Tokenomics

What is LQE?

The Liqee Token (LQE) is Liqee Protocol's governance token. LQE tokens can be deposited to create new vLQE tokens, which can be voted on by users that have staked LQE.

Development of Liqee Protocol is driven by the Liqee community through decentralized governance progresses, also known as Decentralized autonomous organization (DAO). Governance over Liqee is managed by stakers of Liqee Tokens (LQE). In the absence of TGE, the core team acts as representative for participating in the governance.

Value Capture

LQE is designed to capture Liqee's interest spread (in form of interest reserve) income from lending market, allowing its value to scale linearly with outstanding loans in the lending market; it also captures the tokenization fee for assets tokenized on its platform and capture part of the staking fee for providing validation services for its delegates or network partners. All the fees above are collectively referred to as protocol fees.

• Lending Market Interest Reserve

The interest reserve ratio is used to capture portion of the interest spread between supply rate and borrow rate. The reserve will be built up along with growing of the outstanding loans. The interest reserve will be first unitized to provide buffer for bad debt allowance (if any) and the remaining are pooled into protocol fees for further distribution.

• Tokenization

Liqee will also tokenize other staking or mining assets (i.e Filecoin mining). A flat fee (upfront or exit fee) will be charged for tokenizing an asset, and the tokenization fee will be pooled into the protocol fee for further distribution.

• PoS Staking Services

Liqee also intends to run a number of PoS validation services for participating in the partner network, there may be fee charges for providing such services; which will then be pooled periodically into protocol fees for further distribution.

Liquidity Mining Rewards

LQE is also used as incentive to bootstrap supply/borrow, tokenization and staking AUM. The protocol distributes LQE tokens to various network participants.

Total Supply and Distribution

There will be a total of 1,000,000,000 LQE tokens to be distributed over a period of 4-6 years.

There is no Token Generation Event yet, detailed token distribution is to be disclosed in due time.

Repurchase & Burn

LQE tokens generate a buying pressure that increases proportionally with Liqee's outstanding loans/tokenized assets/staking AUM. Protocol fees will be used to purchase LQE tokens in the markets, which are burned or distributed as staking rewards to LQE stakers.