LiquidDriver V2: All Aboard the New $LQDR Ship
Since the beginning of LiquidDriver’s voyage, our crew has been driven by two main goals: To bring our fellow LiquidShippers the juiciest rewards and smoothest travels through the Fantom seas.
We appreciate everyone who has joined us for this journey, and we hope you have enjoyed the rewards from our first destination — Sushi-Island! This has been a good place for us to test and improve the LiquidShip, but we have to sail onwards for more bountiful, native rewards.
So, while exploring uncharted waters, we discovered an old but promising map leading us deeper into new seas…
After weeks of searching, we are excited to announce the discovery of new Islands flowing with treasure!
The crew has been hard at work to prepare the ship for the next leg of our voyage, and we’re ready to take it to the next level for you and our LiquidFam!
All hands on deck, get ready for the next stage of our voyage! Arrrrrh!!
LiquidDriver V2: On-demand liquidity-as-a-service
We are delighted to finally reveal the work happening behind the scenes to optimize the performance and bolster the value generation of the LQDR protocol.
Following the rollout of LiquidDriver’s V2, which will be done in two phases, we will offer on-demand liquidity-as-a-service for DEXs, synthetic assets, on-chain options, and integrations with partner projects in the ecosystem.
When combined, these new features and integrations will upgrade LQDR’s utility and give xLQDR holders significantly higher returns.
We are evolving the protocol from its core where
- Many different platforms will have their LPs incentivized on LiquidDriver ( Our partners will be announced during the week)
- Users can stake into one of the pools available and start earning LQDR, just as before
- We will implement vault strategies to maximize the returns for xLQDR holders: LP tokens deposited into our pools will be used to stake in our partner’s pools. The farmed rewards will be airdropped to xLQDR holders at the end of each epoch.
88% of the tokens earned in our partner’s pools will be used to seed the xLQDR-Revenue-Sharing Vault, so xLQDR holders will start receiving the following weekly:
- % rewards of FTM from the deposit fees we have already earned
- + LQDR from inflation
- + 88% of the tokens farmed in our partners’ pool and distributed every epoch from the revenue-sharing vault
Additional allocations of farming rewards
- 9% will be kept for governance as LiquidDriver aims to drive community participation and advance the broader DeFi space
- 4% will be allocated to our dev wallet for future development and maintenance. As our TVL increases, we will progressively reduce the % allocated to the wallet.
Exploring the details further to demonstrate the benefits of our V2 model
On average, DEXs have a ratio of marketcap to TVL ranging between ⅕ and ¼, which means they need a market cap representing 25% of their TVL. We will assume LiquidDriver will stay within that range.
If we incentivize $10M in liquidity across multiple DEXs, earning $5M/year with our partners’ token (Average APR of 50%), our valorization should be approximately $2.5M.
Now, let us suppose 50% of the LQDR supply is locked to generate xLQDR; that would mean $1.25M is used to back xLQDR’s circulating supply. On average, this $1.25M would receive an average APR of 400% from our partners’ tokens.
Ultimately, with this model, we now have an effective way to link the value of LQDR with the TVL on LiquidDriver while relying on a user-driven demand.
Partner- Program: Onboarding New Users on the Journey
Following the successful migration of our MasterChef contract, LiquidDriver will facilitate the rewarding of multiple tokens for liquidity providers.
Thus we invite new projects that need their liquidity incentivized to reach out to us. This way, we can collaborate as partners to effectively reduce the inflation required to incentivize liquidity for your users.
Additionally, we can help bootstrap initial liquidity for projects looking to test demand on Fantom. By doing this, you won’t have to move your incentives to Fantom right away and can seed rewards to our fee distributor at a fixed rate based on the TVL that we provide.
The Grand Voyage
We will roll out our V2 in two phases:
Phase I: Deployment of our new MiniChef contracts
We will open pools for our partners (more info coming soon) and stop incentivizing Sushi LPs.
Important information:
- You will need to harvest and unstake your funds from the current pools
- Deposit fees will be waived during this process
Phase II — Roll-out of our new farming strategy
We will redirect the funds staked on LiquidDriver to our partners’ farms, and weekly rewards will be distributed to xLQDR holders through our Revenue-Sharing Vault.
The exact dates will be posted soon, so make sure you follow our channels below to receive the announcement!
We appreciate the valuable feedback and support from the community and thank everyone who has contributed to the project this far.
Let the second leg of LiquidDriver’s voyage begin!
Our channels:
Twitter: twitter.com/LiquidDriver
Discord: discord.gg/jMyffdRmTz
Telegram: t.co/HK0osVDNRp?amp=1
