Proposal Description
We would like to propose adding LQ to Aada V1 as a collateral option.
Short Summary
Liqwid Finance is one of the upcoming lending and borrowing protocols on Cardano. Its LQ token is among the CNTs with the highest TVL and will be the centrefold in the platform’s operation. Adding it as a collateral option in Aada V1 will help bond the two communities into a healthy co-existence of peer-to-peer and peer-to-pool lending platforms on the blockchain.
Motivation
1. Project and token overview
Liqwid is an open-source DeFi protocol on the Cardano blockchain that creates liquidity pools with algorithmically set interest rates. Suppliers and borrowers of an asset connect directly to the market’s smart contract within the protocol, earning and paying a variable interest rate each block.
2. Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?
LQ is the governance and utility token for the Liqwid Finance app and DAO. It enables its holders to participate in the governance by proposing/voting for adding new qToken markets, updating smart contracts, and changing interest rates or reserve rate parameters. It’s also one of the most traded CNTs on the blockchain, which makes it a great addition to the Aada V1 list of borrowable assets.
3. What’s the asset’s utility?
- LQ is the governance token for LiqwiDAO.
- Users can stake LQ in the Safety Pool to earn a percentage of protocol revenue from borrower interest repayment.
- LQ tokens serve as rewards for lenders who stake their qTokens and borrowers.
- Early protocol users will receive LQ as rewards on supply and borrow balances.
- Liqwid users can borrow stablecoins against their LQ holdings.
- Farming incentives for liquidity providers on all major Cardano DEXs (Minswap, Wingriders and Sundaeswap).
- LQ is a borrowable asset in Aada V1.
4. Token data
70% of the total LQ is allocated for community distribution, with 5% seeded to the DAO Treasury Contract. LQ will undergo a fair token launch with buyback and deflationary halvening in the early adopter rewards emission schedule.
Other token metrics:
Current circulating supply - 365,000 LQ (09.08.2022)
Total supply - 21,000,000 LQ
Market cap - $9,356,443 (08.10.2022)
Fully Diluted Market Cap - $538,313,713 (08.10.2022)
Daily volume (Minswap) - $18,429 (08.10.2022)
Daily volume (Sundaeswap) - $16,654 (08.10.2022)
Conclusion
As a governance and utility token, LQ is essential for unlocking Liqwid Finance’s upcoming features. Moreover, the token has over 7,400 holders that may want to borrow other CNTs against their LQ.
percent behind this…