Update on the proposal
Following the initial temperature check within the Liqwid Governance Forum , this proposal seeks to establish a whitelisted market on Liqwid, operated by Quod Agis, to provide lending facilities backed by Real-World Asset (RWA) collateral. (See product description here and FAQ here.
The underlying collateral assets will be issued as CNT utility tokens, minted only after borrowers successfully complete the onboarding process through a recognized credit gate.
Within this framework, Landmark Trust, headquartered in Geneva, will serve as the trustee of the designated RWA token issuer trust, ensuring regulatory compliance and operational integrity of the collateral issuance process.
The contractual framework outlining the relationship between Quod Agis and Landmark Trust is detailed in the agreement referenced here.
Upon approval of the following governance proposal by the Liqwid DAO, a Listing Agreement between the parties will be formally executed. The proposed contract for this agreement can be reviewed here.
Outlook
The introduction of direct lending represents the beginning of a new era for Cardano DeFi, and strategic move to position Cardano in the leading role for RWA finance development, overtaking similar initiatives at AAVE, COMPOUND, etc. by expanding the utility of the Liqwid protocol to the RWA space. Liqwid protocol’s architecture enables the management of diverse collateral types with customizable parameters, supported by off-chain contracts and verification mechanisms.
This initiative will open a whole new asset class and establish a bridge between Traditional finance and DeFi world, generating income streams for both the Liqwid DAO and LQ stakers, while offering attractive, decorrelated return opportunities for stablecoin providers — independent from traditional financial and crypto market volatility.
Furthermore, these new lending markets will remain fully segregated from existing CNT markets. All collateral and debt positions will be maintained in dedicated, isolated pools, ensuring complete separation and minimizing any potential cross-market risk.
Governance Proposal Draft
“Approval of the Listing Agent to issue Direct Lending on Liqwid”
Proposal Details
The LiqwidDAO agrees to allow a Listing Agent, Quod Agis, to build an RWA pipeline from traditional finance sector (using a so-called “credit gate” partners) that satisfy stringent risk and transparency requirements for making such collateralized RWA loan opportunities available for DeFi lending at Liqwid. These will be listed on the Liqwid Prime markets.
For a more in-depth explanation about the product, you can read the full product document available here.
The Quod Agis company is incorporated in Switzerland and is led by F. Voley (Liqwid Co-Founder) and P. Izmaylov (former senior executive from global TradFi institutions). It partners with seasoned professionals who have extensive expertise in financial markets, taking responsibility for asset vetting, deal structuring, and ongoing credit risk oversight. (website).
Listing Agent Responsibilities are:
- Build a pipeline of handpicked RWA loan opportunities with attractive risk & reward characteristics from traditional private markets for direct lending.
- Operate a risk management framework and strict adherence to DeFi parameters for effective functioning of the DeFi lending infrastructure
- Select and propose RWA collaterals in partnership with credit gate providers.
- Bridge the DeFi parameters with off-chain agreements and due diligence processes.
- Operate the RWA Direct Lending markets within the Liqwid ecosystem.
- Ensure adequate reporting transparency for tokenholders, including publication of quarterly reports detailing market activity and performance.
- Lead marketing, investor relations, and fundraising for the RWA markets.
Benefits to LQ Holders and the Liqwid Protocol:
- Strategic expansion to positions Liqwid as a leading bridge between DeFi and traditional finance by enabling RWA-backed lending, thereby broadening the protocol’s use cases and creating the potential for growth in the value of LQ tokens.
- Bring to Liqwid DeFi users one of the fastest growing asset classes from traditional finance, with very attractive yield returns, uncorrelated to global market cycles
- Attract institutional capital resulting in significant increase in Total Value Locked (TVL).
- Generation of predictable, fixed-duration cash flows.
- Enhanced interest revenues for stablecoin suppliers.
- Strengthening of the protocol’s diversification into RWA-backed lending.
- Revenue Distribution, where LQ stakers and Liqwid DAO are earning a percentage of the interest generated by these markets.
Remark: The Direct Lending markets on Liqwid are not part of the current program for market incentives with LQ tokens as voted by the Liqwid DAO.
Risk and governance for the Direct lending markets
- Quod Agis will arrange for the most favorable business terms and strictest credit risk controls on-chain and off-chain in the interest of users of the Liqwid RWA markets.
- Adequate transparency for RWA market participants through regular reporting will be published to ensures transparency and operational accountability.
Quod Agis will have full responsibility for operating the RWA markets, including selecting the appropriate interest rate model and determining how interest paid by borrowers are allocated among suppliers, the Liqwid DAO treasury, and LQ stakers. The DAO treasury and LQ stakers will each receive between 5% and 10% of the revenues coming from the repaid interests, while suppliers will receive the remaining share, ranging from 80% to 90%.
Technical Considerations
Liqwid’s architecture supports ring-fenced liquidity pools with segregated assets and independently configured risk parameters. This ensures the Liqwid RWA markets can operate isolated from other CNT markets while maintaining flexibility in risk modeling.
Market Design and Configuration:
- Suppliers: Participation remains permissionless, allowing any user to supply liquidity to the pool.
- Borrowers: Access is permissioned and enabled through an NFT minted by Liqwid Labs, which also serves as collateral within the market.
- Interest Rates: The interest rate model is defined under the guidance of the Listing Agent and can be differentiated between markets.
Testing Scope (Preview Phase): Prior to full deployment, the following technical validations will be conducted:
- Setup of a dedicated stablecoin market, where a designated NFT acts as collateral to enable borrowing from that market.
- Validation of NFT collateralization and borrower logic, ensuring correct interaction with the Liqwid lending protocol and adherence to permissioned access rules.
- Functional testing of user actions to manage such a loan
- Verification of parameter configuration, including interest rate behavior, collateral ratios, and data integrity across smart contract modules.
Conclusion
The Liqwid Core Team recommends approving this proposal to launch Direct Lending markets operated by Quod Agis as Listing Agent. The initiative represents a key milestone in the roadmap toward unlocking real-world yields while strengthening protocol utility, revenue, and long-term sustainability.
Upon approval, a Listing Agreement will be formally executed between the Liqwid DAO and Quod Agis. Following this, the Listing Agent will be authorized to initiate the preparation of RWA market listings, and to engage with approved Credit Gates and potential institutional investors to operationalize the framework.
Do you support this proposal?
- Yes, I support the approval of a Listing Agent as mentionned here.
- No, I do not support the approval of a Listing Agent as mentionned here.