LiquidDriver X FTM Alerts AMA Recap

Check out a quick recap of the awesome AMA we had with our friends at FTM Alerts. This has been edited for relevance and easy reading, so you can check our the full AMA here on their discord!

Introduction

KeshaV:

Hello @everyone

Welcome to @Dr.Liquid & @Liquid George

Super happy to have you guys.

Long overdue

Soooooo how do you feel today both of you?

Liquid George:

hey, excited to be here

Dr.Liquid:

Hi everyone! Yes indeed long overdue, we’re super happy to be here! And we’re good, it has been an exciting week for us despite this weak market

KeshaV:

So maybe to start

Could you let us know a bit more about the team. What do both of you do? How many other people are there?

And then let’s be ready for the questions…. so many …

Dr.Liquid:

Yeah sounds good. So I have an economic / finance background, but before getting into blockchain I was a product manager for 4 years. Since COVID happened, I started working as a consultant for DEFI projects, and that brought me here, with LiquidDriver. I'm mainly responsible for our long term strategy and product management.

We currently have 4 developers, 2 solidity and 2 frontend, a community manager, George, and myself 🙂

Liquid George:

I’ve been working in the web3/blockchain space for quite a while. For LQDR, I'm working mostly strategically behind the scenes, organizing/upgrading the team and project management

KeshaV:

So basically two DeFi lovers

I guess we actually miss often economic / finance backgrounds in our BUIDLers

Might need to push you to partner with many other projects @Dr.Liquid

Liquid George:

we’ve done quite a bit of farming in our time, won some, lost some 😅 and wanted finally to implement our own ideas

SushiSwap

KeshaV:

Ahahah already leaking the alpha I see

@Liquid George I guess you have found the good strat since LQDR has been growing quietly but organically

Actually…

one of the first questions I wanted to ask, for sure you might have answered in the past is: what’s your relation to Sushi? From the start, people (and it is reflected in questions) thought you were related to them. Have you contacted them before your official launch? And how did you consider the Fantom liquidity problem to bring your solution?

Liquid George:

yes, the fun part is actually the people genuinely caring about the long term plans. we’re all apes at times, but it's nice to have people think about more than just the APY

Dr.Liquid:

So we don’t have any official relations with Sushi, it all started a bit before launching, they retweeted one or two tweets and it brought a lot of attention to LiquidDriver. We tried reaching out to them for whitelisting our token and to see if they planned to move their incentives to Fantom at some point but we had a hard time getting an answer.

Liquid George:

Sushi was our prototype use-case so to speak

KeshaV:

I guess such a big structure doesn’t have Fantom projects agility….

Dr.Liquid:

Actually, this bear market helped us a lot so far as it forced us to really rethink the way we could give value to an emission-based token, sooner than expected.

New Partners

KeshaV:

Yay, maybe you can tell us how many AMM / Dexes you are actually plugged in now? How does it work? Do you decide where to go when you want? Or do some of them you actually work on a more comprehensive & cooperative way?

That’s where Economic & Finance background comes in play

Dr.Liquid:

So at the moment, we are still incentivizing liquidity for Sushiswap. We’re currently undergoing some testing with our new contracts and will start the migration soon. From there on, we will incentivize liquidity for 3 DEXs. As we start rolling out our new model, we really wanted to cooperate with our first partners to align our vision with theirs and bring as much value as possible to both our holders and their community.

V1 to V2

xLQDR

KeshaV:

before moving to the big part… I mean V2…. we had also questions about the xLQDR system.

Since it is also a big part…. maybe you could introduce all from this perspective

and then I would like a comprehensive vision of diff between v1 & v2. How does it work for you?

Dr.Liquid:

xLQDR is the yield-producing vested version of LQDR. Users lock their LQDR for a minimum of 2 weeks up to 2 years. The longer the locking period, the bigger the amount of xLQDR / LQDR you will receive. With this model we actually reward those who have skin in the game and are here for the long term.

xLQDR holders are entitled to a share of the revenue made by LiquidDriver. Currently, holders earn wFTM from our deposit fee + LQDR from our inflation schedule. With our V2 rollout, xLQDR holders will start earning 88% of the revenues made by our vault strategies.

This concept is interesting because we’re able to turn a non-productive and emission-based asset that has no inherent value into a vested asset ( Removing the supply from the circulation ) that earns weekly “dividends” from our Revenue-Sharing vault. The bigger our TVL, the bigger the yields for xLQDR holders.

KeshaV:

(Just jumping while you type still, but are there similarities with CRV/veCRV? Or I’m totally wrong?)

Liquid George:

yes, we base our model on the veCRV contracts

Solving V1 Problems

Dr.Liquid:

In V1, the only demand driver for LQDR was the buy-back. But we learned the hard way that deposit fee + buyback is not an effective solution. We need to attract user driven demand, and the only way to do it is to provide real value to our token. The best way to do it IMO is to drive more revenue for our holders while incentivizing them to lock for a longer period of time.

TVL growth should be our biggest metric to assess our success, and by linking the growth of our TVL with the rewards given to xLQDR holders, I think we get an effective model to drive value in a sustainable way.

