Token & Incentives
Liquyn uses the LIQ token to reward on-chain participation while keeping the core team aligned with long-term protocol health. Every mechanic is designed to reinforce a simple loop: active users earn LIQ, stake it, and receive better economics that motivate deeper usage.
Allocation Overview
Community Airdrop & Ongoing Rewards
40%
Season Zero airdrop, quest streaks, trading rebates, and future incentive seasons.
Liquidity Programs & Ecosystem Growth
15%
Joint campaigns with partners, cross-protocol integrations, liquidity mining, and vault bootstrap pools.
Treasury & Safety Reserves
10%
Backstop liquidity, security audits, emergency response budgets, and governance experiments.
Strategic Partnerships
10%
Allocations for market makers, institutions, and infrastructure providers who expand Liquyn’s reach.
Core Team
25%
Four-year vest with one-year cliff to keep builders shipping, aligned with user growth metrics.
The 25% team allocation vests progressively and is locked behind multisig controls. Team rewards increase only when user adoption and TVL milestones are met, ensuring the builders benefit alongside the community.
What Makes $LIQ Matter
Fee Reduction: Stake LIQ to knock up to 50% off the Liquyn performance fee on vault gains. Heavy users keep more yield.
Revenue Share: A capped percentage of collected fees cycles back to LIQ stakers, creating steady-value accrual for participants who lock the token.
Boosted Rewards: Holding and staking LIQ grants yield multipliers across vaults, priority in new strategy waitlists, and higher odds in quest raffles.
Together, these perks make LIQ an active tool rather than a passive badge—stakers get tangible, compounding value that beats idle holdings.
Flywheel in Motion
Deposit into vaults or route swaps through Liquyn.
Earn base yield plus points and LIQ drips.
Receive LIQ via the airdrop schedule and seasonal quests.
Stake LIQ to reduce fees and unlock multipliers.
Pay fewer fees while compounding higher rewards.
Earn more, which attracts more users and liquidity back into step one.
Players who stay active through the loop capture a progressively larger slice of Liquyn economics, while the protocol benefits from stickier liquidity.
Airdrop Structure
The Season Zero program blends fairness with targeted boosts so power users and new pilots both feel rewarded:
Organic Usage (50% of the pool): Allocated pro-rata to addresses that expand vault TVL and route meaningful swap volume through Liquyn. Rolling averages reward sustained activity and dampen one-off spikes.
Streak Quests (30%): Held back for weekly questlines that require consecutive participation. Completing three-week streaks doubles a wallet’s quest weight, encouraging consistent engagement rather than mercenary farming.
Late Joiner Boost (20%): Reserved for new wallets that hit TVL or volume caps after the initial launch window. This keeps the door open for fresh pilots without diluting early adopters.
Unclaimed Season Zero tokens recycle into future seasons, keeping incentives fresh for new entrants and ensuring no supply sits idle.
Safeguards & Transparency
All airdrop formulas and on-chain merkle roots publish to the docs and dashboard before distribution.
Vesting streams and staking contracts live under multisig control with third-party monitoring.
Quarterly transparency reports recap how much supply moved into each bucket and what performance metrics triggered releases.
These guardrails keep the LIQ flywheel credible—users know how value flows, and the team only wins when the community does.
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