Wrap-up — Week #20

Arrrr! The seas are rough, but there are things brewing under water that could turn the tide around at any moment.

AMA with Beluga

Could you introduce Beluga?

Beluga is a yield optimizer on Fantom and Polygon. Beluga allows users to earn the most of their assets through innovative strategies that maximise their yields. We strongly believe that DeFi is the future of finance as we know it, and Beluga wants to be part of it.

Recently, we have seen the launch of wrapped tokens such as $beLQDR or $bePANIC. What is the idea behind be tokens?

Beluga’s beToken model is designed to allow users to lock and wrap their governance tokens into Beluga to generate higher yields with an exit option.

Let’s talk about $beLQDR specifically. How does it benefit Beluga and Liquid Driver?

$beLQDR helps us to accumulate governance power over Liquid Driver’s platform. In addition, $beLQDR provides brand new use cases for $LQDR holders. On the one hand, users can wrap their $LQDR tokens to earn auto-compounding yields paid in more $beLQDR. In that sense, $beLQDR can be seen as a “rebase” token. On the other hand, Beluga offers maximizer vaults for $LQDR holders to earn the most out of their yields.

What methods are used to keep the peg 1:1 with $LQDR?

Beluga combines the use of a stablepool and Beluga’s anchor system to provide a stable peg between $beLQDR and $LQDR. The rebase model has also been designed to adapt in response to a depeg. Moreover, we are considering taking a fee out of the LQDR Maximizer Vault dedicated to peg arbitrage.

Can you explain how your LP Maximizer Vaults work, compared to traditional auto-compounding vaults?

Traditional vaults capitalize yields on the underlying deposit. In other words, rewards farmed with LP tokens are auto-compounded many times a day into more LP tokens.

Maximizer vaults offer users more flexibility over the allocation of their rewards. Users can now allocate their rewards how they see fit, without automatically having it auto-compound them. We give users more flexibility with respect to their own risk appetite.

Deck Talk Summary

xLQDR wrapper

MorpheusSwap has been whitelisted by the core team to wrap xLQDR. They are expected to post a proposal that will be discussed by the community and submitted to a vote.

Bear market & Core Team revenue

Recently, some community members have raised concerns with regards to the current runway of the Core Team. Everything being equal, the situation is good for the rest of the year. Secondary expenses such as market making with Poloniex will probably be terminated soon to keep some flexibility.

Cross-chain Shadow Farms branch

Liquid Driver will deploy a Shadow Farms branch cross-chain in order to increase its revenue. No chains are clearly targeted for the moment and exploration is still ongoing. EVM compatible chains will be prioritised as well as Ethereum layer 2 chains. This will not be a fork of Liquid Driver and the core development, such as the full V3, will remain on Fantom. The additional revenue will consist of governance tokens generated from the performance fee taken out of the Shadow Farms along with potential grants allocated by the chain in which the branch will be deployed.

The fees will be sent to the revenue sharing vault. Hence xLQDR holders, the Shadow DAO Fund and the Core Team will benefit from it.

Leveraging $cLQDR

Growth DeFi, Liquid Driver’s partner protocol that is issuing cLQDR, is planning to allow users to borrow against $cLQDR, staked $linSPIRIT, $xBOO and BOO-FTM LP tokens this week. In the context of bad market sentiment regarding stablecoins, debt ceiling, LTV and collaterals are set conservatively with a particular focus on safety.

$DEI & $fUSD

$DEI and $fUSD are not related and do not rely on the same mechanics. $fUSD will be CDP stablecoin backed by overcollateralized and interest-bearing staked $FTM positions. $DEI is a fractional algorithmic stablecoin backed by $USDC and $DEUS. The only common point is that @lafachief is part of both protocols’ Core Teams.

Other

• Liquid Driver will soon be listed on Felix Exchange.
• $linSPIRIT is keeping a strong peg and due to strong demand the protocol has been able to mint 8M more through arbitrage over the past few days.
• $LQDR has been voted to be added to the “Fantom Conservatory of Music” pool on Beethoven X this week.