Cone

Cone is a decentralized exchange that runs on the Binance Smart Chain network. Cone has low swap fees and an engaging governance model that incentivizes active participation and liquidity circulation. The protocol's architecture boosts rewards for liquidity providers and governing members.

Brief History of Cone

Belbix, the founder of Tetu protocol and Dystopia exchange, created Cone. It is a replica of the Dystopia exchange, which was built on the Polygon network. In 2022, Belbix saw the need to create a new automated market maker and exchange on the BSc network. Belbix wanted to create a platform using the ve (3,3) model to efficiently manage liquidity and yield farming rewards. In August 2022, the development of the Cone protocol was completed, providing web3 users with fair and balanced access to decentralized finance.

ConeSwap

ConeSwap has a near zero slippage on closely related assets. The token variety on the exchange differentiates it from Dystopia. On Coneswap, users can swap between stable pairs and volatile pairs. Coneswap provides DeFi users with multiple ways to earn yields via liquidity provision and its governance model.

Coneswap’s liquidity providers do not earn swap fees. Rather, they earn CONE emissions. 65% of the CONE emissions is used to reward liquidity providers, while 30% goes to veCONE lockers and 5% goes to the governance team. 100% of the swap fees from Coneswap are distributed to veCONE lockers. This structure encourages users to lock veCONE, resulting in a higher price for veCONE. The token emissions also provide more incentives for users to provide liquidity, and boosted liquidity leads increases lock incentives.

CONE and veCONE

CONE is the DEX’s native token, while veCONE is the governance token. Users can lock their Cone tokens to earn veCONE. The minimum lock period is one week, and users can decide to lock CONE for as many weeks as they want. A longer lock period results in a higher reward. For every CONE locked in a year, users earn 0.25 veCONE in return. Thus, for a 4-year duration, users earn 1veCONE for locking 1CONE.

Vesting and Voting

When users lock or vest their veCONE tokens, they get voting rights. Lockers can upvote or downvote gauges. The downvote feature prevents spam vaults from prevailing in the governance system. Voters get rewarded from the gauges they upvote.

The voting period lasts for one week, and a user can increase the number of veCONE tokens staked during that period without needing to vote again.