Liquidity & Vaults Playbook

Liquyn bootstraps platform liquidity through community presale and proprietary vault strategies. This guide explains how our in-house liquidity infrastructure works and what makes Liquyn's approach un

Liquidity Sources

1. Presale Capital ($500K Target)

The LIQ token presale raises initial capital for:

• 0DTE Options Market Making (50% - $250K)

  • Seed liquidity for options trading

  • Cover volatility exposure

  • Enable day-one trading with minimal slippage

• Proprietary Vault Strategies (30% - $150K)

  • Bootstrap options selling vaults

  • Market making operations

  • Liquidity for all vault strategies

• Tournament & Lottery Pools (10% - $50K)

  • Initial prize pools

  • Jackpot reserves

  • User acquisition incentives

2. Proprietary Vault Strategies

Liquyn develops and operates its own vault strategies using 0DTE options:

Strategy TypeRisk LevelMechanismExpected APY

Covered Calls

Conservative

Sell OTM calls on existing positions

30-50%

Cash-Secured Puts

Conservative

Sell OTM puts with full collateral

35-55%

Iron Condors

Moderate

Sell both call and put spreads

50-70%

Straddles/Strangles

Aggressive

Volatility-based strategies

70-120%

Delta-Neutral MM

Moderate

Market making with hedging

40-60%

Vault Mechanics:

• Deposits instantly enter active strategies

• Auto-rebalancing based on market conditions

• Automated delta hedging via Hyperliquid perps

• Withdrawals available anytime (no lock-up)

3. Competitive Advantages

• Full Control – no dependency on external protocols

• Proprietary Strategies – unique alpha generation

• Faster Execution – direct integration with Hyperliquid

• Higher Margins – no revenue sharing with partners

Architecture & Infrastructure

Smart Contracts

Copy

LiquynVault.sol
├── Accepts user deposits
├── Issues ERC4626 vault shares
└── Manages withdrawals

StrategyController.sol
├── Routes capital to active strategies
├── Monitors performance metrics
└── Triggers rebalancing

OptionsVault.sol
├── Executes options strategies
├── Collects premiums
└── Manages delta hedging

DailyTournamentVault.sol
├── Holds tournament deposits
├── Tracks P&L
└── Distributes prizes

LiquidationLottery.sol
├── Monitors Hyperliquid liquidations
├── Allocates lottery tickets
└── Executes draws via oracle

CircuitBreaker.sol
├── Monitors vault health
├── Triggers emergency stops
└── Protects user funds

Backend Services

• Oracle Price Updater – fetches Hyperliquid prices, updates on-chain oracle

• Delta Hedger – maintains neutral exposure for all options positions

• Strategy Optimizer – analyzes market conditions and selects best strategy

• Tournament Executor – executes perp trades for tournament participants

• Liquidation Monitor – watches for liquidation events, feeds lottery contract

• Risk Manager – monitors vault health and triggers circuit breakers

Operational Security

• Circuit Breakers – auto-pause on abnormal conditions

• Insurance Fund – 5% of revenue reserved for potential losses

• Multisig Control – critical functions require 3/5 signatures

• Health Monitoring – 24/7 alerts for vault metrics

• Rate Limiting – prevents rapid withdrawal attacks

Liquidity Growth Strategy

Phase 1: Bootstrap (Months 1-2)

Goal: $5M TVL

• Complete $500K presale

• Launch with 3 core vaults

• Enable options trading

• Run first tournaments

Tactics:

• High APY offers (100%+ initially via LIQ rewards)

• First depositor bonuses (10x points)

• Referral program (5% of referee deposits)

Phase 2: Scale (Months 3-6)

Goal: $25M TVL

• Add more vault strategies

• Increase options market depth

• Daily tournaments with larger prizes

• Mobile app for wider reach

Tactics:

• Liquidity mining (20M LIQ over 3 years)

• Partnership announcements

• Influencer campaigns

• Trading competitions

Phase 3: Mature (Months 6-12)

Goal: $100M TVL

• Institutional vault products

• Multi-expiry options (1-7 days)

• Cross-chain expansion

• Professional features

Tactics:

• CEX listings for LIQ

• Institutional partnerships

• White-label offerings

• DAO governance launch

Incentives & Rewards

LIQ Staking Benefits

Stake LIQ to receive:

• Revenue Share: 50% of all protocol fees

• Boosted APY: Up to 2x multiplier on vault yields

• Fee Discounts: 50% off trading fees

• Priority Access: Early entry to new features

Liquidity Mining Schedule

PeriodLIQ/MonthPrimary Target

Month 1-3

500,000

Vault depositors (70%), Options traders (20%), Tournaments (10%)

Month 4-6

400,000

Same split, declining rate

Month 7-12

300,000

Focus on options volume

Year 2

200,000

DAO-governed allocation

Year 3+

100,000

Long-term sustainability

Revenue Flywheel

Copy

1. Users deposit → Vaults generate yield
2. Options traders → Generate trading fees
3. Tournament entries → Create prize pools
4. Lottery participation → Drives engagement
5. Protocol earns fees → Distribute to LIQ stakers
6. Higher staking rewards → Attract more users
7. More TVL → Better liquidity → Lower slippage
8. Better UX → More users → Cycle amplifies

Risk Management

Vault Protection

• Max Leverage: 3x on any strategy

• Stop Loss: Auto-deleverage at -15% drawdown

• Allocation Limits: No more than 40% in single protocol

• Collateral Buffers: 20% extra collateral maintained

Options Risk

• Delta Hedging: Automated via Hyperliquid perps

• Position Limits: Max $100K per options series

• Gamma Exposure: Capped at 0.5 per $1M TVL

• IV Bands: Reject orders outside 50-200% IV range

Emergency Procedures

• Circuit Breaker Trigger: Pause deposits/withdrawals

• Multisig Recovery: 3/5 approval for emergency actions

• Insurance Fund: Backstop for unexpected losses

• Communication: Immediate Discord/Twitter alerts

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Refer to the Token & Presale page for detailed tokenomics and Project Goals for our long-term roadmap.