LIP-010: Whitelist Morpheus Swap to wrap LQDR and deploy mLQDR Liquid Staking

Proposal:

Whitelist Morpheus Swap to wrap LQDR and deploy mLQDR Liquid Staking

Overview:

This document introduces a new Morpheus Swap protocol feature called mLQDR Liquid Staking. mLQDR Liquid Staking enables users to obtain locked xLQDR rewards without sacrificing the ability to trade their mLQDR position.

When users provide LQDR to mint mLQDR, the Morpheus Swap protocol locks that LQDR for 2 years to increase its xLQDR position. When users hold xLQDR or wrapped xLQDR, they receive Liquid Driver protocol rewards. However, there is a trade-off for wrapped xLQDR LP providers: they must forego xLQDR rewards in order to stake wrapped xLQDR for LP incentives.

Benefit of the Morpheus Swap protocol:

mLQDR implementation is to enable LPers to receive both xLQDR rewards AND Morpheus Swap LP incentives.The mLQDR staking model incentivizes users to LP their mLQDR, which subsequently increases mLQDR swap liquidity.

Benefits to the LQDR community:

mLQDR increases buy pressure on LQDR, adds utility to LQDR through integration with the Morpheus Swap protocol, and increases the network of LQDR interoperability to embed LQDR more deeply in the Fantom ecosystem.

What is the mLQDR user experience:

An mLQDR minting user interface (UI) will be created for the Morpheus Swap website.

The minting UI will ask users to provide a quantity of LQDR that will be sent to the minting contract in exchange for a quantity of mLQDR. Users can choose to provide liquidity in the mLQDR/LQDR pool in order to receive xLQDR rewards and Morpheus Swap protocol emissions.

An mLQDR/LQDR stable swaps pool will be added to the protocol, which uses a custom Morpheus Swap contract to emit dual rewards: MORPH and wFTM. The wFTM emitted by the mLQDR/LQDR pool is harvested from xLQDR holdings and automatically swapped to wFTM. This liquidity pool enables users to harvest xLQDR rewards corresponding to the mLQDR they have staked - which may be unstaked at any time.

mLQDR user experience overview :

https://cdn.discordapp.com/attachments/938889082812121121/988155196116987974/Canvas_4.png

What kinds of users is mLQDR is aimed at?

Managed Harvesting: Any xLQDR staker might find a better harvesting experience with mLQDR. Since xLQDR emits a basket of tokens, xLQDR harvesting could involve multiple swaps. mLQDR provides a simpler way to get xLQDR rewards, which have been automatically swapped for wFTM - so it's even less work.

Liquid Staking: mLQDR can provide xLQDR staking rewards while maintaining the ability to adjust the mLQDR position at any time.

Liquidity Providers: mLQDR can be used to provide mLQDR-LQDR liquidity on Morpheus Swap without foregoing xLQDR rewards. This is different from other wrapped LQDR LP implementations.

Morpheus Swap hodlers: mLQDR is also for the current Morpheus Swap community. Aggregate voting will be used to benefit the Morpheus Swap protocol, and therefore hodlers.

LQDR hodlers: mLQDR provides a new option that may be useful for your strategies, creating a new possibility for diversification.

Cast your votes:

Yes : Whitelist Morpheus Swap to wrap LQDR and deploy mLQDR Liquid Staking

No : Do nothing