The Recap of AMA with dForce and Liqee
On August 27, StaFi invited Mindao, the Co-founder at dForce and Alex, the Co-founder at Liqee to the StaFi community to talk about the latest development of Liqee and cooperation between Liqee and StaFi.
The full Recap content is organized below.
1.Tell us more about Liqee — what makes Liqee special against other DeFi lending?
Alex: Liqee is a decentralized lending protocol powered by dForce’s smart contracts. Unlike other DeFi lending protocols (Compound, Aave) who support mainly crypto assets, Liqee is featured by a vertical marketing approach with a focus on liquid staking assets (including PoS staking assets, DeFi staking assets, etc). This is a new asset class with a market cap totaling approximately 11x of DeFi’s LTV, an untapped market with a huge potential to grow. The blend of PoS validation and DeFi lending expertise that we bring to the table make Liqee unique.
Basically, users can:
1)Lend rToken/tToken and borrow underlying tokens (i.e., supply rETH and/or rATOM to borrow ETH and/or ATOM)
2)Lend underlying tokens to borrow other underlying tokens (i.e., supply DOT to borrow FIL, ETH, XTZ, ATOM, etc).
3)Lend a combination of rTokens and underlying tokens to borrow underlying tokens (i.e., supply rATOM and ETH, to borrow DOT and ATOM).
4)Lend tokens and borrow/mint USX, then deposit into dForce’s lending market to borrow other crypto assets (minting fee will be waived for the first two weeks, meaning that you can get a USX loan at free!). USX can be swapped to BUSD (on Pancake) or USDC (on Uniswap) with very low slippage.
In short, Liqee is a highly efficient and flexible lending market, which facilitates combinations of lending and borrowing activities in a variety of ways. More Info：
2.What’s the benefit of rToken holders?
Alex: We are thrilled to partner with StaFi to boost liquid staking assets by offering a lending marketplace for rTokens. StaFi is the first workable solution in the market that provides access to liquid staking tokens, and our partnership will start with onboarding rETH, rDOT, and rATOM as collateral assets on Liqee. We also support tXTZ and tFIL-backed loans on Liqee (tTokens are liquid yield tokens launched by Liqee).
Simply put, rToken holders are able to:
1)Improve your staking yields by borrowing underlying assets with near-zero liquidation risk. You can then use the borrowed underlying tokens to mint more rTokens and repeat previous steps to improve your staking yield (leveraged staking).
2)Access immediate cashflow by borrowing/minting stablecoin USX without the need to sell your rTokens, which can be swapped into USDC on Uniswap (Ethereum) or BUSD on Pancake (BSC) with extremely low slippage.
3)Use borrowed USX to borrow other assets (i.e., BTC, BNB, UNI, USDC, etc) on dForce Lending.
4)Lend underlying assets (i.e., ETH, DOT, ATOM) or stablecoin USX to earn.
5)Participate in Liqee 3-in-1 (LQE, FIS, DF) liquidity mining for top-up rewards.
6)Additional FIS rewards by minting rTokens.
Please view the real-time liquidity mining APY from our dapp (https://app.liqee.io).
3.What’s the utility and value proposition of Liqee token (LQE)?
Alex: LQE stands for Liqee token, which is the utility and governance token of Liqee. Liqee DAO is a community governed DeFi, where decisions get made from the bottom-up, meaning that everyone can share your view with us on how to shape the future of Liqee, participate in related discussions, and jointly decided by LQE holders through on-chain governance voting.
Please note we are yet to launch the Token Generation Event, but in a hope to ramp up Liqee as quickly as possible, we decided to distribute LQE through retrospective mining, meaning that users can mine LQE by participating in lending activities but can only claim and withdraw accrued LQE after the Token Generation Event. Vesting schedule and lock-up arrangement will be disclosed when we approach the Token Generation Event.
LQE will be also be used to capture fees generated from lending markets, tokenization, and validation service, as well as an incentive to reward network participants, partners, developers, etc.
Join our TG (https://t.me/liqee) to stay connected and unlock more about Liqee!
4.DeFi’s popularity coupled with a lot of security concerns — can you elaborate on how Liqee secure safeguard infrastructure?
Alex: We are very serious about security and that’s why we chose to partner with dForce and utilize their lending protocol to power Liqee. I’ll save this question for Mindao, Founder of dForce, who can help to address more precisely.
Mindao: Thanks Alex for Liqee’s recognition and trust. Security is the only thing that can keep our eyes open when we worked to the bone. The Liqee codebase is based on codes of dForce Lending, which is audited by Trail of Bits, ConsenSys Diligence, CertiK, and Certora (formal verification).
A vast majority of attacks in DeFi are related to collateral onboarding, and we have very stringent process in this regard, including:
1)Perform multi-dimensional risk assessments for supported asset, including liquidity test to determine the loan-to-value ratio. It is worth noting that dForce, as well as Liqee, are the only two lending protocols implementing supply cap and borrow cap on collaterals.
2)On-chain voting by DF holders before onboarding a new asset / collateral.
3)Implement a 24/7 on-chain monitor that keeps watch on irregularities, with several contingency plans in place.
4)A Bug Bounty program to encourage security researchers, white hats, community’s participation in identifying potential vulnerabilities in dForce protocols and receive bounty rewards.
In light of the launch of Liqee, dForce team rendered necessary support to facilitate the proper deployment of contracts and configuration of Liqee lending protocol, and participated in discussions related to collateral onboarding and initial risk parameter setup.
Liqee will definitely perform additional audits in the event they need to upgrade their smart contracts to introduce new features.
5.Tell us more about Liqee Liquidity Mining, how to mine LQE, FIS and DF?
Alex: Today, we are thrilled to kick off Liqee liquidity mining on both Ethereum and BSC, together with StaFi and dForce, through a ‘retroactive liquidity mining’ initiative. Participants will be able to mine LQE, FIS, DF based on individual contribution to the growth of Liqee.
Please be advised that Liqee is yet to launch its Token Generation Event (TGE), meaning that this is retroactive liquidity mining, participants can view the balance of mined LQE on Liqee but can only claim and withdraw LQE to your wallet post the TGE. Also, that accrued LQE through liquidity mining might be subject to a vesting or lock-up schedule. The timing and schedule for the TGE are yet to be determined.
The first liquidity mining shall last from 12:00pm UTC, 27 August to 12:00pm UTC, 10 September, 2021,with gauge and rules viewable from: https://liqee.medium.com/liqee-genesis-liquidity-mining-c642e2ef7c0b
Please do keep a lookout for any gauge adjustment which will be reviewed and assessed on a bi-weekly basis, and released to the public via our forum (https://forum.liqee.io/c/lending/liquidity-mining/10).
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards. rToken is a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App (https://app.stafi.io). rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
rToken App: https://app.stafi.io
Telegram Chat: https://t.me/stafi_protocol
Telegram Announcements: https://t.me/stafi_ann