Wrap-up — Week #18

Now that the stormy waters have calmed for a moment, it’s the perfect time to dive into summaries of the Weave AMA and latest Deck Talk.

Weave AMA

Could you explain a bit about Weave ?

Weave is a Strategy Builder dApp that allows users to automate their DeFi strategies. They rely on a strategy function builder that automatically generates smart contracts with intuitive and user-friendly drag & drop functionalities. First we launched on BSC and we are now live on Fantom and Polygon. Not All of the front-end features are available yet on Fantom, but we are gradually integrating them. Users can already build automatic strategies on top of a wide range of SpiritSwap and SpookySwap farms.

What are the use cases already available for users ?

Users can customize exactly how they want to farm, stake and auto-compound. The parameters like the percentage allocated to an action and its frequency can be freely set.

Here is an example of a strategy LiquidDriver user might want to implement:

  • A user stakes LQDR-cLQDR on Beethoven X to farm $BEETS. The user could choose to automatically auto-compound 80% of the farming rewards and decide to swap the 20% remaining as $LQDR and lock it as xLQDR.
  • An xLQDR holder could automatically choose to accumulate 100% of its DEUS rewards because he is long on it, and auto-compound the rest of the daily rewards as more xLQDR.

Users can also passively “copy-farms” other users’ strategies based on the copy-trading function well known on Web2. We are trying to bring it to Web3.

Can you talk a bit about the Weave token ?

Depending on the amount staked, users can access a portion of the fees generated by the platform. As well, stakers that generate strategies can earn up to 50% on the fees generated by users copying their strategy. It is theoretically possible to earn more than from your own farming with this feature.

Long time stakers will get an additional multiplier effect — the longer users lock, the more fees they get.

Is the token available on Fantom ?

The token is only available on the BNB chain right now. We are working on a solution to spread the liquidity on other chains depending on the level of activity.

In the near future we also want to implement automatic cross-chain strategies through the use of bridges.

What measures did you take to ensure security for users ?

Security is a priority for us and we are currently looking for a long-term top-tier auditor for our strategy builder. Our staking contract was audited by Byterocket last January.

How do you optimize gas price related to each actions

We will just follow the standard gas consumption. We don’t set high gas fees to get high-speed swap.

Deck Talk Summary

Foreword

The entire Liquid Driver’s team wants to thank all of the community for its calmness, reliability and solidarity during this weekend’s extraordinary events.

Fantom black swan event

Last Friday, a community known whale was about to suffer from a mega liquidation: 59M $FTM collateral were at risk on the lending platform SCREAM. His further partial liquidation created a massive FUD around the entire ecosystem. Indeed not enough liquidity was available on-chain to absorb such a liquidation.

This event acted as a stress-test and the entire ecosystem showed great resilience. Despite a major downward price action, our wrapped products (linSpirit and liHND) as well as native FTM stablecoins (MOR, DEI, USDB…) kept their peg. Short-term price action doesn’t consider fundamentals of a network. New capital inflows and project development do.

Hundred Pools — Unusually low APR

The issue followed the new gauges model switch from Hundred Finance. Our respective development team is aware of the issue and the situation should be fixed really soon, in a matter of days.

Shadow Farms — Patiently waiting

We were supposed to launch our first shadow farm last week but decided to postpone it . Right now the shadow farms are ready, and there is literally only one button to be pushed. They will be released once the market conditions are more favorable, because this product needs a minimum of initial traction to produce the expected APY.

To be opened : SpookySwap and Beethoven Shadow Farms with double rewarders on top of it and SpiritSwap boosted Shadow Farms thanks to our inSpirit holding position.

LiquidDriver’s new model

We are developing a solution that would allow DEXs to be onboarded to LiquidDriver in a permissionless manner and get higher incentives for their liquidity as long as they have enough resources to reward our users.

The ultimate goal is to help smaller DEXs of our ecosystem to increase their market share as well as allow those that are willing to cross-chain on Fantom to attract capital. We hope the product will be out within the next three or four weeks. xLQDR will remain the main token and the launch will happen on the Fantom network.

Eulogy Project feat Lafa

Eulogy came out after the community asked Lafa’s team to overtake the Fantom Foundation fUSD development. A validator can stake and lock its Fantom and then mint fUSD in order to use the liquidity in the Fantom ecosystem. Currently, 2bn $FTM are staked and could be provided as liquidity in the ecosystem. The initial goal of the foundation was quite innovative — liquidity could be provided while staking, securing and decentralizing the network. As Fantom would grow in value, more liquidity pegged to $1 would flow into the ecosystem and stabilize its growth. However, fUSD as initially designed was not able to keep its peg. Its economic model did not provide strong enough incentives to hold fUSD and there was no liquidation model.

The idea behind the project is not to be overtaken by one project. Instead, we are seeking support from all around the Fantom ecosystem, the projects, and the communities to gather around one native stablecoin.

From a technical standpoint, the interest from the lending and borrowing would be captured through a NFT that would be initially distributed to protocols and validators. The fees could be shared between validators, protocols and users through fUSD staking pools: from every fUSD in circulation, xLQDR holders would be able to receive passive income.

Unlike Solidly, every stakeholder will have their interests aligned.

Onwards and Upwards

As always, we encourage you to join our community on Discord as it is the first place to hear about the latest developments. It also gives you the opportunity to contribute to the success of the protocol with active feedback and participation.

Hold steady, because big things are coming your way.

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