Liquis has been live for close to two weeks and it’s been smooth sailing to nearly $2M in TVL across our stakers and lockers of Bunni tokens, liqLIT, and LIQ.
With that, we’re excited to announce one of our final launch partners: Bloom Protocol!
Bloom brings yields sourced from US sovereign debt, specifically treasury bills, onchain. Its protocol coordinates the lending of USDC to holders of Backed’s ib01 tokenized treasury bills who in turn are able to access high loan-to-value ratios on their collateral. What results is an interest rate return to lenders of USDC on Bloom that approximates the underlying treasury bill rate at the time of lending.
Lenders of USDC on Bloom do so in regularly scheduled auctions that run for three days and lock their funds for six months. Lender supply and borrower demand are matched up, meaning that if a user provides more USDC than is ultimately borrowed, it gets returned to them after the auction. Their lent position is tokenized in the form of a Term Bound Yield, or TBY, token, which begins to accrue value as soon as their lent funds are used to mint ib01 tokens. These TBYs can then be redeemed for their combined principal and interest amounts on their redeem date or beyond.
Bloom auctions occur roughly every fourteen days and each has a corresponding ERC-20 TBY token supply to represent participating lending supply.
Bloom TBY tokens can be traded on secondary DeFi markets like Uniswap v3 prior to their redemption. Given their perceived risk profile and short term duration, concentrated liquidity that pairs them against cash-liquidity, e.g., USDC, provides the most efficient avenue for unlocking this use case.
You can follow and learn more about Bloom Protocol via the following resources:
The primary Bloom Protocol interface can be found here.
Since launch, the Liquis team has focused on pushing regular updates to the frontend in order to ensure robust reporting and a quality user experience. It is expected that a steady state will be reached toward the end of next week.
If you’re a vlLIQ locker, please be aware of the following:
New voting period starts today for veLIT allocation
Paladin has launched Warden support for Liquis incentives
Community is discussing how to bootstrap liqLIT, LIQ liquidity