Introduction to Liqwid

Liqwid is a decentralized liquidity protocol for lending. It facilitates open source and non-custodial money markets for earning interest on deposits and borrowing Cardano native assets.

The Liqwid protocol concepts and Whitepaper were initially created in Q4 2020, with protocol development starting in Q1 2021 after technical architecture, smart contract design pattern and interest rate curve models were completed. Liqwid aims to facilitate more efficient lending pools on the Plutus extended UTXO smart contract layer introduced in Cardano’s final phase of the Goguen updates.

The Core Team is working to construct a composable UTxO liquidity protocol on Cardano to enable any developer to build interest and liquidity directly into their application. With a focus on composability our team is completing a Liqwid SDK that compiles Haskell code to JS (with API's for each smart contract endpoint) ahead of the v1 launch to enable non-Haskell developers to easily integrate their application balances into qTokens and begin earning yield for their app users.

LQ, the native token of Liqwid, is a Cardano native token that can be used to stake on the system and for governance once the governance module is launched. As a coordinating mechanism LQ enables the community to decide the direction of the protocol in a collective manner.