Liqwid Labs prepares for launch on mainnet
Liqwid Labs, a non-custodial peer-to-pool lending and borrowing dApp that has been building on Cardano, has launched a private testnet. A public testnet will be launched in coming weeks. Just 3 days after Vasil upgrades activated on mainnet, the team announced that their Agora security audit were progressing well and that mainnet launch of its governance was nigh.
LiqWid has laid out its value proposition in its brief but concise whitepaper (11 pages). The whitepaper starts with what the protocol is and a summary of its goals and mission. Then it details the rest in 2 main sections;
Liquidity providers, collateral, risk, liquidation and interests are outlined.
Liqwid protocol architecture and design.
This section details a number of things. Among the main ones include governance, price feed & tokenomics. There are other technical topics for those who are technically inclined. They are laid out in a simple manner, so anyone can read through them and get the general gist of how the protocol should work at a high level.
Liqwid protocol a governance token i.e LQ token and interest bearing token i.e qTokens.
qTokens are minted and burned when a protocol user supplies or redeems assets to or from the protocol respectively. When borrowers pay their loans, the qToken appreciate in value and its holders earn interest.
Liqwid users who choose to hold their crypto assets as tokenized qToken balances stand to benefits. 2 main benefits include:
- Earning an interest on their assets
- They can choose to borrow against these assets.
qToken are fungible and therefore tradeable via a DEX. Their minting will be subject to prevailing exchange prices.
LQ tokens will be used to control LiqWid protocol's DAO. LQ holders can submit upgrades & vote. LQ tokens are capped at 21,000,000 supply.
|Allocation||% LQ||# LQ tokens|
|LQ/ADA LP staking||4%||840,000|
First published on Oct 5, 2022