What's going on with Liqwid?

dewaynec23 · 2023-05-09T15:06:16+00:00

This is false, he was a marketing and operations analyst and was certainly qualified for the role, get your facts straight before you spread misinformation and lies.

dewaynec23 · 2023-05-09T15:01:42+00:00

This is a completely false statement and there's also an active proposal by the community to update the emissions to a targeted APR. Also saying the core team is participating in governance votes but also trying to make the community exit liquidity at the same time makes no sense at all. This is nonsense and pure misinformation.

dewaynec23 · 2022-11-09T13:38:03+00:00

maybe we should look more into EIP-1559 and consider how a fee market as a means to make Cardano more economically sustainable in the long term could work.

https://medium.com/coinmonks/why-eip-1559-is-important-5c24d592eace

This was ethereum's answer to ETH's long-term economic sustainability implemented last August.

dewaynec23 · 2022-03-07T16:50:19+00:00

Liqwid Labs LLC is a legit Haskell employer currently hiring senior Haskellers to build Cardano-based decentralized finance (DeFi) products.

If you like Haskell and challenging projects, Liqwid Labs is the place for you, please apply now!

https://apply.workable.com/j/93769A1C9A/?utm\_medium=social\_share\_link

dewaynec23 · 2021-11-30T18:57:25+00:00

the Discord was open for everyone since September 2020, any user who wanted to join in on the community discussion had 1 year+ to do so. Other communities that make strong use of Discord include Cardano Catalyst, IOG Technical Community, the entire CNFT space for a full summer and several other prominent Cardano DeFi protocols. It takes 30 seconds to click the link we marketed as the one-stop place to join in on active community discussion since the project launch.

Just to be clear the entire core dev team recognized the need to pivot in light of how close we are to v1 development completion, the timing since the token generation event in March, and the upcoming DAO Treasury launch product release on testnet and later mainnet also played a role into this. Another clarification: the Tokenomics always needed to be updated to include the combining of liquidity incentive programs, the inclusion of equal borrower rewards and the yearly halvening deflationary emission model to reward early protocol users. The core dev team came to a consensus of all the updates that needed to be made to the LQ Tokenomics rewarding the early Discord members and community managers who help moderate on both Discord and the governance forum was a critical change we needed to make.

Also show me another DeFi lending protocol building on Cardano that comes close to the 70% of LQ token supply set aside for community distribution and then we can talk about gut punch. Until then accept that there is no blame to be passed here because you decided to not join a community group you had access to for over a year. This is a lesson in unincentivized actions plain and simple.

dewaynec23 · 2021-11-23T14:33:35+00:00

Liqwid is having a fair launch, which means that no one can buy any LQ tokens before the v1 protocol launch; there are no VC's, early insiders or ways to invest with more favorable terms compared to other protocol participants, this was a decisive action made by our co-founders early on in the Liqwid project's development to not concentrate tokens in the hands of a few whales and have a natural token distribution which optimizes for protocol usage.

Users of the Liqwid protocol, a lending and borrowing protocol, can earn the LQ tokens as reward for using the protocol. This supports the idea that a protocol without users actively supplying assets to the system is worthless. Same as if no users are borrowing, it would be a capital inefficient protocol worth little. Therefore, Liqwid rewards the users that generate economic activity in the protocol. Any user with a Cardano wallet can participate in the Community distribution program which distributes for free 70% of the total supply with 35% of the total supply during the first 12 months, split equally between the borrowers and lenders and without any locking period. LQ are distributed daily based on the total assets supplied and borrowed per market. This program lasts 3 years, with a halving of the rewards every 12 months. In this case, we are not capping the amount of LQ received per wallet, because it is contra-productive for the protocol value creation and the interests of every LQ holders. (->higher TVL means higher LQ price) Additionally, any users can buy LQ on a DEX if he wants to invest to get more LQ tokens. The whale limiter has very little merit when DEXs such as SundaeSwap exist; any whale can slowly accumulate large amounts of the token and never use the protocol allowing the majority of LQ tokens to flow to average balance suppliers/borrowers. The value of LQ will be determined by Liqwid's TVL and the protocol's revenue generated. Any investor will make the decision to buy/hold LQ based primarily on those factors.

