Deliq Finance — Telegram AMA — January 10
On Monday, January 10, we had the pleasure to welcome to our Telegram chat:
Sahil Jain , CEO AND Co-Founder
We asked him questions about the development of Deliq Finance.
Some sentences have been slightly edited for readability but the meaning has been conserved.
Deliq Finance is an Avalanche-based decentralized, transparent liquidity provisioning protocol powered by blockchain technology. Their mission is to redesign the capital inefficient markets by providing them a liquidity infrastructure layer that supplies liquidity to protocols across chains. The economic potential of the future will be fulfilled by harnessing global liquidity and supplying it to areas of greatest opportunity.
Deliq creates a transparent and completely decentralized liquidity engine by introducing a Liquidity-by -Staking model to provide healthy liquidity to the markets. With Deliq decentralized protocols will be able to attract liquidity without using liquidity mining incentives as temporary measures.
In a nutshell, Deliq stands on three pillars namely Liquidity Providers, Liquidity Directors, DLQ token . Each component coupled with the others paves the way for creating a sustainable liquidity layer for DeFi ecosystem.
Deliq seeks to build a future that is decentralized, efficient and empowering.
Deliq Finance with its Liquidity by staking (LBS) model is a paradigm shift in liquidity bootstrapping for protocols. Deliq changes the way Liquidity provisioning works and replaces the centralized resources like capital and trading strategies of market makers with Liquidity Providers and Liquidity Directors.
Q — Ayeley from GAINS: Please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?
A — Sahil from Deliq: I am Sahil Jain, CEO, and Co-founder of Deliq Finance. I have been in the crypto space since 2017 and worked with a few ICO-era startups helping product development. We are a team consisting of guys from Tech, Finance, Marketing, and Bizdev and are crypto veterans.
About Deliq Finance
Q — Ayeley from GAINS: What is the Deliq Finance project about in a few simple sentences?
A — Sahil from Deliq: Deliq is a DeFi 2.0 protocol that will outsource liquidity to protocols on the Avalanche ecosystem. Using Deliq’s extensive liquidity protocols can bootstrap liquidity in a capital-efficient manner. We are trying to replace the traditional liquidity mining /yield farming method of attracting liquidity with protocol-owned liquidity.
Basically, protocols will be able to supply liquidity to token pairs on exchanges just by staking the $DLQ token. Deliq will benefit the Yield farmers, Market makers, New crypto protocols, DAOs by using a Liquidity-by-Staking model. All in all, creating a liquidity layer for the crypto ecosystem!
Q — Ayeley from GAINS: What influenced the choice of protocols on the Avalanche ecosystem. Or will you outsource liquidity to protocols on other chains in the future?
A — Sahil from Deliq: We required a low gas fee chain which was decentralized and also had high tx throughout so the choice was pretty simple actually, we do plan to go multichain in the future once we power liquidity to protocols on Avalanche 🔺
Q — Telegram user Hydra: Why did you choose AVAX to launch your project? In my opinion, it is very difficult to use with new users, so how do you improve educate of them? And do you have a plan to support more chains in the future?
A — Sahil from Deliq: Avalanche ecosystem is currently the most retail-friendly and decentralized ecosystem with EVM compatibility on C chain that helps various Ethereum based protocols to easily port over to Avalanche. The IL mitigation mechanism that subsidizes the liquidity across various DLPs to make the PCA assets neutral is gas-consuming, so a low gas fee chain like Avax is required.
The Avalanche community has been nothing but supportive 🙌
Q — Twitter user @HumbertoAnttoni: This year means for Deliq Finance the establishment of an economic system with the launch of $DLQ and the testnet launch. Can you tell us how you will make all this transparent and fair for the entire community? Who can participate in the testnet?
A — Sahil from Deliq: Yup correct, the testnet, as well as the token launch, will be in this quarter. We will be rewarding the best feedbacks in the testnet and a whitelist will also be released prior to the launch. We will be including various bug bounties as well to make sure that the protocol is bug-free and at the same time reward the community.
Going forward we will be taking inputs from the community to make sure that process is transparent!
Q — Twitter user @Heartlesss98: I read that Deliq is a protocol that can be used by gaming metaverse protocols to bootstrap liquidity to their token pairs. As a project owner, how do I contact you for this service? Is this a kind of insurance liquidity?
A — Sahil from Deliq: Deliq is trying to solve a major problem prevalent in the Crypto Ecosystem that is bootstrapping liquidity. The current ways of Liquidity Mining, Centralized Market Makers, Liquidity Mining call options are not efficient and promote misaligned incentives. Liquidity is a key piece of infrastructure in the crypto space as everything is tokenized. Tokenization of assets introduces liquidity concerns and every protocol having a token of its own requires liquidity be it a metaverse project token or a DeFi project token. We are actively looking for partner protocols that can leverage Deliq to solve the liquidity issues. The fees generated through liquidity provisioning to AMMs / DEXes are accrued in Protocol Controlled Reserves and maintained for IL mitigation.
