What Is Liqwid Finance (LQ)?
Liqwid Finance is an algorithmic and non-custodial liquidity protocol for earning interest on supplied assets and borrowing Cardanol native assets. These docs will evolve to become the guide to the protocol, based on the v1 Whitepaper. The protocol codebase is contained in GitHub and is maintained by DAO and Liqwid Labs software engineers.
Liqwid Finance welcome any builders to join the #development room in the DAO community Discord server; core development team alongside the community will share any resources we can to help you develop a or integration using -sdk (soon!). Please come with all your questions; they contribute to continuous documentation coverage, so feel free to ask them if you are unable to find what you are looking for in these docs.
Liqwid Finance Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | Liqwid Finance |
| Short Name | LQ |
| Circulating Supply | 365,000.00 LQ |
| Total Supply | 21,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
What are qTokens?
Liqwid Finance interest bearing tokens (called qTokens) are minted at the current exchange rate when you supply assets to a market contract and burned when you redeem assets. qToken holders earn interest through the qToken to underlying asset exchange rate, which increases in value when borrowers repay loans plus accrued interest. By holding crypto assets as tokenized qToken balances you gain several benefits; 1. Earn interest on the underlying assets, 2. Keep your keys, 3. Stay long, 4. Borrow against qToken collateral.
Tokenomics
Liqwid Finance LQ tokens can be staked in the Safety Pool to earn a percent of protocol revenue from borrower interest repayment. 70% of total LQ allocated for community distribution (genesis epoch until end of year 3) and 5% seeded to the DAO Treasury contract (75% of total tokens in hands of the community)
Buyback and deflationary halvening built into LQ token emission schedule to reward early protocol adopters & community members with increased APY.
Fair token launch.
Liqwid Use Cases
Keep Your Keys
Liqwid Finance Earn attractive APY returns lending in non-custodial markets and use your qTokens as collateral to open low interest stablecoin loans while you retain complete control of your private keys. Liqwid lets you borrow against your crypto holdings and keep full custody of your coins.
Yield Unleashed
Liqwid Finance tokens are rewarded to lenders who stake their qTokens and borrowers. Liqwid protocol incentives rewards early protocol users with LQ yields on supply and borrow balances.
Borrow Stablecoins
Liqwid Finance Leverage the value of your crypto holdings to borrow stablecoins. With Liqwid you can easily and securely borrow stablecoins against your crypto holdings to unlock liquidity with no need to sell your crypto.
Money Legos
Liqwid Finance At its core Liqwid’s open source and permissionless architecture is implemented as a DeFi money lego in Cardano’s dApp ecosystem. Interoperable secondary product offerings built by leveraging Liqwid’s open SDK with other Plutus DeFi protocols results in efficient financial products for Cardano DeFi end-users.
4x ADA Yield Streams
Liqwid Finance lets you put your ADA to work to generate multiple yield streams in the most secure, easily accessible user interface. The sources of yield you can capture supplying to the ADA market are:
- ADA staking 5% yield,
- qADA interest yield,
- staked qADA yields LQ,
- staked LQ yields % of borrower interest repaid.
*This example only covers ADA lenders, with borrowers earning 50% of LQ distribution in effect there will be additional revenue streams generated from borrowing strategies (e.g. borrow asset, LP on DEX, stake LP tokens in secondary DeFi
Liqwid Features
Earn
Liqwid Finance Assets held within the Liqwid market contracts earn APY’s based on the market demand for that asset; put your crypto to work and earn by the block.
Transparent and Permissionless
Liqwid Finance Anybody can access immutable money market smart contracts directly on-chain; participate in non-custodial markets and keep your keys.
Crypto-backed Loans
Liqwid Finance Borrow any asset supported by the protocol against your qToken balance instantly with no trading fees and no slippage at a competitive APR directly on the Cardano blockchain.
Global Liquidity Pool
Liqwid Finance Utilizing the Liqwid protocol unlocks access to a global liquidity pool for each asset. A borderless decentralized marketplace for lenders and borrowers built on Plutus smart contracts.
Stay Long Crypto
Liqwid Finance Unlock liquidity and remain long by tapping into the value of your crypto holdings to borrow stablecoins or crypto assets against it. This is the HODL way!
Fair Token Launch
Liqwid Finance The only way to earn LQ tokens is by using the protocol or receiving grant funds from the DAO Treasury. The LQ token generation event occurred in the 1st block of multi-asset support on Cardano using a timelock minting policy.
Powered by Cardano
Liqwid Finance protocol is powered by Cardano, a programmable UTXO blockchain built for deterministic, secure, and low-cost transactions for the next evolution of DeFi innovation.
DAO First
Liqwid Finance DAO token holders utilize the governance smart contract to submit proposals and exercise their voting power democratically. LQ is the foundation Liqwid DAO governance and is staked as a reserve asset in the Safety Pool, generating additional yield for LQ holders.