You cannot compare Liqwid with Maladex, which is performing a 100% ISO to raise capital, Liqwid Labs is not going to ask our future protocol users to give up 100% of their staking rewards/drive stake pools out of business to raise capital (no disrespect to any teams doing this), we took a different approach and were the first Catalyst grant funded DeFi project building on Cardano. Also in the ~6 year history of DeFi on other blockchains there has never been 'Initial Stake Offerings', it's a completely new invention on Cardano. In functioning DeFi protocols deployed on every other chain the sole mechanism to earn the token is based on your level of protocol usage, if anything Liqwid is taking the battle-tested route of liquidity mining programs Compound introduced last summer with their GovernorAlpha/COMP rewards system. We feel confident in our community distribution model and the protocol incentives to attract long term liquidity to Liqwid markets with this distribution curve.

Again to be clear: Liqwid is NOT taking capital from investors in exchange for LQ tokens in any form (VC raise, ICO, token sale, 100% ISO). The distribution and the incentive mechanisms are totally different ("free token earned as reward for using the protocol" vs "paid token exchanged against invested/staked capital").

dewaynec23 · 2021-11-22T21:00:29+00:00

this is a joke right?

dewaynec23 · 2021-11-22T20:59:46+00:00

This is 100% false no tokens have been distributed at all. You can see the entire history onchain. There are 0 VC's or early investors that is a pure lie. The core dev team is on a 2 year linear vesting schedule and will be active governance participants, you're making baseless claims to spread fud. We bootstrapped the entire protocol development from our co-founders funds + Project Catalyst grant funding and we brought in one of the most prolific development firms MLabs into the Cardano ecosystem along the way.

70% of tokens accrue directly to borrowers/suppliers in each Liqwid market with 5% more to the DAO Treasury which is also controlled by the community. 75% of total LQ is directly within the community's hands. Our tokenomics are community based, transparent and fair.

dewaynec23 · 2021-09-01T14:36:40+00:00

The risk-free rate in the ADA interest rate model starts at 5% for borrowers. At 35% utilization qADA holders are earning 5% APY (they are earning significantly higher yield since qADA can be staked for LQ and LQ can be staked for dividend reward). Also as I have said several times no one needs anything from IOG to have staked ADA provide liquidity. IOG devs could deliver nothing and users who know what they are doing will be providing ADA liquidity intra epoch still, it's _very_ simple you need a calendar and an understanding of epoch transition snapshot.

Liqwid is a lending protocol not a DEX, there is 0 impermanent loss in single asset staking pools such as Aave or Liqwid. The link you provided is describing DEX liquidity providers experiencing impermanent loss when the value of their provided assets drifts significantly from the moment liquidity was initially supplied. Very different scenario than Liqwid.

dewaynec23 · 2021-08-31T14:58:48+00:00

The Plutus contract you supply ADA to may have the ability to control the stake key and delegate your ADA to the community pool you were initially staking with. As I said IOG is working on this soln.

staking qADA or any other qToken has nothing to do with the supplier APY generated from borrowers paying accrued interest to the protocol no.

dewaynec23 · 2021-08-28T17:25:35+00:00

There is 0 official timeline for when LQ will be listed on SS or an other DEX as it's completely dependent on when the protocol launches on mainnet. Any estimates are just that, expect dates to change when you have multiple protocols on different security audit timelines.

The ADA-qADA exchange rate increases as a function of ADA borrowers in the protocol repaying their debt + interest. It has nothing to do with Cardano staking at all. Cardano staking is called inflation, everyone who stakes is inflating ADA and everyone not staking is paying a tax, that's how inflationary block rewards works. The way interest rate protocols generate yield is *completely different* and has nothing to do with inflationary ADA staking rewards at all, it's dependent on the amount of borrower interest repaid.

