Origins

Uniswap launched in 2018, and quickly grew to have a market cap over a billion dollars by providing swaps on ETH for ERC20 tokens. By all means, the project was a great success, providing liquidity to tokens and profits to liquidity providers. The project was backed by venture capitalists and had a solid and well experienced development team.

This first Iteration functioned as intended but outside of being in control of your own stake, Uniswap for all intents and purposes was a centralized platform. The Introduction of the UNI token after 2 years of active swaps only solidified the monopolization of Uniswaps total liquidity. Launching UNI with a 60% community cut , along with a high token cap of 1 billion only hampered its ability to appreciate in value. Instead of introducing massive amounts of tokens early on for whales to buy up, LIQUID’s approach will epitomize fair distribution.

A perfect example of an unfair distribution is Sushiswap. A large portion of liquidity providers rely on audits and professional code inspections to feel at least somewhat comfortable depositing funds. When Sushi launched, there was a significant amount of time for whales to purchase and stake extraordinarily high amounts of SUSHI. So When these audits were finally performed, the majority of sushi votes were being held by less than 10 people. At this same moment, the project in its entirety was still under the control of 1 person. Regardless of what may have transpired after the fact, all of these mistakes were completely avoidable.

Last second launches, large whale purchases and exceedingly high mint rates all contribute to the degradation of any token or currency. The whole point of LIQUID and the new protocol is to remove back end capital compensation and design a truly community controlled swap and liquidity pool platform. This New Protocol will incentivize a whole new generation of liquidity pools and the level of market competition will force ALL platforms to adapt or be forked into the nether.

LIQUID intends on launching this new protocol community-controlled from day 1. No longer will pool fees be locked or unchangeable through the DAO voting system. The ability to propose pool fee changes at a moments notice through an external contract execution will allow LIQUID and each subsequent to continuously control their profit and liquidity capture.