Optional LQ yield payment method


This proposal intends to repeal the last paragraph of proposal number 7 “Activate the LQ fee change”, when it states that: The rewards generated by the fee change will be distributed in the native token using the reward distribution application SundaeSwap.

If this proposal is approved, a tab will be enabled in Liqwid Finance with 2 different columns where each asset has 2 boxes to mark with an X (it would only be possible to activate a box in one of the 2 columns) those assets that each user wishes to receive converted by Liqwid Finance in LQ through repurchase in the market and those other assets that the user prefers to receive without exchanging for LQ.

Impact of this proposal

If this feature is enabled, it will benefit Liqwid Finance in two ways: on the one hand, the user will be more satisfied to keep their LQ staked by being able to directly receive returns on their preferred assets in addition to directly converting the assets they do not want to accumulate into LQ tokens; on the other hand, Liqwid Finance benefits because the buyback of LQ tokens being more limited will produce less slippage in DEXs where it occurs.

For example, I could decide to receive the returns that I am entitled to as a staked LQ token holder in ADA, and at the same time decide that the returns that correspond to me in DJED, SHEN and iUSD are exchanged for LQ before making the distribution of returns to receive LQ .

The tokens chosen for conversion would be converted through a DEX that offers the best offer at all times, such as Muesliswap, in exchange for the payment of 1 ADA. The conversion interval would be automatic and independent on each asset each time the equivalent of 1,000 ADA in the token in question is in the vault or accumulation account (1,000 ADA in accumulated iUSD or 1,000 ADA in accumulated ADA). The cost of operations will be borne by the funds equivalent to 1000 ADA in each account or vault, which will thus be reduced. So, if the equivalent of 1000 ADA is exchanged in iUSD, the equivalent of the LQ obtained with the purchase sale will be received for the distribution, less the cost in commissions of the operation.

Therefore, there would not be a time interval for the conversion to LQ of the chosen tokens, since the conversion will be automatic each time the account or accumulation vault contains the equivalent of 1000 ADA. This figure may be modified in future proposals.

All returns, both paid in different selected assets (ADA, SHEN, DJED, IUSD, etc) and paid through LQ token repurchases with the selected repurchased assets will be paid through the Sundaeswap rewards app.


What is the process envisioned by “each user wishes to receive converted by Liqwid Finance in LQ through repurchase in the market and those other assets that the user prefers to receive without exchanging for LQ.” ?
You are not providing any suggestion about the detailed workflow?

Your proposal is not new, but I think a bit premature at the moment. First, we should deploy the fee switch, and once it is live, then we could talk about “optimization” or “alternative”.

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Agreed Florian. I thought it would be a good idea to address it now that the smart contracts for the rate change are going to be changed but if you say that it is better to address the “optimization” proposal later then I wait until everything is implemented and only then will I propose it.

The process I wanted to propose was to create 2 different vaults. A vault where the assets destined to repurchase LQ go and another where the assets destined to be distributed without exchanging for LQ go. A tab would be enabled in Liqwid Finance where all the listed assets would be listed and a double column to choose if you want to receive returns on that asset or if you want it to be exchanged for LQ before the distribution. In this way, if someone wants to receive everything in LQ, they can check that option in all the boxes.

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