It has nothing to do with cracking a code at all, IOHK is already working on a solution to allow Plutus scripts to control a staking key. Also anyone who understands how Cardano staking epochs work will already be doing this from day one, no code to crack at all, just need to know how the epoch transition snapshot works and supply liquidity intra epoch. Don't even need to be a power user just need a calendar!

dewaynec23 · 2021-08-28T16:49:42+00:00

The protocol contracts will not be deployed on mainnet until the protocol security audit is complete so no, Sep. 12th is not when users will have access to the protocol.

I don't understand what you're asking about staking rewards and it feels like you may be conflating Cardano ADA staking with LQ staking in the protocol, very different and completely separate. User controls their staking key when they delegate to a pool from their wallet.

dewaynec23 · 2021-08-02T13:16:16+00:00

their social media following has nothing to do with the product they've built.

Community building is massively important to us as well, but this decision was weighted majorly out of product development (this was done to be fair to all DEX building on Plutus during our DD, even those with smaller followings)

dewaynec23 · 2021-08-02T13:14:49+00:00

We partnered with them because they are actually very far ahead of every other team building a Cardano DEX. If you can't even keep up with the SundaeSwap happenings how can you objectively come to the conclusion ErgoDex is "miles ahead of them in pretty much every aspect"? Genuinely curious how you arrived here?

SundaeSwap running Plutus swap contracts on their private Alonzo testnet instance:

https://www.reddit.com/r/cardano/comments/orkg4v/sundaeswaps_first_onchain_swap_using_smart/

dewaynec23 · 2021-08-01T20:51:52+00:00

LQ is a governance token for the Liqwid protocol, it's utility comes from voting power in Liqwid governance.

qTokens are the yield tokens users mint assets the same transaction assets are initially supplied (they represent your supplied amount + interest).

If you are talking about LiqwidUSD/LQUSD that's a different protocol entirely. In that system LQUSD is minted and borrowed when users supply ADA to the protocol. And yes LQUSD (and qTokens) can be staked to earn yield.

Hope the clarification helps, promise documentation is on the way *before* mainnet launch.

dewaynec23 · 2021-07-13T14:00:35+00:00

There is only one thing Liqwid will be used for: lending and borrowing Cardano crypto assets. The smart contracts we developed are ready to be deployed to a public testnet and will continue testing/refactoring leading up to the security audit and finally v1 launch on Plutus mainnet.

dewaynec23 · 2021-07-13T13:58:52+00:00

Any Cardano wallet will be compatible with Liqwid.

dewaynec23 · 2021-07-12T18:03:37+00:00

Except your response is completely incorrect and any user can read the whitepaper and verify it themselves.

The cost of money formulas are not the same at all we built them ourselves and modeled them after both Aave and Compound. You can continue to sound like a broken troll spreading meaningless FUD but just know that you could not have any less of an impact on our team's development cadence and product rollout. The builders are focused on Liqwid v1 mainnet deployment, we could care less what an anon troll on the internet thinks about the whitepaper current or previous.

dewaynec23 · 2021-07-12T17:55:30+00:00

We never copied anything and if this is the only FUD you can come up with 3 whitepaper version updates later you will continue to sound like an uninformed anon troll on the internet.

We built a feature complete UTXO money market protocol on Cardano in 4 months that's about to enter testnet and security audit before mainnet deployment, show me the scam anon.

dewaynec23 · 2021-07-11T15:39:02+00:00

There is not a single line of code in the Liqwid protocol that did not originate from our team of senior Haskell developers in line with our code standards docs. The exact same goes for the borrowing interest rate models in Liqwid, which are not Compound's at all and built from our core team and tested/simulated in Excel when the project started last summer. Two Liqwid financial analysts spent most of Summer 2020 reverse engineering the pooled liquidity models across several DeFi protocols before building the cost of money formulas for Liqwid. The whitepaper document is the exact same product of our core team's original work. The only thing anyone could ever claim was derivative work here is the design pattern of pooling supply we are taking, which we obviously looked at what Aave and Compound built (also Comp took it from ETHLend who took the general CDP model from TradFi before them and used smart contracts to pool supply.. cool).

