Get to Know: Deliq

Meet Deliq Finance!

A decentralized and transparent liquidity outsourcing platform built on Avalanche to provide sustainable, long-term liquidity to protocols in a capital-efficient way.

To warm-up for their IDO on March 23, we hosted an AMA with Sahil Jain CEO & Co-founder from Deliq. In case you missed it, here’s a quick AMA recap.

📍Deliq IDO Allowlist is open until March 16, head over to their project page to apply!

Deliq vision

Various yield farms are able to bootstrap liquidity for a matter of days after which incentives start to vanish and liquidity in the market dries up, which leads to high slippage trades and bad user experience.

Deliq aims to change it by introducing a much more sustainable, capital-efficient, and decentralized way of bootstrapping liquidity called Liquidity by Staking (DLQ token), which allows users to get access to sustainable and long-term liquidity.

Their vision is to use this model to create a liquidity layer of crypto so that every protocol in the space can attract liquidity efficiently.

Why does Deliq leverage Avalanche?
Deliq will leverage the low gas fee and decentralized nature of Avalanche to provide auto compounding solutions with impermanent loss mitigation models to drastically increase the Liquidity Provisioning APY.

This model will also ensure that liquidity that is outsourced to the protocols is not temporary or mercenary, it will be long-term and sustainable.

Other advantages include improved tokenomics that will drastically reduce the selling pressure on $DLQ at the same time rewarding long-term token holders.

Deliq’s team end goal is to create a liquidity engine that will seamlessly supply liquidity to crypto protocols.



What we can expect from Deliq Roadmap?
Deliq team is trying to create a key piece of the crypto space that has the potential to be used by the whole decentralized financial ecosystem.

Here are some of the major milestones (both product and token) for Q2 2022 are:

• Staking
• CEX listings
• Partnerships with Avalanche based protocols
• Testnet
• Curve style veDLQ
• Liquidity Provisioning
• Direction voting

Later on, in their platform roadmap, we can count on Deliq Liquidity Pools (DLPs) selection, Liquidity directing (limited), Liquidity Deployment to AMMs like trader joe/pangolin. As well as decentralizing the selection of DLPs, DAO voting, and decentralizing other aspects of the protocols.


Community Questions

Shadow
Hello sir,

I Found that DELIQ Finance ahs build the platform on the AVAX CHAIN, May I know Why You Choose the AVAX CHAIN and Do You plan to Make this Platform a Multi Chain and Will You Welcome Other Chains also  ?

Sahil Jain (Deliq Finance)
We chose Avax for many reasons,

1)First was that we needed a low gas fee chain so that we can input as many functionalities as possible.

2) EVM compatibility of the AVAX C chain works in our favour because many Ethereum based protocols can easily move to Avalanche and this is actually happening for quite some time.

3) Next is that the Avalanche community is one of the most supporting community so we were not alone while building this protocol we had the support of lots of people.

4)many innovations in protocols are now happening on Avalanche and it has become a central hub for new builders in the ecosystem.

Hence Avalanche 🔺

MÂZLÚM
Deliq Finance users are very important for mainstream adoption. How you are planning to attract Deliq Finance users towards your project? Is there any upcoming partnership that will bring Deliq Finance users and a real-use cases?

Sahil Jain (Deliq Finance)
What we are aiming to do is outsource liquidity to different protocols on Avalanche. So partnerships are the most important pieces to make Deliq a grand success.

So Q2 2022 will be entirely focusing on partnerships with protocols on Avalanche.

Deliq is the first mover on Avalanche and what we provide is a service that will not only create new ways for protocols to gain revenue but at the same time diversify their treasury

So being the only outsourcing platform on Avalanche surely will be advantageous✌️.


Yazidab
Deliq main theme is to enable Protocol owned liquidity for Avalanche ecosystem,One problem with liquidity staking is a discrepancy in price between liquidity pool & other exchanges which arbitrageur take advantage of at the expense of liquidity provider, how Deliq tackle this issue?

Sahil Jain (Deliq Finance)
As long as there are multiple venues to trade their will be price discrepancies and so will arbitraging, but Deliq helps the exchanges is that reduce the price difference or what we call trade slippage.

So what I mean by this is that Exchanges can leverage Our model by holding the $DLQ token and direct liquidity to their exchanges. If pools have deep liquidity there won’t be a large trade slippage between trades and this will help make the overall user experience better!

CRYPTO ❤️ kING❤️
Hello Deliq Team,

It caught my attention that with Deliq, liquidity providers can provide liquidity, without any risk of temporary loss (IL), but really, with yearning for liquidity, can we generate losses? If so, how are they generated and how does Deliq solve them?

Thank You

Sahil Jain (Deliq Finance)
Ok so Impermanent loss mitigation is what we can say one of Cool features of Deliq.

So Liquidity Providers without getting rekt while providing liquidity will be fully covered for their IL risks.

How do we manage to do that is a 3 layered mechanism that includes Protocol controlled assets?

These are Pools of tokens that are maintained via fee generation and OTC deals with protocol.

We use that to make the LPs whole when they withdraw liquidity from Deliq other 2 layers are transferring the risk of IL to liquidity directors in extreme cases.

Now the process is complicated so make sure you read our gitbook if you want to know the details 😉

Law
You point out that Liquidity Mining and Centralized Market Makers are inefficient means of attracting liquidity to your platforms, but could you really explain why they are? and why do many projects depend on them for liquidity?

Sahil Jain (Deliq Finance)
Let’s talk about Liquidity mining first

Protocols have to allocate 30-40 percent of the Token supply to bootstrap liquidity and giving out free rewards to yield farmers

Yield farmers dump these free tokens received into the market and increase the selling pressure on the token.

And once the Liquidity Mining rewards end the liquidity in the pools start to dry up and end-users are left with high slippage trades

Centralised market makers have centralization issues legal issues and new protocols don’t have the capital to use them. So they aren’t a viable option for a new DeFi protocol

So there you go, that’s where Deliq comes into play!

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