Liquid Driver

Fantom has started making waves in the DeFi space with its high-performance technology and strategic partnerships aimed to establish Fantom as the go-to platform for DeFi developers to build on.

Each key component of the network is akin to a lego set, holding all the blocks needed for digital assets to flourish on the platform. The current work related to cross-chain liquidity access from Fantom’s DeFi architect, Andre Cronje, alongside Anyswap’s founder Zhaojun, demonstrates how Fantom shapes up to be a leading infrastructure for the DeFi space. With extra-low fees (0.0001$), high speeds, scalability, and security, Fantom provides the ideal architecture for building dApps.

However, one last block of lego is missing to complete this: Liquidity

Liquidity is the backbone of the decentralized finance ecosystem and driving force for creating and growing financial markets. Without it, nothing will be built.

By launching LiquidDriver, we aim to foster innovation, development, and integration on the Fantom Opera Mainnet so users can experience the sheer power of DeFi, combined with the seamlessness of a CeFi experience.

LiquidDriver was built to prevent the following:

• Whales manipulate the game with sizeable funds and dumping on other stakers.
• Intensive token emission ultimately leading to price suppression.
• Liquidity providers for non-LQDR pairs bear less risk and are inclined to “farm and dump.”

LiquidDriver will leverage four solutions to fix those issues and reward liquidity providers proportionally to the risk they face: Deposit fees, Buy-backs, Gamification, and Value-capturing Mechanisms for LQDR.

• Deposit fees / Buy-Backs (and burn): Staking pools will have a 4% deposit fee used to buy LQDR back and burn it, thus helping to counter the selling pressure from intensive farming. We will adjust the percentage as the TVL increases.
• Value-capturing mechanism: LQDR holders should have a share of the fees generated by the protocol.
• Gamification: Our subsequent roll-out will be a LiquidLottery where users can buy tickets by burning LQDR (more information about that coming soon)

The burn and lottery feature makes LQDR deflationary in nature. Every feature we introduce to the community will have to contribute to adding value for holders.

Our long-term vision doesn’t stop at liquidity provisioning. Once you have the liquidity, an abundance of opportunities opens up. Our team is currently exploring two main avenues, which aren’t mutually exclusive. It is just a matter of prioritization:

The emergence of launchpads on Ethereum and Binance Smart Chain demonstrated the added value it could bring to early-stage teams looking to raise liquidity and seamlessly distribute their tokens. The significant issue with those platforms is the opportunities given to bots, whales, and insiders. Launching a fair and decentralized launchpad would be a step forward for the Fantom ecosystem by helping developers get the resources they need and attract early adopters.

This would allow us to leverage the liquidity staked on LiquidDriver to offer one of the best trading experiences available on a decentralized platform. It would also let us step further into implementing a value-capturing flow for our native token LQDR, allowing holders to gain a share of the revenue generated from LiquidDex.

However, we believe that collaboration is more valuable than competition. We also want to consider that the SushiSwap team has built an excellent end-product, and should the team start expanding their development on Fantom, we would focus on LiquidPad first. We’d also like to congratulate Spookyswap for their successful launch.

In the next few days, we will release a detailed article to kickstart our liquidity mining program. We’re excited to have you on board. Stay tuned for our next announcement.

PS: Dear early-supporters, DEFI dapps would be nothing without your engagement and trust. Thus, we’re planning two Liquidrops for you: one for helping us spread awareness, and another one for early liquidity providers. Details to be released soon.