Details
Overview
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.