NILE Project, An Introduction to Understanding Next Generation Concentrated Liquidity

Bittime - NILE Project, an initial introduction to understanding next-generation concentrated liquidity. In May, NILE Project became one of the protocols with the highest TVL growth according to Cryptorank and DefiLlama.

Let's get to know what the NILE Project is, and what unique features it brings in the following article.

What is the NILE Project?

NILE Project is the Next Generation of Concentrated Liquidity. NILE takes concentrated liquidity to a higher level, by optimizing high-frequency  liquidity providers (LPs) and fee structures at Layer 2.

This results in a highly efficient liquidity layer designed to attract the most effective liquidity providers, while providing a clean and simple user experience for traders.

As a fork of RAMSES on Arbitrum, NILE inherited RAMSES's Concentrated Liquidity (3.3) implementation, bringing incredible efficiencies to the world of Linea liquidity.

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Why NILE Project Choose Linea

NILE Project has made a strategic decision to choose Linea as its main platform.

The decision is based on the belief that the Linea ecosystem offers many high-integrity projects and is a DeFi pioneer that is leading the decentralization movement. 

Source: x.com/NileExchange

With the Layer 2 narrative gaining momentum , the upcoming  proto-danksharding Ethereum upgrade proposal (EIP) further strengthens the ecosystem's potential.

The combination of the above factors convinces NILE that Linea is capable of providing a strong and thriving environment for its operations.

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NILE Tokenomics

Initial Supply : 5,000,000  

Maximum Supply : ∞  

Emission Reduction : 1% per week

Token Allocation

1. Airdrop 15% (750,000)

  - Token Type : veNILE
  - Status : Not Circulating

2. LGE 5% (250,000 - 375,000)

  - Token Type : NILE and/or veNILE with 50% bonus

  - Status : Mixed

3. Contributors: 25% (1,250,000)

  - Token Type : NILE [locked] + veNILE

  - Status : Mixed

4. 30% veNFT allocation (1,500,000)

  - Token Type : veNILE

  - Status   : Not Circulating

5. POL (Protocol-Owned Liquidity) 5% (250,000)

  - Token Type : NILE

  - Status : Circulating

7. Reserve 20% (1,000,000)

  - Token Type : NILE

  - Status : Not Circulating

The ve(3,3) concept in the NILE Project

ve(3,3) is a concept introduced by Andre Cronje's Solidly, which combines many successful DEX technologies into a cohesive flywheel.

The main function of the ve(3,3) model is dilution protection rebase, which occurs per epoch, to incentivize users to lock up their tokens early.

This rebase refers to the OHM (3,3) model which has been popularized in recent years.

Also Read How to Buy Crypto:

How the ve(3,3) System Works

To help you understand the concept of ve(3,3), here is a kind of example presented by the NILE Project themselves on their website.

So, an example would be 25% Dilution Protection. For the record, NILE has a 25% rebase, increasing by 1% per epoch until it reaches 50%.

Also Read: Getting to Know Ethermail: Email Transformation in the Web3 Era

Imagine you now have 1000 NILE, which is 10% of the total supply of 10,000 NILE at that time.

During this period, another 10,000 NILEs are emitted into the meter, bringing the total NILE supply to 20,000.

It is at this time that you can claim your rebase after the epoch ends and receive an additional 250 NILE added to your position. 

So that leaves you with 6.25% of the total supply, which is 1250 NILE out of 20,000 NILE. Wow.

The above example is a simple but clear illustration that should help explain the ideology and function of rebase on the ve(3,3) concept.

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Final Note

Source: x.com/NileExchange

The NILE Project, which in May 2024 was in fourth position in the project sector with the highest TVL growth, recorded an increase of 1.012%.

Offering a unique concept in the form of ve(3,3) with rebase techniques that can double income, the NILE Project is worth following its development.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.