Summary
Liquis, a liquid wrapper for Bunni / Timeless Finance’s veLIT governance power, is conducting a launch partner program that allows participating DeFi projects to receive an allocation of its governance token (LIQ) in exchange for bootstrapping its platform.
It would provide Silo with an opportunity to experiment with concentrated liquidity for XAI on Uniswap v3 in a subsidized manner.
Introduction
On Bunni
Bunni addressed the need for user-friendly abstraction of Uniswap v3 by introducing wrapped range positions. It allows anyone to deploy a target range with a corresponding ERC-20 receipt token on top of a Uniswap v3 pool, making it simple to provide, reuse, or incentivize liquidity.
Bunni also features a voting-escrow governance model in which emissions can be dynamically directed across approved token ranges. Users can receive $oLIT for providing liquidity to a Bunni range, which itself is redeemable for $LIT. Users who further pair this $LIT against $WETH on a canonical Balancer pool can then lock their position for veLIT governance power. A user’s veLIT balance determines both the amount of $oLIT emissions they are entitled to for providing liquidity in a recipient range, as well as their say in the distribution of future $oLIT emissions.
On Liquis
Liquis is a liquid wrapper solution for Bunni governance. It is based on a two-token model:
- $liqLIT: The Liquis wrapper token for veLIT
- $LIQ: The Liquis governance token
Liquis allows Bunni liquidity providers to benefit from a maximum-duration lock without having to commit to one themselves. As users exchange $LIT, $oLIT, or $BAL-20WETH-80LIT for $liqLIT, the protocol permanently accumulates veLIT governance power. This allows Liquis to pass on boosted $oLIT rewards to any liquidity provider who stakes their Bunni tokens with the protocol. These liquidity providers will also earn $LIQ in addition to their Bunni proceeds. $LIQ serves to determine how protocol veLIT is allocated across Bunni gauges.
Liquis Launch Partner Program
Liquis has set aside 10% of its governance token supply to be allocated to other DeFi projects committed to helping bootstrap our liquid wrapper.
The Liquis Launch Partner Program is not a fundraising effort. Instead, it is meant to reward partner projects that commit to acting as early adopters of the protocol.
Liquis launch partners will receive 100,000 LIQ for every $10,000 they commit to the program. While this LIQ would be vested over the course of four years, launch partners will have access to its full voting power on day one. Their vesting will begin upon protocol launch and Liquis will retain the ability to clawback unvested LIQ in the event of an unsatisfied commitment.
Partner projects can satisfy their capital commitments to Liquis in one of three ways, or any combination thereof.
1. Minting liqLIT
liqLIT is our liquid wrapper for Bunni governance power, or veLIT. Users can mint it by depositing $LIT, $oLIT, or the BAL-20WETH-80LIT pool token into Liquis. Partners who go this route would be expected to make their committed deposit within one month of the protocol launching - so, by the end of September. Those that see through this commitment during the Pre-Launch period would also be eligible for the rewards allocated to that program.
Please note that existing veLIT positions cannot be converted to liqLIT.
2. Supporting vlLIQ
LIQ is the governance token of Liquis. Holders who lock LIQ in exchange for vlLIQ can vote on how the protocol’s veLIT is allocated across Bunni gauges. Liquis launch partners can commit to a specific budget to be spent on incentivizing vlLIQ holders to vote in favor of their target Bunni gauges.
This budget is to be spent within the first six months following protocol launch.
3. Contributing to ImmuneFi
ImmuneFi is the leading bug bounty platform for DeFi. Liquis launch partners who choose this option would be contributing funds to a multisig controlled by Liquis contributors for the sole purpose of making bug bounty payouts. Partners should anticipate that any non-USDC assets provided to meet such a commitment would eventually need to be liquidated in the event of a payout.
Benefits for Silo
While Silo has focused its liquidity strategy for XAI on Curve to date, the Liquis Launch Partner Program offers a capital-efficient way to determine whether concentrated Uniswap v3 liquidity could be complementary to existing liquidity. The LIQ received by Silo in exchange for routing subsidies through Liquis would de-risk the budget for seeing whether Silo can achieve a positive ROI on such an experiment.
This is particularly relevant in regards to XAI, as the concentrated liquidity available on Uniswap v3 / Bunni is most efficient for pegged / tracking assets.
More about Liquis
If you’d like to learn more about Liquis, check out the following links:
To date, Badger, Swell, Gravita, and Paladin have all committed as launch partners. We currently sit on 2.5M veLIT and will represent ~21.5% of voting power upon locking it at the end of our Pre-Launch bootstrap period.