Overview
Liqwid Finance staking lets you lock up LQ, the token that runs the Liqwid project, and earn rewards for doing so1. It is for people who hold LQ and want their tokens to earn a return while giving them a say in how the project is run. Locked LQ earns staking rewards, a share of the money the protocol makes, and voting power in the Liqwid DAO, a group of token holders who decide how the protocol operates1.
Liqwid is one of the larger lending platforms on Cardano, and this staking product is how the wider community shares in its success. The rewards paid to stakers come partly from the fees that Liqwid's lending business collects, which is then split between the project's shared treasury and the people who lock their LQ2. The number of LQ tokens is capped at 21 million, and no more can ever be created1.
Key Features
- Rewards for locking your tokens. Lock LQ and you earn ongoing staking rewards, plus a portion of the income Liqwid earns from its lending business1.
- A real vote in the project. Each locked LQ counts as one vote in the Liqwid DAO, so you help decide things like interest-rate settings, new features, and how shared funds are spent3.
- Vote yourself or pass it on. You can cast votes directly, or hand your voting power to another wallet you trust, a bit like choosing a representative3.
- Bonus rewards for Aquafarmer NFT holders. Holding one of Liqwid's official Aquafarmer collectible tokens in your staking wallet increases the rewards you earn, with rarer ones carrying a bigger boost.
- Open, reviewed foundations. The voting system runs on an open-source module called Agora, whose code is public, and Liqwid's underlying contracts were reviewed by the security firm Vacuumlabs4.
What to Expect
You connect a Cardano wallet, choose how much LQ to lock, and confirm the transaction. Once locked, your tokens begin earning rewards and your voting power becomes active. Only the LQ you actually lock earns rewards or counts toward a vote; tokens left in your wallet do neither1.
When a decision comes up, it starts as an open discussion on the Liqwid governance forum before moving to an on-chain vote that anyone with locked LQ can join3. The exact reward rate is set by the community through votes and can change over time.
