Understand Pearl in 3 minutes: a decentralized exchange combining RWA and ve (3, 3)

Written by: HAYLΞS.eth

Compilation: Deep Tide TechFlow

The lack of ve (3, 3) exchanges in the Polygon ecosystem is a problem that needs to be solved, and the emergence of Pearl fills this gap. Let’s take a deeper look at how Pearl turns the attention it gets from RWA into liquidity and into the ecosystem.

The rise of powerful bribery protocols has overturned the previous AMM Dex model represented by protocols such as Sushiswap. With Pearl, users can self-optimize the AMM, which will not lead to a sell-off of the platform’s governance tokens. And the way to achieve this is very simple.

It provides token emission to LPs with the most votes. LPs on DEXs provide incentives for liquidity providers to gain votes. These votes allow LPs to maximize the issuance of tokens allocated to them by Pearl.

Pearl partnered with Tangible, one of the largest bribers and one of the most widely adopted RWAs. With their stablecoin $USDR, allowing automated bribery from USDR using the Solidy model. USDR is backed by tokenized real estate offering 8% APR from rental income.

With a TVL of up to $43 million, Pearl is second only to Velodrome as the leading ve(3,3) DEX. As the demand for RWA integration with DeFi continues to grow, soon it will increase further in transaction volume beyond its current position.

Pearl’s Token

• $pearl (ERC-20) - Main utility token used as rewards to incentivize liquidity providers and get better trading conditions.
• $vePearl (ERC-721) - Use this token to vote on LP emissions on pearl dex.

To earn vePearl, users must lock their $pearl, the longer the lock, the more voting power they have.

How does Pearl work?

• Voters get $USDR through automatic bribery.
• More incentives means more demand for pearls.
• The price of pearl tokens increases.
• Pearl issue value increased.
• Increase TVL to gain circulation. *The automatic bribe of USDR increases with TVL.

Incentives are crucial in Solidly's bribery model. Platforms with better incentives will naturally outperform others. As evident in Pearl's diagram.

Thena - A Solidly dex running on BSC, it pales in comparison when we compare the graphs, probably due to the lesser bribes given. Also Solidly dex Chronos on Arbitrum.

Token Economics

Pearl's goal is for everyone to participate in the ecosystem as much as possible, however, active users will receive a greater distribution of $vePearl tokens.

The sustainability of PearI's ve (3, 3) model mainly comes from incentivizing LPs with unlocked governance tokens, distributing transaction fees to ve token holders, and allowing the protocol to release unequal allocations to pools and allow the protocol to bribe locks Warehouse token holders vote.

in conclusion

Pearl ensures high utility and rewards for holding and locking governance tokens, thereby helping to maintain token prices, which in turn leads to continuous liquidity. RWA is gaining traction and it won't be long before other markets catch up.