Liquity Launch Details

Info on Liquity’s upcoming launch.

Kolten
Kolten
Mar 24 · 5 min read

TLDR;

  • Liquity’s launch date is set for April 5, 2021.
  • Our Ethereum deployment address is 0xa850535D3628CD4dFEB528dC85cfA93051Ff2984. Deployments from any other address should be deemed invalid — do not interact with them.
  • LQTY rewards will be live at launch.
  • There will be 100,000,000 LQTY tokens. Allocations and distribution methods can be found below.

Launch Details

It’s official: Liquity is set to go live on April 5, 2021. On launch day we’ll publish another announcement specifying Liquity’s contract addresses and how users may interact with the protocol.

Liquity has been in the works for a year and half — undergoing audits and economic simulations — and we’re excited to deploy to Ethereum mainnet. As an additional safety precaution, we want to confirm that we will be deploying Liquity’s contracts from the following Ethereum address:

  • 0xa850535D3628CD4dFEB528dC85cfA93051Ff2984

We know it’s hard to contain your excitement, but please avoid interacting with any contract deployments from an address different than the one specified. We’d hate for users to lose funds due to malicious contracts.

Liquity will be fully functional at launch minus redemptions. In other words: Users will have the ability to open a Trove and borrow LUSD, deposit LUSD to the Stability Pool, stake LQTY, and stake Uniswap LUSD:ETH LP tokens when Liquity goes live.

However, for the first ~14 days after launch redemptions will be disabled. This is to encourage growth of the system during its bootstrapping phase and to protect borrowers from otherwise unnecessary redemptions while they’re getting acclimated. Redemptions will be automatically enabled by the protocol after the 14 day grace period is complete. Learn more about redemptions here.

We also want to remind users that Liquity AG will not be running a frontend to access Liquity (we’ll remind users about this again on launch day). Frontends are instead run by ecosystem participants. A list of active frontends will be available here and we will provide more details in our launch post.

Lastly, LQTY rewards will be live at launch. There is no delay between system deployment and the beginning of LQTY rewards distribution. Users can start earning rewards immediately after the protocol goes live. We cover LQTY in more detail below.

LQTY

LQTY is the secondary token issued by the Liquity protocol. It captures the fee revenue that is generated by the system (via staking) and incentivizes early adopters and Frontend Operators.

LQTY rewards will only accrue to Stability Providers — i.e. users who deposit LUSD to the Stability Pool, frontends who facilitate those deposits, and liquidity providers of the LUSD:ETH Uniswap pool.

As technical rewards, they are based on a preprogrammed functionality of the protocol and not on a claim towards Liquity AG or any third party.

100,000,000 LQTY tokens will be minted at genesis and will be allocated as follows:

  • 32,000,000 LQTY will be allocated to the LQTY rewards pool. These tokens are earned through Stability Pool deposits and will be rewarded by the protocol to frontends and Stability Providers.
  • 1,333,333 LQTY will be allocated to LPs of the LUSD:ETH Uniswap pool. These tokens are earned by staking LUSD:ETH Uniswap LP tokens and will be distributed by the protocol over the course of 6 weeks.
  • 2,000,000 LQTY will be allocated in the form of a Community Reserve. These tokens are earmarked from the Liquity AG endowment and will be used to fund grants, hackathons, events, and other community-focused efforts.
  • 23,664,633 LQTY have been allocated to current (and future) Liquity AG employees and advisors.
  • All LQTY in this category are under a 1 year lockup and are 1/4 vested after 1 year of engagement, then 1/36 every month after.
  • 33,902,679 LQTY have been allocated to Liquity’s early investors who supported our vision and provided the runway necessary for us to succeed long term.
  • All LQTY in this category are under a 1 year lockup.
  • 6,063,988 LQTY have been allocated to Liquity AG for use by the company.
  • These tokens are subject to a 1 year lockup.
  • 1,035,367 LQTY have been allocated to service providers who helped Liquity in various ways before launch.
  • These tokens are subject to a 1 year lockup.

LQTY’s community issuance (outside of LP incentives and the Community Reserve) follows a yearly halving schedule, described by the following function: 32,000,000 * (1–0.5^year). The purpose of this issuance curve is to favorably incentivize early adopters while also maintaining incentives for the long term.

LQTY’s issuance to Frontend Operators and Stability Providers for the 35 months post-launch will look as follows:

With total allocations accounted for, LQTY’s issuance for the 35 months post-launch will look as follows:

Note: The bump in supply is due to the end of 1 year lock ups. It does not mean that these tokens will instantly enter the market or instantly enter “circulation” — only that they are free to do so at their owner’s discretion.

We look forward to getting Liquity into our user’s hands on April 5! If you’re interested in learning more about Liquity, check out our documentation. If you have any questions, join our community Discord.

Liquity

Decentralized Borrowing Protocol