Roadmap Update: Value Liquid
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Summary
- Introducing Value Liquid, our state-of-the-art AMM designed with efficiency and convenience in mind
- Value Liquid will launch across four phases. Migrations do not require any action from users
- The flexible farming feature enables easy movement and conversion of liquidity between AMMs
Motivation
Value Liquid will be a major pillar of the Value ecosystem. In yield farming’s current state, liquidity providing is a game of incentives. Farmers do not discriminate, but rather chase the best possible yields. This disadvantages all participants of the network through soaring gas fees, which leave all small farmers who cannot afford these fees out of the game.
In commitment to our mission, we created Value Liquid as an one-stop solution for all farmers. By participating in Value Liquid, you are guaranteed to enjoy the highest yield farming profits and minimize cost — the platform will take care of everything for you.
Value Liquid Rollout
Phase 1: Public Beta, Trading Only
Liquid will be open in public beta with two incentive pools.
VALUE/WETH with ratio 10/90
https://liquid.yfv.finance/#/add/0xbd14c6bb5a5cd7dc63ba224517b492983abf75d7
VALUE/DAI with ratio 20/80
https://liquid.yfv.finance/#/add/0x7b065a771d6e5bfbd67d8e8b15640feed06fe075
VALUE/ETH pool will receive 0.08 VALUE/block and VALUE/DAI pool will receive 0.18 VALUE/block as incentives for LPs. The incentive program will last for about 2 weeks (subject to change), starting from block https://etherscan.io/block/countdown/10968300 (appr. 01-October-2020 05:00 GMT+0)
This phase is a preparation step for eliminating all problems before progressing to the migration step that will be announced shortly afterward.
Phase 2: Balancer Migration
At this stage, we plan to move all current liquidity of YFV from Balancer to Liquid. The final launch date will be confirmed shortly. After migration, all current liquidity of YFV on Balancer will become VALUE liquidity on Value Liquid exchange. As LPs, no action is required from you.
Phase 3: Advanced Migration and Upgrades
We will upgrade the core contracts of Value Liquid such that migration of LPs from SushiSwap and Uniswap to Liquid is possible. Further explanation of the rationale behind this continues below.
Phase 4: Finalization
Acknowledging the realities of the incentive game, we know that retaining LPs forever is simply not possible. However, Value Liquid is designed flexibly with this in mind.
Let’s say a LP puts his/her ETH-USDC in Value Liquid to farm VALUE for a while because it currently has the best yield on the market. The next day, there is a new SUSHI clone utilizing SushiSwap that provides better yield. Naturally and ordinarily, the LP will remove his liquidity from Value Liquid to participate in this higher yield opportunity. Over the next couple days, yet another juicy opportunity arises, and the LP rotates his assets again — a painful, inefficient, and joyless process.
Value Liquid’s fourth phase solves this.
LPs providing liquidity on Value Liquid will have an option to avoid the above inefficiencies and conveniently ensure optimum performance through flexible farming. This will be a single-click option to use the platform to rotate LP funds out of Value Liquid in order to deploy them with higher-yielding strategies.
Using similar techniques (multiple strategies, cross-vault asset utilization) from our state-of-the-art Value Vaults, that platform will be able to rotate and utilize each LP’s provided liquidity on Value Liquid for other farming opportunities.
More specifically, Value Liquid enables its LPs to convert its VLP pool ownership token quickly and seamlessly to UNIv2, SLP, BPT, etc. to farm other assets.
Our development team has devised an innovative accounting solution to enable the liquidity from Value Liquid to move to other liquidity pools — such as Uniswap, Balancer, or Sushi — while still allowing for the same slippage rates as if this liquidity had not been moved elsewhere. While the liquidity is in other liquidity pool platforms, liquidity providers generate trading fees from the swaps. One-sixth of the fees generated in this way will be used to buy VALUE for the benefit of all VALUE holders.
In summary, we are proud to announce yet another innovation to provide the utmost efficiency and most convenient farming experience as possible for our LPs and users.
