Layer2DAO Joins Forces with Yield IQ for Smart Liquidity Provision

Layer2DAO leverages Yield IQ, bringing smarter liquidity provision strategies to its community.

DAOs Unite

Yield IQ, the revolutionary tool offering new revenue streams for token holders has partnered with Layer2DAO, a dynamic community-driven decentralized organization in the Layer 2 ecosystem. This collaboration aims to provide the Layer2DAO community with an efficient, profitable, and user-friendly platform for liquidity provision. Let’s explore the key highlights of this partnership.

Empowering Token Holders with New Revenue Streams

To kick off this collaboration, Yield IQ has launched a dedicated vault on app.ichi.org — L2DAO/WETH. Users can now simply deposit their L2DAO tokens (single-sided) and benefit from optimized liquidity provision, earning trading fees while mitigating risks, all within the secure and transparent environment.

As a testament to the commitment towards fostering this partnership, ICHI has further provided $1000 USD worth of ICHI tokens to Layer2DAO. These tokens will be utilized as staking rewards for L2DAO members over a four-week period. By doing so, Yield IQ is offering L2DAO users exposure to the ICHI token, enhancing their DeFi journey with access to additional opportunities.

DAO to DAO Token Swap

Layer2DAO and ICHI will facilitate a DAO token swap on Arbitrum with a value of $5,000 USD, locked for an impressive duration of 12 months via Hedgey. This allows both projects to diversify their treasuries and reduce vulnerability to sudden drops in token prices.

As many DAO treasuries primarily consist of their native tokens, any significant decline in token value can jeopardize the project’s financial stability. By engaging in open and collaborative token swaps with other DeFi protocols, DAOs can build stronger partnerships, foster deeper ties between communities, and ensure mutual benefits while diversifying their assets. Token swaps enable DAOs to tap into the strengths and expertise of partner projects, creating a more cohesive and interconnected DeFi ecosystem.

How Does Yield IQ Work?

Yield IQ’s process is simple and efficient. Users deposit their preferred tokens into the platform, and Yield IQ allocates these tokens into concentrated liquidity AMMs, such as Uniswap V3, without initiating any swaps. In return, users receive LP tokens representing their share in the liquidity pool.

The true magic unfolds as Yield IQ, powered by Chainlink Automation, dynamically adjusts the concentrated liquidity position based on token arrangements and real-time market conditions. Users earn trading fees when trades occur, supplementing potential token appreciation. With vigilant oversight of token composition, Yield IQ guards against harmful arbitrage and market shifts. Users can withdraw their initial deposit and earnings at any time by exchanging LP tokens for their share of assets in the vault.

About Layer2DAO

Layer2DAO is a decentralized autonomous organization dedicated to driving the widespread adoption of Layer 2 protocols within the Ethereum ecosystem. With the completion of the Ethereum merge, it has become increasingly clear that layer2 solutions are vital for the future growth and scalability of Ethereum.

As the leading Ethereum L2 DAO, Layer2DAO is committed to expanding the L2 ecosystem by investing in and partnering with high-impact L2 protocols and ecosystem initiatives. The DAO utilizes its treasury strategically to support projects that show promise and contribute to the growth of the Layer 2 ecosystem. Moreover, Layer2DAO actively engages in liquidity provisioning, NFT creation, and various value-adding activities that reinvest proceeds back into the DAO.

About Yield IQ

Yield IQ is a fully automated, single sided concentrated liquidity provision strategy. By making rebalancing decisions based on token composition instead of token price, Yield IQ limits divergent loss and generates industry leading results. True to the spirit of DeFi, Yield IQ is governed by a self-executing smart contract, ensuring impartiality and decentralization. This ensures unrestricted, permissionless access and unalterable protocol behavior, serving as a truly decentralized financial tool.

Learn more by visiting the ICHI website, Medium, Twitter, Telegram, or Discord.