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.

Liquid Vault 1: REALITY

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.