Partnering with Bond Protocol on LIQ Liquity

It’s been a little over a month since Liquis first went live and its growth has been nothing short of incredible. Some highlights:

That’s not to mention our partnerships with teams like Badger, Gravita, or Frax, whose communities have been driving our success. We have also been honored to collaborate with the teams at Paladin and Hidden Hand on building out support for vlLIQ governance markets.

On the back of this success, we’re excited to announce our next initiative to scale Liquis further: a LIQ Bonding Program!

Liquis x Bond Protocol

Bond Protocol is a platform that provides crypto-native projects a suite of permissionless tools for sustainable treasury growth. Since its launch in October of 2022, Bond Protocol has facilitated over $60M in bonded value, helping projects of all sizes with their treasury needs.

An example Bond Protocol market hosted by GMX
An example Bond Protocol market hosted by GMX

In short, Bond Protocol allows projects to acquire target assets through the programmatic sale of a denominating asset. Unique to Bond Protocol is that this sale takes the form of an ongoing descending auction in which the current price of the denominating asset is a function of buyer demand. Users who purchase the asset either at a discount or premium to prevailing spot prices are then subject to a known vesting period.

The end result is a rebalancing of the project’s treasury from the asset being sold to the one being acquired. Projects have utilized this approach to acquire a variety of asset types, from liquidity pool tokens to stablecoins, in order to achieve their respective goals.

The LIQ Bonding Program

Liquis has been built out with zero external funding to date. Our contributors have been delighted to see the product-market fit the protocol has found with Bunni liquidity providers in spite of this and are keen on increasing its capacity for both new and existing users. With 2M LIQ set aside for liquidity bootstrapping efforts, it is our view that a bonding program is the first step in a larger vision for effective protocol owned liquidity going forward.

If you’re not familiar, LIQ is the governance token of Liquis. Users can lock LIQ for 16-week periods in order to direct the governance power held by Liquis over the Bunni / Timeless Finance ecosystem. LIQ can be earned by staking Bunni receipt tokens with Liquis, as it is minted for each oLIT earned by Liquis stakers.

LIQ serves to control Liquis veLIT and bootstrap its share of Bunni governance
LIQ serves to control Liquis veLIT and bootstrap its share of Bunni governance

The LIQ Bonding Program is set to start on Tuesday, October 10th with the following parameters:

  • 350,000 LIQ for Distribution

  • Targeting WETH

  • 7-Day Vesting Period

The proceeds of the bonding program will be utilized solely for protocol-owned liquidity, to be held in the Liquis treasury. Potential uses of the WETH acquired through the program include further pairing it against LIQ in order to stake with Liquis, or to use it to seed an Arrakis PALM vault. Deepened LIQ liquidity will allow for more robust APR reporting on the Liquis frontend, support higher protocol TVL, and provide Liquis with extra capacity to subsidize the liqLIT peg.

Stay on the lookout for our Twitter Spaces with the Bond Protocol team early next week!

The Latest on Liquis

  • Liquis launch partners have been active with bribes on the Paladin Warden vlLIQ marketplace, and we’re gearing up to go live with Hidden Hand in short order.

  • Check out the links in the intro to get an overview of relevant Liquis and Bunni metrics.

  • Liquis will be the announcing the first of a new series of partnership initiatives next week 👀

If you’re new to Liquis, make sure to join us on Twitter and Discord, as well as reading up on our documentation.

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