✨Quick Guide to Openfi

Starting with OpenFi can be challenging, but this quick guide is intended for beginners to have a better understanding of DeFi and crypto. It explains how OpenFi works and how it generates revenue for liquidity providers.

OpenFi addresses these issues and presents an attractive alternative by addressing the core issues in Solidly and adding its own improvements. The key innovation of Solidly was to align protocol emissions with fees generated, not simply liquidity. To do this, it would allow protocols and other large stakeholders to become veNFT "voters"; using their locked voting power to direct future emissions and collecting fees (termed bribes in Solidly) from the pools they voted for.

OpenFi has made several improvements to the Solidly codebase, all of which were thoughtfully chosen to ensure that the protocol would carry out the originally intended mechanism of allowing voters to fairly compensate LPs for impermanent loss.

What is OpenFi?

OpenFi is a decentralized spot and perpetual exchange that operates on a vast scale, providing traders with low swap fees and zero-price impact trades. The platform's trading capabilities are bolstered by a diverse multi-asset pool, which earns liquidity providers fees through market making, swap fees, and leveraged trading.

OpenFi offers two tokens, $OPEN and $NEC(NECTAR), both of which are ERC-20 tokens based on the ZkSync Era chain. $OPEN tokens function as an asset endorsement token as well as a certificate of ownership for treasury assets. On the other hand, $NEC tokens are used to manage contracts and represent a valuable contribution to the protocol.