Liquid Finance is an innovative approach to liquidity provisioning that solves capital inefficiency and value accrual issues.

Key Benefits and Features of Liquid Finance:

• Harvests MEV opportunities resulting from liquidity pools, which is normally extracted away by searchers, using the Liquid Arbitrage Mechanism (LAM).
• Solves the issue of capital inefficiency in liquidity providing by incorporating the fractional-reserve model of Frax Finance. This can provide greater scaling ability, allowing DeFi to compete with traditional financial institutions.
• Incentives for farming and bonding offered for a limited period, to speed adoption and grow protocol reserves.
• Bonds used to create Protocol Owned Liquidity (POL), increasing price stability of LIQD.
• Protocol revenue in the form of ETH will be paid out to stakers and lockers of LIQD tokens. Additionally those who lock LIQD for an 8-week period earn forfeited vesting rewards as LIQD.

LIQD is the protocol token, the value of which will ultimately be stabilized by its ability to earn a share of the protocol’s revenue when staked in the staking contract. It also serves a function to back undercollateralized redemptions of the lqETH token.