LiquidDriver is the Fantom ecosystem’s first liquidity mining dApp that offers liquidity-as-a-service.
Providing more functionality to crypto platform customers appears to be a growing hurdle for the industry’s top developers. Aside from that, several competitors are putting their best foot forward in order to be at the top and be the most favorable platform in the market. Some of them work with huge names, while others rely only on the benefits that their project provides.
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LiquidDriver’s creators hope to provide greater value, rewards, and long-term benefits to its users via its native token, LQDR, and to eventually become the premier liquidity-on-demand platform for dApps on the Fantom Opera Mainnet. The LiquidDriver team aspires to provide seamless protocol integration and to provide maximum value to each of its project holders and communities over time. LiquidDriver facilitates the rewarding of multiple tokens for liquidity providers. Furthermore, the team can create a pool for partner projects and reward them with LQDR while also seeding LiquidDriver’s pool with some of their tokens.
What is LiquidDriver?
LiquidDriver is the Fantom ecosystem’s first liquidity mining dApp that offers liquidity-as-a-service. Increasing liquidity across DEXs and providing our holders with best-in-class yields. Whenever users enter LP tokens in the farms of LiquidDriver, they are redeposited in our partners’ farms, resulting in yields that are redistributed to xLQDR holders over time.
This pleasant loop encourages holders to lock their earned LQDR, restricting supply from circulation while earning rewards from our whole TVL.
Single-Sided Farms: Clients can use their Hundred hTokens to earn HND rewards at the highest possible increased rate.
Shadow Farms: Users can obtain yield-bearing governance tokens (xBOO, fBEETS, linSPIRIT) by staking their SpiritSwap, SpookySwap, and Beethoven-x LP tokens.
Vault Strategy: P tokens staked in the pools will be deployed to strategy contracts and staked in their partners’ pools to earn returns, which will subsequently be redistributed to xLQDR holders via its Revenue-Sharing Vault.
Revenue-Sharing Vault: The Revenue-Sharing vault compensates xLQDR holders on a daily basis. Rewards are derived from 1/ our staking pool tactics and 2/ a performance charge applied on top of the Shadow Farms. These prizes are currently LINSPIRIT, BOO, SPELL, BEETS, and LQDR.
Because liquidity mining dApps are inherently token-intensive, LiquidDriver focuses on giving sustainably high APYs to liquidity providers over a long investment horizon. LiquidDriver can incentivize additional involvement in the protocol and expand the total value locked by raising the value, utility, and general demand of LQDR (TVL).
Total value locked (TVL) growth is LiquidDriver’s primary statistic for measuring project performance. As the protocol evolved, designers devised a more effective method of linking TVL development to user benefits.
Furthermore, xLQDR was launched, which is a high-yield vested version of LQDR that maximizes rewards for long-term LiquidDriver customers while locking in supply.
LiquidDriver V2 was designed to apply vault techniques to optimize xLQDR holders’ returns: Deposited LP tokens in the pools are utilized to stake in LiquidDriver partner pools. The cultivated rewards can be redeemed daily from the income-sharing vault at the conclusion of each era.
When xLQDR holders migrate to V3, their returns will be derived from a performance charge paid on top of the rewards generated by the shadow farms. 95% of the tokens earned in our partner’s pools will be used to seed the xLQDR-Revenue-Sharing Vault, so xLQDR holders will start receiving incentives weekly.
The vested form of LQDR is represented by xLQDR, which is based on Curve’s veCRV contracts. The primary goal is to transition from an intensive farming token model to a demand & supply token that derives its value from the revenue captured by the protocol and provides additional utility to holders by adding features that provide more benefits to users with more skin in the game, such as a longer vesting schedule.
To be able to sign up for Revenue-Sharing vault incentives, a user must first generate xLQDR by locking a user’s LQDR. Since xLQDR cannot be staked, the prizes are distributed at the end of each epoch.
If a user is currently in epoch 1 and LiquidDriver delivers prizes to the vault, they will be able to receive the benefits in epoch 2.
Each epoch, LiquidDriver deposits yields generated from our vault strategy to the reward distributor + LQDR from our scheduled inflation. Members can receive wFTM, LINSPIRIT, BOO, SPELL, and LQDR by locking LQDR.
Earnings are based on the share of xLQDR total supply. If a user generates a total of 10,000 xLQDR in addition to 1000 xLQDR, he or she is entitled to 10% of the prizes.
LiquidSpirit is a repackaged form of inSPIRIT. Unlike inSPIRIT, linSPIRIT is liquid while still earning inSPIRIT’s weekly trading fee-based benefits. It is built on SpiritSwap’s winSPIRIT concept.
With the use of LiquidSwapper, users can swap their SPIRIT for linSPIRIT at a 1:1 ratio. Users will need to use a DEX, such as SpiritSwap, to swap their linSPIRIT back to SPIRIT. When customers swap SPIRIT for linSPIRIT, LiquidDriver will lock the SPIRIT on a weekly basis for the maximum length (four years). The inSPIRIT collected will subsequently be used to increase yields on the SPIRIT farms. In addition to increasing revenue for xLQDR holders, the motivation behind linSPIRIT was to provide a new alternative to inSPIRIT with significant advantages.
First, a user’s position is liquid, which means they can utilize a DEX to change back to any other token at any time.
Second, users can choose between two yield-generating tactics. They can stake your linSPIRIT for weekly inSPIRIT payouts multiplied by the boost ratio. Stakers currently receive 8% of SPIRIT revenue from our strategies. Users can also earn LQDR by providing liquidity for linSPIRIT/SPIRIT.
The amount of boost you get by using linSPIRIT instead of inSPIRIT is determined by the ratio of locked SPIRIT to staked linSPIRIT. A ratio of 2 would give you twice as much as inSPIRIT.
liHND is a covered version of veHND, which is a Hundred Finance locked governance token (HND). In contrast to its locked version, it is liquid and currently tradable on DEXs. Similar to linSPIRIT, when liHND is minted, HND is locked in forever.
The veHND governance power we obtain is used to provide higher yields for Hundred Finance’s single-staking pools. Many users are reluctant to lock tokens to boost their yields. Staking in LiquidDriver’s pools automatically boosts yields without requiring individual users to hold either veHND or liHND.
Customers that do not lock HND benefit from better yields when they stake in LiquidDriver’s pools. The strategies provide a performance fee of 12% to xLQDR holders, which is transferred weekly to the revenue sharing vault.
Stakeholders in liHND earn an 8% performance fee, which is collected weekly but paid out incrementally every block.
The LiquidDriver platform is still being developed by its developers. Crypto aficionados are looking forward to its new features that will aid in security trading. The team also invites new businesses that require liquidity to join them in lowering the inflation required to incentivize liquidity for their customers. This venture can assist any platform in remaining powerful and competitive in the business.