LIQUIDv2 Preview (1): Lending and Flash Loan using the Price Floor

1. Benefits for LIQUID: Less Selling, Easier Buying

For simplicity, assume the current LIQUID price is fixed at 0.2 ETH, and the price floor is fixed at 0.11 ETH.

  • BEFORE: spot a new token -> sell LIQUID for some ETH to ape in
  • AFTER: spot a new token -> lock LIQUID for some ETH to ape in
  1. Provide 0.9 ETH.
  2. Flash-borrow 1.1 ETH.
  3. Buy 10 LIQUID using 2 ETH.
  4. Lock 10 LIQUID for 1.1 ETH.
  5. Payback 1.1 ETH.

2. Benefits for Lender: Risk-free High Yields

Our LIQUID lending contract is using an ETH pool, while being much more gas efficient than COMP or AAVE etc.

  1. Lock ETH to mint KittenETH, which are yield-bearing.
  2. Send KittenETH back to contract, and receive ETH+profit.
  3. Lock x LIQUID and receive x * price_floor ETH.
  4. Send x * price_floor_new ETH back to contract, and receive x LIQUID.

3. Road towards LIQUIDv2

In LIQUIDv2, we will be able to directly utilize the ETH in the LIQUIDv2 contract, so all LIQUIDv2 holders automatically become ETH lenders with all the benefits here.

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