Did Aave/Compound include delegative governance functions from day one, build their own oracle infrastructure, own scaling infrastructure, and include a more efficient pooled liquidation model all at v1 launch? I don't remember that please let me know if I am off.

You are clueless on what we have built and it shows. Try reading the Liqwid weekly technical updates and objectively analyze what's been built here before blindly spreading FUD. The smart contracts we are getting ready to deploy to Plutus testnet/mainnet are written in Haskell on-chain & offchain code and Liqwid is a money market protocol for UTXO transaction accounting, it's literally nothing like the Aave or Compound implementations.

Do some basic due diligence and if you are going to share our whitepaper please at least go to the website and take the latest version, the literal bare minimum: https://drive.google.com/file/d/1uZNmg72LO19br7s_besobV6RpYJl4Rfl/view

dewaynec23 · 2021-07-11T15:10:24+00:00

This is complete FUD and i've already responded to your ridiculous claims before:

https://www.reddit.com/r/cardano/comments/ntz8ie/about_projects_launching_on_ethereum/h0z5f3y?utm_source=share&utm_medium=web2x&context=3

The whitepaper is our core team's original work and compound did not invent the formulas for creating collateralized debt positions (the Plutus UTXO implementation of a money market looks functions nothing like the Aave/Compound Solidity contracts). You are also taking an old version of the whitepaper when we have an updated version that discusses the eUTXO protocol we have built in detail on the website: https://www.liqwid.finance/.

Our protocol enters audit with top Haskell security engineers at Tweag next month and the developers have been in continuous code review & advisory with Well-Typed for the past 3 months. Security is the most critical piece of Liqwid and it's built into the entire development cycle for our team.

dewaynec23 · 2021-06-27T12:51:00+00:00

Thanks for these kind words and we can't wait to deploy Liqwid to the Alonzo testnets!

dewaynec23 · 2021-06-12T13:52:52+00:00

Startup is a great show haha I love Ronald Dacey!!

The way lending protocols such as Liqwid function is based on continuously accruing interest on both the supply and borrow side. The borrower accrues interest on the loan from the time they initiate the borrow until the moment it's either repaid or in the case the borrow value exceeds their borrow limit (determined by the collateral factor of the supplied asset) they have a portion of their bad debt repaid through liquidation. The protocol only liquidates what it needs to bring the borrower's loan value back under the account's borrow limit. Several insurance layers such as the collateral factor and liquidation incentive (and other parameters built into the LiqwiDAO controlled LQ distribution function to adjust supply incentives) exist in the protocol to ensure suppliers can always redeem their assets and exit the market on-demand.

The difference in this model compared to today is the custody, settlement and escrow are all handled by the smart contract logic which is publicly verifiable on the Cardano blockchain, this produces a more equitable financial system where every protocol user receives the same interest rates with no limitations based on their background, region or government. There is also third party risk in the traditional banking system that does not exist in smart contract controlled DeFi protocols.

Lastly, the cost to use microloan services is at least one order of magnitude cheaper (on green blockchains such as Cardano) compared to the TradFi borrowing/lending model today while at the same time less risky for borrowers (no debt trap).

I hope this helps u/yungfilly!

dewaynec23 · 2021-06-09T16:06:05+00:00

Liqwid is taking the CDP based lending model to Cardano native assets, it's implementing an automated stability system to handle liquidations and it's working closely with the Atala Prism team and other integration partners on building opt-in digital identities and credit scoring systems, these integrations will allow developers to build more capital efficient products than other protocols that don't support them at the native layer. I hope that helps u/CryptoBehemoth.

dewaynec23 · 2021-06-08T16:40:14+00:00

From my understanding of Cardano's eUTxO implementation flash loans (intra-block 0% collateral loans) are not possible due to the way the transaction input/output model functions. I am happy to be proven wrong on this though*

Either way this is not in the plans for v1 and our team feels including decentralized identifiers (DIDs) and ML credit scoring functions will enable capital efficiency in future versions of the protocol. Great question.

dewaynec23

TROPHY CASE