I would like to propose adding LQ to Aada V1 as an asset for borrowing.
Liqwid Finance is one of the major lending and borrowing protocols building on Cardano. Their LQ token is among the most tradable CNTs, making it a must-have addition to the Aada V1 protocol list of borrowable assets.
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).**
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 - $10,256,189 (09.08.2022)
Daily volume (Minswap) - $51,108 (09.08.2022)
Daily volume (Hotbit) - $40,542 (09.08.2022)
Liqwid Finance is one of the pioneers in Cardano DeFi. They bring lots of innovation that can benefit the entire Cardano ecosystem. As a governance and utility token, LQ is essential for unlocking Liqwid Finance’s features. That’s why it will have high usability on the Aada V1 protocol.