The team/DAO is only putting in the LQ - all the ADA would have to come from the community (i assume). You should do some quick maths to see how much ADA you would need to have the price stay the same… I doubt we would find that much to be honest. I would still go for it, so there is a fair (but much lower) price for LQ, with deeper liquidity, so the future rewards etc will not be heavily reduced e.g. by team/vc token unlocks.
Not really. CZI doesn’t do price discovery.
The LQ is sold at the currrent price, and whatever isn’t sold returns to the DAO.
2 Likes
Yes, THIS^^. There was not supposed to be any dilution of LQ supply until AFTER main net launch, and then it was supposed to be an emission schedule that had been clearly defined for the last year. Anybody who built a position in LQ to leverage the low float to capture a higher percentage of the initial stake rewards in the safety pool got crushed. If you established a position based on the initial announcement of a December launch, then held through those multiple delays (Dec pushed to Jan, then Jan pushed to Feb…“Launching Soon!..Almost There!”) that was bad enough. Then the team blindsides us with this CZI which drastically cuts any expected returns associated with this strategy? Not to mention the Agora audit was completed in November, yet we still can’t even stake the LQ.
- Price suppressed by CZI announcement
- Main net is live and still no LQ staking.
LQ token is still vaporware right now. We get massive last minute changes and now they reverse course after damage is done? This has been a huge disappointment.
5 Likes
Firstly, in my opinion this proposal should be divided into several ones as it includes multiple different topics.
- Regarding the CZI, I think it’s a good idea to hold off on it, considering it could double the LQ supply at once. On the other hand, DEX liquidity incentives are essential for building strong liquidity and bringing additional utility to LQ, while being not as dilutive as CZI.
- In my view this move would bring much needed liquidity and adoption to stablecoins on Cardano, so I would vote “yes”.
- Using SundaeSwap’s rewards distribution solution would help speed up the process of making the protocol complete, build TVL and help it capitalize on its first mover advantage - sounds like a nobrainer to me.
1 Like
Sometimes you are searching for stable grounds. The team has been in control the whole time, now with Liqwid on MAINNET they realized things should be handled differently. I applaud them for being able to change their minds to find common ground with the community/DAO.
2 Likes
To incentivize borrowing and lending on ADA and stablecoins. At the moment everything has been around $ADA within the ecosystem. But the ecosystem is changing rapidly. With the launch of Liqwid it is possible to make more advanced strategies. To tab into those opportunities Liqwid needs more $ADA supplied and stablecoins.
Good question and I’m curious to see what the team’s answer is.
1 Like
A CZI has been created for these situations. If the airdrop did not take place an LGE would be the way to go. The airdrop has been done and we can’t go back, so it wouldn’t make sense to image a world like that.
For people that have sold it doesn’t matter which way this vote goes. The price is going down in both situations.
1 Like
It seems the community is quite divided on the CZI and whether or not it should go through. I personally dont believe that there is enough liquidity in the Cardano ecosystem for 3% of the LQ tokens to be paired with ADA for the CZI. If the CZI doesnt “sell out” and only 1% is paired with ADA, there would also be a massive FUD event surrounding that. On top of this, there are no incentives for CZI participants to stay after the event is over. The 1% leftover for farming would provide a very unattractive yield thus participants of the CZI will just unzap and sell their LQ position.
I would like to propose an alternative solution to the CZI. My solution would create deeper DEX liquidity and incentivize LP farmers to remain farming on Minswap which should promote price stability. Furthermore, it involves utilizing the aquafarmer NFT in conjunction with LQ tokens for farming which is a win-win. This will help stabilize the price of both aquafarmers and LQ tokens for the duration of (6 months), which by then the platform should be mature enough to no longer require the yield farm subsidy and potentially be at 1B+ in TVL.
Here is my proposal:
Instead of using the 4% of LQ tokens for the CZI and yield farming, we can instead open up four tier specific farms on Minswap, one for each rarity of the aquafarmer NFT (common, rare, super rare, legendary). We can then allocate some percentage to each farm tier, say 1%, for LP providers to farm. This is similar to the LBE events that have occurred in the past on Minswap where at the end, LP providers were given an NFT to grant them access to an excusive pool for farming. But for my proposal, the Aquafarmer NFT will be used to grant access to specific pools based on what rarity is owned.
For example, lets say we allocate 1% to the legendary pool or 210,000 LQ. There are only 100 legendary aquafarmers in existence, therefore there can only be 100 participants MAX in that pool; making it very exclusive. Assuming the farming program runs for 6 months, then the daily LQ emissions would be roughly 1167 LQ. Whales will fight for this massive daily reward and in the process provide a huge amount of liquidity on the Minswap platform. This also goes for every other tier (common, rare, super rare), where they are incentivized to stay staked to farm LQ.
