FLY
Last updated
Last updated
Our vision for the FLY token and Magpie ecosystem is to create a circular economy, which we call the FLYwheel, which takes the ve(3,3) model in a new direction, and rather than incentivizing LPs, emissions will directly benefit traders, optimizing execution costs and slippage.
Lock tokens for voting power (ve-tokens) increasing with longer lock
Ve-holders vote to direct emissions to particular liquidity pools
Protocols and token issuers compete for liquidity by offering bribes to ve-token holders
Ve-token holders earn trading fees & bribes
LPs get rewards for providing liquidity to popular pools and traders benefit from reduced slippage
With this model, essentially all of the incentives and benefits are to liquidity providers. While traders do benefit from better slippage and deeper liquidity on popular pools, that is all they get, while the volume and swaps they complete are providing others, not themselves, with the rewards.
Magpie is an aggregator, router, and execution engine, specializing in getting traders the best price, and we do not host liquidity pools, so we thought “what if emissions benefited traders instead?” We're evolving ve(3,3) for those who trade—subsidizing trading costs, not LPs. Instead of rewarding liquidity providers, we’re optimizing execution costs, reducing slippage, and providing incentives and rewards for high-volume traders and market makers.
FLY delivers tangible value to traders, stakers, and governance participants. Users can lock FLY for xFLY, which can be staked or used to redeem FLY33, both of which we’ll go over below.
• Staking - Vote on emissions • Governance - Help shape the future of Magpie • Revenue share - Earn a percentage of Fees • Trading rewards - Bribes, Subsidized slippage, Fee reductions
The FLY-wheel creates a sustainable cycle by optimizing ve(3,3) incentives for traders, directing emissions toward real trading demand rather than idle liquidity. Focusing on active trading maximizes throughput and reinforces long-term ecosystem efficiency.
What’s the FLY-wheel look like?
→ Traders stake to vote on incentives → Volume earns xFLY and multipliers → Voting power increases → More power to vote on incentives (repeat)
It’s circular. It’s scalable. And it rewards the right behaviors.
As a Trader: Magpie becomes the most capital-efficient protocol for trading with the best pricing, lowest cost, and now, direct incentives.
As a Voter: You control emissions flow, targeting assets that generate the most volume, fees, or vote incentives.
As Both: You play both sides - vote to direct emissions, then trade the same assets to reduce your cost basis or subsidize costs.
Whether you're a passive holder or an active trader, FLY has you covered, check out the next page to learn more!