Liquid George:

also, we’re dealing with a difficult market, different strategies are needed

Dr.Liquid:

As you must have seen, I love the word drive, hence LiquidDriver 🌊

KeshaV:

I found it interesting though that the high deposit fee didn’t rebuke people to ape. Your TVL is more than good for the FTM ecosystem.

I admit though for FTM it seems high. But well, people forget FTM fees are so cheap that also no fees totally change the way tokenomics should be perceived vs ETH based projects where you need to think 20 times before doing a tx

Dr.Liquid:

Our ATH was $40M, but we’re working hard to get back here. We’ll be ready for the second wave of liquidity

Exploring V2

KeshaV:

I let you type 😉 I go fast sometimes haha: but for the next question we were all wondering about the audit of V2: is it done, ongoing, planned? Especially as @Arky- pointed (our salty questions friend :heart: ), strats are way more complex here

Yay, many projects got crazy ATH at launch. Market crash + people aping for airdrops is moving some liquidity around very fast. But it tends to stabilize now I believe

Liquid George:

When you fork something that has already been audited — it’s all about marketing.

Our initial contracts had already been audited multiple times and a thorough testing phase is enough to be confident regarding security. We started out by forking the well-known MasterChef used by most of the DEXs / liquidity mining dapp out there, thus we didn’t feel the need for an audit.

However, with our V2 and vault strategies coming up, we will definitely go through an audit. Be assured, everything we release has security as our number 1 priority.

KeshaV:

Be careful, if you have some custom changes, someone we know might ping you as high risk…

Is the V2 also intended to be the first move towards consolidation of your offer, and maybe later a cross chain approach?

(I love that you have deep & long answers btw, it’s really valuable to have more details ❤️ )

Dr.Liquid:

Yes definitely, even before launching we had this idea of on-demand liquidity as a service, but it wasn’t clear yet. The way we picture it, in the near future, we could reach out to projects that are currently on Ethereum or other chains and provide the initial incentives to bring the initial liquidity and test demand on Fantom. To give you an idea, and it doesn’t mean we’re in contact with them currently, I’d love to bring Hegic or DEUS to fantom and help them test demand while providing rewards to our xLQDR holders .

For the cross chain approach, it’s definitely not our priority ( We have enough work on Fantom ) but if you ask me how I picture LiquidDriver in 2 years, I definitely see us going there at some point and incentivizing liquidity for different dapps.

Liquid George:

yes, and it's also meant to show our community that we are serious and can deliver more than just APY. we’ll see how it’s received

KeshaV:

Why do you start to leak such info before I can even ask “incentivizing liquidity for different dapps” …

Ok before asking more about your vision, partners & such…. I wanted to ask something else

@StErMi our master of questions is bringing me 2 that I like a lot

“Liquidity bootstrapping for options and insurance coverage: this is the second topic that I would love to know more about. When you say “options” do you mean the same mechanism of options that we have in the “normal” stocks in finance? What will the Insurance coverage do? “

And second part:

Will it cover all your products from “normal” farms to leveraged farms and also options farming? How much will it cost, how much will it cover and what will it cover? Also, do you have an ETA for this feature?

Dr.Liquid:

Yes, let me take the example of on-chain options. They need liquidity to back the profits of those who are deep in the money. When you provide liquidity to back those options, you’re actually betting on low volatility. So what we’d like to do is reach out to projects like Hegic and tell them that we can start incentivizing liquidity to back their options. It would work the same way with insurance coverage, we just incentivize liquidity to back those services and keep them solvent.

Dr.Liquid:

Leveraged farming will be completely separated from our on-demand Liquidity as a service, but it stays within our vision: Bring as much liquidity as possible to Fantom

For the leveraged farming solution, we’re aiming for a release by the end of summer

With the bear market, our focus has been on giving value to LQDR, or else we would be slowly dying, but as we roll out V2 we’ll have more time to focus on the rest

KeshaV:

Something that is interesting, is also you don’t intend to be cross chain, but you create liquidity incentives + cross AMM. Do you intend to find partners to help to bridge more liquidity from other chains maybe? I guess it might be something strategically important. @Liquid George maybe a question for you?

KeshaV:

Just be careful maybe with the name you give it. I know there might be issues depending on how you name it. We’ve seen recently another project having to rename a product due to “stock” being in the name

Liquid George:

it's not a super high priority at the moment, we’re still comfy at fantom :yum:

but yes, we’re already in talks on a tech level and its an important future variable that will keep LQDR very competitive

Dr.Liquid:

Sounds good! Thanks for having us, what a great community you guys built, keep up the great work, you’re essential to the Fantom community :ocean: And we’re looking forward to talking to you guys and have the opportunity to discuss everything LiquidDriver / Fantom

Liquid George:

thx a lot for this opportunity, we feel even with the recent growth, the fantom ecosystem is still one big family, and its exciting to be part of it and be so close to many exciting players

KeshaV:

Thanks guys!

@everyone warm thanks from all community to @Dr.Liquid & @Liquid George

Love love & BUILD more guys

Alpha leaks:

- Tomorrow 3 partners announced

- V2 is much more improved with more complex strats

• Also xLQDR much more incentivized

Our channels:

Twitter: twitter.com/LiquidDriver

Discord: discord.gg/jMyffdRmTz

Telegram: t.co/HK0osVDNRp?amp=1