So Deliq’s liquidity layer is not just limited to DeFi protocols but to all the protocols that plan to decentralize themselves through a token 🚀
Q — Telegram user Am4 SF: What is the solution that Deliq brought into liquidity space, which parts of traditional liquidity mining that has been improved
A — Sahil from Deliq: That’s a good one Liquidity mining was a key step for starting the DeFi summer, but there are some serious problems with it. It includes dumping of tokens as soon as rewards are received, temporary liquidity which is removed after the liquidity mining program ends, and capital inefficiency because a large percentage of the token supply is allocated to gain temporary and mercenary liquidity Liquidity mining call options just postpone the inevitable dumping of free tokens that are received.
Q — Telegram user Rakesh Kumar: Can You tell more about Your Dynamic Reward distribution mechanism? How will it help users to maximize their Returns?
A — Sahil from Deliq: Yeah, the mechanism ensures that the DLPs are well collateralized. If there is only a small number of $DLQ backing the assets the LD rewards are increased to incentivize more staking and if a large no of $DLQ is backing a small no of assets the LP rewards are increased and they are incentivized to provide liquidity This mechanism ensures that maximum rewards are received when a pool is properly collateralized!
Q — Telegram user 🙋🏻♂️ Kevin 📊: Can you explain what the benefits are for Liquidity Providers who put their money to work on an Exchange or project that uses Deliq’s Liquidity-by-Stake (LBS) technology, how this helps mitigate the problem of the Impermanent Loss? And how this will affect their revenues?
A — Sahil from Deliq: When an LP goes to an AMM Dex like sushi Swap trader joe etc they have to provide double-sided liquidity and get rekt by the impermanent loss which decreases their overall returns If an LP comes to Deliq instead they can provide single-sided liquidity and the risk of Impermanent loss is mitigated using a mechanism that utilized protocol controlled assets and Liquidity directors rewards and staked $DLQ.
So LPs enjoy high yield with little to no risk of Impermanent Loss
Q — Ayeley from GAINS: What role will the token play in the Deliq Finance ecosystem?
A — Sahil from Deliq: has 4 major utilities that add value to the token
1) Staking $DLQ to direct liquidity (increases demand of $DLQ as it is a form of tokenized liquidity)
2) LPs and LDs are rewarded in $DLQ token.
3) Used to mitigate impermanent loss for Liquidity Providers.
4) Token holders can vote on new updates to the protocol.
Q — Twitter user @blackrose11221: Can you explain your staking system? What rewards do you have for Liquidity providers? How does the projected increase the token’s value, liquidity, and utility? So that it can lead to an increase in token prices? What’s make Deliq stable and provide the highest return?
A — Sahil from Deliq: Staking is the major use case of the $DLQ token. Stakers get the right to direct liquidity to various exchanges like Trader Joe, Pangolin, Sushi Swap on Avalanche. Protocols can now easily bootstrap liquidity by being the major token holders of $DLQ. This utility of $DLQ extensively increases the demand of the token and at the same time, most of the supply is staked into the protocol decreasing the circulating supply of the token.
Liquidity providers are incentivized by single-sided provisioning rather than double assets pairing in traditional decentralized exchanges, Impermanent Loss protection, and Competitive APY in the form of $DLQ rewards. Token Holders can also vote on the Buyback and Burning mechanism to further decrease the supply of the token thus driving the value up.
Yield is received in terms of $DLQ tokens and depends on the collateralization ratio in the pool
Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? And are you planning to do any future raises?
A — Sahil from Deliq:We have raised funds from some of the most prominent names in the crypto space including Gains associates, LD capital, Colony labs, and others. You can find our key investor list on the website. Next, we will be doing our public raise, to attract an extensive user base and token holders for the protocol.
Details for Ido and public sale will be soon disclosed on our official telegram community, stay tuned for that
Q — Ayeley from GAINS:How far along are you with your roadmap and what should we expect in the next weeks and months?
A — Sahil from Deliq: We are consistently following our roadmap and have successfully raised funds in private rounds and are actively expanding the community. Down the road, we plan on having an Airdrop and an incentivized testnet as well for rewarding the community and best feedback.
We will be launching the token and the testnet in this quarter. The community can stay updated on the airdrop, Public Sale details in the Telegram community.
Sahil, thanks for coming into our community, and taking the time to answer our questions. Do you have any final words for us? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates 🐋
It was exciting to answer these questions, stay tuned on our official channel for updates — Sahil Jain 🔺 from Deliq Finance