Now there are probably some oversights in my proposal such as 1% being way too much allocated too the legendary tier and 1% being way too little for the common tier. But these percentages can be adjusted. For example, we can allocate 1.75% for common, 1% for rare, 0.75% for super rare and 0.5% for legendary. Im sure there is some ideal percentage based off the aquafarmer supply and rarity distribution but I cant calculate that.
I think my proposal here lays the groundwork for a program that can benefit both LQ and aquafarmer holders. It also incorporates the cross platform partnership between Minswap and LQ as was the goal for the CZI. My solve, will provide some price stability for the LQ token and aquafarmer NFT’s which will help get the Liqwid platform through its turbulent launch thus far.
Apologies for hijacking this thread, but I wanted visibility and the opinions of the community members. Thank you for reading my proposal.
10 Likes
I think it wasn’t the sleekest play to introduce the CZI event that wold colossally increase the supply available (introducing a bunch of speculation to the launch of the platform, running the prices down almost 50%) without at least first enabling the early holders/investors to capitalize on the LQ staking rewards for the first few days of being here “before the general public”.
Now people who bought the LQ in order to participate on the platform right at launch got double F’d instead of rewarded in any way - no rewards, negative price action. 
I honestly don’t have any constructive criticism, just wanted to vent. I will gladly hold the bag and support the protocol in the future, though, best of luck.
4 Likes
No. #1 will have the opposite of the desired effect, making LQ more volatile and prone to decline. #2 will have no effect on overall emissions, which is what people are concerned about.
I like your proposal and I can’t find holes in it. I would create a new proposal to test the waters within the community.
Also, part of the partnership with MinSwap would be they stop selling fees collected from Liqwid trades and instead increase their POL. But that’s a little site note. 
1 Like
shouldnt you be banned? lmao jk love ya
1 Like
I first want to start by saying I think this proposal does have a lot of merit and I love the way you thought about incorporating Aquafarmers I think it’s a really cool concept. I would be a fan of exploring something like this for even Liqwid protocol incentives to lenders/borrowers tbh. That said I do have a few early ideas in response to your proposed plan, the following in no particular order:
-
The Aquafarmers is built to attract more users to interacting with the Liqwid protocol/building in the Liqwid ecosystem. LQ staking and the Aquafarmer boost are also set to go live soon, I could see how this would compliment that program’s launch but tbh it’s not that clear to see initially.
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The community sentiment is mostly focused on the initial LQ emissions being too high for the current level of on-chain liquidity in Cardano DeFi, you proposal just reallocates this 4% to a different but similar initial liquidity incentives program. This (unless you were referring to launching this proposal at a time in the future when on-chain liquidity improves) seems a bit opposite to the main goals behind this proposal to reduce LQ token emissions.
Again I am in favor of using a concept similar to this for LQ protocol incentives to lenders and borrowers. I think it’s a fantastic concept that would actually work really well there! Thank you for this feedback @epickillstreak and apologies we can’t always respond to your points faster. We are always watching and observing, though 
6 Likes
I dont link the monthly distribution it should be by epoch
I agree with this statement. As someone who made a significant investment in this project it is disappointing to see how this is all unfolding.
1 Like
I do not agree with this proposal. The point of the CZI is to help in the longevity of liquidity. Here are some key points to as to why this is actually good:
*A total of 630.000 $LQ, or 3% of total $LQ supply has been allocated towards the [Minswap CZI]
Please remember that depending on the $ADA supplied, the entire $LQ amount may not be fully used. (KEY SENTENCE THE LAST LINE)
- The rest of $ADA/$LQ LP Tokens generated during the event (minus a Fee taken by the Minswap DAO) will become Protocol Owned Liquidity for the Liqwid Finance DAO.
You’re talking about POL which that won’t be unstaked and provide stability. If this concept is confusing look at the Minswap POL now and how it is the highest pair in liquidity and depth in terms of pair/pool. The token price found and hit its natural bottom.
This “inflation” or “circulation” of more LQ was and always will be unavoidable. The price 7 days ago in my personal opinion, was always overvalued but that is a separate statement on how I feel about the Liqwid project. Liqwid is an innovative and necessary protocol on Cardano that will bring more adoption into the ecosystem.
As for the other points of the proposal, I feel these should be separate amendments and it not fair to package them together if a person feels differently about the others (even if i disagree with how others feel about these individual points). This should have been an open discussion period with a lengthy voting time period. I am voting no out of principal to how this vote is being conducted more so than my opinion on the CZI cancellation.
2 Likes
Your proposal seems attractive at first. However, I think that before putting more LQ in the system, the protocol should offer a stabilized currency for funding, or debt position, like the LQUSD that is planned for v.2. So I think it would be better to postpone the CZI for the DAO to better evaluate the proposals.
yes, in theory, the distribution can happen at any time, with any automated schedule.
1 Like
Vote YES! LQ emissions should be drawn out over time and should be exclusive to protocol adoption. In other words we shouldn’t just sell a bunch of LQ right upfront just to get a price, but instead role out rewards to people that actually use Liqwid Finance!
3 Likes
When does this vote close?