Introducing cLQDR — the first wrapped xLQDR
Today we are excited to tell you we are onboarding Growth DeFi as our next strategic partner. They will be the first one to officially launch a long-awaited wrapped version of xLQDR — cLQDR.
New strategic partner
Growth DeFi is a multichain ecosystem that combines products such as its overcollateralized stablecoin MOR and yield aggregator veGRO. MOR, now launching on Fantom, is also a decentralized lending platform that allows users to use yield-earning collaterals as leverage.
cLQDR is more specifically a wrapped token derivative of xLQDR. How it works is the contract receives all the performance fees, xLQDR rewards, and the future bribes. It then compounds them into cLQDR, increasing its value over time in comparison to LQDR.
It should always trade at a slight premium to LQDR due to its’ auto-compounding nature. If it were to trade at a discount, the contract would buy it from a secondary market instead.
Benefits of a wrapped xLQDR
The benefits for LQDR are clear. An auto-compounding version will add buy pressure while locking it in perpetuity, thus taking it off the market forever. cLQDR also creates a liquid market for locked LQDR. It can be integrated in borrow markets, LPs, and other protocols — opening doors to multiple possible use cases.
Deploying a wrapped xLQDR product allows a protocol to acquire influence over the top DEXs on Fantom, as the yields are paid in form of a basket of blue chip tokens. xLQDR already acts as a governance proxy for inSPIRIT, veHND and other tokens acquired in the future.
We hope you are as excited as we are.
To take a deeper dive, head over to the official Growth DeFi docs:
https://growthdefi.gitbook.io/docs/clqdr
