LIP-011: Creation of a cross-chain fund

Liquid Driver is getting closer to release its suit of products as part of its V3. These ones will notably lead to a substantial shift in the Business Model of the protocol, as well as an initially planned 25-30% cut in global $LQDR emissions.

In this context, Liquid Driver needs to plan and fund its cross-chain expansion strategy.

Proposal:

To allocate 25-30% of $LQDR emissions towards the “Cross-Chain Expansion Fund” instead of cutting emissions. This allocation shall not be temporary. Instead, once Liquid Driver is effectively deployed cross-chain, emissions redirected to the fund will be dispatched to other chains.

To adopt this proposal as soon as the Shadow Farms are released and $LQDR emissions on top of the SpiritSwap pools are turned off.

Rationale:

In its cross-chain venture, Liquid Driver will need incentives dedicated to bootstrap TVL and acquire a strong user base, in a similar fashion to how we are currently operating on FTM. In order to be consistent with our emissions cut policy, expanding cross-chain shall not be accompanied with any emissions increase. Instead, a dedicated “cross-chain fund” must be created with a portion of current emissions. This proposal is about saving up LQDR for our future cross chain expansion. Further snapshot will be carried out to approve the exact spending. Note that some features of Liquid Driver V3 have been exclusively designed for cross-chain purposes.

Benefits:

• Starting accumulating $LQDR prior to its cross-chain launch will provide the development team with more flexibility and firepower to generate a strong traction around the cross-chain launch of Liquid Driver V3.
• xLQDR holders will not get diluted in the cross-chain development.
• Going cross-chain will help Liquid Driver diversify its revenue streams, tap into the broader market and position itself as the go to LaaS platform.
• Part of the fund will be used to seed the initial liquidity for LQDR-XXX which will reduce our reliance on LQDR emissions to build up liquidity.

Risks/ Risks mitigation:

• Short term TVL & Revenue leak in the Fantom branch of Liquid Driver following the emissions cut. Any TVL & Revenue leak shall be recovered cross-chain afterwards since real emissions will only be postponed. Furthermore, it was already planned to reduce emissions regardless of cross-chain expansion.
• Current market conditions might not be favourable to generate a strong initial traction when going cross-chain.

Other:

Before making any final decision feel free to discuss the proposal in the xDAO section of our discord http://discord.gg/LiquidDriver

Please cast your votes:

For: Approve to allocate 25-30% of current $LQDR emissions to fund cross-chain expansion Against: Do Nothing