DLQ is the native token of Deliq Finance. It’s the third pillar in addition to LDs and LPs on which Deliq Finance is built. DLQ is much more than just a governance token and can be considered as tokenized form of liquidity. The total supply of DLQ is 100 million and is minted in a phased manner with decreasing inflationary pressure.
Use cases of Deliq Finance :
1) Can be staked to direct liquidity and earn high APY.
2) Acts as a backstopping/ IL risk mitigation mechanism (similar to AAVE) in case of a large number of withdrawals from a token pool.
3) A governance token for DeliqDAO.
4) LPs and LDs are rewarded in DLQ in phases for their participation in injecting liquidity to the ecosystem.
Inflationary tokenomics of DLQ :
Deliq will start it’s journey similar to other protocols by providing DLQ rewards to users , but Deliq will slowly transition into a self sustainable infrastructure layer where the protocol controlled assets/rewards will power the reward mechanism of Deliq . When this ideal stage is achieved , Deliq will stop further minting of DLQ token and cut the inflationary pressure forever .
Road to reach this ideal stage is surely tough , but our carefully planned integrations and methods to achieve a threshold PCA will pave the way to become the primary liquidity layer of DeFi. We believe Layer 2 bridges and stable swap protocols are the most important pieces to increase the protocol controlled assets . Layer 2s now control more than 2b dollar worth of TVL and lots more to come in the future years .
Deliq will help users bridging their assets to Layer 2s by injecting deep liquidity into the bridges to make onboarding to L2 more cost efficient and less time consuming.