Liqwid Finance Overview
Liqwid is a decentralized money market protocol for lending and borrowing Cardano native assets built in Plutus. Liqwid v1 products include trustless money markets as well as an end-to-end on-chain governance module for updating system parameters and managing treasury spending. Our team is on a mission to develop capital efficient lending products built on open DeFi infrastructure and accessible by anyone with a Cardano wallet. Liqwid Labs core development team has also completed multiple open source Plutus contributions and we’ll continue building the tooling required to lower the barrier to entry for new Haskell / Plutus dApp developers. Following the inclusion of LQ/ADA pool rewards in the initial SundaeSwap Yield Farming program, we have seen this trading pair grow to become the second largest on the DEX behind the SUNDAE/ADA pool. The addition of LQ/ADA liquidity mining rewards is a natural progression in our partnership.
Intro
The Liqwid-SundaeSwap partnership extends beyond general token support to include composable product development (leverage shorting products, oracle support) and the implementation of the Agora governance module developed by the Liqwid Labs core development team.
SundaeSwap grew to over $125m within one month of launch and the team has quickly established themselves as the premier DEX builders on Cardano. SundaeSwap is by far the most compelling DEX on Cardano for a LQ/ADA liquidity mining rewards program denominated in LQ. This program will drive increased liquidity to Liqwid and SundaeSwap, delivering strong value propositions to both communities.
Thanks to the current SUNDAE yield farming program LQ/ADA LP’s are directly engaged in SundaeSwap with many planning to participate in community governance/stake their tokens in SundaeSwap. Liqwid will provide 4% (840,000 LQ) of token supply for LQ/ADA pool liquidity mining rewards. Rewards may be harvested monthly and the distribution program will last for exactly six months.
Liqwid DAO Token
LQ is the DAO Token for Liqwid Finance which users will be able to stake within the protocol to gain voting power and earn a yield starting at mainnet launch. Everyone holding the LQ token is granted voting power and governance capabilities on active proposals. In addition to governance functionality LQ token holders may stake their tokens within the governance smart contract to earn a yield on tokens.
Purpose
The LQ/ADA liquidity mining program is a general liquidity boosting event that represents sizable victories for both Liqwid and SundaeSwap communities. Additionally the steps for launching this program follows an open and inclusive governance process for both protocols.
Driving Increased Liquidity on SundaeSwap
Liquidity provision is a fundamental component of every DEX (and every DeFi protocol in general). The growth pace of SundaeSwap’s TVL in month one alone places the protocol on a solid trajectory to continue experiencing rapid growth in the months to come, especially with the launch of project specific liquidity mining programs.
LQ/ADA pool liquidity mining program terms
4% of LQ token supply (840,000 LQ) will be allocated to this program (so long as the proposal passes Liqwid community governance). 4,590 LQ will be distributed daily for a total program duration of six months. As stated above rewards will be harvestable monthly.
If successfully passed through Liqwid community governance the LQ/ADA liquidity mining program will start the same day Liqwid v1 is deployed on mainnet.
Summary
Including a LQ/ADA liquidity mining rewards program denominated in LQ will drive liquidity to SundaeSwap and prove to be mutually beneficial to both ecosystems in several ways. This program presents a strong opportunity to further bolster our solid partnership and drive additional TVL to the second largest pool on SundaeSwap as we look to kickoff joint product development in the coming months.
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