LiquidyPrice

(LQDY)

$LQDY serves as the governance and revenue-capture token for the Liquidy DAO. Its utility is centered on three main pillars: revenue sharing, treasury governance, and on-chain voting. Stakers receive a portion of the revenue generated through the protocol’s market-making operations and swap fees. Additionally, token holders have voting rights over the DAO’s treasury management and strategic decisions, such as selecting specific liquidity pools, ensuring all operations remain transparent through on-chain governance.

Liquidy generates revenue through two primary streams. First, it utilizes Protocol-Owned Liquidity (POL) to act as a market maker on decentralized exchanges within its ecosystem, earning trading fees from these active positions. Second, it maintains an optimized multi-hop swap router. This router charges a small fee for finding the most efficient trading paths for users, with these fees being directed back to the DAO for distribution to those who have staked their tokens.

Liquidy is a core infrastructure project within the Rujira ecosystem, which is the application layer resulting from an alliance between THORChain and the original Kujira team. Within this network, Liquidy plays a vital role as a primary liquidity provider and provides essential tools like the optimized Swap Router. It is specifically designed to support the liquidity needs and infrastructure of the Rujira network.

Despite the similar names, the two projects are entirely unrelated and serve different purposes. Liquity ($LQTY) is an established decentralized borrowing protocol operating on the Ethereum network, primarily focused on interest-free loans against ETH. In contrast, Liquidy ($LQDY) is a DAO-led protocol within the Rujira ecosystem focused on market-making revenue and treasury management. They operate on different blockchain networks and have distinct utility models.

Liquidy prioritizes financial transparency and risk management in its treasury holdings. The treasury mainly consists of large-cap blue-chip assets, such as Bitcoin (BTC) and Ethereum (ETH), to provide a stable foundation and minimize risk. It also includes Protocol-Owned Liquidity (POL), which consists of active liquidity positions across various ecosystem pools. Real-time reporting on these balances is typically available through the project's official analytics dashboard.

Users can trade $LQDY on LBank and other integrated exchange platforms. To participate in the revenue-sharing model and community governance, users must stake their tokens through the project's official dashboard. This staking process typically connects to an on-chain governance interface, allowing participants to earn rewards and exercise their voting rights on protocol decisions and treasury management.