New Feature ‘LP Token Minter’ is now Live on xToken Terminal
The first major feature upgrade to Terminal’s Mining app has been released. For those unfamiliar, Mining allows anyone to deploy a highly customized Uniswap V3 liquidity mining program in a matter of minutes.
Previously, our platform was opinionated in that we assumed pool deployers wanted to use our liquidity incentives infrastructure. However, we heard from some potential users that a feature minimizing the friction of creating a fungible Uniswap V3 liquidity position was something they’d use in and of itself.
As such, we’re excited to announce the LP Token Minter, which allows anyone to seamlessly create a fungible, composable Uniswap V3 liquidity position — permissionlessly, in a few easy clicks, and with no dev work required. Once deployed, anyone else can deposit to the same position. Most importantly, the minted LP token is freely transferable and composable with any other smart contract, unlocking an array of use cases.
Read the feature docs here.
Below are a few examples of the many potential use cases:
Collateral Tokens
Many lending protocols accept LP tokens as collateral. However, the non-fungibility of Uniswap V3 liquidity has made that challenging. With the LP Token Minter, anyone can create a custom, non-custodial and permissionless collateral LP token and plug it in to their lending protocol.
For example, someone might create a WETH-USDC 0.05% fee tier collateral token specifically for the price range between $1000 and $3000 ETH. The lending protocol could direct users to mint the LP token via the Terminal interface or, alternatively, the protocol could integrate with our contracts directly, streamlining the process.
Custom Rewards Infrastructure
While Terminal’s Mining app offers a suite of highly customizable options and an end-to-end experience for any liquidity incentives program, it’s possible that a project or individual may want to build their own custom rewards architecture. The LP Token Minter feature allows the project to abstract the Uniswap V3 complexity and orient their custom work around an easily composable LP token. There are a lot of interesting incentive structures that require locking up LP tokens for determinate or indeterminate periods of time to earn some rewards or governance rights. These concepts are now much more accessible for Uniswap V3 liquidity.
Complex Liquidity Strategies
Some projects or individuals are running Uni V3 liquidity management strategies that are comprised of multiple positions, either within the same pool or across different pools. This is an accounting nightmare, especially for projects running permissionless and programmatic strategies.
With the benefit of the LP Token Minter, projects can now hold fungible representations of different liquidity positions that can be reduced or decreased in size seamlessly. These positions can be more easily traced and audited on-chain and easily composed with, unlocking a new level of liquidity management.
Liquidity as Currency
Some projects have experimented with the idea of using LP tokens as a payment currency or a medium of exchange. TreasureDAO, for example, has an interesting implementation of this. The LP Token Minter would make this feature seamless for any other project.
One other example of liquidity as currency is more well known: OlympusDAO’s bonding feature is exactly this. Typically, users “pay” with LP tokens to acquire discounted governance tokens. Interestingly enough, Olympus-style bonding becomes entirely seamless and permissionless using a combination of the LP Token Minter feature and our upcoming Origination app. Projects would 1) mint their LP token, 2) deploy an Origination offering (gov token offered in exchange for LP token), and 3) direct their users to use their minted LP tokens to acquire gov tokens. One of our current Mining partners is planning on pursuing this use case once we launch!
What is xToken Terminal?
xToken Terminal is a permissionless investment bank. We provide seamless access to the kinds of fundamental on-chain primitives that all projects will need during their lifecycle.
Instead of allocating weeks or months to dev work building and testing custom solutions, projects using Terminal can deploy a Uniswap V3 liquidity mining program or a complex token program, for example, in a matter of minutes. Our highly configurable smart contract architecture and deep investment in UX empowers projects big and small with the key on-chain solutions necessary to bootstrap a protocol.
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