Liquis Launch Partner Program

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 Stakewise the opportunity to cheaply subsidize lower fee pools in addition to its existing ETH / sETH2 pool on Uni v3.

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 Stakewise

Stakewise has significant liquidity on Uniswap v3 already, but the vast majority of it is found in higher fee tier pools. The Liquis Launch Partner program represents an opportunity to subsidize experimentation with lower fee tiers (e.g. 0.05%, 0.01%).

As a Liquis Launch Partner, Stakewise would be heavily subsidized by the LIQ grant, potential bribe market proceeds, and any protocol owned liquidity being deployed into its targeted Bunni ranges.

More about Liquis

If you’d like to learn more about Liquis, check out the following links:

4 Likes

Thanks @Liquis - appreciate you taking the time to post this proposal! I have spoken with the team at Bunni about using their platform to help incentivise the new liquidity pools for StakeWise V3. The key thing to flag is that we are planning to migrate the main liquid staking pool from UniV3 to Balancer and the only pools we will have on UniV3 will be volatile pools (SWISE-ETH and osETH-USDC). Given Bunni only allows the incentivisation of fixed price ranges, it is not suited towards liquidity pools where the prices are volatile. The only way around this is to incentivise a large range and consequently lose the benefits of V3 concentrated liquidity.

I would like for the SLC to experiment with Bunni (and consequently Liquis) as part of the incentives for the proposed UniV3 pools - it is important we test out new protocols/tech in the liquidity space - but any experimentation would be very small as Bunni and Liquis are brand new protocols and consequently introduce high levels of smart contract risk to StakeWise LPs.

1 Like

That’s great to hear. Your concerns resonate with us and so we did want to highlight a few items that will be relevant to your decision-making process.

  • Launch Partner Governance Boost: While launch partner allocations vest over four years, their governance power is readily available. This means that in the early weeks and months of the protocol going live, their share of active governance power will be magnified.
  • Commitment Size Preference: Liquis is completely open to commitments of all sizes, with the floor being $10,000 over a period of six months. This comes out to less than $500 per week, and it doesn’t have to be linear either (i.e. less in earlier voting cycles, more in later ones).

  • The Value of Full-Range Liquidity: While the primary value of concentrated liquidity is undermined when talking about full-range provisioning on Uniswap v3, there is secondary value in the form of the Uni v3 oracle. As previous work done by Euler has demonstrated, a little bit of full-range liquidity can go a long way in providing a secure onchain price oracle.

  • Code Maturity of Liquis: While Liquis is a new protocol, the vast majority of its codebase is derived from Convex and Aura, both of which have been battle-tested with billions in TVL over the past couple of years. For the marginal net new code we developed to handle the nuances surrounding oLIT emissions, we conducted two audits with WatchPug and Halborn. You can find them in our documentation.

We’d be ecstatic to work with Stakewise, even if it’s just a smaller commitment for your liquidity strategy, especially as we all get closer to the launch of Uniswap v4. Please let us know if there’s anything further we could provide the SLC on this front, and thank you again for your feedback.

1 Like

Thanks for clarifying the commitment size - it is important that this is clearly outlined should we go ahead with some Liquis bribes. And your points on full-range liquidity are also well noted, for the SWISE-ETH pool specifically StakeWise DAO will likely have many full-range liquidity providers who could benefit.

The proposed members of the SLC are very familiar with Bunni and Liquis and so you’ll 100% be taken into consideration when it comes to the plans for incentivisation.

4 Likes