Wrapping up the month of August
Blockchain is one of the seven technology families that will transform our economy in the future. — Unknown, 2008
The past couple of months have been intense for the core team that was silently building the long awaited V3 of the platform. Finally, August marked the beginning of the shipping season. LiquidDriver V3 is a major shift in the protocol operating model. The full roll out has started and will require a high level of coordination and execution between each product launch in order for LiquidDriver V3 to be one of the most prominent Liquidity-as-a-Service platforms of the entire DeFi ecosystem.
The user interface has been the first drop of the V3. The interface preserved the previous pirate identity and combined it with cleaner lines and intuitive UX. Pools have been iterated on to improve the user experience. This work is still ongoing. New functionalities will be released along with the launch of the upcoming products, such as the bribing and voting interfaces designed for the Master Gauges.
The new UI can be accessed here.
Boosted Shadow Farms
Shadow Farms has been unveiled in coordination with the SpiritSwap V2 launch. You can take a look at the Medium article here to picture how this product applies two levels of boost in order to extract the best yield out of the Spirit Swap V2 farms.
As mentioned in the introduction, Shadow Farms are the kind of a product that needs time to be fully rolled out. The first challenge was the coordination with SpiritSwap, who soft launched its V2 with only 10% of $SPIRIT emissions dedicated to V2 farming incentives. Now that 100% of $SPIRIT emissions are going towards the V2 farms, the challenge for LiquidDriver is to capture at least as much TVL as the protocol had before the SpiritSwap V2 launch in order to increase the fees generated for xLQDR holders.
Though the strategy is designed to overperform the simple stacking, as well as auto-compounding strategies in the most common cases, the vaults remain subject to short term dilution, which could ultimately lead to suboptimal yield generation. In order to mitigate this situation and ramp-up the TVL into the Shadow Farms, LiquidDriver has boosted the Farms with additional $LQDR incentives. This promotional situation remained temporary, and ultimately led to a cut of 27% of the total $LQDR emissions.
Mastering the Liquidity
The Master Gauges have been announced and will be the cornerstone of LiquidDriver V3. A dedicated Medium article that provides the full detail around it is available here.
In a few words, this novel Liquidity-as-a-Service product will allow xLQDR holders to vote for $LQDR emissions. Protocols can apply for a Master Gauges whitelisting, which if successful allows them to list any liquidity pools they wish. As a whole, protocols participating in Master Gauges directly control 70% of LiquidDriver’s emissions.
This novel Liquidity-as-a-Service product will be soft launched on Fantom with Liquid Driver’s original partners and then deployed quickly cross-chain to provide the maximum utility for participants. This product aims to be an on-chain & permissionless marketplace for incentives. Any DEXs, Money Markets or any other protocols will be able secure discounted incentives for their liquidity pools.
The Case of cLQDR
cLQDR, created by Growth DeFi, is a synthetic wrapper that compounds the daily xLQDR rewards, increasing its value relative to $LQDR over time. It is essentially a liquid variant of xLQDR that you can just hold in your wallet while it appreciates in value — with zero tax implications until you sell (in most countries).
Since the Growth DeFi team decided to consolidate their operations on BSC, they started winding up the operations on Fantom. The future of cLQDR is currently being discussed. cLQDR will either become a public good — meaning that the associated voting power will be given back to cLQDR holders — or a third party protocol will take over the contract. Regarding the second option, some candidates are emerging and discussions are being held regarding the details. The final decision, determined by a vote, will be made by cLQDR holders.
Pirates of the Month
- @SafeRatios for his companionship since the launch of cLQDR and his contribution to cLQDR’s future
- @Kickflip for his recent article on lrn.fi about LQDR modelling, specifically on cLQDR leverage.
Hoist the sails
Every journey comes with its challenges, ups and downs. One thing is for sure, we are stronger and both more resourceful and resilient than ever before. We are pirates.
Find us here.