal information, limitations, and restrictions relating to the information that we provide, third-party resources, and forward-looking statements.”