LIQ Protocol LIQPrice $ 0.000741

LIQ Protocol is a decentralized on-chain liquidation engine system powering derivatives markets on Serum and lending platforms on Solana. The protocol plays a key role in keeping a healthy Solana and Serum ecosystem. By managing liquidations and providing capital across several different derivatives and lending platforms, the overall usability and health of the platforms are substantially increased, which helps further advance the ecosystem. 

The LIQ Protocol holds the following utility:

• A pool that allows users to provide liquidity to LIQ, in turn earning fees back from the liquidators profits. 
• LIQ Protocol participating in the liquidation process, in turn, provides liquidity for further advancing the ecosystem, and builds the insurance fund for the liquidation engines.
• A limited governance model allowing voters to make decisions on the liquidation engine process and holdings, such as determining markets and pairs for the protocol to manage.

The profits accrued from liquidations, market making, hosting fees, and arbitrage, will be used to buy back LIQ tokens off the open market, reducing the circulating supply. These tokens will then be redistributed to liquidity providers through Orca and Raydium LIQ farms.