# What is MetaDEX?
## *ve(3,3)*
[Andre Cronje](https://x.com/AndreCronjeTech) revolutionized exchanges by creating a system where all participants are incentivized to act in the best interest of each other and the exchange. While not perfect, it was a huge step forward as a means to align incentives with participants. **To understand ve(3,3), we need to break down two key concepts:**
### Rebase
A core element of the ve(3,3) model was the rebasing of locked positions to prevent a user from being diluted by emissions, [OHM (3,3)](https://www.olympusdao.finance/). This anti-dilution mechanic for veTOKEN holders allowed them to **maintain the same ownership without having to buy and lock more tokens.**
### Vote Escrow (ve)
The second concept you should understand is vote escrow **(ve)** - a fundamental change to governance and on-chain voting systems that introduced **time-weighted voting.**
> Instead of voting with token amount **a**, tokens are lockable in a *VotingEscrow*, now shown as **veA**, for a selectable locktime
Your vote is not only calculating total tokens held, but also the lock duration. Curve first introduced this in a 2020 [whitepaper](https://classic.curve.fi/files/CurveDAO.pdf).
This system intentionally creates a **risk vs. reward** scenario. where more governance power is given to active participants continually extending their locks.
### DEX Limitations
The history of decentralized finance has been marked by repeated attempts to solve the **"DEX Trilemma"** - the challenge of aligning incentives between **traders**, **liquidity providers****,** and **token holders**. While Andre Cronje's ve(3,3) model theoretically solved this by balancing incentives between all participants—long lock-ups created a **high friction system** that forced users to lock tokens to participate equitably in the incentive model.
Uniswap focused on a simple **two-party system**: traders and liquidity providers (LPs). ve(3,3) improved this by properly aligning incentives with token holders as well.
*Credit to the Aerodrome team for the* [*original graphic and concept*](https://x.com/wagmiAlexander/status/1862191154932195570)*.*
