A simple guide to the Liquid Vault

Paul Scott - Degen.VC
Apr 23 · 2 min read

Liquid Vaults have become a feature in all Degen.VC projects and coupled with our renowned #alphadrop have become a standard for THE non-VC launch model.

The idea of a Liquid Vault is very interesting because the LP tokens are essentially offered at a 50% discount. It was additionally relevant because of the possibilities this opened up. This smart contract — “Liquid Vault”- could also:

  1. Charge an ETH fee thus reducing the 50% discount. This ETH could then be used for other purposes;
  2. Lock the LP tokens created by pooling on Uniswap project tokens with a buyer’s ETH for a period before the buyer could claim them;
  3. Permanently lock some LP tokens while still giving the buyer LP at a discount.

We call these features economic levers and each has a role to play in how the Liquid Vault is structured Here the User sends OSM tokens to claim ETH.

The REALITY LV distributes the ETH Fee to an advertising agency to run ads on multiple platforms for the project. For REALITY, we use the 3 economic levers as follows:

  1. The ETH Fee charged will be 20% — this means a 30% discount on LP tokens by “sending ETH”. The ETH collected from the ETH fee will be sent to an advertising agency autonomously so that there is a constant source of marketing spend for the project.
  2. The LP tokens will be locked for a period of 30-days. Once this time is up, the claim LP functionality on the dapp can be used to withdraw LP tokens. Users options include:
    - Unpool and sell the $INFINITY and keep the ETH, or reinvest it in the LP for another 30% discount;
    - Retain the LP to add value to overall $INFINITY liquidity; or
    - A combination of the above.
  3. The LP Donation is set to 0% — there is no permanent lock on a portion of LP tokens when claimed.

Infinity

A deflationary token on BSC with positive rebase and hyper-innovation baked in.