Gm 🌞 greetings, ve(3,3) fans! ✖️2️⃣
Dubble DEX is a DeFi platform that incentivizes liquidity for protocols on Arbitrum, providing them with revenue-earning opportunities. Dubble DEX is designed for protocols and offers various benefits, including low-fee swaps, revenue sharing, and more. Most pairs on Dubble use $DUB, an interest-bearing stablecoin, as the base token, creating unique opportunities for users.
In this article, we’ll discuss some of the improvements made to Dubble, which are only possible because of the $DUB token.
Previous DeFi exchanges relied on the success of their governance tokens to provide yields to all LPs on the exchange via token emissions. However, this approach had a dangerous loop of selling tokens for profit, leading to lower yields and negative sentiment on the exchange, resulting in more selling. Dubble solves this problem with $DUB. Any LP paired with $DUB will be able to claim the yields from their tokens separately, providing them with stablecoin yields regardless of the other token in the pair.
The primary utility of traditional governance tokens is the governance itself, which incentivizes users to take their tokens off the market, reducing supply, and pushing the price upwards, maintaining the health of the token price and the entire DEX by extension. Dubble solves this issue by conferring governance power by locking DUBBL/DUB LP tokens, increasing liquidity instead of decreasing it by taking tokens off the market.
By providing liquidity on a $DUB pair, investors can receive $DUB rebase rewards along with Dubble emissions, making locking $veDUBBL (DUBBL/DUB LP tokens) seamless. This mechanism has several advantages for lockers, including claiming the real yields of being in a $DUB pair and getting their share of emissions brought to that pair. Additionally, with $veDUBBL lockers, they can vote for the same LP that they are locked in, benefiting all $veDUBBL lockers.
In summary, $veDUBBL holders benefit from governance power, bribe income for the pair they voted for (if available), trading fees, claimable $DUB yield, and Dubble emissions, making locking veDUBBL more profitable than any other vote-escrowed token.
With these improvements, Dubble is well-positioned to be the most successful ve(3,3) DEX in all of DeFi!